26.06.2024

Energy experts: The National Plan "Energy and Climate" lacks the link between the goals and specific measures

After the announcement of the Green Pact and the adoption of the "Clean Energy for All Europeans" Package, setting higher targets for reducing carbon emissions, for increasing the share of RES and for achieving higher energy efficiency, the member states of the European Union had to to prepare national integrated energy and climate plans.

The Ministry of Energy published on June 13, 2024. update of the Integrated National Plan "Energy and Climate" (INPEC) and today a discussion of interested parties was held, the organizer of which was Utilities magazine. The dean of the Faculty of Economics of the SU "St. Kliment Ohridski" Assoc. Dr. Atanas Georgiev was the moderator of the event. He explained that the integrated national plan should be updated every two years.

"Bulgaria has the opportunity to achieve the ambitious goals in the field of decarbonization. We need to form a vision on how to decarbonize the economy in a sustainable way. The working group began work last year with the participation of experts from various departments. The initial version of the updated plan was presented at the end of last year, but the analytical part was developed at the beginning of this year".

This was explained by the Deputy Minister of Energy Krasimir Nenov at the beginning of the discussion. He also pointed out the most important highlights in it, including the gradual smooth exit from the use of coal until 2038, rapid development of the RES sector and significant entry of renewable sources into the energy mix, development of nuclear energy, the increase in energy production from natural gas (about 400 to 800 megawatts).

Bulgaria's goals until 2030 in the integrated plan are set out in three main directions

One of the goals is a 62% reduction in emissions by 2030 compared to 1965. Bulgaria must limit greenhouse gas emissions by 10% and achieve a reduction of -13% in the Transport sector. The third direction is the Land Use and Forestry sector. By 2025, member states must ensure that emissions do not outpace removals. For the second phase (2026-2030), Bulgaria must achieve 9018 kilotons of carbon dioxide.

At the beginning of 2024, the European Commission (EC) set a second intermediate goal for countries - to reduce emissions by 90%. It will be key for our country to have a relevant framework for implementation and financial provision to achieve this goal.

"We have laid down for the first time a provision to achieve climate neutrality by 2050. Diversification of energy resource supplies is key, as well as nuclear fuel from Kozloduy, the development of gas infrastructure, the construction of the vertical gas corridor, the development of RES potential, the gradual withdrawal of coal power and the development of new nuclear capacities and launch of two new nuclear units to replace units 6 and 7, development of energy storage systems, which are expected to be put into operation," Minister Nenov explained.

Development of an observatory for the energy poor

The plan describes that the so-called Observatory for the Energy Poor. Funding for its creation is expected, as it is in all European countries. This will be a unit that will deal with benefits for energy-poor citizens. Funds for renovating homes are also planned, they explained during the presentation of the Integrated National Plan "Energy and Climate".

On a social level, support for vulnerable groups and a reduction in transport activity are foreseen. Bulgaria needs to define what transport activity is. The funds that our country can absorb are 2 billion euros.

Transport is the largest consumer of energy and the most challenging and difficult sector to decarbonise. Attracting private capital to energy efficiency activities is critical, experts said.

During the event, the need to restore the work of PAVETS Chaira was also emphasized, as well as the planned construction of two new PAVETS of 800 megawatts each (Batak and Dospat) and the construction of battery storage facilities.

Gaps in the Integrated National Energy and Climate Plan

Mariyana Yaneva, vice-president of the Association for Production, Storage and Trade in Electricity (APSTE), pointed out that a 55% share of RES is something achievable for Bulgaria. However, according to her, the development and storage of energy in the form of batteries is quite underestimated in the plan.

“In the energy storage sector, more details are lacking regarding the construction of new capacities and how they will be integrated into the market. The regulatory framework needs to change in order to successfully integrate the changes. For this purpose, new measures and details are needed", she pointed out.

According to Eng. Ivaylo Naydenov, executive director of the Bulgarian Federation of Industrial Energy Consumers (BFIEK), it is a positive sign that the industry sector has slightly grown in volume.

"Until now, the energy transition was mainly concentrated in the energy sector. The plan already has measures aimed not only at this sector, but also at industry and at sectors that are difficult to decarbonise. Currently, each member country is bailing out individually. Only financially strong countries will be able to overcome this challenge. We have a good base that needs to be developed further", he added. 

Kaloyan Staykov, Chief Economist at the Energy Management Institute (EMI), emphasized that optimism must meet reality. According to him, the ideas are not bad, but they do not work the way they are intended.

There is an obvious structural problem in Bulgaria, which can be solved with a stimulus. Creating the right incentives is very important. We need to pick up the pace. Although the goals and measures are clear, there is not enough money, time and people to do this thing. The world has changed, we live in a new reality and we have to adapt to it", he summarized.

According to Kaloyan Staykov, the regulatory framework is very important and business must be aware of what is happening.

There is more transparency and more upgradeability with this plan. It looks much better than the previous one and with more innovative designs. This is the way to make a quality, fair and sustainable energy transition. The burden of the energy transition will fall on the distribution networks," he said. 

According to him, continuity can be seen in the development of the plan, but there are also some remarks, such as the clear border between public and private.

"I miss the connection between the goals and the policies and the measures with which we will achieve them. The objectives and the plan were drawn up in a very tense order, but we must strive to clear up these differences. The goals are clear, but we need to know how we will achieve them. The framework is clear, but the policies that will be implemented and how they will be followed are not. The coal-fired power plants will not close from today to tomorrow, but they will be needed by the system for its stability", added Kaloyan Staykov.

The gas association stressed that there is not a single word about the plan 6 thousand km of the existing gas distribution network. According to them, the lack of connection between the objectives and specific measures is also among the shortcomings of the plan. The natural gas market is ready for liberalization, say the sector.