©THE HEREN REPORTS - Bulgaria encourages wind power production with higher tariffs
Bulgaria is planning to stimulate investment in wind power generation with a 46% increase in the selling price from 1st January, 2007. The new tariff for wind farms with annual production up to 2,250 MWh will be BGN 175/MWh (EUR 90.16/MWh), and BGN 156/MWh for annual generation above 2,250 MWh. The current price for power from Bulgaria’s few existing plants is BGN 120/MWh. Valeriy Vlatchkov, commissioner for Bulgaria’s energy regulator, the State Energy & Water Regulatory Commission, told The Heren Report: “We’re trying to create incentives for investors in this area by increasing the price of renewable energy. In other countries, there are different methods such as tax benefits or government support, but in Bulgaria, there is no stimulus to support this, so we have put it in the prices for power produced from renewables.” Vlatchkov pointed to grants for investment in renewable energy in the EU, which range from 10-30% in Austria to as much as 25-60% in Luxembourg. However, these prices will only apply to farms built using the latest technology. Vlatchkov told The Heren Report: “We have noticed that in a lot of countries with wind farms, there are concerns such as high noise levels and vibrations, and they want to change the equipment anyway.” As a result, Bulgaria plans to make sure that new wind farms use equipment produced after 1st January, 2006. Most of Bulgaria’s renewable energy comes from hydropower, accounting for 10.6% of total generation (4.7 TWh of 44.3 TWh generated) in 2005. However there is an estimated potential for 2,200-3,400 MW of capacity from wind power. Bulgaria has made a commitment to the EU to increase the power generated from renewable energy sources to 11% of the country’s overall power output by 2011. (THE HEREN REPORTS - EDEM 10124/29 June 2006)

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