Renewable Energy: New Renewable Energy Law in Bulgaria

The new Renewable Energy Sources Act came into force in Bulgaria on 3 May 2011. It replaces the old Renewable and Alternative Energy Sources and Biofuels Act and implements Directive 2009/28/EC of the European Parliament and Council.

The law introduces changes to the rules regarding: (i) access to the grid-system, (ii) duration of long-term contracts of sale of electricity, and (iii) preferential feed-in tariffs.

The new law is designed to create a more orderly renewable energy market in Bulgaria. It raises the entry barriers, likely favouring more experienced and well-financed investors to the detriment of more speculative projects. Investors will likely be required to commit greater equity to a project earlier in the development phase. Careful planning and execution of projects will become more critical than ever.

The applicable preferential feed-in tariff under the new rules shall remain unchanged for the entire duration of the long-term contract of sale for most projects. It will be the tariff in force upon completion of construction.
The new law imposes new conditions on producers as regards payment of grid connection fees, and shortens the terms of both prelimi-nary and final grid connection contracts.

For more Information, please click here