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This market report offers an incisive and reliable overview of the wind sector of the country. With more than 550 MW installed cumulative capacity, Bulgaria was one of the fastest growing European wind energy markets for 2011. The country represents a stable investment environment in South-East Europe with clear rules and fair FIT rates. The report provides a complete picture of the market situation, dynamics, current issues and future prospects.
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BULGARIAN WIND MARKET
Outlook 2012
Inea Consulting is well established renewable energy advisory firm focused to emerging markets of South East Europe. Through its analytical arm Inea Research, the company provides independent renewable sectors watch, customized analysis, market outlooks and sector studies. What makes us different is the quality and accuracy of information, which is interpreted in the best way to take your investment decisions.
www.ineaconsulting.eu
BULGARIAN WIND MARKET: OUTLOOK 2012
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This market report offers an incisive and reliable overview of the wind sector of the country. With more than 550 MW installed cumulative capacity, Bulgaria was one of the fastest growing European wind energy markets for 2011. The country represents a stable investment environment in South-East Europe with clear rules and fair FIT rates. The report provides a complete picture of the market situation, dynamics, current issues and future prospects. You will find more than 50 pages of valuable information in this unique in-depth analysis of the Bulgarian wind market. With comprehensive market data this report brings clear and concise insights, to help investors in their decision making process. As 2011 was challenging year for wind industry, the time for taking right decisions during 2012 is limited. Fast changing market environment, requires relevant and accurate information. For your convenience we offer opportunity for orders with customized report content. Reasons to buy this market report include:
Brief overview of the Bulgarian political and economic environment Wind resource potential in Bulgaria Overview of Bulgarian wind market development 2007 ÷ 2012 Grid connected wind farms for 2011/2012 Future market trends and planned wind projects for 2012/2013 Current market prices of fully permitted and operational wind projects Bulgarian legal and energy regulatory framework for renewable projects Key companies in wind sector Review of most relevant financing and supporting incentives SWOT Analysis
At next pages you will see the full table of content of this report. For sample report pages request, please do not hesitate to contact us. To order this report just fill in and send us the enclosed at the last page order form. If you have any other questions please do not hesitate to call us on ++359 887 342 475 or write an e-mail to [email protected]
BULGARIAN WIND MARKET: OUTLOOK 2011
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TABLE OF CONTENTS
FOREWORD ................................................................................................................ 7
1. METHODOLOGY ................................................................................................ 9
2. EXECUTIVE SUMMARY .................................................................................... 11
3. BULGARIAN POLITICAL AND ECONOMIC ENVIRONMENT ................................. 14
3.1. Basic country data ............................................................................................... 14 3.2. Political Climate and Ruling Party ....................................................................... 17 3.3. GDP and Economic Growth ................................................................................. 17 3.4. Electricity Imports and Exports. Electricity prices for business and households 19 3.5. Taxes .................................................................................................................... 21
3.5.1. VAT ................................................................................................................... 21 3.5.2. Income and Corporate Taxes ........................................................................... 21
4. BULGARIAN WIND ENERGY MARKET ............................................................... 22
4.1. General electricity market information .............................................................. 22 4.1.1. Electricity Consumption and Production ......................................................... 23 4.1.2. RES targets ....................................................................................................... 23
4.2. Wind market ........................................................................................................ 26 4.2.1. Why invest in wind energy in Bulgaria? .......................................................... 28 4.2.2. Bulgarian wind resource potential .................................................................. 29 4.2.3. Overview of Bulgarian wind market ................................................................ 30 4.2.4. Market prices for wind projects in Bulgaria .................................................... 31 4.2.5. Development projects and operational wind power plants in Bulgaria ......... 32 4.2.6. Key local wind companies................................................................................ 33
5. EUROPEAN RENEWABLE ENERGY POLICY LANDSCAPE ..................................... 34
5.1. Bulgarian RES Regulations and EU Directives ..................................................... 34 5.1.1. Precedent EU regulations ................................................................................ 34 5.1.2. Most recent EU renewable energy policy developments ............................... 35
5.2. Renewable energy mandatory targets for Bulgaria set out by the EU ............... 35 5.2.1. Interim targets set out by the EU .................................................................... 35 5.2.2. National support schemes flexibility allowed by the EU ................................. 36
5.3. PV LEGAL Project ................................................................................................. 37
6. BULGARIAN RENEWABLE LEGAL AND REGULATORY FRAMEWORK .................. 37
6.1. Main laws and regulations .................................................................................. 37 6.2. Zoning, planning and construction related authorizations ................................. 38 6.3. Environmental related authorizations ................................................................ 39
6.3.1. Natura 2000 Network ...................................................................................... 39 6.3.2. Joint Implementation ...................................................................................... 40
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6.4. Energy law authorizations ................................................................................... 40 6.4.1. Power Generation Licensing ............................................................................ 40 6.4.2. Grid Interconnection ....................................................................................... 40 6.4.3. Power Off-Take ................................................................................................ 41 6.4.4. Feed-in tariff (FIT) ............................................................................................ 41 6.4.5. Certificate of Origin ......................................................................................... 42
6.5. Ten key points in new Bulgarian RES law ............................................................ 43 6.6. Financial Incentives and Support for RES electricity ........................................... 45 6.7. Future market pricing mechanisms..................................................................... 46 6.8. Key Co-financing opportunities ........................................................................... 46
6.8.1. Bulgarian Energy Efficiency and Renewable Energy Credit Line ..................... 46 6.8.2. Measure 311 .................................................................................................... 48 6.8.3. Measure 312 .................................................................................................... 49 6.8.4. European Local Energy Assistance .................................................................. 49 6.8.5. Operational Program Competitiveness ........................................................... 50 6.8.6. Implementing Energy Saving Technologies in Enterprises Scheme ................ 51
7. KEY ORGANIZATIONS AND INSTITUTIONS ....................................................... 51
7.1. Government ........................................................................................................ 51 7.1.1. The Ministry of Economy, Energy and Tourism (MEET) .................................. 52 7.1.2. The State Energy and Water Regulatory commission (SEWRC) ...................... 52 7.1.3. Agency for Sustainable Energy Development (ASED) ..................................... 52 7.1.4. MOEW and RIEW ............................................................................................. 53
7.2. Electricity Distribution Companies (EDC’s) ......................................................... 53 7.2.1. EVN .................................................................................................................. 54 7.2.2. E.ON Bulgaria/ Energo Pro ............................................................................... 54 7.2.3. CEZ ................................................................................................................... 56
8. SWOT Analysis ................................................................................................ 58
9. CONCLUSIONS ................................................................................................ 62
10. LIST OF ABBREVIATIONS ................................................................................. 64
11. REFERENCES ................................................................................................... 66
12. DISCLAIMER .................................................................................................... 75
13. APPENDIX I. WIND MAPS OF EUROPE AND BULGARIA .................................... 76
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LIST OF MAPS, CHARTS AND TABLES
Map 1: Where is Bulgaria on the European map............................................................... 14 Map 2: Major transport corridors passing through Bulgaria ............................................. 15 Map 3: Bulgarian regions ................................................................................................... 16 Map 4: Wind potential of Bulgaria ..................................................................................... 28 Map 5: NATURA 2000 areas in Bulgaria ............................................................................. 39 Map 6: Districts covered by EVN Bulgaria ......................................................................... 54 Map 7: Districts covered by E.ON Bulgaria/ENERGO-PRO ................................................ 56 Map 8: Districts covered by CEZ ........................................................................................ 57
Chart 1: Real GDP growth for the period 2000-2012 (including estimates) ...................... 18 Chart 2: Bulgarian GDP growth compared to EU-27 for the period 2002-2011(Q1) ........ 19 Chart 3: Electricity imports and exports for the period 2004-2011 (in million MWh) including estimations ......................................................................................................... 20 Chart 4: Corporate tax income in the region ..................................................................... 21 Chart 5: Structure of Bulgarian electricity market ............................................................. 22 Chart 6: Gross RES electricity consumption 2010 .............................................................. 23 Chart 7: Bulgarian RES targets in % set by the EU ............................................................. 25 Chart 8: Cumulative developments of wind power plants in Bulgaria in MWp from 2007 to 2012, including estimates .............................................................................................. 33 Chart 9: BEERCL structure .................................................................................................. 47 Chart 10: Market Shares by Sales of the Major Utility Companies in Bulgaria in 2008 .... 53 Chart 11: Structure of ENERGO-PRO Bulgaria ................................................................... 55
Table 1: Electricity prices for business and households .................................................... 20 Table 2: Support schemes for RES generation in the EU countries ................................... 27 Table 3: Market prices for wind projects in Bulgaria for 2012 .......................................... 32 Table 4: Feed-in-tariffs for electricity from wind sources in Bulgaria ............................... 42
