EAST-GSR WP2 Report Final Bulgaria (English)

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    EAST GSR Project WP2 Bulgarian market situation & GSR Potential

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    Table of contents

    1. BULGARIA Introduction _________________________________________ 4

    2. State of present hot water market and future potential in Bulgaria (subtask 2.1)

    7 2.1. Energy context __________________________________________________________ 7

    2.1.1. Energy statistics and trends _______________________________________________ 72.1.2. National strategy ______________________________________________________ 11

    2.2. Solar hot water market _________________________________________________ 14 2.2.1. Background __________________________________________________________ 142.2.2. Solar market key figures ________________________________________________ 162.2.3. Solar Radiation________________________________________________________ 302.2.4. Local bodies, prescribers, certification _____________________________________ 372.2.5. Products _____________________________________________________________ 382.2.6. Distribution, marketing, after sales ________________________________________ 392.2.7. Barriers to overcome for implementation of solar thermal installations ____________ 40

    2.3. Sectorial Approach _____________________________________________________ 41 2.3.1. Hotel sector __________________________________________________________ 41

    a) National tourism policy ___________________________________________________ 42 b) Technical information ____________________________________________________ 43c) Relevant regulations for solar market in the hotel sector__________________________ 44d) Hotel sector organization __________________________________________________ 44

    2.3.2. Housing Sector in Bulgaria ______________________________________________ 45a) National policy__________________________________________________________ 47

    b) Technical information ____________________________________________________ 49c) Relevant regulations for the solar market in building sector _______________________ 52d) Housing sector organization________________________________________________ 53

    2.3.3. Other sectors to be considered ____________________________________________ 532.3.4. Domestic hot water needs evolution by sector________________________________ 54

    3. Identification of economic and financial requirements for a wide disseminationof the GSR concept (subtask 2.2)________________________________________ 57

    3.1. The institutions____________________________________________________________ 57

    3.2. Standards and regulations ___________________________________________________ 58

    3.3. Economic analysis in housing and hotel sectors __________________________________ 593.4. Taxes and customs duty_____________________________________________________ 59

    3.5. Energy prices _____________________________________________________________ 59

    3.6. Incentives and funding______________________________________________________ 61

    3.7. Improvement margins ______________________________________________________ 62

    4. Conclusion Requirement for a successful implementation of the GSR contract_ ___________________________________________________________ 63

    Acronyms and Abbreviations __________________________________________ 68

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    Annex 1.1___________________________________________________________ 69

    Annex 1.2___________________________________________________________ 70

    Annex 2.1.1.1________________________________________________________ 71

    Annex 2.1.1.2________________________________________________________ 72

    Annex 2.1.1.3________________________________________________________ 73

    Annex 2.1.1.4________________________________________________________ 74

    Annex 2.1.2.1________________________________________________________ 75

    Annex 2.2.1.1________________________________________________________ 76

    Annex 2.2.1.2________________________________________________________ 77

    Annex 2.2.2.3________________________________________________________ 78

    Annex 2.3.1.1________________________________________________________ 83

    Annex 2.3.1.2________________________________________________________ 84

    Annex 2.3.2.1________________________________________________________ 85

    Annex 2.3.2.2________________________________________________________ 86

    Annex 2.3.2.3________________________________________________________ 88

    Annex 3.2.1 _________________________________________________________ 94

    Annex 3.5.1 _________________________________________________________ 95

    Annex 3.5.1 _________________________________________________________ 96

    Annex 5.1___________________________________________________________ 97

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    1. BULGARIA IntroductionThe Republic of Bulgaria is located in the southeastern part of Europe on the Balkan Peninsula. Thecountry borders on Greece and Turkey to the south, the Former Yugoslav Republic of Macedonia andSerbia to the west, Romania to the north and the Black Sea to the east. The country has a population of around 7.9 million and covers a territory of 110 912 (km) 2.

    Statistics in brief:

    Area: total: 110,910 sq kmLand boundaries: total: 1,808 km border countries: Greece 494 km, Macedonia 148 km, Romania 608

    km, Serbia 318 km, Turkey 240 kmCoastline: 354 km Climate: temperate; cold, damp winters; hot, dry summersTerrain: mostly mountains with lowlands in north and southeastElevation extremes: lowest point: Black Sea 0 m highest point: Musala 2,925 mCapital: Sofia (1 096 389 inhabitants, 2005)Currency : Bulgaria lev (BGN), convertible1,95583 BGN = EUR 1 (constant)1,5221 BGN = USD 1 (08.08.2006)

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    In the following diagram is shown the natural migration of the population:

    In Annex 1.1 is given:

    The population structure (rural and urban residence) The structure of the population and the employed The structure of active working population

    In Annex 1.2 the Basic Indicators about Economic Development in Bulgaria are given.

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    2. State of present hot water market and future potential in Bulgaria (subtask 2.1)

    2.1. Energy context2.1.1. Energy statistics and trends

    Primary energy consumption (PEC) in Bulgaria for the period 2000 2005In the following tables and figures are given the values of fuels and energies in PEC

    Quantities of fuels and energies in PEC

    year 2000 2001 2002 2003 2004 2005Coal and other fuels ktoe 6759 7266 6570 7365 7873 8267

    Oil ktoe 4220 4092 4473 4653 4899 5156Natural gas ktoe 2932 2738 2404 2500 2644 2814

    Nuclear ktoe 4925 5277 5463 4594 4475 4251Hydro ktoe 230 149 189 255 256 189

    El. energy (export) ktoe -397 -595 -541 -472 -505 -480

    Timber, etc ktoe 558 543 647 709 801 834PEC ktoe 19227 19470 19205 19604 20441 21030

    Primary energy consumption for theperiod 2000-2005

    1800019000200002100022000

    2000 2001 2002 2003 2004 2005

    0100020003000400050006000700080009000

    2000 2001 2002 2003 2004 2005

    Coal

    Oil

    Natural gas

    Hydro

    BiomassNuclear

    Fuel and energy in PEC for the period 2000 2005

    Final energy consumption (FEC) in Bulgaria for the period 2000 2005 for energy needs

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    Year 2000 2001 2002 2003 2004 2005Liquid fuels ktoe 3007 3114 3184 3468 3651 3843Natural gas ktoe 937 778 741 814 869 943

    Coal ktoe 986 936 1028 1127 1199 1252El. energy ktoe 2075 2110 2067 2153 2208 2270

    Heat ktoe 876 935 859 911 951 986Timber ktoe 555 541 642 706 801 834

    Total ktoe 8435 8414 8521 9179 9678 10127

    Final energy consumption for theperiod 2000- 2005

    0

    5000

    10000

    15000

    2000 2001 2002 2003 2004 2005

    k t o e

    0500

    1000150020002500

    300035004000

    2000 2001 2002 2003 2004 2005

    Liquid fuelsNatural gasCoalEl.energyHeat

    Timber

    Fuels and energy in FEC for the period 2000 2005

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    In the next table are given the shares of the fuels and energy in FEC.

    2000 2001 2002 2003 2004 2005Liquid fuels % 35.6 37.0 37.4 37.8 37.7 37.9Natural gas % 11.1 9.2 8.7 8.9 9.0 9.3

    Coal % 11.7 11.1 12.1 12.3 12.4 12.4El. energy % 24.6 25.1 24.3 23.5 22.8 22.4

    Heat % 10.4 11.1 10.1 9.9 9.8 9.7Timber % 6.6 6.4 7.5 7.7 8.3 8.2

    Total % 100 100 100 100 100 100

    One of the main indicators is the Primary energy intensity (PEI) and the Final energy intensity (FEI). Inthe following table are given the FEI and the PEI. The Gross domestic product is corrected with factor,corresponding to the purchasing power of BGN for 1995, which creates base for internationalcomparisons.

    Years 2000 2001 2002 2003 2004 2005PEI Koe/$95p 0,445 0,443 0,407 0,399 0,395 0,386FEI Koe/$95p 0,195 0,187 0,181 0,187 0,187 0,186

    FEI/ PEI - 0,439 0,432 0,444 0,468 0,474 0,482

    In the energy sector, Bulgaria is confronted with a series of major challenges stemming from bothobjective causes and circumstances and the delay in carrying out the reforms during the years of transition.

    In Annex 2.1.1.1 is given the map of Power grid, Gas pipelines and Transit pipelines.

    In Annex 2.1.1.2 is given the historical evolution and prognosis for the electrical energy finalconsumption in Bulgaria.

    In Annex 2.1.1.3 the graphic shows the consumption of electricity in Bulgaria, compared to other countries.

    Bulgaria is heavily dependent on energy as it imports more than 70% of its primary energy sources. Theonly significant domestic energy source is low-quality lignite coal with high content of sulphur, somehydro potential and RES. Bulgaria is mainly reliant on energy sources from Russia: oil, natural gas,high-quality coal and nuclear fuel. This structure of the energy balance causes concern in terms of thesecurity of energy supply. The European Union whose dependence on imports is less (about 50%, butwith a trend towards increasing this share up to 70% in 20 years time) is making strenuous efforts intwo key areas:

    - Reduction in specific energy intensity per GDP unit in economy; and- Utilization of local renewable energy sources (RES).The National Strategy for Energy Sector and Energy Efficiency Development till 2010, adopted by theCouncil of Ministers and endorsed in principle by the National Assembly in 1999, sets long-termuniversal objectives reflecting the needs of the country for secure energy supply, energy efficiency,environmental protection and nuclear safety.

    In Annex 2.1.1.4 are given data for Energy production and consumption for Bulgaria, Europe and theWorld.

    Renewable energy sources (RES) represent another local source that can help reduce reliance onimport, improve the security of energy supply, and meet the commitments to protect the environmentand contribute to employment generation. Moreover, much of the

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    RES (biomass, small hydropower plants, geothermal energy, etc.) have a significant resource, technicaland economic potential. Nevertheless, being used irregularly and insufficiently, their share in the totalgross energy consumption is negligible. A serious obstacle to their development is the higher cost of initial investments.

    In the following table is given the theoretical and technically feasible potential of the RES in Bulgaria.

    RESTheoretical

    potential 10 3

    toe/ year

    Technicallyfeasible potential

    (2010) 10 3 toe/ yearUsage

    Solar 13 x 10 6 246 Domestic hot water Biomass 3608 380 Heating, cooking, industrial needs

    Hydropower 2276 428 Electricity generationGeothermal 482 95 Green houses, health care, domestic heating

    Wind 75000 31,5 Electricity generation and water pumping for irrigation

    Energy policy popularization and its integration into the common conception for sustainabledevelopment, contributed to increased activity in the processes of project implementation and initiativesfor RES usage in the country.

    The analysis of investment activity and the interest in the field of implementing such projects in the period 2000 2005 shows the importance of developing the suitable law frames and instruments for stimulating such products. The lack of investment projects and building of new production facilities in2000 and the presence of demonstration projects only, which dont affect the energy system as a whole,only confirm the mutual commitment running a wise policy in the field and increasing the financialactivity.

    In the following table the data is shown for realized RES projects.

    Average annual productionType of RES Number of projectsexecutedInstalled capacity

    kW Electric energy MWh Heat energy MWhHydro small HPP 26 22 956 36 416 -

    Biomass 19 18 750 - 56 250Geothermal 12 26 680 - 80 040Wind energy 6 1 075 4 300 -

    Total 63 93 117 40 715 136 290

    The executed projects for heat and electricity generation from RES for the period 2001 2004 are proof for the successful implementation of the policy. The prognosis for 2005 2006, related withenforcement of new legislation and EU pre accession hopes of Bulgaria, in particular the developmentof market for tradable green certificates, shows the investors interest in the field of realization of projectsfor utilization of hydro resources building of small HPP, building of new facilities for biomass, withdifferent capacity, wind power plants, mainly in coastal areas a new facilities is expected to come inoperation in Burgas, cape Emine and Kavarna, as well as realization of socially significant projects, asmethane utilization in Suhodol dung hill.

    A huge number of projects for solar installation for DHW are realized in hotel complexes and privatehomes in Black sea and mountain regions.

    At present in force are The Energy Law, adopted by the Parliament on November 26, 2003 and TheEnergy Efficiency Act, adopted on February 19 th 2004.

    In The Energy Law, The Renewable energy sources are referred in Chapter Eleven Promotion of power generation from RES and combined generation i.e. its said only for electricity energy production

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    in certain cases. That makes necessary and now is in preparation new law for RES, which targets their wider utilization in Bulgaria.

    2.1.2. National strategy

    The Renewable Energy Sources national objectives are based on the accessible potential of differenttypes of RES.

    In Annex 2.1.2.1 is given the accessible potential of RES in Bulgaria (according to World EnergyCouncil Assessments).

    The Renewable Energy Sources national objectives up to present are put in the Energy Law, Chapter Eleven Promotion of power generation from RES and combined generation. The law provides buyingthe energy produced at preferential prices.

    Now an amendment to the law is in preparation, which provides conclusion of 12 years contracts for buying of the energy from wind, hydro power plants and biomass. In the autumn of 2006 the Parliamentwill start to discuss a new law, for stimulation the production of energy from RES.

    National goals and targets for solar thermal systems and National strategy and programs of activities are based on the solar conditions and the prognosis of the development of thermal market inthe country.

    It is provided that heat energy consumption increases with speed a bit lower (~ 4% annually) from thespeed of GDP increasing. This trend is slightly bigger from the trend of increasing of electric energy (~2% annually). This prognosis is based on the significantly lower levels of heat energy consumption inBulgaria that an average for EU countries, which suggests sharp recovery of worsened for previousyears thermal comfort.

    In the next figure is given the development of the heat energy.

    H E AT E N E R G Y ( w i t h o u t i n d u s t r ia l ) in t h e p e r i o d 1 9 9 7 - 2 0 1 5

    0

    50 0

    1000

    1500

    2000

    2500

    3000

    3500

    1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 y e a r.

    k toe

    Liquid fue l s Natura l gas Coals Elec t r i c energy H e a t B i o m a s s Tota l

    At the end of the period of 2005 2015 is expected the heat energy to come from biomass (36%),central heating (25%), coal and natural gas (on 17% each). The liquid fuels and electricity will fill thegap with 5%. It is expected that in 2015 the energy, necessary for heating and DHW to exceed 3 300 ktoe annually, from which at least 10% or about 330 ktoe are for producing of DHW. In these quantitiesare not included RES, but biomass. In practice, part of the conventional fuels and energies will besubstituted with RES.

    The heat energy production from RES will always have to be regarded not only as accessible energy potential, but also as an effective delivery of the generated energy to the end consumers.

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    The solar radiation, transformed into heat through conventional thermal solar collectors, may be set as a priority for production of hot water from late spring, summer and Indian summer.

    Despite this they are solar thermal systems, which can operate year round, but because their high price atthe moment, their effective use could hardly be proved.

    For production of the half of the necessary quantity for DHW energy in the country (134 ktoe; 1 554GWh) are necessary installations of not less than 3 000000m 2 selective thermal solar collectors (500kWh average annual productivity per m 2).

    When working out short-term programs this possibility have to be detailed with priority, taking intoaccount the possibilities for installation of solar thermal systems for DHW in the areas with high

    population density and high value of radiation potential. Very suitable and economically effective will be multi family buildings in sunny regions. These systems can be viewed, as a supplement to centraldistrict heating systems in big cities, which will supply the subscribers with hot water during sunnymonths, when the costs of the hot water, carried by the systems of central heating is relatively high.

    The short term program for the next three years, for the use of solar thermal collectors, should includesuitable state and municipal buildings, consuming electricity or liquid fuels for production of DHW.Good examples for this are social houses, kindergartens, hospitals and other buildings, municipallyowned. On preliminary estimations in 2015 these buildings will consume about 64 ktoe or 742.10 6

    kWh(t) heat energy. If we assume, that half of the energy, needed for DHW (32 ktoe) been producedthrough the sunny days of the year from solar thermal collectors, no more than 1.10 5 m2 solar thermalcollectors will necessary. The state could give an example by cut off the use of the expensive electricenergy and liquid fuels for production of heat energy.

    The measures in short term program for RES, introducing solar thermal collectors in such scale, isexpedient to be combined with recommendations from final statements of executed energy examinationsin state and municipal buildings with Unfolded Building Area over 1000 m 2 . When renovating these

    buildings apart from measures for improving thermal insulation of the building, as a priority should beincluded measures for introducing solar collectors and replacement of the existing heating with such,

    based on RES (biomass and derivatives; geothermal energy; thermo pumps)

    One of the main fields for solar collectors is in hotel sector, restaurants, etc.

    From the economic point of view of interest for solar thermal systems utilization as it was stated aboveis period late spring summer early autumn, when main factors, determining total solar radiation inBulgaria are more favorable. The main stream of total solar radiation in hours around noon, as more than70% from the solar energy flow is in hours between 9 and 15, considered as most active in terms of sumshining. For this period we may take an average for sun shining 1800 h, average resource for solar radiation 1 230 kWh/m 2 and efficient coefficient for non selective panels ~66%

    At present in Bulgaria there are installed solar thermal installations with total surface of 56 x 103

    andtotal installed capacity of 42 MW (t).

    On the figure below is shown prognosis for increasing of total surface of installed solar thermalcollectors until 2015

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    Surface of installed solar collectors

    27 39 56

    260

    470

    0 100 200 300 400 500

    1995 2000 2005 2010 2015 2020 years

    10 3 . m2

    Prognosis for energy utilization of solar energy until 2015

    On the ground of present condition of the solar thermal installations for DHW and expectedtechnological innovations two prognosis are made for the utilization of solar energy for the period until2015.

    Pessimistic prognosis is connected with still high investments for the equipments, needed for solar thermal installations. This determines the demand of non-selective type collectors, as much cheaper, butmore imperfect. The fact that still lacks sufficient technical information to lead the consumer toward the

    particular technologies and solutions has to be taken in mind. The market is still in its youths and thecompetition between solar companies is not significant. There is no interest from the state for massimplementation of solar thermal collectors in state owned buildings or municipal buildings.

    Optimistic prognosis for the same period follows the scenario for Europe, but with lower rate of increase. It is assumed a future development of the technology market, which will reflect on the price of investments and shorten their pay back periods. To this might be added an eventual interest from thegovernment concurring with the Energy strategy of Bulgaria, and programs for mass implementation of solar thermal systems for DHW in state and municipal owned buildings as well as measures for their refurbishments to be adopted.

    Prediction for energy utilization of the solar energy

    22 31 45 64 97

    22 31 45

    21 0

    38 1

    0 10 0 20 0 30 0 40 0 50 0

    1995 2000 2005 2010 2015

    years

    GW h

    Real expected optimistic

    On average evaluation the quantity of solar energy from solar collectors in 2010 is to be 137 GWh (11.8ktoe) and for 2015 239 GWh (20.6 ktoe).

    The National institutional framework, which is responsible for the development of RES, is asfollows:

    The Ministry of Economy and Energy is working on the development of the economic and energy policy of the Bulgarian state. One of the main trends in his policy is stimulating measures on energyefficiency and the use of renewable energy resources.

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    The Energy Efficiency Agency (EEA) is under the authority of the Ministry of Economy and Energy.One of the main priorities of EEA is:

    Increasing of energy efficiency and Renewable energy resources and increasing in their use.

    The Energy Efficiency Agency coordinates also the activities on RES with ministries, localgovernments, non governmental organizations and different commercial and specialized firms and

    professional organizations. The EEA participates also in initiation, organization and support for realization of projects on EE and RES.

    The State Energy and Water Regulatory Commission (SEWRC)

    The SEWRC is an independent specialized state body. One of the main objectives is to supervisecompetition and pricing in the energy market and protect the customers and the public interest, and theenvironment. Through regulation of the prices of the electrical and heat energy as well as of the liquidfuels and the natural gas, and besides the price of RES, the implementation of RES, including Solar Thermal Energy is promoted.

    Central Laboratory on Solar Energy and New Energy Sources (CLSENES) to the Bulgarian Academy of Sciences (BAS)

    The Central Laboratory on Solar Energy and New Energy Sources was founded in 1975. The main topicis Scientific Studies and Consulting. The laboratory was approved as a leader in photovoltaic inBulgaria.

    The 90s, with the change of the conditions for financing of science, as well as with the economic drop inthe industry, the scientific and applied activity in the field of the thermal collectors was seriouslyhindered. For activation of the scientific and applied activity in the last years are some projects, financed

    by the 5 th Framework Program of the European Union, and namely the project Bulgarian Center onSolar Energy. Within the frames of this project is financed the establishment of a laboratory for testingof water collectors in real conditions. A stand is elaborated for testing and assessment of the collectors inaccordance with the European Standard EN 12975. In this standard are presented the requirements for testing in real (natural) conditions.

    2.2. Solar hot water market2.2.1. Background

    The climatic conditions and the high rates of solar radiation in the Balkan countries are ideal for theexploitation of solar energy for thermal energy production. Solar thermal collectors for DHW

    production can be used almost everywhere in the villages and the towns, in the hotels, holiday houses,camping, etc., particularly during the period from April to October when the solar radiation is higher.

    The technical potential of solar energy is distributed as follows:

    103 toe/ year %Photo voltaic panels 52 21

    Active solar thermal energy systems 161 66Passive solar thermal energy systems 33 13

    Total 246 100

    It is evident that 66% of technical solar potential belong to the active solar thermal energy systems,which are mostly applied until now; therefore only these will be considered in the present report. Itshould be mentioned that PV modules are, so to say, symbolic. Bulgaria was the leader in Eastern

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    Europe in design and production of solar thermal installations. The first Bulgarian solar thermalcollectors have been of panel type radiators with area of 2 m 2 , next step of design was the flat platecollectors with area of 1,46 and 1,76 m 2 . The first Bulgarian solar collector was designed and producedin 1977. The state enterprise New Energy Sources (NES) was in a position to solve technical problemsrelated to research, design, testing, manufacturing and assembling of solar thermal installations. NESimplemented a large scale governmental programmed for designing, the manufacture and installationof 50 000 m 2 solar collectors. These collectors were installed during 1977 90 mainly in the touristfacilities for hot water supply at the Black sea coast. Solar collectors were also applied in industry for DHW and for drying agricultural products.

    Regional distribution of solar thermal installations

    13%5%

    13%

    2%13%2%2%2%

    48%

    HaskovoSofia town

    Sofia regionRusePlovdivMontanaLovetchVarnaBurgas

    Most of the collectors installed comprise of steel absorbers, black coating, and single glass cover andgalvanized steel collector surrounding. The pipes for installations are 99% from steel.

    Arbeitsgemeinschaft ERNEUERBARE ENERGIE AEE, supported by the Austrian Ministry of Environment and Youth, implemented in 1998 99 the project Statistic evaluation and analysis of largescale Bulgaria solar installations. The report overviews in detail the situation of large scale solar installation in three regions of Bulgaria Burgas, Plovdiv and Sofia. Detailed surveys had been done,reviewing the condition of the various elements of solar collectors and installations. The mainconclusions are very characteristic and significant for the solar thermal installations market in thecountry and also review the main factors influencing it.

    - The installation of 50 000 m 2 solar collectors for the period 1977- 90 was made in the framework of a governmental programme and was financed by the government, local authorities, etc.

    - This policy was not related with the market penetration of solar thermal installations for households,small hotels, etc.

    - The low energy prices of the fuels and electricity at that time and in competitiveness of the price of a solar energy didnt stimulate the use of solar collectors.

    - Since 1990, Bulgaria is in transition and major part of the tourism facilities and industrialenterprises have been privatized or undergoing this procedure. This is one of the reasons for the

    poor maintenance, leading to the present bad status of the installations.- 54% of the installations in the tourist facilities are still operational, but for the industrial sector

    these are only 8%.- Major part of the existing installations require repair. The main problems are the corrosion of steel

    collector surrounding and the absorber coatings, lack of frost protection; broken glasses, etc.

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    For the last 15 years many development and demonstration programs have been implemented, whichcovered practically all-renewable energy sources, including solar thermal ones.

    However, the low quality of the equipment and the installations made in Bulgaria, and the lack of maintenance in many of the early installations resulted in a dissatisfaction, creating for a moment an

    additional barrier to further solar energy utilization.Within the PHARE project different solar thermal demo projects have been implemented. In Annexes2.2.1.1 and 2.2.1.2 are presented technical data and financial and ecological benefits of different

    projects.

    The R&D activities, manufacturing and installation have almost stopped since 1990 because of theeconomy reformation and the resulting difficult economic situation.

    It should be mentioned, however, that in the transition period the prices of the main energy source,which is utilized for obtaining of DHW in the tertiary sector, in the service sector and in some industrialsectors, is electrical energy. The price of the electrical energy in the last decades has increased manytimes. This led to a change in the psychology of the population and to a change in its attitude towardRES, including to a demand for possibilities for utilization of solar energy.At the present moment, in Bulgaria there are several producers of flat plate solar collectors. There arealso distributors of Greek, German, English, Turkish, Chinese, Israeli and other solar systems. Thecollectors are flat plate and vacuum tube, as well.

    The market of solar thermal systems in Bulgaria started to develop at good rates. Of great importance, atthis still early stage on this market, are the correct and professional sizing, implementation andmaintenance.

    2.2.2. Solar market key figures

    The majority of installed solar collectors during the last years in public buildings and in industrial

    enterprises are implemented under different programs, as it was mentioned above. The annual market of solar collectors for household systems is rather low; because a great part of the population currentlyfaces enormous financial problems and the people being worried about their energy bills do not disposeof finance to invest in solar systems. A big part (90%) of the sales of solar systems belongs to those who

    build new houses or new private hotels.

    The technologies applied for solar thermal energy conversion are the same as the ones applied in other European countries.

    The solar thermal installations, implement under different programs, were mainly for:

    Hot water in public buildings (hospitals, kindergartens, etc.), in domestic and tourist sector; Solar dryers in the wood processing and agricultural products industries.

    The following main clients in the collective sector are distinguished now:

    Hotels, holiday houses, camping, swimming pools; State and municipality buildings (hospitals, kinder-gardens, social houses, elderly peoples

    homes, etc.); Multi-storied buildings (mainly in new buildings); Industry for wood processing and agricultural products.

    It should be mentioned that during the last years there are a lot of solar installation project for hot water in the hotels and private houses, mainly along the Black sea coast and in the mountain areas. The datafor them is difficult to be obtained due to the private initiatives of their installation process. There is nostatistic data for the built solar thermal systems during the last years.

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    Concerning the installation of solar collectors in state and municipal buildings, in the period until 1990 acertain number of them have been installed under a state programme. From 1990 to 2002 manydemonstration projects (under different European programmes) have been executed. In Annex 2.2.1.1gives the financial, technical and ecological data and results for projects in 3 hospitals in SouthernBulgaria. At present, though, the municipalities face major financial difficulties and do not have theability to build installations for utilizing RES, which also includes solar collectors.

    Concerning the building of collective solar installations in the existing multi-storied buildings it should be noted that in Bulgaria the apartments in a block of flats are privately owned and belong to different people. Therefore in a building with, for example, 50 apartments we will have 50 owners and 50different opinions. Furthermore, with the existing DHW system, building collective solar systems inmany cases is accompanied by difficult decision, arising from the structure already in place. In Sofiathere is such a system in the Panel residential block 25 in Levski B district. The collective solar system is build with funding from Techem- Services as a pilot project. The system was calculated for all 73 flats. Due to some miscalculations and big pipe system, the generated DHW was not enough for all of them, so entrances C and G were disconnected from the system. For this reason now the solar

    system supplies DHW only for entrances A and B.Building collective solar systems in new blocks of flats is expedient because the investor of the buildingincludes the respective part of the solar system in the price of the individual apartments. In addition, the

    building and the solar system are planned simultaneously, and the most expedient decisions are made.

    Up to now solar systems in industrial buildings for the needs of DHW exist only in a very limitednumber of isolated cases.

    For Bulgarian producers and suppliers of solar collectors can be mentioned that there are separatefactories and enterprises, which produce, flat solar collectors. Most of them import the absorbers and therest is produced and assembled in Bulgaria. There are also collectors (Greek, German, Chinese, French,Turkish, etc.)

    There is no laboratory in Bulgaria for testing solar collectors, which is authorized to give the neededcertificates. Therefore no quality certificate can be granted for collectors made in Bulgaria. At present,as it was mentioned, a test laboratory (one stand) is being constructed for experimental testing of solar collectors in real conditions, i.e. they carry out experimental testing (Stand for Solar Water Collector Testing: Central Laboratory of Solar Energy and New Energy Sources BAS, 72, Tzarigradskochaussee blvd., 1784 Sofia, tel.: 778 448, fax: 754 016).

    The imported solar collectors, as well as the imported absorbers have the necessary certificates for therespective characteristics. In Bulgaria no additional testing for their qualities is made when they areimported.

    In the following table are given the Manufacturers and distributors of solar thermal equipment.

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    Manufacturers and distributors of solar thermal equipment1. ERATO

    67 Saedinenie Boul.6300 Haskovo

    Tel. 00359 38 662012 Fax.00359 38 661356E-mail: [email protected]

    www.erato.bg

    8. EKOTEHPRODUCT 66, Dimitar Manov Str.

    1408 SofiaTel. +359 2 541267 Fax. +359 2 547206

    Contact: Mrs. Rajna Zlatareva

    2. ECOTHERMENGINEERING LTD. CO.51, Varban Genchev Str.

    Students Town1100 Sofia

    Tel. +359 2 688207 Fax. +359 2 689137Contact: Mr. Venelin Stojnov

    9. ECOTHERMENGINEERING LTD. CO. 51, Varban Genchev Str.

    Students Town1100 Sofia

    phone: +359 2 623119, fax: +359 2 689137Contact: Mr. Emil Stojanov

    3. ZAVOD ZA NOVI ENERGIJNI IZTOCHNITSI(New Energy Sources Plant)

    RazgradTel. +359 84 29521 or 26845 Fax. +359 84 32252

    Contact: Mr. Georgi Georgiev, Director

    10. APEX MMSofia

    49. Bulgaria Boul.Tel. + 359 2 955 61 65

    Cell. +359 888 62 95 22

    4. PROMISHLENA ENERGETIKA(Industrial Energy)

    5, Philip Koutev Str.1407 Sofia

    Tel. +359 2 681235 Fax. +359 2 687401 or 681135Contact: Mr. Ivan Lambriev, General Manager

    11. SOLKAV BULGARIA LTDSofia, 31A Dragan Tzankov Blvd.

    Tel. +359 2 9608130, Fax. +359 2 9608131

    5. TERMOPROMENERGO, BLAGOEVGRADSTATE CO.

    2700 Blagoevgrad, kv. Bjalo PoleTel. +359 73 20800 or 20805

    Contact: Mr. Alexsander Tunov, Director (or Mr. Orlin Popov)

    12. BG THERM LTD17, Acad. St. Mladenov Blvd.

    Tel. +359 2 9697122, Fax. +359 2 8625410Pleven: Tel. +359 64 823037

    www.bgtherm.com

    6. TERMOKOMPLEKTENGINEERING1, Komi Str.4000 Plovdiv

    Contact: Mr. Jordan Popov

    10. ENERGOKONSULT SR

    Sofia Strelbishte bl. 100 en. B ap. 49Tel/fax. 00359 2 859 57 91E mail: [email protected]

    7. ECOTHERMALBourgas 8000

    Slivnitza str. 47Tel. + 359 56 814215; + 359 2 979 05 45Fax. + 359 56 841522; + 359 2 979 19 38E mail: [email protected]

    www.ecothermal-bg.com

    11. KOVEX1606 Sofia

    34 Totleben Boul.Tel. + 359 2 952 1772Fax. + 359 2 952 65 69

    E mail: [email protected]

    In the following table is given a list of Bulgarian eligible suppliers and installers of solar water heaters.

    Eligible Suppliers and Installers of Solar Water Heaters

    1. EISENTRAUM LTDBourgas

    Maritza str No 6Tel. + 359 56 811 653

    E mail: [email protected]

    Services:Construction of heat installations, fireplaces, solar thermal

    installations

    2. BORA 97Blagoevgrad

    Elenovo bl. 5, en. B, ap. 19Tel. + 359 73 840 990Fax. + 359 73 840 990

    E mail: [email protected]

    Services:Delivery and mounting of vacuum tubular collectors

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    3. IVAN SUBEVBansko

    Angel Balev str. 1Tel. + 359 7443 4060

    Services:Selling and mounting of solar collectors

    4. SNEZHANA POPOVAGotze Delchev

    Dunav str. Commercial complexTel. + 359 751/ 61172; /61170; /61171

    Services:Selling and mounting of solar collectors

    5. VICTORIA - R Blagoevgrad

    Ilinden str. 2 bl. 3Tel. + 359 73 88 50 75

    Services:Selling and mounting of solar collectors

    6. TOSHKO PETROV RADIBlagoevgrad

    Dame Gruev str. 38Tel. + 359 73 88 68 67

    Services:Selling and mounting of solar collectors

    7. EKOTERMIKA LTD. 8002 Bourgas, housing complex Pobeda

    P.O. Box 9Tel. +359 56 40175 Fax. +359 56 40159

    Contact: Mr. Ivan Asenov

    Services:Selling and mounting of solar collectors

    8. APOGEYVelingrad

    Tel. + 359 359 50 775Cell. + 359 898 630 132; + 359 889 604 593

    Services:Selling and mounting of solar collectors

    9. ERATO VIADRUSSofia

    Nedelcho Bonchev str. 10Tel. + 359 2 978 39 90; + 359 2 978 78 60

    Fax. + 359 2 97 807 44

    Services:Solar collectors and water heaters

    10. ENERGY SOLUTIONSPernik

    Vladaisko vustanie str.Tel. + 359 76 681 472

    Services:Selling and mounting of solar collectors

    11. EUROTRANS SERVICESofia Iskur str. 56

    Cell. + 359 897 936 680

    Services:Selling and mounting of solar collectors

    12. TOPLOTEHNIKA ZLATKO STEFANOVBlagoevgrad Vasil Levski 29Tel. + 359 73 88 67 83

    Services:Selling and mounting of solar collectors

    13. IVO GEROV IVGVratza

    Dragan Tzankov str. 1Tel. + 359 92 661881

    Cell. + 359 886 [email protected]

    Services:Selling and mounting of solar collectors

    14. K & SHVelingrad

    Pionerska str. 31Tel. + 359 359 50 510; + 359 359 24 540

    Cell. + 359 849 885

    Services:Selling and mounting of solar collectors

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    15. CLIMASOTHBlagoevgrad

    Sratzin 8Tel. + 359 73 83 22 81

    Services:Selling and mounting of solar collectors and water heaters

    16. PYOKO K Sofia Energy Centre Slivnitza str. 79 A

    Tel. + 359 2 822 15 41Services:Selling and mounting of solar collectors

    17. MIHAIN MIKHAIL ATANASOVBansko

    Rupchovec

    Services:Selling and mounting of solar collectors

    18. MZRazlog

    South Industrial zoneTel. + 359 747 80013Fax. + 359 747 80016

    Cell. + 359 888 322 035E mail: [email protected]

    www.mz-razlog.com

    Services:Energy efficient windows, solar collectors

    19. MEVIDA LTDKazanluk

    Treti mart str. 16Tel. + 359 431 641 11; + 359 431 643 63

    E mail: [email protected]

    Services:Selling and mounting of solar collectors

    20. NEW ENERGY SYSTEMS LTDShumen

    Madara str. 12Tel. + 359 54 830 405: + 359 2 952 24 05

    Cell. + 359 887 790939Fax. + 359 54 830 405

    E mail: [email protected]

    Services:Solar water heaters

    21. NEKOTERM LTDSofia

    Iztok Taras Shevchenko str. 5Tel. + 359 2 973 33 03; + 359 2 871 84 14Fax. + 359 2 973 33 03; + 359 871 84 14

    E mail. [email protected]

    Services:Selling and mounting of solar collectors

    22. PASSIVEHOUSE BGSofia

    Bolyarska str. 28Tel. + 359 2 37 98 31

    Cell. + 359 899 967 080

    Services:Selling and mounting of solar collectors

    23. STUBELVarna

    Radetsky str. 70Tel/ Fax. + 359 52 61 37 19

    Cell. + 359 888 938 884

    Services:Selling and mounting of solar collectors

    The bigger producers of solar collectors are as follows:

    New Energy Systems Ltd. (NES) produces flat solar collectors, which could be with an ordinary or selective absorber. They are produced in three sizes. In the table below are presented their prices inEuro, including VAT.

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    Prices of solar collectors produced by NES Ltd (Oct. 2006).

    Price in EUR Size of the

    collector (mm)Area of the

    absorber (m 2) Collector Standard Collector Select

    1 770 x 2150 x 90 1.66 156 2412 1000 x 2150 x 90 2.15 191 3163 1250 x 2150 x 90 2.70 240 370

    The solar collectors are constructively designed in the following way: Special aluminum carrying profile, a top from a special thermal glass, copper absorber, and insulation from mineral wool and pressed mineral wool with black face cover, and a bottom from galvanized sheet iron.

    Solar collector Standard: The cover of the absorber is made from a special solar lacquer withhighly absorbing surface. It is elaborated mainly for seasonal systems for DHW, as for the periodApril October the solar system covers the needs of the consumer for hot water between 80 and

    100%. Solar collector Select: It is elaborated for systems with all the year utilization of DHW. It

    has the following advantages: better thermal insulation, the cover of the absorber is selective type Tinox, this is a high temperature cover from titanium oxide. It is characterized by highlyabsorbing ability 0.95 and low degree of reflection 0,005.

    The selective cover guarantees the operation of the collector in cloudy weather, with its extremely highdegree of absorption of the defuse heat.

    The all the year utilization of the collectors Standard and Select, according to our observations,gives advantage to the collector Selekt. It is 38% more effective than the collector Standard.

    The produced collectors are sold mainly on the Bulgarian market. It should be mentioned that at the present moment New Energy Systems operates at full production capacity. KORADO Bulgaria (Razgrad)

    KORADO Bulgaria produces solar collectors with aluminum profiled fins and copper tubes withcollector area of 1,7 m 2. The simple type of installation is the self circulating equipment (thermosiphon) with boiler of 100 l.

    ECOTHERMAL ET Burgas

    ECOTHERMAL is a new private company producing solar collectors with the main parameters:

    Absorber consisting of copper tubes pressed into an aluminium profiled sheet black painted witha collector area of 1,5 m 2;

    Insulation mineral wool with thickness of 40 mm and heat conductivity of 0,039 W/ m 2 K; Aluminum profiled frame; Enameled boiler with volumes of 1201, 1501 and 2001.

    ECOTOP Ltd. Sofia

    ECOTOP designs complete solar systems and implements complete engineering design, delivery,mounting and service (guarantee and beyond guarantee).

    ECOTOP Ltd. has been producing a wide range of solar collectors since 1993:

    A. Flat plate thermal collectors in three type sizes 1000 x 2000; 800 x 1400 and 1000 x 1000 intwo variants;

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    I. A steel body (frame), a steel absorber and glass cover;II. An aluminum body and an aluminum absorber, copper pipes and a polycarbonate cover.

    B. Integrated steel frame in a set with a solar accumulator all type sizes:I. Flat, stainless, a polycarbonate covers. The thermal accumulator is built in the collector.II. Semi cylinder, stainless steel frame, with polycarbonate cover. The thermal accumulator is

    built in.

    The integrated collectors do not need a boiler, pipe connections and other accessories. They are directlyconnected to the hot water consumers.

    The annual production and sales of solar collectors varies in a wide range for the years from 1993 till2003 in accordance with the unstable market: from 180 m2 / year to 540 m2 / year.

    The solar collectors have a ten-year guarantee and the solar systems, according to their supplying have atwo to ten year guarantee.

    The quality of the products is guaranteed with a guarantee card from the producer, a quality mark,technical passport and instructions for mounting and exploitation. All the products are tested accordingto their technical parameters in the testing center of ECOTOP, where they go for tests for durability andreliability.

    Besides the Bulgarian collectors, the Solar Thermal Equipment market is supplied also with collectors, produced in The EU member states, as well as in Turkey, Israel and China.

    Below as an example are presented some distributors:

    ERATO Holding Haskovo

    The company offers as a distributor:

    Vacuum solar collectors with absorber Cu lamella with Ni selective layer and area of 0,728 m 2. Number of ribbed tubes 15. Working temperature up to 240 oC. Price Euro 600.

    Flat plate collectors MACTECH, which are made in Turkey, with an area of the absorber 1.60m2 and an absorber, which could be Al or CU. The price of a single collector is respectively 115

    and 140 .

    In 2002, ERATO Holding constructed a solar installation for DHW in holiday home Energo inPrimorsko, which disposes of beds for 430 people and a restaurant for 650 people. The water consumption in July and August is from 2 200 to 2 500 m 3/ month. The solar installation consists of two

    parts. In the first part are installed 47 flat plate solar collectors with total area of the absorber of 85.5m2 and capacity 77 kW. In the second part are installed 45 vacuum solar collectors Vacusol with totalarea of the selective layer 34.2 m 2 and thermal capacity of 31kW.

    KOVEX SofiaThe company offers vacuum tube collectors with flat and with rounded absorber with the maincharacteristics.

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    The vacuum tube collectors have the following advantages:

    Higher efficiency, especially at reduced sun shining; Operates efficiently even at temperatures below zero; The tube construction does not detain snow, neither dust; Practically, the wind factor, influencing the heat release of the pipes, is missing; Significantly easier installation, maintenance and services; The natural geographical and climatic characteristics in Bulgaria, distinguishing with regions of

    continental climate, mountain relief, characteristic cloudiness, determine the all the year application of these collectors in our country.

    The main barrier to their implementation is the high price 700-800 EUR/m2 and the lack of informationin Bulgaria on this technology.

    The collectors are produced in China, with a license from a German Company and they are shown at aPhoto below.

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    Vacuum-tube collectors by KOVEX

    APEX Co Sofia

    APEX Co is a distributor of the English THERMOMAX and the Greek MINOS, also the Dutch flat plate AES types of solar collectors and Bulgarian solar collectors produced by NES.

    RGS

    RGS is a distributor of solar collectors produced by the German company VIESSMAN CarolSol,TuboSol and DuoSol.

    Number and surface of large solar systems (> 50 m 2 )

    In Bulgaria in recent few years there is significant increase in hotels construction, mainly in Black seacoast. In big part of them a large solar thermal systems are mounted. There are large solar systems,mounted on municipal buildings, as well as elderly peoples homes, hospitals and kindergartens.

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    Large solar system in Primorsko (NEK holiday home)

    There is no exact statistic for built solar thermal systems in Bulgaria. In the table below are given datafor the ten solar systems, examined by Sofia Energy Centre.

    Building type LocalityYear of

    installationSurface

    m 2Type of

    collectorsStorage

    volume m 3Auxiliary

    heating

    1.Elderly people

    home Plovdiv 2001 132 m2 Flat plate 6 m 3 fuel

    2. Hotel Albatros Primorsko 2005 21.60 m2 Flat

    aluminum 1.0 m3

    Electricity

    3.Hotel Arabella

    beachAlbenaresort 2005 108 m

    2 Vacuumtubular 12 m

    3 Electricity

    4. Hotel Elit Balchik 2004 32.40 m 2 Flat copper 1.5 m 3 Electricity

    5. NEK holiday home

    St StKonstantinand Elena

    resort

    2004 147 m 2Flat withselective

    cover 20 m 3 Electricity

    6. Iberostar hotelSunny

    beach resort 2006 462 m2 Selective 80 m 3 Propane gas

    7. Nek holiday home Primorsko 2003 140.99 m 2Flat

    aluminum,vacuum

    11.5 m 3 Electricity

    8.Panel residential

    block Sofia 1998 126 m 2 Flatselective 6 m

    3 Electricity

    9.Home for elderly

    people Silistra 2001 134 m2 Flat plate 5.2 m 3 fuel

    10.Residential building Sofia 2005 36 m

    2 Vacuumtubular 5 m

    3 Natural gas

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    Solar collectors on the roof of hotel Iberostar

    Types of solar systems

    In Annex 2.2.2.3 is given the classification of solar systems for water heating

    In Bulgaria the solar market depends mainly on the private investors and in dependence from the type of solar installation, the type of solar systems then is chosen.

    There are only few cases in Bulgaria in which the gravity systems direct or indirect have been applied.The application of direct or indirect pump solar systems depends as from the size of solar installation, soas from the variations of DHW needed. These type solar systems are most common in Bulgaria.

    Regarding the type of the solar collectors main application have flat plate collectors with selectiveabsorber. Close loop systems with pump, heat exchanger, integrated in heat storage and antifreeze

    protection are most common.

    The vacuum tube collectors become widely accepted, regardless of their higher price. They are used

    mainly in systems, whose production of hot water is necessary all the year around.CO 2 emissions

    In the following figure is shown the historical development, the present condition and is made a prognosis for CO 2 emissions on sectors end users until 2015. After 2001 the sectors of Transport andIndustry are main sources of CO 2 emissions as this situation is very likely to remain for the next tenyears.

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    CO 2 emissions in the period 1991 2015

    The analysis of RES utilization possibilities shows real potential for reduction of CO2 emissions withabout 8 129 kit CO 2 equivalent in 2015.

    In the next table are given the summarized possibilities for saving of CO 2 emissions, throughimplementation of RES.

    Saved greenhouse gases emissionsElectric energy Heat energyRES

    toe kt CO 2 eqv. ktoe kt CO 2 eqv. Biomass 73 705 1227 4 270HPP 257 2 480 0 0Wind energy 22 214 0 0Solar energy 4 39 21 72Geothermal energy 3 25 93 324TOTAL 359 3 463 1341 4 666

    Used emissions coefficients are summarized for electric energy 830 gCO 2 /kWh , and for heat energy 300 gCO 2 /kWh.

    The total possibilities for emissions saving are estimated to 8 129 kt CO 2 equivalent in 2015. For utilization of solar energy the prognosis is from PV installations an electric energy amounted to 4-ktoe/year to be produced. From implementation of solar collectors the prognosis is for production of heatenergy amounted to 239 GWH/ year, which will lead to CO 2 emissions reduction with about 72 kt CO 2equivalent.

    Present prices of solar systems and breakdown of cost prices for the elements of solar systems

    CO2 Emissions form Resource Use for Energy Purposes

    0 10 20 30 40 50 60 70 80

    1991

    1992

    1993

    1994

    1995

    1996

    1997

    1998

    1999

    2000

    2001

    2002

    2003

    2004

    2005

    2006

    2007

    2008

    2009

    2010

    2011

    2012

    2013

    2014

    2015

    Years

    MtCO 2

    Total Industry Transport Households, utilities , agriculture

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    At present, on the Bulgarian market, the cost of solar thermal systems varies in a wide range. The costdepends mainly on the type of collector, whether it is flat plate or vacuum tube, and in which country itis manufactured.

    The cost of the Bulgarian solar collectors is only 100-150 Euro/m 2 and 250-290 Euro/m 2 for the entire

    systems, depending on the technology used and installations applied. With relatively constant oil prices,the price of the solar heating system is expected to become competitive.

    The main benefit, for the state from implementation of solar thermal systems, is that they replace asubstantial amount of electricity and are environmentally friendly.

    Allocation of cost by system components (Bulgarian produced elements)

    Cost Component Cost (%)Design 4

    Solar collectors 55Hot water storage tank 13

    Connecting pipes + valves 10Support stand 8Installation 10

    TOTAL 100

    To evaluate the economic viability of a solar system we can give as an example the solar thermalinstallation in the elderly peoples home St. Vassilii Veliki in the city of Plovdiv, where 200 personslive. The installation has 66 collectors (2 m 2 each), arranged in 6 rows, 11 collectors in each row. The

    project comes up to 67 000 and the annual savings are estimated at BGN 45 000, or 23 000, i.e. the pay back period is 2,9 years. The annual energy saved is 232, 640 kWh.

    To get a complete market overview on the main reasons of utilization of Solar Thermal Equipment, thefollowing should be mentioned:

    For domestic system ensuring the needs of hot water is assumed that the necessary volume of hotwater per day for one person is around 60 liters with temperature 45 oC. In accordance with thetype of the used collector this is achieved with 1 to 2 m 2 of collector surface. When it concerns

    big systems like hotels, restaurants and others, calculations are made evaluating more factors likecoefficient of filling in, season and etc.

    With the choice of a system and components, the geographical region is taken into account; whether thesystem will be used all the year around (the utilization of vacuum tube collectors is recommended).

    The monthly savings depend on the quantity of hot water, which will be used, the volume of the boiler and the price of the conventional energy, which is used for additional heating of the water.For a four member family, the used water is around 240 liters/ day, which makes in average3,500 kWh/ year or 490 BGN/ year, if electrical energy is used at an average price of 0,14 BGN/kWh.

    A well-designed system should ensure between 50% and 85% solar contribution and saving from thetraditional bill. This makes a pure profit between 250 BGN/year and 450 BGN/year. Much moreaccurate and optimistic is the method of discount of the cash flows, which assess the inflation, theincrease of the prices of the conventional fuels and electrical energy.

    Solar water heating systems are always installed with an additional source of heating. It supplieshot water in case of exhaustion, a bad day, so that there is always water in the boiler ready for use. In any case, for optional utilization of the solar system and for more savings, the

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    consumption of hot water should be evenly distributed in the days of the week. This woulddecrease the utilization of a source for additional heating.

    The price of a mounted solar installation ( 250 liters) depends on the type of collectors, the type of thesystem and the concrete conditions of the site, but in general it is between 1.500 BGN and 5.000BGN.

    Why is the difference so big? The price and the effectiveness of the system depend on some variables: Number of months, during which solar heated water will be used; Size and type of the system thermo siphon does not require specialized automation; Type of collectors the flat plate collectors operate from April till October, in

    comparison to the all the year- around vacuum tube collectors; Type of roof on which the collectors will be installed are there any additional stands

    needed; Professional or Do it yourself system.

    The main problem for the implementation of Solar Thermal Systems is the required investments.Unfortunately, in Bulgaria the government does not offer any financial alleviation. Except for own

    funding, some firms offer leasing with a period equal to the one expected for pay back of theinvestment, but not longer than 3 years.

    Before taking the decision what type of collectors to be bought, an answer to the following mainquestion should be given: What is the purpose of the system and how much time will it be used duringthe year?

    With seasonal use, like bungalow, villa at the seaside or in the Balkan, a not expensive and efficient inthe summer collector should be chosen. Such are the flat plate collectors with black painted absorbers.Most of the collectors used in the country are of this type. They are produced in the country or areimported from neighboring countries with significantly more favorable for their utilization climate Greece, Turkey.

    If the necessities are in a greater time period, for example they include also the transitional seasons(spring, autumn); a good choice is investment in selective flat plate collectors. In Bulgaria there is notechnology and capacity for production of selective absorbers, yet. Around ten companies are known inthe world, which produce such absorbers. In Bulgaria there are two importers of selective absorbers, butthe produced collector, is far away from the world level for quality and does not meet the standards of the industry.

    Installer organizations (skills, associations)

    All suppliers of solar collectors have contacts with different installers or corresponding organizations.They are mainly installers of heating systems. In Bulgaria there is not an association that incorporatesthe producers, suppliers and installers of solar thermal systems.

    Establishment of an Association in Bulgaria for Solar Thermal Systems with its Solar Marketfunction will contribute to the increase of Solar Thermal Systems.

    - Members of the association could be producers and importers of elements for solar thermal systems,companies, which design, install and maintain these systems, scientific and testing laboratories andothers;

    - Research on the solar thermal market in Bulgaria for different sectors (dwelling buildings, public buildings, hotels, sports complex, industry, etc.), as well as for the different types of collectors(seasonal and all year utilization);

    - Assistance to implementation of Third Party Financing and also of Guaranteed Solar Results;- Organization of information campaigns, aimed mainly at the potential users;

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    - Assistance to local producers of elements for solar thermal systems for testing of their products inrespective laboratories;

    - Assistance for establishment in Bulgaria of joint venture companies for implementation of thenewest technologies for production of elements for the solar thermal systems.

    2.2.3. Solar RadiationThe solar radiation reaching earth surface is a main source of renewable energy (solar energy, windenergy, water energy, biomass, energy of the sea tide). It is a source for classical energy sources as well.Bulgaria receives vastly amount of solar energy because of its southern lay and comparatively smallamount of cloudiness. Information for the solar radiation in different places received on horizontal anddifferently oriented tilted surfaces in different places is important for practical aims. There are severalmethods for its estimation, but theoretical and experimental ones are the basis. Few numbers of meteorological stations measuring the total solar radiation are on available the earth surface. That is whyit is necessary oblique methods for its estimation to be used. In Bulgaria the average annual period of sunshine is about 2.100 hours, in some of its regions it may reach 2.500 hours (i.e. the range is from1.450 to 1.600 kWh/m annually).

    Solar energy zones in Bulgaria; annual distribution of total solar radiation

    The air temperature characteristic of the climate is a result from the solar radiation intensity and depends

    on the amount of thermal energy, radiated from the surface of the earth during its 24-hour and annualcycles. The solar monthly radiation changes during the year from 41-52 kWh/m2 in January till 200-238kWh/m2 in July. Annually, on horizontal surface, for different sites, the total solar radiation varies

    between 1400 kWh/m2 and 1674 kWh/m2. This energy is coming mainly during the summer and springseasons, particularly during the average weather conditions.

    Significant for solar systems are not the highest temperatures, but the average summer temperatures.

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    Calculated temperature in C - zoning according to minimal temperatures.

    Average summer temperatures per 24 hours .

    The average annual temperature in the country is 10.5 C. In winter, the average temperature in thecountry is about 0 C. The lowest temperature 38. 3 C was measured in 1947. The average monthlytemperatures for the capital city of Sofia range from 3.7C in December to 28.2C in August.

    The geographical layout of Bulgaria makes the country suitable for solar energy utilization. Over 80% of the territory of Bulgaria is suitable for utilization of solar energy. Currently, mainly hotel, residential andsmaller-size industry solar energy heat collectors and very few photovoltaic modules utilize a symbolic

    percentage of the total potential. The main obstacle is the relatively high initial investment in solar energy utilization equipment.

    Traditional solar panels are sold mainly for the construction of hotel and commercial building projectsfor hot-water supply.

    In Bulgaria, the average annual period of sunshine is about 2 100 hours. In some of its regions it mayreach 2 500 hours (i.e. the range is from 1 410 to 1 600 kWh/ m 2 annually of solar energy resources for the country. The assessment of experimental data from some 40 meteorological stations has shown thatin this respect the country can be divided into three solar zones: Zone I, Zone II and Zone III. In each

    zone this energy amount is multiplied by 1.1 with inclination of the receiving plane 00

    , 210

    , 300

    , 420

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    and 90 0 to SOUTH orientation. IN BULGARIA, THE FOLLOWING INCLINATIONS FOR COLLECTOR OPERATION ARE RECOMMENDED:

    300 in the summer

    420 for the whole year

    An example for the solar radiation density is illustrated with more detailed data for Zone III atinclinations 42 0 and 90 0 , also for 5 different orientations. In each of the Zones, the conclusion holds truethat the amount of solar radiation absorbed at various orientations depends on the angle of inclination of the collector field. If the angle of tilt is below 20 0 , the significance of inclination is negligible (solar energy gains are equal) whereas above it its influence, upon the total radiation value, the component of direct radiation included, becomes higher. The data from table 4 can be used also for the other solar zones by correction factors, because the character of changes remains the same.

    Table 1 Zone I

    M/ Tilt 0 0 210 300 420 900

    1 1.94 2.24 2.33 2.41 2.18

    2 3.09 3.68 3.85 3.98 3.45

    3 4.05 4.48 4.56 4.57 3.52

    4 5.58 5.91 5.90 5.74 3.78

    5 6.60 6.62 6.48 6.15 3.56

    6 7.39 7.24 7.00 6.54 3.46

    7 7.90 7.73 7.49 7.00 3.67

    8 6.98 7.30 7.24 6.69 4.17

    9 5.67 6.45 6.60 6.63 4.81

    10 3.91 4.85 5.13 5.36 4.63

    11 2.46 2.92 3.05 3.17 2.87

    12 1.83 2.14 2.23 2.31 2.11

    Total 1413 1506 1608 1472 973

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    0,00

    2,00

    4,00

    6,00

    8,00

    10,00

    1 2 3 4 5 6 7 8 9 10 11 12

    O degrees21 degrees30 degrees42 degrees90 degrees

    Annual distribution in plane of light incidence 0 0 , 21 0 , 30 0 , 42 0 , 90 0 and south orientation; Zone I

    Table 2 Zone II

    M/ Tilt 0 0 210 300 420 900

    1 2.15 2.39 2.47 2.53 2.34

    2 3.25 3.61 3.71 3.77 3.27

    3 4.22 4.47 4.50 4.46 3.53

    4 5.73 6.00 5.98 5.84 4.09

    5 6.29 6.25 6.12 5.83 3.82

    6 7.26 7.13 6.92 6.50 3.81

    7 7.74 7.63 7.42 6.98 4.01

    8 7.20 7.49 7.42 7.16 4.53

    9 5.89 6.59 6.72 6.74 5.04

    10 3.93 4.57 4.75 4.88 4.21

    11 2.62 2.96 3.06 3.14 2.88

    12 2.10 2.37 2.46 2.54 2.41

    Total 1482 1583 1585 1584 1009

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    0,00

    2,00

    4,00

    6,00

    8,00

    10,00

    1 2 3 4 5 6 7 8 9 10 11 12

    O degrees21 degrees30 degrees42 degrees90 degrees

    Annual distribution in plane of light incidence 0 0 , 21 0 , 30 0 , 42 0 , 90 0 and south orientation; Zone II

    Table 3 Zone III

    M/ Tilt 0 0 210 300 420 900

    1 2.23 2.50 2.58 2.41 2.68

    2 3.31 3.69 3.78 3.98 3.95

    3 4.25 4.49 4.52 4.57 4.02

    4 5.77 6.05 6.03 5.74 4.28

    5 6.83 6.84 6.71 6.15 4.06

    6 7.64 7.50 7.27 6.54 3.96

    7 8.12 7.99 7.67 7.00 4.17

    8 7.37 7.67 7.61 6.96 4.67

    9 6.03 6.76 6.91 6.63 5.31

    10 4.19 5.00 5.24 5.36 5.13

    11 2.72 3.05 3.14 3.17 3.37

    12 2.15 2.41 2.48 2.31 2.61

    Total 1565 1691 1700 1668 1101

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    0,00

    2,00

    4,00

    6,00

    8,00

    10,00

    1 2 3 4 5 6 7 8 9 10 11 12

    O degrees21 degrees30 degrees42 degrees90 degrees

    Annual distribution in plane of light incidence 0 0 , 21 0 , 30 0 , 42 0 , 90 0 and south orientation; Zone III

    Table 4 ZoneIII Tilt 90 0

    Month S SE EW SW W

    1 2.68 2.35 1.93 2.46 2.01

    2 3.95 3.20 2.47 3.75 2.91

    3 4.02 3.51 3.00 4.02 3.474 4.28 4.64 4.41 4.37 4.12

    5 4.06 4.90 5.21 4.29 4.27

    6 3.96 4.92 5.38 4.53 4.78

    7 4.17 5.07 5.40 5.29 5.94

    8 4.67 4.97 4.77 5.51 5.51

    9 5.31 5.20 4.51 5.27 4.58

    10 5.13 4.53 3.54 4.55 3.56

    11 3.37 2.98 2.45 3.01 2.48

    12 2.61 2.35 1.93 2.34 1.92

    Total 1101 1115 1006 1137 1022

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    1 2 3 4 5 6 7 8 9 10 11 12S

    SW0,00

    1,00

    2,00

    3,00

    4,00

    5,00

    6,00

    SSEEWSWW

    Annual distribution of quantity of solar radiation kWh/ m 2 according to slope of collector field and its

    orientation; Zone III

    Table 4 Zone III Tilt 42 0

    Month S SE EW SW W

    1 2.41 2.18 1.79 2.25 1.872 3.98 3.42 2.65 3.82 3.08

    3 4.57 4.09 3.45 4.50 3.94

    4 5.74 5.72 5.25 5.48 4.93

    5 6.15 6.50 6.39 5.87 5.47

    6 6.54 6.68 6.84 6.44 6.20

    7 7.00 7.12 6.90 7.33 7.33

    8 6.96 6.64 5.98 7.14 6.679 6.63 6.21 5.22 6.28 5.31

    10 5.36 4.82 3.74 4.83 3.76

    11 3.17 2.89 2.38 2.90 2.40

    12 2.31 2.12 1.75 2.12 1.74

    Total 1668 1601 1412 1612 1422

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    1 3 5 7 9

    1 1 S

    W0,00

    2,00

    4,00

    6,00

    8,00

    SSEEWSWW

    Annual distribution of quantity of solar radiation kWh/ m 2 according to slope of collector field and its

    orientation; Zone III

    Air Temperature

    The air temperature characteristic of the climate is a result of the solar radiation intensity and depends onthe amount of thermal energy, radiated from the surface of the earth during its 24 hour and annualcycles. Air temperature affects the thermal conditions of the surrounding structures and (by its extremeand average values) the adjustment of the heating and air conditioning systems in constructions, aswell as the solar energy heating systems. Thus for instance, the capacity of heating systems depends onthe calculated temperatures for the respective region (N.B: the lowest winter temperatures).Temperatures are also decisive when one has to determine the respective thermal insulationrequirements of particular buildings.

    2.2.4. Local bodies, prescribers, certification

    Solar energy laboratories, test centers, existing laboratories with relevant addresses and contacts.

    There is only one experimental laboratory in Bulgaria equipped for testing the characteristics of solar collectors. The laboratory is not recognized as certification body. It is established at the CentralLaboratory of Solar Energy and New Energy Sources (CLSENES) Bulgarian Academy of Science(BAS).

    Prof. Petko VitanovChief of CLSENES in BASTzarigradsko chausse Blvd 721784 SofiaTel. +359 2 778 448Fax. +359 2 754 016

    Some companies have simple testing facilities. For example:

    ERATO

    67 Saedinenie Blvd

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    6300 HaskovoTel. +359 38 662 012Fax. +359 38 661 356E-mail: [email protected] www.erato.bg

    ECOTHERMAL47 Slivnitza Str.8000 BourgasTel. +359 56 814 215Fax. +359 56 841 522E-mail: [email protected] www.ecothermal-bg.com

    Solar energy certification

    In Annex 3.2.1 is given a list of existing Bulgarian standards for Thermal solar systems and components.

    In Bulgaria there is not a body or a laboratory that are authorized to give certificates for solar thermalinstallations.

    List of main technical offices and prescribers with relevant addresses and contacts : see the tablesin 2.2.2

    List of existing training organizations and specialized professional schools:

    Technical University of Sofia8 Kliment Ohridski Str 1000 Sofiawww.tu-sofia.bg Faculty of Power Engineering and Power Machines

    Ass. Prof. Merima ZlatevaTel. +359 2 965 2509E-mail: [email protected]

    University of Architecture, Civil Engineering and Geodesy, Sofia1 Hristo Smirneneski Blvd.1421 SofiaTel. +359 2 963 5245Telex. +359 2 865 6863www.vaceg.bgAss. Prof. Rossen Savov

    23a Lyulyakova Gradina Str.1113 SofiaTel. +359 887 333 217E-mail: [email protected]

    Companies and manufacturers: see the tables in 2.2.2

    2.2.5. Products

    Types of products available (collectors, family water heaters) Quality of product

    At the present moment in Bulgaria there are several producers of flat plate solar collectors. They are

    manufactured from different materials like copper, aluminium, iron or plastic. They usually have black

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    surface, painted or selective. In Bulgaria there is no production of vacuum-tube collectors and selectiveabsorbers.

    The heat storage equipment is produced by a number of companies in Bulgaria.

    The quality of available products on the Bulgarian market can be estimated as good. It should bementioned that solar thermal systems have no energy performance guarantee. The EAST-GSR campaignshould improve the quality of the whole solar thermal systems with regards to its goal production of hot water with guaranteed results.

    Below is given an example for individual house in the village of Bistritza, near Sofia, in the Vitoshamountain at 1,100 meters above the sea level. A four-member family inhabits the house all the year around.

    A private house in Bistritsa (near Sofia) with a pumped solar system (3,6m 2 /120l)

    Two collectors are installed, each of them with an area of 1,8 m 2 and an area of the absorber 1,6 m 2. Thecollectors have an aluminum absorber with eight tubes and mineral wool insulation. Their weight is 31kg each. The boiler capacity is 120 l.

    The price of one collector is 155 Euro and the price of the whole installation is 950 Euro.

    2.2.6. Distribution, marketing, after sales

    Distribution network. In chapter 2.2.2 is given a list of manufacturers and distributors of solar thermal equipment and also a list of eligible suppliers and installers of solar water heaters.

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    Existing awareness campaigns or tools. During the last 15 years in Bulgaria there is no state programme to encourage the use of solar thermal energy and no awareness campaigns of nationalimportance have been held.

    Guarantees proposed after sales service. At the moment of purchase of equipments for solar

    thermal systems the qualities of the various components (solar collectors, tanks, etc.) are guaranteedfor a certain number of years. There is no practice of concluding agreements for guaranteed solar result

    2.2.7. Barriers to overcome for implementation of solar thermal installations

    The barriers for development of RES and especially for solar thermal installations are as follows:

    i. Institutional barriers: Lack of a national program for the development of renewable energy sources andthe related technologies;

    The various state institutions, although having a positive attitude towardsrenewables, still do not pay the necessary attention to these energy sources; Lack of regional and municipal structures, dealing with energy planning andutilization of RES; There are no authorized laboratories for quality control of the producedequipment. Lack of related codes and standards covering the technical requirements of theequipment and installations.

    ii. Financial barriers: The are no state funds in Bulgaria for development of RES utilization and

    technologies. Such a fund would support to a greater extent the implementation of various RES projects, including solar thermal installations;

    The Bulgarian commercial banks have very prudent crediting policy high interestrate (usually over 15%) and credit guarantee more than 125%. They abstain fromgranting long term credits. Currently, this burdens the small and medium sizeenterprises in producing solar collectors and solar thermal installations;

    In some cases, the renewables energy is still more expensive than the consumer priceof heat and electricity. The pay back period for solar thermal installations, in mostof the cases, is more than 5 years;

    Lack of financial stimulus for production, import and installing of solar systems; Lack of money in the state budget for implementing of solar collectors for DHW in

    buildings of state and municipal ownership.

    The high investment cost for solar thermal systems and relatively low price of electricityare preconditions for the slow introduction of solar thermal systems.

    iii. Legal framework: The Energy Law (adopted in 2003) treats only the promotion of electric energy

    generation from RES and co generation of heat and electricity. Renewables are still not considered a priority in legislation and there are no incentives

    for their utilization, including solar thermal installation as well. At present a law for RES is underway. This still draft law aims to increase RES

    utilization. The expectations are the law to enter and to be discussed in the Parliamentat the end of 2006.

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    The changes in Proprietary Law with a view to easier mounting of installations inmulti story privately owned buildings.

    In cases of newly built buildings or in case of modernization of buildings, state or municipally owned, the project prescribes solar collectors to be installed.

    iv. Market barriers: Insufficiently developed commercial network and connected to it market activities; Insufficient highly qualified technical service; Necessity of information companies; Lack of an authorized laboratory for quality control of the produced equipment.

    Opportunities assisting RES (including solar energy)

    The prices of conventional energy have increased many times. Nevertheless, theenergy market is still not liberalized. Under the international pressure for liberalizationon the energy sector, the energy prices soon will be in line with the international levels

    and RES will be more competitive. Environmental awareness is growing and RES are seen as a clean future source of energy.

    Decentralization of the state regulation and larger autonomy of the local and regional authorities lead todevelopment of their natural resources as they see triple dividends: environmental improvement,economic development and increased employment.

    2.3. Sectorial Approach2.3.1. Hotel sector

    Number of hotels per category Year of construction Occupancy rate (%)

    In Annex 2.3.1.1 are given data for development in period 2002 2005 for all the accommodationfacilities with more than 30 beds hotels, motels, chalets, etc. They are data for beds available providedas well. Bed nights are calculated as amassing the number of beds for every day of the given period, inwhich they were available, regardless of the fact whether they were occupied or not.

    It is visible from the data the rapid growth in tourism in Bulgaria in recent years. For the three years period only 2002 2005 the number of accommodation facilities is increased with 70% from 914 to1555. The number of beds is increased with 54% from 143 707 in 2002 to 221 144 in 2005. And thenumber of night lodgings from 10 285 668 to 16 071 313 or with 56%.

    In Annex 2.3.1.2 are given data for 2005 for all accommodation facilities, total and in regional divisions.It is visible from the table that main line for tourist development in Bulgaria is along the Black sea coast(Bourgas and Varna) and in mountains (Smolyan).

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    In the following table are given the percentage (by years) the division of bed nights in accommodationfacilities by category from the total.

    Year % 2001 2002 2003 2004

    1 and 2 stars 39 32 33 283 stars 44 46 40 384 stars 12 16 22 27

    5 stars and special 5 6 5 7Total 100 100 100 100

    It is very symptomatic the decrease of bed nights in accommodation facilities 1,2 and 3 stars and theincrease in 4,5 stars and in special category. That means increase of the comfort, and hence theincrease of hot water uses (baths, water rehabilitation procedures, and pools).

    Regarding the occupancy rate should be stated that it is very low, because the tourist season is relativelyshort.

    In the next table is given the development of occupancy rate.

    Year 2001 2002 2003 2004Occupancy rate % 29,0 30,7 34,8 35,5

    The increase of the occupancy rate is because the ambition of hotel owners to increase the customersinterest to a special place or hotel through building in the hotels of business canters, rehabilitationfacilities, pools, etc.

    a) National tourism policy

    One of the main directions of development of Bulgarian economy is the development of tourist sector.

    Seaside tourism is traditionally present in Bulgarias tourist offer. Some 70% of the tourist flow isconcentrated on the Bulgarian Black-sea coast. The bed capacity complies with this fact and some 60%of the countrys bed fund is located in the seaside tourist complexes. The seaside resorts and thecoastline towns offer varied options for family vacationing, rest and pro-active sporting. Supply includes

    practicing of surfing, water ski, diving, underwater fishing, underwater archaeology, and other aquaticsport.

    The yacht ports in Balchik, Varna, Nessebar, and Bourgas offer opportunities for yachting with thenecessary servicing and customs services.

    Routs have been devised for pedestrian, biking and horseback tourism, photo- and eco-tourism, visiting

    natural, archaeological and cultural landmarks, trips in Bulgaria and abroad.Mountain tourism can be viewed as winter (related to all kind of ski sports) and summer. Convenientski runs and facilities for skiing tourism and winter sports are on offer in the mountains of Rila, Pirin,Rhodope, Vitosha, and Stara Planina (or Balkan range). The ski-season duration in the average- andhigh-altitude mountain resorts is up to 190 days. Ski runs total length exceeds 80 km with leveldifferences of up to 1500 m.

    Pamporovo, Borovets, Bansko and Aleko resorts have year-round functioning accommodation premisesand a winter sports infrastructure (lifts, Alpine skiing and ski-running runs) undergoing renovation anddevelopment. In response to modern demand - new ski tourism centers are getting also established:Smolyan, Chepelare, Dobrinishte, Malyovitsa, Semkovo, etc.