2024-09-18 02:03:27
“Bulgartransgaz” and the Electricity System Operator to enter the prohibition list for privatization, the energy minister suggests
Dropped from the recovery plan was the controversial demand to cut emissions by 40% by 2025, with a baseline of 2019. This would have shut down coal plants early
Changes in 32 investments and in 14 reforms under the recovery plan and bringing in RePowerEU by September 30 in Brussels, can open the financing. This was stated by Deputy Prime Minister and Minister of Finance Lyudmila Petkova and Energy Minister Vladimir Malinov in the plenary hall of the National Assembly.
They informed the MPs about the changes in the plan, as they are also demanding changes in three decisions of the parliament related to the Mariska basin and the restructuring of the transmission operators.
Malinov stated that after serious negotiations with the EC, the proposal was reached for “Bulgartransgaz” and the Electricity System Operator to leave BEH and enter a new holding under the Ministry of Energy. Brussels has been categorical that it does not accept their remaining in the Bulgarian Energy Holding.
The debate focused on the possibilities of BEH to renegotiate the bond loans and especially the one of 1.2 billion euros, due to the exit of the transmission operators. The option is to repay with money from the state budget, part of the bond payments to be taken over by the transmission operators in the new holding. Malinov stated that it is good that transmission network operators remain in the energy sector. He suggested that the two companies be included in the prohibition list for privatization. We will not close or privatize, Malinov further explained.
You do not have a mandate to negotiate on this, said Dragomir Stoynev from the BSP, and that this transfer of the operators to a new holding will lead to the ruin of the Bulgarian Energy Holding. Minister Malinov answered me that that is why they are informing them of the situation and asking for a mandate for the final negotiations.
The money under RePowerEU is EUR 479 million, or over BGN 900 million in our energy sector, depending on the transfer of the transmission operators to a new holding, the minister explained.
From the renegotiations of the plan, more than BGN 500 million will be made available for the green transition in the coal regions of Stara Zagora, Kyustendil and Pernik. They are for the reclamation of disturbed areas so that other economic activities can be developed on them. The Minister of Energy stated that with 400 million from the plan for a just transition, they become a serious number. It is planned to create a state company to manage and control the spending of this money in the three regions.
During the protests of miners and energy workers last year, they were against the creation of such a company, deputies recalled
The minister also announced technical changes in the plan. One is a one-year extension of street lighting investments, the deadline is moving to the beginning of 2026.
The recovery plan’s infamous 40% reduction in emissions from 2019 to 2025, which meant a near shutdown of coal plants, has been dropped. Malinov stated that the carbon emissions for each installation are also eliminated and the total threshold is 10.98 million tons, and there are no coercive administrative measures or financial sanctions if they are not met.
Some projects are transferred to RePowerEU. The pilot project for the combined production of energy from geothermal sources goes into it, and the unspent 50 million euros from the investment in RES and batteries for households goes there.
The pilot project for green hydrogen, which is for 32 million euros, as well as the pilot drilling for geothermal energy could be financed from the modernization fund, so there will be a horizon for their implementation until 2030.
Deputies commented on the increase in the price of electricity on the exchange. The minister stated that the reasons were discussed in the parliament. He focused on the possible deficit of electricity in Ukraine, which in a normal winter would be 4.6 gigawatt hours per hour, it could be partly compensated by the Bulgarian energy industry, which would allow the coal plants to work.
We have a tough three months ahead of us to reach the final agreement, but we need your mandate, the energy minister said.