Bulgarian Photovoltaic Market Outlook 2012
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This market report offers an incisive and reliable overview of the photovoltaic sector of the country. In view of recent cuts in FIT’s announced in Germany, Spain, France, UK, Czech Republic, Slovakia and Italy, Bulgaria represents a stable investment environment in South-East Europe with clear rules and fair FIT rates. The report provides a complete picture of the market situation, dynamics, current issues and future prospects. You will find more than 50 pages of valuable information in this unique in-depth analysis of the Bulgarian photovoltaic market. With comprehensive market data this report brings clear and concise insights, to help investors in their decision making process. As 2011 was challenging year for photovoltaic industry, the time for taking right decisions is limited.
Transcript of Bulgarian Photovoltaic Market Outlook 2012
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Inea Consulting is well established renewable energy advisory firm focused to emerging markets of South East Europe. Through its analytical arm Inea Research, the company provides independent renewable sectors watch, customized analysis, market outlooks and sector studies. What makes us different is the quality and accuracy of information, which is interpreted in the best way to take your investment decisions.
www.ineaconsulting.eu
BULGARIAN PHOTOVOLTAIC MARKET: OUTLOOK 2012
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TABLE OF CONTENTS
FOREWORD ................................................................................................................ 6
1. METHODOLOGY ................................................................................................ 8
2. EXECUTIVE SUMMARY .................................................................................... 10
3. BULGARIAN POLITICAL AND ECONOMIC ENVIRONMENT ................................. 13
3.1. Basic country data .............................................................................................. 13 3.2. Political Climate and Ruling Party ...................................................................... 16 3.3. GDP and Economic Growth ................................................................................ 16 3.4. Electricity Imports and Exports. Electricity prices for business and households 18 3.5. Taxes ................................................................................................................... 20
3.5.1. VAT .................................................................................................................. 20 3.5.2. Income and Corporate Taxes .......................................................................... 20
4. BULGARIAN PHOTOVOLTAIC ENERGY MARKET ................................................ 21
4.1. General electricity market information ............................................................. 21 4.1.1. Electricity Consumption and Production ........................................................ 22 4.1.2. RES targets ...................................................................................................... 22
4.2. Photovoltaic market ........................................................................................... 25 4.2.1. Why invest in photovoltaic energy in Bulgaria? ............................................. 26 4.2.2. Bulgarian solar resource potential ................................................................. 27 4.2.3. Overview of Bulgarian photovoltaic market .................................................. 28 4.2.4. Market prices for PV projects in Bulgaria ....................................................... 30 4.2.5. Development projects and operational PV plants in Bulgaria ....................... 30 4.2.6. Key solar companies operating on Bulgarian market..................................... 34
5. EUROPEAN RENEWABLE ENERGY POLICY LANDSCAPE ..................................... 36
5.1. Bulgarian RES Regulations and EU Directives .................................................... 36 5.1.1. Precedent EU regulations ............................................................................... 36 5.1.2. Most recent EU renewable energy policy developments .............................. 36
5.2. Renewable energy mandatory targets for Bulgaria set out by the EU .............. 37 5.2.1. Interim targets set out by the EU ................................................................... 37 5.2.2. National support schemes flexibility allowed by the EU ................................ 38
5.3. PV LEGAL Project ................................................................................................ 38
6. BULGARIAN RENEWABLE LEGAL AND REGULATORY FRAMEWORK .................. 39
6.1. Main laws and regulations ................................................................................. 39 6.2. Zoning, planning and construction related authorizations ................................ 40 6.3. Environmental related authorizations ............................................................... 40
6.3.1. Natura 2000 Network ..................................................................................... 41 6.3.2. Joint Implementation ..................................................................................... 41
BULGARIAN PHOTOVOLTAIC MARKET: OUTLOOK 2012
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6.4. Energy law authorizations .................................................................................. 41 6.4.1. Power Generation Licensing ........................................................................... 41 6.4.2. Grid Interconnection ...................................................................................... 42 6.4.3. Power Off-Take ............................................................................................... 42 6.4.4. Feed-in tariff (FIT) ........................................................................................... 43 6.4.5. Certificate (Guarantee) of Origin .................................................................... 44
6.5. Ten key points in new Bulgarian RES law ........................................................... 45 6.6. Financial Incentives and Support for RES electricity .......................................... 46 6.7. Future market pricing mechanisms ................................................................... 47 6.8. Key Co-financing opportunities .......................................................................... 47
6.8.1. Bulgarian Energy Efficiency and Renewable Energy Credit Line .................... 47 6.8.2. Measure 311 ................................................................................................... 50 6.8.3. Measure 312 ................................................................................................... 50 6.8.4. European Local Energy Assistance ................................................................. 51 6.8.5. Operational Program Competitiveness .......................................................... 52 6.8.6. Implementing Energy Saving Technologies in Enterprises Scheme ............... 52
7. KEY ORGANIZATIONS AND INSTITUTIONS ....................................................... 53
7.1. Government ....................................................................................................... 53 7.1.1. The Ministry of Economy, Energy and Tourism (MEET) ................................. 53 7.1.2. The State Energy and Water Regulatory commission (SEWRC) ..................... 53 7.1.3. Agency for Sustainable Energy Development (ASED) .................................... 53 7.1.4. MOEW and RIEW ............................................................................................ 54
7.2. Electricity Distribution Companies (EDC’s) ........................................................ 54 7.2.1. EVN ................................................................................................................. 55 7.2.2. E.ON Bulgaria/ Energo Pro.............................................................................. 55 7.2.3. CEZ .................................................................................................................. 57
8. SWOT Analysis ............................................................................................... 58
9. CONCLUSIONS ................................................................................................ 63
10. LIST OF ABBREVIATIONS ................................................................................. 65
11. REFERENCES ................................................................................................... 67
12. DISCLAIMER ................................................................................................... 76
APPENDIX I. SOLAR IRRADIATION MAPS OF EUROPE AND BULGARIA ........................ 77
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LIST OF MAPS, CHARTS AND TABLES
Map 1: Where is Bulgaria on the European map.............................................................. 13 Map 2: Major transport corridors passing through Bulgaria ............................................ 14 Map 3: Bulgarian regions .................................................................................................. 15 Map 4: Solar potential of Bulgaria .................................................................................... 26 Map 5: NATURA 2000 areas in Bulgaria ............................................................................ 41 Map 6: Districts covered by EVN Bulgaria ........................................................................ 55 Map 7: Districts covered by E.ON Bulgaria/ENERGO-PRO ............................................... 56 Map 8: Districts covered by CEZ ....................................................................................... 57
Chart 1: Real GDP growth for the period 2000-2012 (including estimates) ..................... 17 Chart 2: Bulgarian GDP growth compared to EU-27 for the period 2002-2011(Q1) ....... 18 Chart 3: Electricity imports and exports for the period 2004-2011 (in million MWh) including estimations ........................................................................................................ 19 Chart 4: Corporate tax income in the region ................................................................... 20 Chart 5: Structure of Bulgarian electricity market ............................................................ 21 Chart 6: Share of RES electricity in gross energy consumption 2010 ............................... 22 Chart 7: Bulgarian RES targets in % set by the EU ............................................................ 23 Chart 8: Cumulative developments of PV plants in Bulgaria in MWp from 2008 to 2013, including estimates ........................................................................................................... 33 Chart 9: BEERECL Structure ............................................................................................... 48 Chart 10: Market Shares by Sales of the Major Utility Companies in Bulgaria in 2011 ... 54 Chart 11: Structure of ENERGO-PRO Czech Republic ....................................................... 56
Table 1: Electricity prices for business and households .................................................... 19 Table 2: Support schemes for RES generation in the EU countries ................................... 25 Table 3: Market prices for PV projects in Bulgaria for 2011 .............................................. 30 Table 4: Selected operational, under construction and planned photovoltaic projects in Bulgaria .............................................................................................................................. 32 Table 5: Feed-in-tariffs for electricity from PV sources in Bulgaria ................................... 44
© 2012, Inea Consulting Ltd., Bulgaria; Last Edition on 15.02.2012
