Following the final approval by the European Commission, the Ministry of Energy announced on May 9 that it has started the call for applications for the procedure for the construction of photovoltaic systems by Bulgarian households . The implementation of the procedure “National Scheme for Supporting Households in the Field of Energy from Renewable Sources” within the framework of the National Recovery and Resilience Plan aims to increase the use of renewable energy in the final consumption of households. It provides grant funding for the supply and installation of solar installations for domestic hot water supply, as well as photovoltaic systems with a capacity of up to 10 kilowatt-peak (kWp), which may also include systems for storing the produced electricity.
In this regard, BTA sought comment from the Chairman of the Management Board of the Bulgarian Association of Electrical and Electronics Engineers (BASEL), Dr. Eng. Dimitar Beleliev, who has nearly 30 years of experience as a manager and investor in the energy sector. According to him, the positive thing about this program is that funds are allocated for photovoltaic systems. However, he pointed out that the requirements are relatively complex and it will take a lot of effort for private individuals to apply. Next, the program is aimed at beneficiaries who use only solid fuel.
Dimitar Beleliev believes that one of the weaknesses of the program is that only households that use an inefficient source of heat energy can apply for it, and not everyone. The money provided for under the program will be enough for about 120 megawatts of installed capacity if only photovoltaics are built, which is extremely insufficient, he pointed out. According to him, the first major problem in the solar energy market is mainly related to the fact that the state protects the interests predominantly of large investors, and not of end users. The second, which stems from the first, is that consumption at the source is not stimulated. This would save huge funds for balancing and transmission.
The full text of the interview follows:
– After the final approval by the European Commission, the Ministry of Energy announced that it is starting the recruitment of projects for applications under the procedure for the construction of photovoltaic systems by Bulgarian households. What are the positive aspects of this procedure and what are the negative ones?
– The positive thing is that funds are allocated for photovoltaic systems. There are several negative aspects. The first is that the requirements are relatively complex and it will take a lot of effort for private individuals to apply. Second, the program is aimed at beneficiaries who use only solid fuel. People who use solid fuel, especially coal, are from the poorer regions of Bulgaria. They do not have the opportunity to heat themselves with gas or electricity. They have to prepare between 15,000 and 20,000 leva of their own funds, wait for them to be approved and only then will their investment be repaid.
– Why can only households that use an inefficient heat source participate, and not everyone?
– This is one of the weaknesses of the program. The wider the access to a program, the easier it will be to absorb the funds and the faster the effect of the invested money will be seen.
– The Ministry of Energy indicated that the total amount of the investment is 240 million leva, of which 140 million leva will be financed by the Recovery and Resilience Mechanism and 100 million leva by national and private co-financing. 80 million leva will be allocated at the first stage of implementation, and the delivery and installation of solar installations for domestic hot water supply can be financed under this procedure in full, but with no more than 1,960.83 leva. How many photovoltaic systems will this money be enough to build?
– These funds will be enough for about 120 megawatts of installed capacity – if only photovoltaics are built. This is extremely insufficient. A neighboring country, Greece, allocates 4 billion under European programs just for photovoltaics. There are also municipal programs for investments in solar systems, tax breaks, and others. The funds must be increased many times over if we want to see a noticeable effect.
– How much energy will photovoltaic systems with a capacity of up to 10 kWp, as planned in this project, supply a household with? What is this energy actually enough for?
– This energy can satisfy the consumption of an average household almost 100 percent. The problem, however, is what to do with the energy that is generated when no one lives in the property – during weekends and public holidays, for example. According to the rules of the photovoltaic system financing program, the energy cannot be returned back to the grid, it is lost. And this is a loss for the system and for society as a whole. Batteries, of course, are a partial solution, but they cannot cover all the energy produced.
– What are the shortcomings of the Recovery Plan programs to support investments in new RES for businesses and households?
– The biggest drawback of both programs – to support investments in new RES by households and businesses – is that the energy cannot be returned to the grid. One of the easiest solutions is through the so-called Net metering. This is a reporting system introduced in almost all European countries, including in nearby Greece and Romania. Net metering allows us to use the energy produced only when we need it, and at the end of the reporting period to pay only the difference between the energy supplied by the EPP and the energy returned to the grid. In this way, the need for batteries is also avoided. Net metering is a huge incentive for investments in solar systems on roofs. It should be introduced in Bulgaria for both households and companies as soon as possible.
– What are the problems in the solar energy market?
– The first big problem is mainly related to the fact that the state protects the interests predominantly of large investors, and not of end users. The second (which stems from the first) is that consumption at the source is not stimulated. This would save huge amounts of money for balancing and transmission. It is better to invest where the energy is used than to pour money into building the network where it is not needed. The expenditure of funds is enormous, and someone has to return them later!
For large investors, there should be clearly defined areas where they can invest, without imposing additional costs for connecting to the grid, as is the case at the moment. It should be said: these are the areas, you can invest here. It is right that these capacities should be put up for auction. Currently, there is a kind of “freestyle wrestling” – everyone is trying to get their hands on these capacities. This is harmful to the system, to us as a society, and could lead to unregulated revenues.
– In your opinion, how should the use of RES be encouraged?
– Promoting RES is mandatory for us as an energy system. Many energy capacities are about to be shut down in the coming years and it is important to have a relatively cheap alternative, such as RES. However, for this to happen in the right way, there must be a strategy, vision, goals. Investments in RES must be made where there is consumption and where the network allows it. This market must be regulated by the state so that there are no deficits. It is better to give money for network development for such programs than for “investments” that only transfer energy from point A to point B. It is wrong to invest in the field near Dobrich, where wheat can be grown, and to pay extra for the transfer of energy from the field to Sofia, for example, where it is needed. The money must be given for capacities directly to consumers. It is also good to encourage investments around already built capacities with available infrastructure. For example, around a hydroelectric power plant (HPP), you can easily build a photovoltaic and connect it to its capacity. It is very popular in some countries to build photovoltaics in water basins. This way, the territory is used additionally, this leads to a reduction in evaporation, etc. Unfortunately, at the moment everyone is “pulling the rug” towards themselves and there is no common strategy and plan.
– Recently, there has been constant talk about the development of energy networks. What investments are needed in this direction? How long will it take and will Bulgarian consumers ultimately have to pay for the construction and renovation of energy networks?
– The Bulgarian consumer will certainly pay for the construction of these new networks. That is why it must be done wisely and kept to a minimum. Otherwise, it will have an adverse effect on our electricity bills and on the country’s energy system. Once again, I would like to emphasize that investments in RES must be made where there is a built network and there is real consumption, in order to avoid huge transmission costs. According to unofficial estimates, several billion leva are needed for the development of energy networks in Bulgaria. Instead of a transmission network, this money must be invested in production at the consumer’s site. Only in this way will electricity bills be reduced, otherwise they will only grow.
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Dr. Eng. Dimitar Beleliev has been the Chairman of the Board of Directors of the Bulgarian enterprise for the maintenance of large generating capacities in the energy sector – Central Energy Repair Base (CERB) EAD since 2002. Since 2009, he has also been the Chairman of the Board of Directors of “Contact Elements” AD – a company for the production of silver solders. In 2020, Dr. Eng. Beleliev established “AmonRa Energy” AD – one of the certified centers for the supply of products and the provision of solutions for solar energy on the Balkan Peninsula and the first photovoltaic company listed on the Bulgarian Stock Exchange, segment BEAM. He is the Chairman of the Control Board of the Confederation of Employers and Industrialists in Bulgaria (from 2014 to the present), Chairman of the Management Board of the Association for Bulgarian-Ukrainian Friendship and Cooperation (since 2005), as well as a member of the Management Board of the “Scientific and Technical Union of Energy Engineers in Bulgaria” (from 2016 to the present). He has a Master’s degree in Economics, majoring in “Energy Business”, from the University of National and World Economy (UNWE) in Sofia. He also has a PhD on the topic “Assessment of Bulgaria’s Energy Security”, defended at the UNWE. He is the author of publications on topics related to energy security.
