Оn the other hand, the natural resource efficiency enable businesses to reduce the carbon footprint drawing on sustainable production. In the light of rising energy costs, аn increasing number of industrial enterprises build photovoltaic power plants for costs optimisation.
In this respect, emphasis should be laid on the long and cost-intensive photovoltaic power plant installation process in Bulgaria accompanied by a a series of administrative and factual procedures, in particular:
- Preliminary examination of the conditions for the photovoltaic power plant construction
- Survey of the conditions for connection of a site of a customer to the electricity network and submission of the application
- Issuance of a statement by the operator оn the energy producer’s connection
- Design permit request for PPP issued by the Chief Architect of the municipality
- Тechnical design development
- Coordination of the design with the electricity distribution network
- Coordination of the design with the municipal authorities
- Issuance of a building permit
- Conclusion of a connection agreement to the local electricity distribution network
- Conclusion of a contract for equipment procurement, construction and commissioning of the PPP
- Equipment delivery and PPP construction
- Submission of an application for performed installation to the electricity distribution network
- Issuance of a protocol for “suitability for use” of the PPP and declaration by the electricity distribution network
- Concluding a contract for purchase of electricity
- Submission of a request for connecting.
In parallel, there are new amendments to the Energy Act proposed relating the Energy and water regulatory commission competences and the the Power System Security Fund.
As is clear from the recently proposed changes to the legal framework of the energy sector, no measures aimed at facilitation of the RES plants installation procedure have been developed yet.
Keeping the burden of the administrative procedure as well as its bureaucratic nature would certainly be an obstacle for increasing the portion of energy sector investments at national level, therefore drafting amendments in this respect would be advisable with regard to the successful expansion of the Bulgarian electricity market.
Common problems is this regard concern the global connection capacities, the bureaucratic administrative procedures, the possibility energy facilities not to be connected to the local electricity distribution network despite the availability of documentation required or providing distant connection all leading to solar projects being unprofitable, the tendency of substations rebuilding or cable replacement requirements of the transmission system operators, making the the realisation of the projects unnecessarily costly as well as inconsistent jurisprudence.
In addition we shall point out that the construction of 30 mW photovoltaic systems by small producers, particularly households, is way more economically justified in light of the procedure simplification.
It shall be also noted that the contracts concluded at preferential prices over the past months turn out to be more unprofitable than the contracts redirected to the open market. Hence, in light of the accumulated excess profits the Council of the European Union took a decision regarding the the adoption of a European norm on energy companies overtaxation which should enter into force as of 1 December 2022. The purpose of this new charge is to limit renewable energy producers excess profits as the upper limit fixed by the European Commission is at 180 euro per megawatt hour.