Private producers should be given the right to use the net metering system – to pay the difference between what they consume and what they produce. In many countries, this is how citizens are encouraged to produce.
Dr. Eng. Dimitar Beleliev is Chairman of the Board of Directors of “Central Energy Repair Base” (CERB) EAD – the oldest Bulgarian enterprise for the maintenance of large generating capacities in the energy sector. His experience in the sector is nearly 30 years. He was Executive Director of “Techenergo” AD, Head of the Supervisory Board of “Energoremont Holding” AD, Chairman of the Board of Directors of “Energoremont Varna” AD and “Energoremont Ruse” AD. In 2020, he established “AmonRa Energy” AD – a certified center for the supply of products and provision of solutions for solar energy in the Balkans and the first photovoltaic company on the Bulgarian Stock Exchange. He is Chairman of the Board of the Bulgarian Association of Electrical Engineering and Electronics and of the Control Board of KRIB. Master of Economics with a specialty in “Energy Business” from the University of National and World Economy, where he also defended his doctoral degree on the topic “Assessment of Bulgaria’s Energy Security”.
– Mr. Beleliev, what is the net metering system and why is it needed by consumers of electricity from solar installations?
– Net metering is a simple and efficient system introduced in almost all EU countries except Bulgaria. In general, it is the following – when a house has a photovoltaic plant, whatever it produces in excess of what it consumes, it sends it to the grid. At the end of the month or year, the difference between the electricity that is produced and fed into the grid and the amount that is consumed is paid. This stimulates private consumers to make such investments. The state of the grid improves, because where it is produced, it is consumed there. And households reduce their electricity bills.
– There are electricity meters that measure what has entered the network, right?
– That’s right, they are two-way. You put 10 kilowatts on your roof, during the day they produce 8 kilowatts, for example, the household consumes 2, the rest is fed into the grid. In the evening, electricity is used from the grid and at the end of the month the difference is paid. In the other case, the household buys electricity that it consumes at a much higher price and sells the produced one at a much lower price. What it feeds into the grid, let’s say, will be paid at 10 cents per kilowatt-hour, and what it consumes – at 30 cents. Thus, the investment loses its meaning, because you buy at a high price and sell at a low one. The point of equalization is that citizens are stimulated to invest. The benefits for the grid are that there are local energy sources that stabilize it. Instead of the state providing compensation, it can make households producers. Both it and society win, because electricity bills become smaller.
– For this to happen, a change in legislation is needed. What needs to be changed, who wins and who loses?
– It should be noted that private producers have the right to the net metering system, that is, to pay the difference between what they consume and what they have produced. In many countries, this is how citizens are encouraged to produce.
There will probably be losses for some private and state-owned electricity producers, because they will produce less, but the idea is for society to win, not two or three investors. Currently, millions are being given, last year – billions of leva to compensate for the high price of electricity. Imagine if these billions had been given to people for solar installations on their roofs. With private producers, the system will balance out, consumption and the price of electricity will fall. Full market liberalization is coming soon. And if we don’t do it, providing cheap electricity, hard times await us.
– What other problems do people who want rooftop photovoltaics face?
– The biggest problem is administrative disinterest. In the EC, this has been resolved through a directive that has not yet been adopted in Bulgaria. According to it, the maximum period for requesting connection is 6 months. In our country, no one knows how long this period is – it could be 6 months, it could be 10 years, it is purely subjective or semi-objective that a connection is made. You submit documents and the standard answer is – we do not have the technical capacity. Currently, it is much more than going through the trouble of connecting a power plant to the network – both for household and industrial consumers. This scheme should be simplified and there should be a maximum period in which documents are considered. After that, the person who submitted the request is connected to the network, and the electricity distribution companies should get their act together. They are monopolists, and investors also pay a fee, connection is not free.
Now the investor submits documents to the ERP and they say – we will connect you if technically possible. If it is over 200 kilowatts, the documents are sent to the Electricity System Operator, and he reviews them once a month, if they do not qualify this month, they remain for the next, the next…
– It is said that the distribution and transmission network lacks capacity in certain areas and that hundreds of millions are needed to expand them. How can this issue be resolved?
– The large consumption of electricity is in cities, and in our country we want to do and do large-scale production in remote places, where, in addition to there being no use, there is no network. Investment must be made to build it, and this is done with state money. In order to bring this energy to the city, there are huge losses that we as consumers will pay. The EU stimulates entities to produce in the city – houses, blocks of flats. The solution is to stimulate production in urbanized areas, where there is also consumption. If, for example, a 200-megawatt power plant is built in Nedelino, who will consume this electricity?
There is no such consumer within a radius of 200 km. If they are going to transmit it, there are losses in transmission, then it has to be lowered from high voltage to medium, not to mention the exceptional load of balancing. A solar power plant on a non-sunny day can reduce production from 80% to 10% in 5 seconds. Why do we cause it to ourselves? Isn’t it better for these 200 megawatts to be in “Lyulin” in Sofia. That way these 200 megawatts will be exactly where they are needed.
– You are an opponent of large photovoltaic power plants, right?
– I am against building them in remote areas and destroying land. For example, Kremikovtsi could be used if someone wants to build a photovoltaic park there. Or in other areas around the cities. And not in the Maritsa Basin to plan several gigawatts. Who will consume this electricity there?
– From what I read, hydrogen will be produced.
– And once we produce it, what will we use it for? I personally don’t know, and it seems to me that I’m not the only one. Everyone is talking without actually being familiar with the technological possibilities for using hydrogen.
– If someone wants to put solar panels on their roof, what should they be careful about?
– He should seek the opinion of specialists. And again, I will give an example of the experience of normal countries. Even in neighboring Romania, in the ERPs, there are licensed companies where the client goes and they install the power plant. In Bulgaria, anyone can get started with this, but there needs to be order, there need to be rules, which are not there now. In our country, they give you about 20,000 leva under the recovery plan for photovoltaics on the roof, but first you invest it and then they give it back to you. In Romania, licensed companies install photovoltaics and the state pays them. That way, private investors are not burdened. Who can just take out 20,000 leva and wait for it to be returned to them. Those who can do it do not need assistance.
– “AmonRa Energy” is a logistics center for solar installations, what does it offer?
– “AmonRa Energy” is the largest logistics center for the supply of photovoltaic equipment. We work within the Balkans, our natural partners are all professionals who want to install photovoltaic power plants. We support them by organizing the complete delivery of components. The training and technical support we provide are also important.
– If a block has hired a company to install solar panels on the roof, how long can you deliver the components?
– It depends on where the company is. If it is in “Lyulin”, we need 30 minutes, in “Nadezhda” – 15. For sites in the country – within 24 hours. We have everything in stock in more than enough quantities. We have a warehouse in the “Voenna Rampa” district, Sofia, and in the town of Dragoman.
– Would you like to build warehouses in more places?
– In Shumen, to cover Eastern Bulgaria. The site is within the Industrial Zone – Shumen. Design is underway. For next year, we have also planned development in Bucharest.
