BULGARIAREGIONAL REPORTS ON BIOHEAT

FROM SOLID BIOMASS10 – 11 March 2010

Ancona, Italy

Bulgaria – energy balance National target in the framework of the EU “Climate

Change Package” until 2020 – 16%The energy balance in Bulgaria (2005)• coal - 37% • mineral oil - 25• nuclear energy – 20%, • natural gas – 13 %. • The share of wood and hydro energy is 4% and 1%

resp. 60 % of the necessary primary energy resources are

imported

BIOMASS POTENTIAL Bulgaria has a large potential for biomass production. The biomass consists of about 40% of the potential for “green energy” production. The production of heat energy based only of forestry residues which are not used until now could reach 13,5 million MGWh.The total agricultural area amounts at 5,5 million ha of which 8% are not used. 4.8 – 5.2 million tones annually remain as a biomass after harvesting of plant production. The biggest share of plant by-products (around 3 million tones) comes from cereals.The total size of the wood yield is about 55 000 ha annually. The RES contribute significantly in the heating consumption. The almost whole supply is derived from wooden resources. The main share of wood used for energy purposes belongs to firewood utilized in household in the countryside which is mainly due to the cheapest price – around 41 EUR/t against 95 EUR/t for pellets and briquettes.

BIOMASS POTENTIAL

TYPE POTENTIAL

TOTAL NOT UTILIZED

ktoe ktoe %

Wood

( forests)

1 110 510 46

Industrial waste

77 23 30

Agricultural waste

1 000 1000 100

Animal waste 320 320 100

Rapes oil 117 117 100

Total 2624 1970 76

Production and share of RES in national heating consumption (1000 toe)

1999 2004 2005 2006 2007

Total energy demand for heating supply

1910 1820 2010 2030 1980

Absolute supply of RE for heating

384,8 717,4 739,2 769,7 708,49

Share (%) 20,15 39,42 36,78 37,92 35,78

Source: National Electric Company

BIOFUELS POTENTIAL

2004 2005 2006 2007 2008Maize 383217 298713 350291 214367 348402

Rape seeds

11300 11000 15800 54000 102000

Sunflower 592765 635003 750521 602398 723962

Rye 8500 8800 7400 5100 7000

Sugar beet

1083 1294 1356 994 n.a.

Wheat 1039679 1101807 970392 1087996 1112045

BIOFUELS POTENTIAL• The area of main crops that are considered and are utilized in the

biomass and biofuel productions shows a considerable changes in the rapeseed, which size soared up from 9500 ha in 2000 to 102000 ha in 2008. Although the cultivation practices in Bulgaria might be considered as backward compared with the other EU countries in terms of average yield by energy crops. According to the EUROSTAT, the average yield of rape conceived as the main energy crop in Bulgaria in 2007 was 1,72 t/ha, while in EU-27, it was evaluated up to 2,8 t/ha, a discrepancy by 62%. Regardless, the national rape average yield increased in 2008 up to 2,28 t/ha, it is still at the level of 81% of the EU average level

• According to the Ministry of Economy, in the biofuel sector, Bulgaria will need 509 001 ha of oilseeds which is about 16.3% of the arable land in order to be able reach the national target of 10% in 2020.

BIOFUELS POTENTIAL

• Bulgaria has a surplus of oilseeds. The main oil crops are sunflower and rape . The annual production is around 1 million tons while the internal consumption of sunflower oil amounts at around 140 000 – 150 000 t. 90% of it is use in the food industry. Bulgaria exports between 500 000 – 600 000 t of sunflower seed per year.

• 25 000 – 30 000 t tons of rape seed is used for biodiesel production and the rest of production is exported.

Production and share of RE in national diesel consumption (1000 toe)

Years 1999 2005 2006 2007Total diesel demand

1948 2570 2772 2690

Absolute supply of RE for diesel

0,8 2,6 7,8 3,6

Share of the RE (%)

0,04 0,10 0,28 0,13

PRODUCTION OF BIOFUELS In 2008 the quantity of biodiesel and bioethanol, produced in Bulgaria are 140 000t and 20 000t respectively, but due to the uncertain tax policy and mainly the lack of taxe exemption this quantities marked a strong decrease and the share of biofuels in the final consumption for transport is only 1%. The data of the Institute of Agricultural Economy for 2008 (the only available data) show that:

• Part of the output of over 1000 farms is utilized for bio-fuel production;• The bio-fuels producers are mainly big farms (with more than 100 ha rented

land), registered regularly as sole traders or limited liability companies (Ltd) and partially agricultural cooperatives;

• The newly provided jobs count about 400;• This production is a new incomes source (not exceeding 1 % of the agriculture

incomes);• The partial use of the cereals and oil crops for bio-fuels production is

contribution to a certain price stabilization;• There is not a closed production cycle in bio-fuels production- from the raw

material, through the processing to the market, i.e. the raw material is usually sold to processors;

• There is not observed a considerable change in the land’s utilization;

BIOGAS POTENTIALType of farms Number of

animalsAverage

quantities of manure per

capita In kg dry

matter/day

Annual quantities of

manure In t/ dry

matter/year

Energy equivalent of

biogas tne/year

Cattle and buffalo

127 205 4,0 92 860 20 000

Pork 462 070 0,6 101 193 21 800

Poultry 12 000 000 0,03 131 400 28 200

Total 325 453 70 000

ENERGY POLICY MEASURES The state policy in the field is based upon the National Long-Term Program for Promotion Usage of Renewable Energy Sources (NLTPPURES). Its main objectives are:

• Electric energy production: The share of RES during 2010 will exceed with 8% the total electric energy production and during 2015 – with 9%. The achieving of the specified for the 2010 share, combined with the EE measures will near the country to the admitted through the Bulgaria’s Accession Contract to the EU indicative aim;

• Replacing of the conventional fuels and energies used for heating: to be replace conventional fuels and energies with common energy equivalent not less than 1300 ktoe per year;

• Using of liquid biofuels: The undertaken commitment according to Regulation 2003/30/EU for a market share of biofuels to be in conformation with the market conditions and possibilities of the country;

ENERGY POLICY MEASURES The support for the RES utilization is achieved mainly through preferential price and taxation policy.

• The public provider and/or public suppliers, possessing a provision license of electric power are obliged to buy up the whole quantity of electric energy, produced by RES electric plants, registered by a certificate of origin, or participating with it at the balance market.

• The public provider and/or public suppliers are obliged to buy up the electric energy produced by EP, utilizing RES, including HPP with installed capacity up to 10 MW, at preferential prices, according the corresponding Regulation.

• The transition and distribution companies are obliged to connect with a priority all the plants utilizing RES for energy production.

ENERGY POLICY MEASURES

Support level 2007(EUR/kWh)

Support level 2008(EUR/kWh)

Electricity, produced by biomass

From 83 to 110 EUR/kWh From 83 to 110 EUR/kWh

Heat and power produced by CHP instalations

From 34 – 76EUR/kWh depending on the producer

From 34 – 76EUR/kWh depending on the producer

A specific financial support for biomass production is provided by the National Rural Development Plan 2007 – 2013 especially by the measures stimulating the diversification of agricultural farm activity. The implementation of this measure for the moment in weak because of the difficult access of farmers for credits and lack of capital for initial investments.

Support for the electricity , produced by biomass

CONCLUSIONS

Bulgaria has a big potential of renewable resources . This could be a good opportunity for export. 1. The increase of the share of the produced energy, applying renewable energy sources (RES) will

contribute to:• decrease of the country’s dependence on the import of primary energy resources;• creating of new market possibilities for trade operators (producers, service companies,etc.) of RES

installations, providing of new jobs;• Increase the competitivity of national economy as a whole, • sustainable energetic development and improvement of the environmental indices;• Stabilization of the agricultural markets and development of rural economy. Therefore it is

important for farmers to take their own place in as an important actor in the energy market as a biomass suppliers which will result in the redaction of the abandoned land. The micro energy projects will diversify the farmers incomes by creating an added value and increase the competitivity.

2. The legislative frame is fixed by the National Long-Term Program for Promotion Usage of Renewable Energy Sources (NLTPPURES), but it is still weak.

3. The appropriate financial instruments should be established in order to boost the development of the RES sector.

4. A lot of efforts should be done to increase the awareness of farmers for these opportunities.