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Energy in Bulgaria

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Kozloduy Nuclear Power Plant is the largest power plant of Bulgaria
Energy consumption by source in Bulgaria

Energy in Bulgaria is among the most important sectors of the national economy[1] and encompasses energy and electricity production, consumption and transportation in Bulgaria.[2] The national energy policy is implemented[dubiousdiscuss] by the National Assembly and the Government of Bulgaria, conducted by the Ministry of Energy and regulated by the Energy and Water Regulatory Commission.[3] The completely state-owned company Bulgarian Energy Holding owns subsidiaries operating in different energy sectors, including electricity: Kozloduy Nuclear Power Plant, Maritsa Iztok 2 Thermal Power Plant, NEK EAD and Elektroenergien sistemen operator (ESO); natural gas: Bulgargaz and Bulgartransgaz; coal mining: Maritsa Iztok Mines.[3][4][5] In Bulgaria, energy prices for households are state-controlled, while commercial electricity prices are determined by the market.[6]

Total primary energy production was 10.832 million tonnes of oil equivalent in 2020, of which 23.3% was produced from renewable sources.[7] Energy dependence on foreign imports as of 2020 was at 37.9%, lower than the European Union average of 57.5%.[7]

Bulgaria’s power sector is diverse and well-developed, with universal access to the grid and numerous cross-border connections in neighbouring countries.[8] Although almost totally dependent on imported crude oil and natural gas, Bulgaria has an energy surplus and is a net exporter of electricity.[8] Total electricity production in 2022 has reached 49.4 TWh, while demand was 37.8 TWh.[3][9] Per capita production as of 2022 was 7,458 kWh, the highest in Southeastern Europe.[10] The main sources of electricity generation were fossil fuels (52%) and nuclear power (33%).[3] Bulgaria is aiming for over 27% renewables by 2030.[11]

Energy sources

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Fossil fuels

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Natural gas

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Bulgaria is believed to have extensive natural gas resources[12] but, due to a successful campaign against hydraulic fracturing on land, only Black Sea exploration is permitted, such as at the Galata gas field.[13][14][15] In 2023, the petrochemical companies OMV and Total estimated that up to 13 billion cubic meters of natural gas could potentially be extracted from the Bulgarian Black Sea exclusive economic zone.[16] As of 2022, domestic production of natural gas remains insignificant, at 17 million cubic meters.[3] The main consumers are the energy and the chemical sectors, which combined account for 54% of the consumption.[3]

Bulgaria consumes about 3 billion cubic meters (bcm) of natural gas.[17] The Gas Interconnector Greece-Bulgaria natural gas pipeline became operational in 2022, and Bulgaria receives about 1 bcm a year from Azerbaijan,[17][18] with a long-term contract at a price linked to the international oil price.[19] The country imported over 90% of its natural gas from Russia via the Turk Stream pipeline under a 10-year contract,[20] which expired at the end of 2022.[17] Due to the 2022 Russian invasion of Ukraine the contract was not renewed.[17] In April 2022 Russia stopped piping gas to Bulgaria and Poland, due to their refusal to pay in roubles. In response to this, Bulgaria shifted to imports of liquefied natural gas.[21]

In January 2023 Bulgaria signed an agreement with Turkey to enable Bulgaria to buy LNG on the open market and for the liquified gas to be delivered to Turkey where it would be returned to a gaseous state for pumping via the Botas gas network to Bulgaria. The agreement is for 13 years use of the LNG terminals and pumping up to 1.5 billion cubic metres of gas p.a. from those terminals to Bulgaria. The agreement also allows for gas to transit Bulgaria to other European countries.[22] December 2023 saw a Bulgaria-Serbia gas interconnector become operational,[23] 170km long, with a 1.8 billion cubic meters of gas per year capacity, it allows gas to be supplied to Serbia from Azerbaijan, among a number of sources.[24]

Oil

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The LUKOIL Neftohim refinery

As of August 2023, Bulgaria imports 3 million barrels per month of Russian-produced oil and is the fourth-largest importer of Russian-produced oil in the world.[25] Only India, China and Turkey import more Russian-produced oil than Bulgaria.[25]

Most oil products are consumed by transport.[26] Lukoil Neftohim Burgas, the biggest oil refinery on the Balkans, refines the predominant amount of the crude oil that eventually reaches the Bulgarian market as refined petroleum. The refinery is owned by the Russian multinational energy corporation Lukoil.[27]

Bulgaria received an exemption from the EU to continue importing oil from Russia, by ship, until December 2024.[28] Part of the terms of the exemption, was that from January 2023 Lukoil will pay taxes in Bulgaria, which it had until 2022 avoided, by paying profits to Switzerland and The Netherlands, Bulgaria believes it will receive €350m in taxes per year.[28] On 5 December 2023, Bulgaria announced that exports of Russian-produced oil will cease by January 2024.[25]

In October 2023 Bulgaria noted Lukoil had found interest from potential buyers for the refinery and that the current 60% tax on revenue would fall to 15% for a new owner, with Russian oil ceasing to be processed after 1 October 2024.[29]

Bulgaria decided to bring forward the cessation of Russian crude oil to 1 March 2024.[30]

Coal

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Coal extraction remains important for Bulgaria's energy sector — as of 2022 the locally extracted coal secured 48% of electricity production.[3][31] Bulgaria possesses significant reserves of coal estimated at 4.8 billion tons.[32] More than 92% of them, or 4.5 billion tons,[32] is lignite, which is the lowest rank of coal due to its relatively low-heat content but is widely used for electricity generation. With reserves of 2.856 billion tons Maritsa Iztok, situated in the Upper Thracian Plain, is by far the largest coal basin in the country which powers Maritsa Iztok Complex, the largest energy complex in South-Eastern Europe.[33] Other lignite basins include Sofia Valley, Elhovo, Lom, and Maritsa Zapad.[33] The reserves of sub-bituminous coal are 300 million tons, situated mainly near Bobov Dol, Pernik and Burgas.[34] The recoverable reserves of bituminous coal and anthracite are insignificant. However, there is a huge basin of bituminous coal in Southern Dobruja with estimated reserves of over 1 billion tons but its large depth (1370–1950 m) is an obstacle for its commercial exploitation.[35]

As of 2022, coal production was 36 million tons, of them 98% were lignite and 2% sub-bituminous coal. The mines of Maritsa Iztok accounted for 98.6% of the lignite etraction. About 97% of the coal production was utilised for electrical and thermal power generation, and further 2% were used for the production of briquettes.[3] Bulgaria plans to reduce coal as an energy source from 2030, with coal being discontinued in 2038.[36] The EU is providing 1.2 billion euros to help a just transition to phase out coal.[37]

Renewable energy

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Solar power installation near Aytos
Wind turbines at Cape Kaliakra
Years in which the last three renewable power levels achieved
Achievement Year Achievement Year Achievement Year
10% 2009 15% 2012 20% 2020[38]

Renewable energy includes wind, solar, biomass and geothermal energy sources (although it is not yet known whether geothermal energy could generate any electrical power as only slightly over 100 degrees C had been found by 2023[39]).

Solar power

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Bulgaria has a high potential for solar irradiation, especially in the southern regions of the nation.[40] Solar plants are rapidly increasing — from a total of 100 MW of solar power installed capacity in 2011,[40] as of 2023, Bulgaria has more than 2,400 MW, of them 600 MW were added in 2022.[41][42] The capacity is set to reach 3,000 MW.[42] The largest solar parks are Dalgo Pole (207 MW) in Plovdiv Province and Verila (123 MW) in Kyustendil Province.[42] There is a trend of many companies installing solar panels of own to reduce buying electricity from the grid, with a similar trend on the rise for domestic use as well.[41] For the first time in Bulgaria, albeit for a few hours in May 2023, photovoltaics produced more electricity than nuclear power plants and thermal power plants, providing 31% of the electricity production.[41]

Wind power

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In 2019 Bulgaria had 708 MW of wind power capacity, with the European Wind Energy Association stating that Bulgaria has the potential to generate up to 3.4 GW of wind power.[43]

Hydroelectric

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Generating over 10% of Bulgaria's electricity, most hydropower plants are owned by NEK EAD and located in the Rhodope Mountains and Rila. The total installed capacity of the NEK EAD-owned HPPs is 2,737 MW.[44] They are grouped in four main hydropower cascades that include several HPPs, dams and other facilities each — Belmeken–Sestrimo–Chaira (1,599 MW)[45] in eastern Rila and the western Rhodopes, Dospat–Vacha (500 MW)[45] in the western Rhodopes, Arda (325 MW)[45] in the eastern Rhodopes and Batak (254 MW)[45] in the western Rhodopes. All of these are located in the Maritsa river drainage, though water is also collected from neighbouring basins, such as those of the Mesta and the Struma via gathering derivations and tunnels.[46] There are three pumped storage hydro power plants, including the Chaira PSHPP (864 MW) — the largest in Southeastern Europe,[47] with an important function to balance short-term consumption changes or shortages in the national grid.[44]

Nuclear power

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Bulgaria has two operational reactors and four that have been closed down prior to 2006. The two operational reactors have a capacity of 2 GW in total. In 2020 nuclear energy produced 16.6 TWh, which was 41% of Bulgaria's electricity generation.[48]

In 2023, US based Westinghouse Electric Company are in the planning process with Kozloduy NPP-Newbuild to build the first of four new reactors in Bulgaria.[36][49]

Heating

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More than a quarter of the population are estimated to be in energy poverty, as some buildings are not well insulated.[50][51] Geothermal heating of some schools is being trialled.[52] Burning wood and coal for home heating, which is a common practice in smaller towns and municipalities, as well as some of the less affluent suburbs of major cities, is a major cause of chronic illnesses and excess deaths in the country.[53][54][55]

Energy transit

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Bulgarian gas infrastructure map.

Russian gas from Turkstream transits to Serbia and Hungary.[56]

In October 2023 Bulgaria passed a law taxing Russian gas in transit to Hungary, Serbia and Bosnia and Herzegovina at 20 levs (10.22 euro) per MWh,[29] but due to pressure from Hungary, this was not implemented.[57]

Energy Transition

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In accordance with the European Union's Fit for 55 plan to reduce greenhouse gas emissions by 55% by 2030, as well as the European Green Deal, the country is in the process of becoming climate neutral by 2050 and is thus working on reducing its greenhouse gas emissions by encouraging new renewable power investments.[58] In addition, all of the currently operating coal power plants are expected to close by the end of the decade as they will become economically unprofitable, owing to the recent and future trend of decreasing renewable energy prices. In 2023, the Center for the Study of Democracy made a plan for climate neutrality. [59] As of 2024 Bulgaria is the least energy efficient country in the EU.[1]

See also

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Citations

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  1. ^ a b "Bulgaria - Energy". www.trade.gov. 2 January 2024. Retrieved 2024-01-11.
  2. ^ Donchev & Karakashev 2004, p. 284
  3. ^ a b c d e f g h "Bulletin on the Condition and Development of Energy in the Republic of Bulgaria in 2022" (PDF). Official Site of the Ministry of Energy of Bulgaria. Retrieved 15 October 2023.
  4. ^ "Bulgaria Consolidates Five Energy Companies into Holding". Sofia News Agency. 2008-02-13. Retrieved 2008-02-24.
  5. ^ "Bulgaria announces birth of energy giant with new holding company". Power Engineering. 2008-02-14. Archived from the original on 2008-10-18. Retrieved 2008-02-24.
  6. ^ "Bulgaria - Country Commercial Guide". 2 January 2024.
  7. ^ a b "Bulletin on the Condition and Development of Energy in the Republic of Bulgaria in 2021" (PDF). Official Site of the Ministry of Energy of Bulgaria. Retrieved 15 October 2023.
  8. ^ a b "Bulgaria - Power Generation". Retrieved 15 October 2023.
  9. ^ "България отчита 22% ръст на тока от въглища през 2022-а, потреблението спада (графики)". Capital. Retrieved 15 October 2023.
  10. ^ "Per Capita Electricity Production". Our World in Data. Retrieved 15 October 2023.
  11. ^ "Bulgaria to increase renewable energy deployment in 2023". 3 January 2023.
  12. ^ Milcheva, Emiliya (2022-06-10). "Bulgaria is rich with shale gas, but lacks political will to exploit it". www.euractiv.com. Retrieved 2023-03-24.
  13. ^ Tucker, Aviezer (December 19, 2012). "The New Power Map: World Politics After the Boom in Unconventional Energy". Foreign Affairs. Retrieved December 31, 2014. The mark of outside influence is clear: In Bulgaria, there are rarely demonstrations of any kind
  14. ^ Yardley, Jim; Becker, Jo (December 30, 2014). "How Putin Forged a Pipeline Deal That Derailed". The New York Times. Retrieved December 31, 2014. Almost immediately, a well-organized campaign emerged to kill shale exploration before it began, fueled in part by loyalists for Ataka, one of the several far-right parties that Putin has cultivated in Europe.
  15. ^ Esau, Iain (2023-01-06). "Could prolific Turkish gas play extend into Bulgarian waters?". Upstream Online. Retrieved 2023-03-24.
  16. ^ "TOTAL и OMV прогнозирали добив от 13 млрд. кубика природен газ годишно в Черно море". 8 July 2023.
  17. ^ a b c d Tsolova, Tsvetelia (19 March 2022). "Bulgaria will not hold talks to renew gas deal with Gazprom". Reuters. Retrieved 26 April 2022.
  18. ^ "Bulgaria increases purchase of Azerbaijan gas". 2 July 2023.
  19. ^ "Long-term contract with Azerbaijan reduces price of gas in Bulgaria by 11%". Azernews.Az. 2024-01-03. Retrieved 2024-01-12.
  20. ^ Tsolova, Tsvetelia (26 April 2022). "Gazprom informs Bulgaria it will halt gas supplies as of April 27". Reuters. Retrieved 26 April 2022.
  21. ^ Strzelecki, Marek; Tsolova, Tsvetelia; Polityuk, Pavel (2022-04-27). "Russia halts gas supplies to Poland and Bulgaria". Reuters. Retrieved 2022-04-27.
  22. ^ "Bulgaria signs long-term agreement to use Turkish gas terminals". 3 January 2023.
  23. ^ "Inauguration of the Bulgaria-Serbia gas interconnector - European Commission". energy.ec.europa.eu. Retrieved 2024-01-06.
  24. ^ "The Serbia-Bulgaria gas interconnection will soon start on a trial basis". 3 December 2023.
  25. ^ a b c "ЛУКОЙЛ заявил о «политической буре» из-за завода в Болгарии. ЛУКОЙЛ рассмотрит продажу активов в Болгарии из-за изъятия завода в Бургасе: В Болгарии планируют запретить НПЗ ЛУКОЙЛа использовать российскую нефть и продавать нефтепродукты. Компания увидела в этих мерах риск остановки производства и предупредила, что может продать бизнес" [LUKOIL announced a “political storm” over a plant in Bulgaria. LUKOIL will consider selling assets in Bulgaria due to the seizure of the plant in Burgas: Bulgaria plans to ban LUKOIL refineries from using Russian oil and selling petroleum products. The company saw in these measures the risk of stopping production and warned that it could sell the business]. «РБК» (in Russian). 5 December 2023. Archived from the original on 6 December 2023. Retrieved 5 December 2023.
  26. ^ "Bulgaria Energy Information | Enerdata". www.enerdata.net. Retrieved 2023-01-12.
  27. ^ Shikerova, Genka; Wesolowsky, Tony (2023-01-19). "Russia Gets Its Oil Into The EU Through Bulgaria. Perhaps Not For Long". Radio Free Europe/Radio Liberty. Retrieved 2023-03-24.
  28. ^ a b "Bulgaria to let Russian oil refinery export despite EU ban". Associated Press News. 1 November 2022.
  29. ^ a b "Lukoil Bulgaria refinery attracts buyer interest - report". SeeNews. 18 October 2023.
  30. ^ "Bulgaria accelerates end of sanctions loophole that earned Russia €1B". 17 November 2023.
  31. ^ Donchev & Karakashev 2004, p. 286
  32. ^ a b Donchev & Karakashev 2004, p. 42
  33. ^ a b Donchev & Karakashev 2004, p. 43
  34. ^ Donchev & Karakashev 2004, p. 44
  35. ^ Donchev & Karakashev 2004, pp. 44–45
  36. ^ a b "Bulgaria energy strategy includes four new nuclear reactors". 19 January 2023.
  37. ^ "Press corner". European Commission - European Commission. Retrieved 2024-01-06.
  38. ^ "Energy consumption in Bulgaria". 2020.
  39. ^ "The World Bank to help Bulgaria benefit from its geothermal resources". World Bank. Retrieved 2023-08-18.
  40. ^ a b "Bulgarian Solar Energy Market". AE Solar. 18 January 2022. Retrieved 11 January 2024.
  41. ^ a b c "Solar Parks Provide More Than 31% of Electricity Production in Bulgaria". State Official Site of the Bulgarian National Radio. Retrieved 11 January 2024.
  42. ^ a b c "Bulgaria Enjoys Solar Boom as Biggest Photovoltaic Parks Come Online". Balkan Green Energy News. 31 August 2023. Retrieved 11 January 2024.
  43. ^ "The Growing Importance of Wind Power in Bulgaria". 25 June 2023.
  44. ^ a b "Hydroelectric Production". State Official Site of the National Electricity Company. Retrieved 11 January 2024.
  45. ^ a b c d "Hydro Power Plants". State Official Site of the National Electricity Company. Retrieved 11 January 2024.
  46. ^ Nabatov 2011, pp. 21–22
  47. ^ Nabatov 2011, pp. 24–30
  48. ^ "Nuclear Power in Bulgaria". May 2023.
  49. ^ "Bulgaria moves to install new nuclear reactor at Kozloduy plant". 19 June 2023.
  50. ^ "Turning up the heat on Europe's fuel poverty crisis". euronews. 2022-01-26. Retrieved 2022-04-28.
  51. ^ "Bulgaria has EUR 1.1 billion for energy renovation of residential, public buildings". Balkan Green Energy News. 2022-04-15. Retrieved 2022-04-28.
  52. ^ "Bulgarian municipalities win EEA funds for geothermal heating, cooling". Balkan Green Energy News. 2022-02-09. Retrieved 2022-04-28.
  53. ^ "Health Fears Mount Over Central Europe's 'Burn Everything' Heating Efforts". RadioFreeEurope/RadioLiberty. 9 December 2022. Retrieved 2023-01-12.
  54. ^ "The energy sector in Bulgaria". Bankwatch. Retrieved 2023-01-12.
  55. ^ "Sofia Air Quality Index (AQI) and Bulgaria Air Pollution | IQAir". www.iqair.com. Retrieved 2023-01-12.
  56. ^ "Poland, Bulgaria, Defiant After Russia Cuts off Gas Supply". Balkan Insight. 2022-04-27. Retrieved 2022-04-27.
  57. ^ "Bulgaria to scrap tax on Russian gas after Hungarian threat". www.ft.com. Retrieved 2024-01-06.
  58. ^ https://www.capital.bg/biznes/energetika/2023/03/17/4459247_koi_sa_novite_vei_proekti/ [bare URL]
  59. ^ "Back to the Drawing Board: The Contours of Bulgaria's Climate Neutrality Roadmap". csd.bg. March 2023. Retrieved 2023-04-21.

References

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  • Дончев (Donchev), Дончо (Doncho); Каракашев (Karakashev), Христо (Hristo) (2004). Теми по физическа и социално-икономическа география на България [Topics on Physical and Social-Economic Geography of Bulgaria] (in Bulgarian). Sofia: Ciela. ISBN 954-649-717-7.
  • Набатов (Nabatov), Никита (Nikita) (2011). Електроенергетиката на България (Energy in Bulgaria) (in Bulgarian). София (Sofia): Гея Либрис (Tangra TanNakRa). ISBN 978-954-378-081-5.