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Bulgaria

( Last update: March 2006 )

Electricity Market
Sector structure
Upstream Sector composed of several independent power producers (IPPs):
  • one state-owned NPP in Kozloduy,
  • six thermal generators (privatised or in course of privatisation),
  • several CHP producers (mainly DHCs, in course of privatization),
  • 100% state-owned utility Natsionalna Elektricheska Kompania EAD (NEK EAD) owning the greatest part of hydro-capacity.
NEK EAD carries out centralised purchase of electricity at regulated wholesale prices; NEK EAD is responsible for domestic sales at regulated price (to HV customers or captive consumers through public suppliers or distribution companies) and exports.

Electricity is traded through bilateral contracts at freely negotiated prices between independent power producers and suppliers or eligible customers.

Economic merit order for Balancing pool arrangements and deregulated prices for ancillary services.
Networks 100% state-owned NEK EAD licensed as transmission company under Regulated TPA regime.
NEK's branch High-Voltage Networks Enterprise responsible for repair and maintenance of high-voltage networks.
NEK's branch Trafoelectroinvest Enterprise carries out investment projects for high-voltage networks.

Eight regional distribution companies. One is fully private. In September 2004 Bulgaria's Privatization Agency accomplished privatization of 67% of capital of other regional distribution companies.
Downstream Regulated end-user prices. 22% market opening in 2005, while eligibility threshold at 9GWh/y since July 2006.
Gas Market
Sector structure
Upstream Domestic production is marginal, notwithstanding increase in extraction from Galata Field, operated by Melrose Resources. Imports by sole importer (and sole exporter) state-owned vertically-integrated Bulgargas EAD virtually account for all of the domestic natural gas consumption.

Wholesale trade of natural gas on Regulated TPA basis for producing companies. Long term contracts with Russia's OAO Gazprom are in place for gas imports for domestic consumption and for transit through the Progress pipeline. Import contract for supply to South-Western Bulgaria through Greece-Macedonia transit pipeline is in place with ООО Gazexport.
Networks Bulgargas EAD owns and manages the high-pressure transmission and transit pipeline grid and of underground gas storage in Chiren.

Nabucco project, the transcontinental methan pipeline connecting the Caspian and Middle East region with Central and Western Europe, under development by Bulgargaz EAD and other consortium partners.

Bulgaria's Overgas (controlled by OAO Gazprom and Overgas Holding AD) in agreement with Dor Gas Elran Infrastructures, and Africa-Israel Investments is developping a gas transportation and distribution network for supply in Central Bulgaria.
Downstream Bulgargaz EAD is the only public supplier of natural gas according to SEWRC regulated prices, with a market share of 88% of total consumption (2005). 7% of supply by 38 certified distribution companies (with Overgas Inc AD having stakes in 26 of them serving 25 municipalities) and remaining 5% by indigenous trader of natural gas Dexia Bulgaria ЕООD. Up to 85% market opening in 2006.
Current issues In 2006, priority for denationalisation projects of several (but not all) TPPs and DHCs.

Privatisation plans for NEK (hence, several HPPs) after 2007.

Construction by Bulgaria and Austria of 85 MW Tsankov Kamuk HPP on the Vacha River scheduled for completion in 2007.

Plans to have a second nuclear plant, Belene, operational by 2011. Design and construction will be supervised by Parsons Europe Ltd.

The Government agreed to decommission Kozloduy's reactors No. 3 and No. 4 by 2006 due to EU safety concerns but the decision has been met with court battles indicating the closure of the reactors is in violation of Bulgarian law.

Full liberalisation by 2007, according to EU standards.

Strengthening of interconnections within the EU Corridor 8 scheme to link the electricity supplies of Bulgaria, Macedonia, Albania, and Italy: construction of two 440-KW capacity lines to carry Bulgarian electricity to Greece and Macedonia.
National Legislation Law on Energy
Sources IERN staff on publicly available information