It is dangerous for Bulgaria to lag behind in the transition to digital energy

Mr. Holakovski, are there any planned and delayed projects?

It was a real challenge for us to organize our work in a way that would allow the implementation of the investment program in full and so that each planned site is realized in full. I think this was possible only thanks to the professionalism of the people in the company. Everyone more or less changes their lifestyle, worries about themselves and their loved ones, copes with personal challenges - a constant level of stress is maintained, which slowly exhausts everyone. At the same time, the employees of the company live with the commitment that the power supply of the capital and the whole of Western Bulgaria depends on the decisions in the company, on the organization and management of the teams - the responsibility is really great.

And the challenges come one after the other. As an example, I can give the phenomenon of the relocation of people from the city to the suburbs. The opportunity to work from home has led many people to move to their villas in villages and villa areas, buy houses, build new ones. People prefer to work in nature than in an apartment in the city, others decide to invest their savings because of the crisis and take advantage of the new purchase. However, this has a serious impact on the network. It is not dimensioned in a way that it can take on this load in this abrupt change. In principle, such phenomena occur smoothly over the years, this need is taken into account, sites are planned. Everything happened so fast, so many places were filled with people and equipment that requires electricity, and at the same time the environment does not allow us to work at full capacity. Here is an example from Sofia. Every year we replace part of the critical electricity infrastructure 110 kV, worth millions of levs, so as to ensure the security of electricity supply in the capital. These projects are accompanied by their difficulties, but this year we faced an unexpected obstacle.

The implementation requires highly qualified experts from abroad with specific knowledge necessary for the implementation of such projects. The streets were dug up, the work was in progress, but measures were taken that did not allow the competent engineers to fly to Bulgaria. In the end, with a lot of effort from everyone and with the support of the institutions, the project was realized on time. We have provided a more reliable power supply to over 100,000 customers in the capital.

I can go on with the examples for a long time, but I think it has become clear how the pandemic reflects on the company's investment intentions. Of course, I am proud that, despite everything, we have fully implemented our investment program in the amount of nearly BGN 80 million and fulfilled our plans. Thanks to all my colleagues for that.

Is BGN 100 million the real needs of the network?

You see, the European quality and development of the service requires European electricity prices. We do what we can, within our means. The Institute for Energy Management in Bulgaria confirmed that network prices in Bulgaria remain consistently among the lowest in the EU - more than twice lower than the EU average. If I can make a comparison with the Czech Republic - there the prices for network services are twice as high as here. According to Eurostat, in terms of prices for network services, Bulgaria ranks 35th out of the 38 European countries included in the latest statistics for 2019. It is followed only by the Republic of Northern Macedonia, Malta and Georgia. The price in Bulgaria is three to four times lower than in Belgium, Liechtenstein and Germany. If the ever-increasing demands on networks in the coming decades are not reflected in prices through appropriate pricing solutions and regulatory interventions, it would be logical to look for other ways to direct public resources to their development, modernization and digitalization. So far, this fact does not seem to be taken into account. It is dangerous for Bulgaria to lag behind in the transition to digital energy. And the need for change is on our doorstep. The development of technologies in each sector is rapid, this is increasingly felt in ours. Customer requirements are becoming higher, the need for digital network management is becoming more acute.

We have taken the first steps in this direction. We are laying the foundations of the network for tomorrow. Our work is changing in terms of enhanced automation and new technological capabilities, namely - the construction and implementation of smart grids. Digitalization allows us to constantly monitor the network, for analysis and action planning. It is especially important for our faster responses to customer needs. Although they are constantly and dynamically evolving, we are already familiar with many of the requirements we will need to react in the near future. A long-term strategy is needed for the development of the electricity distribution network and the company that maintains and improves it. For example, we are currently preparing the launch of the most important project in connection with the development of the company's strategy - the so-called AGA (Advanced Grid Automation). Its purpose is to give us guidelines for the next 10 years - what systems and technologies must be implemented so that the electricity distribution network and its management can meet the expected development and needs not only of customers but also of the entire energy system in Bulgaria. We are preparing for the future.

We expect the energy sector to take on completely different dimensions, the main focus of energy policy will be the so-called "Smart" or smart grids. Households and businesses will generate their own electricity and will not only be energy independent, but will also supply electricity to the grid. Interesting times are ahead. We have the competencies, experience and desire to meet the new requirements. However, we must also be provided with the appropriate opportunities to achieve a truly European quality of service in line with the new times.