Bulgaria should import electricity at acceptable prices by 2008 and delay investments in new power generating units, the World Bank’s energy review, drafted at the initiative of Bulgaria’s Energy Ministry, has recommended.
The report was made public on Monday.
According to the World Bank, the acceptable power import rate would stand at $0.035 per kilowatt-hour, which is the rate at which Bulgaria currently exports electricity to Turkey. The study said that power generated by the new units constructed at Bulgaria’s Maritsa Iztok 1 and 3 thermal power plants or by a new nuclear power plant would cost $0.05 to 0.07 per kilowatt-hour.
The World Bank review took into account the closure of the 440-megawatt reactors 1 and 2 of the Kozlodui nuclear power plant and set 2006 as a deadline for decommissioning reactors 3 and 4 in line with European Union demands.
Bulgaria does not need a new energy facility before 2006, the report said. A new 450-megawatt facility will be necessary in four years. Another plant will have to be built after 2011.
According to the report Bulgaria can meet its energy needs and secure exports by rehabilitating the existing facilities. These include units 5 and 6 of the Kozlodui nuclear power plant, Maritsa Iztok 2 and 3, Bobov Dol and Varna thermo power plants.
“Bulgaria could boost its competitiveness and social welfare through the more efficient use of its energy resources,” the report, entitled “Bulgaria: Energy and Environment Review”, said.
According to the report, over the next decade Bulgaria will invest several billion dollars in the rehabilitation, replacement and expansion of its energy infrastructure to meet energy demand in an efficient manner and to comply with the environmental and nuclear safety requirements of the European Union.
The report recommends building a low-pressure distribution system for natural gas to allow consumers to have an efficient and clean alternative energy source, and reducing the subsidy for household electricity and district heating prices. This is the only way in which Bulgaria can be an important energy supplier in the region, minimise its dependence on imported fuels, and meet its international commitments in environmental protection, the EER said.
According to the report, Bulgaria stands out with its excessively high amount of electricity used by households. This fact will likely pose a serious public policy challenge as electricity prices are adjusted to their full cost recovery level. Well-targeted social protection programmes are needed to cushion the impact of inevitable tariff adjustments on vulnerable low-income consumers.
The World Bank report says that crafting a long-term cost-effective energy supply strategy, which provides adequate energy security, complements environmental objectives, and reinforces the national goals of economic growth and poverty alleviation, will be a challenge for the Government.
The report was made public on Monday.
According to the World Bank, the acceptable power import rate would stand at $0.035 per kilowatt-hour, which is the rate at which Bulgaria currently exports electricity to Turkey. The study said that power generated by the new units constructed at Bulgaria’s Maritsa Iztok 1 and 3 thermal power plants or by a new nuclear power plant would cost $0.05 to 0.07 per kilowatt-hour.
The World Bank review took into account the closure of the 440-megawatt reactors 1 and 2 of the Kozlodui nuclear power plant and set 2006 as a deadline for decommissioning reactors 3 and 4 in line with European Union demands.
Bulgaria does not need a new energy facility before 2006, the report said. A new 450-megawatt facility will be necessary in four years. Another plant will have to be built after 2011.
According to the report Bulgaria can meet its energy needs and secure exports by rehabilitating the existing facilities. These include units 5 and 6 of the Kozlodui nuclear power plant, Maritsa Iztok 2 and 3, Bobov Dol and Varna thermo power plants.
“Bulgaria could boost its competitiveness and social welfare through the more efficient use of its energy resources,” the report, entitled “Bulgaria: Energy and Environment Review”, said.
According to the report, over the next decade Bulgaria will invest several billion dollars in the rehabilitation, replacement and expansion of its energy infrastructure to meet energy demand in an efficient manner and to comply with the environmental and nuclear safety requirements of the European Union.
The report recommends building a low-pressure distribution system for natural gas to allow consumers to have an efficient and clean alternative energy source, and reducing the subsidy for household electricity and district heating prices. This is the only way in which Bulgaria can be an important energy supplier in the region, minimise its dependence on imported fuels, and meet its international commitments in environmental protection, the EER said.
According to the report, Bulgaria stands out with its excessively high amount of electricity used by households. This fact will likely pose a serious public policy challenge as electricity prices are adjusted to their full cost recovery level. Well-targeted social protection programmes are needed to cushion the impact of inevitable tariff adjustments on vulnerable low-income consumers.
The World Bank report says that crafting a long-term cost-effective energy supply strategy, which provides adequate energy security, complements environmental objectives, and reinforces the national goals of economic growth and poverty alleviation, will be a challenge for the Government.
