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Energy

Author: Dimitar Stoyanov

Institution: Center for Development and Policies 

Date: July 2022

   

ENERGY SECTOR:

ASSESSMENT, PRIORITIES, AND DEVELOPMENT PERSPECTIVES

 

Assessment on the situation

 

Bulgaria’s energy security is faced with a number of challenges caused by the numerous crises in the Black Sea region and the European Union. Dependence on imports of natural gas and oil mainly from one source combined with high prices of energy carriers, high inflationary pressure, lack of diversification and suspension of gas supplies, all give rise to serious concerns about the sustainability of the country’s energy system. There is also a serious risk of natural gas shortages in the upcoming winter months. Industry, small and medium-sized enterprises (SMEs), municipalities, water and sanitation companies, as well as households are unable to cope with rising energy prices and rely on state aid and adequate support tools, which in most cases are not sufficient. There are a number of delays in programs for energy efficiency (EE) and renewable energy sources (RES) for own needs. The slowdown in investments in electric mobility and smart grids is also noticeable. The lack of sufficient expert staff and low pay in the state energy regulator further puts pressure on the sustainability of our energy system. Topics such as digitization, cyber security, energy cooperatives and mobility are beyond the regulator’s reach at the moment. At the same time, in the last year, the Bulgarian electric energy sector with its nuclear and coal capacities reports record revenues and guarantees the energy security of the entire region of South-Eastern Europe. A number of industrial sectors, including SMEs, have started to build RES capacities for their own needs and to invest rapidly in energy efficiency. Private operators build charging infrastructure and offer services related to the development of electric mobility. As a member country of the European Union, we are under-utilizing the mechanisms and instruments related to the Green Deal and affecting the energy transformation.    

Main priorities and measures

  It is necessary to upgrade and develop existing energy policies, guaranteeing energy security and diversification of gas, oil and nuclear fuel sources, including accelerated exploration and own extraction. Increased focus on the use of low-carbon energy by preserving existing and building new nuclear and RES capacities (including hydroelectric storage and offshore wind stations), ensuring the energy transition in a sustainable manner. The preservation of local coal resources for a sufficiently long period of time, including the use of new combustion technologies with reduced CO2 emissions and conservation. Adequate development of policies and instruments for EE and RES for own needs, leading to a reduction of energy poverty and an increase in the quality of life, as well as the competitiveness of the economy. Accelerated launch of the measures set out in the National Recovery and Sustainability Plan and rapid update of the National Energy and Climate Plan, enabling the use of the Repower EU toolkit. Development of tools to ensure rapid deployment of charging infrastructure and support for electric vehicles. Development of energy sector digitization policies leading to accelerated deployment of smart grid tools, cyber security, Big Data, AI and modeling of climate risk processes. Creation of energy innovation policies and instruments, including the state energy sector. Using the available Bulgarian, European and partner scientific research capacity and technological expertise and developing our own expertise in the fields of hydrogen, energy storage, digitalization, cyber security, smart grids, heating and cooling, climate risk – all these are of key importance. An important aspect is also the development of long-term policies for critical materials (Raw Materials) and their supply chain. A strong focus on energy education and research, including building on existing policies and developing financial and expert support mechanisms and tools.