Feed-in tariff
Updated: 23.01.2019
Author: Ivana Naydenova
In Bulgaria, renewable energy installations with a capacity below 4 MW are 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. The amount of tariff is determined annually by the Energy and Water Regulatory Commission (art. 32 par. 1 ERSA). As of 1 July 2018, the statutory obligation of NEK and the other off-takers to purchase the energy output of RES Producers under FiTs is terminated. RES Producers, which enjoyed PPAs and FiT are offered to execute Premium contracts with the ESSF by 1 July 2018.
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).
Degression
The tariffs are revised by the regulatory authority for energy every year on 30 June. The 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.
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). |
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| Distribution mechanism | The energy enterprises shall not have the right to claim compensation of expenses ensuing from required obligations to the public, including related to the reliability of supply, protection of the environment and energy efficiency. ESSF shall be entitled to claim compensation for costs arising from electricity purchase obligations at preferential prices and the granting of premiums for electricity from renewable energy sources and from high-efficiency cogeneration of electricity and heat (Art. 35 par. 1 ERSA). |
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Bulgaria