Feed-in tariff

Updated: 30.01.2017

Author: Ivana Naydenova

In Bulgaria, renewable energy generation is supported through a feed-in tariff. The feed-in tariff applies to producers of electricity from renewable sources who inject their electricity into the public grid. Plant operators are contractually entitled against the grid operator to the purchase and transmission of all electricity from renewable sources supplied (art. 18 par. 1 item 2 ERSA). The amount of tariff is determined annually by the Energy and Water Regulatory Commission (art. 32 par. 1 ERSA). The FiT and the purchase obligation apply to power purchase agreements (PPAs) signed for projects implemented before the achievement by the Republic of Bulgaria of the RES end consumption mandatory targets under the National Renewable Energy Action Plan. 

Eligible technologies

Not all renewable energy generation technologies are eligible (art. 18 par. 1 item 6 ERSA in conjunction with § 1 Complementary Provisions ERSA). New roof-top and facade-integrated installations with a capacity up to 30 KW or a curtain biomass projects can obtain FiT as well as PPA. 

Wind energy

 

 

Solar energy

Eligible.

Geothermal energy

 

 

Biogas

 

 

Biomass

Eligible.

Amount

 The payment specified by the ERSA is a guaranteed payment in terms of minimum payment rates (art. 18 par. 1 item 6 ERSA). The tariffs are set by the regulatory authority every year on 30 June (art. 32 par. 1 ERSA). For detailed information on the tariffs please see Decision No. C-17.

Solar energy

Roof-top and facade-integrated installations:

• up to 5 kWp: BGN 255.39 per MWh excl. VAT (about €ct 13.02 per kWh) with 1,342 hours on average per year

• 5- 30 kWp: BGN 213.92 per MWh excl. VAT (about €ct 10.91 per kWh) with 1,342 hours on average per year

Hydro-power

 

 

Biomass

Depending on the type of fuel, there are several feed-in prices, which are allocated as follows (Decision C-17):

Actualisation of the feed-in tariffs allocated in Decision C-24:

• Power plants working with indirect use of biomass from plant and animal substances, for which the total weight manure is not less than 50% and with a capacity:

- ≤ 500 kW (comb cycle): BGN 484.78 per MWh (about €ct 24.72 per kWh) with 7,500 hours on average per year

- between 500 kW and 1,5 MW (comb cycle): BGN 449.62 per MWh (about €ct 25.23 per kWh) with 7,500 hours on average per year

• Power plants working with indirect use of biomass from plant substances (own agricultural production) with a capacity:

- ≤ 500 kW (comb cycle): BGN 398.59 per MWh (about €ct 20.33 per kWh) with 7,200 hours on average per year

 Actualisation of the feed-in tariffs allocated in Decision C-1:

• Power plants working with biomass derived from wood residues, biomass obtained from clearing forests, forest cutting and other wood waste with a capacity:

- ≤ 5 MW (comb cycle): BGN 205.73 per MWh (about €ct 10.49 per kWh)

• Cogeneration plants working with thermal gasification of timber biomass deriving from timber residues from forest clearing, trimming and other timber residues with a capacity:

- ≤ 5 MW: BGN 348.07 per MWh (about €ct 17.75 per kWh)

Actualisation of the feed-in tariffs allocated in Decision C-13:

• Power plants working with indirect use of biomass from plant and animal substances with a capacity:

- between 500 kW and 1,5 MW: BGN 449.08 per MWh (about €ct 22.90 per kWh)

• Power plants working with thermal gasification of biomass and / or the biodegradable fraction of industrial and municipal waste with a capacity:

- ≤ 5 MW (comb cycle): BGN 350.20 per MWh (about €ct 17.86 per kWh)

Actualisation of the feed-in tariffs allocated in Decision C-19:

• Power plants working with biomass from forest clearing, trimming and other timber residues with a capacity:

- ≤ 5 MW: BGN 204.07 per MWh (about €ct 10.41 per kWh)

- ≤ 5 MW (comb cycle): BGN 234.31 per MWh (about €ct 11.95 per kWh)

- > 5MW: BGN 138.21 per MWh (about €ct 7.05 per kWh)

• Cogeneration plants working with indirect use of biomass from plant and animal substances with a capacity:

- between 500 kW and 1,5 MW (CHP): BGN 455.16 per MWh (about €ct 23.21 per kWh)

- ≤ 500 kW: BGN 456 per MWh (about €ct 23.26 per kWh)

• Power plants working with thermal gasification of biomass and / or the biodegradable fraction of industrial and municipal waste with a capacity:

- ≤ 5 MW: BGN 388.18 per MWh (about €ct 19.80 per kWh)

Actualisation of the feed-in tariffs allocated in Decision C-018 from 28.06.2012:

• Power plants working with thermal gasification of biomass and / or the biodegradable fraction of industrial and municipal waste with a capacity:

- > 5 MW: BGN 359.23 per MWh (about €ct 18.32 per kWh)

• Power plants working with biomass derived from wood residues, biomass obtained from clearing forests, forest cutting and other wood waste with a capacity:

- > 5 MW: BGN 149.46 per MWh (about €ct 7.62 per kWh)

Actualisation of the feed-in tariffs allocated in Decision C-18 from 20.06.2011:

• Power plants working with biomass derived from wood residues, biomass obtained from clearing forests, forest cutting and other wood waste with a capacity:

- < 5 MW: BGN 233.44 per MWh (about €ct 11.9 per kWh)

- ≤ 5 MW, comb cycle: BGN 258.43 per MWh (about €ct 13.18 per kWh)

- > 5 MW: BGN 149.43 per MWh (about €ct 7.62 per kWh)

• Power plants working with indirect use of biomass from plant and animal substances with a capacity:

- ≤ 5 MW: BGN 433.61 per MWh (about €ct 22.11 per kWh)

 Actualisation of the feed-in tariffs allocated in Decision C-35 from 27.10.2011:

• Power plants working with thermal gasification of biomass and / or the biodegradable fraction of industrial and municipal waste with a capacity:

- > 5 MW, comb cycle: BGN 391.97 per MWh (about €ct per 19.99 kWh)

Addressees

Entitled party: The persons entitled are the plant operators (art. 18 par. 1 item 1 ERSA).

Obligated party: The persons obliged to pay for electricity exported to the grid are the grid operators (art. 18 par. 1 item 1 ERSA).

Procedure

Process flow

Distribution grid operators are statutorily obligated to conclude purchase agreements with the operators of renewable energy plants (obligation to conclude a contract). In pursuance of the agreement concluded, the plant operator is contractually entitled to payment for his electricity (art. 18 par. 1 item 1, § 7 par. 1 Transitional and Final Provisions ERSA).

Competent authority

The regulatory authority (EWRC)

Degression

The tariffs are revised and set by the regulatory authority for energy every year on 30 June. Tariff degression is not regulated by law and the tariff rates can be drastically reduced every year. In pursuance of the amendment, the feed-in tariff may not be changed during the entire term of a subsidy agreement. The feed-in tariff applicable is the one in force on the date on which the plant was put into operation.

Cap

At a preferential price are bought only the quantities up to the amount of "net specific production "(NSP), as defined by the Regulatory Commission EWRC. The NSP is defined as the average annual electricity output for installations from 1 kW of installed capacity after deducting the own electricity consumption of the RES producer.

The amendment to the provision of art. 31, (5) 1. of the Act on Energy from Renewable Sources (ZEVI) obligates the public provider or the end suppliers to buy electricity produced from renewable sources at a preferential price for the quantities of electricity below the NSP of electricity. The preferential prices are regulated by EWRC in Decision No. C-24. A summary of the NSP of electricity amounts set by ERWC is provided in the table below (Decision No. SP-1):

 

Type of RES

AADW (average annual duration of work) annual hours

NSGE (net specific generation of electricity)

Decrease in %  

Wind power plants working up to 2250 p.a. 

2000-2500

1907-2325

4,65-15,24

PV power plants with installed capacity above 200kW

1200-1460

1188-1406

2,84-5,00

HPP with installed capacity between 200kW and 10 MW low water pressure, free flow, and derivation HPPs

3800-4000

3724-3960

1,00-2,00

Power plants working with indirect utilisation of biomass from flora and animal substances with installed capacity of 1,5MW-5MW

5999-6000

6510-7000

7,00

 

 

 

Eligibility period

The period of the obligation to purchase and dispatch electricity depends on the subsidy agreement between the plant operator and the grid operator. The term of such an agreement is 20 years for plants using geothermal energy, biomass and solar energy, 15 years for plants using biogas and hydro power (hydro power plants with installed capacity exceeding 10 MW are not covered by the promotion scheme) and 12 years for wind power plants (art. 31 par. 2 ERSA).

Distribution of costs

Consumers

The costs arising from the feed-in tariff scheme are borne by the consumers through the electricity price (art. 31 item 7 Energy Act).

Distribution mechanism

Grid operators have the right to request compensation for the costs resulting from the purchase of electricity from renewable sources (art. 35 par. 1 Energy Act). The regulatory authority (EWRC) is responsible for determining the recoverable amount (art. 35 par. 4 Energy Act). The costs resulting from the purchase of electricity from renewable sources are added to the electricity price and thus passed on to the final consumers (art. 31 item 7, art. 35 par. 6 Energy Act).

Bulgaria

Further information

  • Комисия за енергийно и водно регулиране (КЕВР) – Energy and Water Regulatory Commission (EWRC)
  • +359 293 596 28
  • EWRC website
  • dker(at)dker.bg