The experts liked INPEC but wanted a link between goals and policy as well as means

Bulgaria and the Bulgarian economy have the opportunity to achieve the ambitious goals in the field of decarbonization thanks to the existing policies, and by forming a share of 34.5% of renewable energy sources (RES) in the energy mix, but also through the measures envisaged in the field of transport and in the "heating and cooling" sector. This was stated by the Deputy Minister of Energy Krasimir Nenov during a discussion regarding the updated Integrated National Plan "Energy and Climate" (INPEC), organized by Utilitis magazine. The final version also reflects the recommendations of the European Commission.

Accordingly, as a reduction of carbon emissions by 2030, 82% is achieved, which is also a result of other key sectors, such as energy efficiency.

For her part, Detelina Petrova from the Ministry of Education and Culture specified that for the period up to 2030, Bulgaria's climate goals set in the "Integrated Plan (INPEC)" are mainly in three directions. The first is under the greenhouse gas emissions trading scheme, the target of which is at European level and was increased under the Ready for 55% package and is currently 62% reduction in emissions compared to 2005. Compared to the scenario under INPEC, with additional measures under the emissions trading scheme, it is planned to reach 80% at the national level.

The second strand, according to the effort sharing regulation, which covers the sectors of road transport, building heating, agriculture, small industrial installations and waste management, Bulgaria must limit by 2030 greenhouse gas emissions to minus 10% compared to 2005. There is also a more ambitious goal, to reduce greenhouse gas emissions to minus 13%, which, according to the plan for additional measures, can also be met, said the representative of the Ministry of Education and Culture.

The third direction according to the regulation, according to Petrova, includes greenhouse gas emissions through absorption by the land use and agriculture sector, where the goals for the member countries have also been revised and are divided into two phases. The first phase is 2025, which commits member states to ensure the balance that emissions from the forestry sectors do not displace absorption from carbon emissions. For Bulgaria, at this moment, this rule has been fulfilled

During the second phase, which covers 2026-2030, the member states have national goals regarding the absorption and for Bulgaria it is for the equivalent of 9718 tons of carbon dioxide, Petrova pointed out and explained that for this goal Bulgaria is very difficult to achieve.

Petrova recalled the EU's commitment to climate neutrality, specifying that the first important step to achieve this goal is to reduce emissions by 55% by 2030 compared to 2005, and laid down the "Ready for 55" package.

At the beginning of 2024, the EC set a second interim target for Member States to reduce emissions by 90% by 2040, with this target being linked to achieving climate neutrality by 2050. In relation to a more ambitious target of It will be key for Bulgaria to ensure a parallel relevant framework during the negotiations. That is to say, not only obligations to the member states, but also to determine technological and financial provision, which will give the states the opportunity to achieve this goal, the representative of the Ministry of Education and Culture pointed out.

In INPEC, for the first time, the achievement of climate neutrality by 2050 has also been set.

Deputy Minister Nenov, for his part, outlined the vision in INPEC regarding energy security.

A key element is ensuring the diversification of energy resources. As is known, nuclear fuel diversification is already taking place at the Kozloduy NPP. Other important aspects are the gas infrastructure, construction of the Vertical Gas Corridor, betting on local sources, he said. At the same time, he clarified that in INPEC, in addition to the development of the potential of RES, the key role of the already existing coal capacities is also taken into account, but already with a tendency to their gradual decommissioning in 2038, since their energy is also a local source. Also, the development of new nuclear capacities and their commissioning in the next decade, the expected replacement of units 5 and 6 of the Kozloduy NPP, which will have to be brought out in 2045 and 2047 respectively.

In this regard, the deputy energy minister also focused on the planned development of the storage systems and, in particular, the development of the two PSHP "Batak" and "Dospat", for which an agreement has already been concluded with the EIB for preliminary studies, "because this is one of the potential opportunities to increase storage capacity'.

"The most recent is the launch of a procedure for storage systems under RSP for at least 3 GWh, which are also expected to come into operation by mid-2026," explained Krasimir Nenov.

The representative of the Ministry of Energy, Alexander Davidov, for his part, presented the main goals in the internal market part, aimed at strengthening intersystem connectivity, development, modernization and digitization of the energy infrastructure and the implementation of the electric energy market. As well as the plans for the modernization of the electricity distribution network and digitalization according to the new requirements of the regulations.

As Davidov expressed it, the development of energy from RES will be borne mainly by the distribution networks, mainly by the roof installations. The development of the power distribution network will have to catch up with that of the power transmission network, commented Davidov. In this connection is the ambition in the plan to build energy communities.

He also focused on the increase of regional connectivity and market associations foreseen in INPEC. We already have those with Romania and Greece and are already working with countries like North Macedonia and Serbia. At the same time, the gradual abolition of regulated prices and liberalization of the electricity market remains.

Simultaneously with the abolition of regulated prices, measures are foreseen to compensate part of the household energy, but with a different mechanism. As well as further development of the mechanism for vulnerable customers, the representative of the Ministry of Energy also said.

According to him, it is planned to support the development of energy communities for the production and own consumption of electrical energy. In the updated INPEC, it is also stipulated that an energy community will be able to be created for thermal energy as well. In the final version of the Integrated National Plan "Energy and Climate", the development of the so-called an observatory for the protection of the energy poor, which is also laid down in the PVA, and this is the trend in all countries. "This will be a unit that will coordinate and implement the assistance that is intended to help the vulnerable and energy poor (in terms of electricity).

In the natural gas sector, the focus is on the development of the natural gas market through the diversification of sources.

Regarding transport, it is necessary to formulate what transport poverty is.

AUER Chairman Ivaylo Alexiev, for his part, developed the thesis of the need for energy efficiency to be involved in all sectors. As the most difficult and with the greatest challenge, he identified the transport sector, while the industrial sector is specific and will require the most funds.

In this regard, for example, national targets have been set to achieve an 11.6% reduction in primary energy consumption and a 10.7% reduction in final energy consumption by 2030 compared to the 2020 reference scenario.

During the discussion, Mariana Aneva from APSTE saw the document as underestimating the development of the wind energy sector and energy storage batteries. In her words, in addition, the measures must be stable, so as to ensure a sustainable regulatory environment.

The executive director of BFIEC Ivaylo Naydenov expressed satisfaction that there are measures aimed at supporting the energy-intensive industry. However, according to him, it is also necessary to comply with and be bound by the NIZA criteria.

More transparency in the updated INPEC, more scenarios, more innovative projects and more policies regarding the networks, reported the chief economist of the Institute for Energy Management, Kaloyan Staykov. At the same time, as he put it, although the goals are clear, there is no money. In his words, in addition, there is no connection between the goals and the policies with which they will be implemented. "The goals are clear, the question is how we achieve them," he pointed out. He described the vision for natural gas as a "pleasant surprise", and as for coal-fired power plants, he asked how it would happen that they would be phased out by 2038, since there is no mechanism for this.

The chairman of the Bulgarian Gas Association, Svetoslav Ivanov, for his part, criticized the gas sector. "Whole pieces are missing," he said. According to him, in the entire INPEC there is not a single sentence about the gas distribution network, which is 6 thousand kilometers. He also asked why there is talk of liberalization only in the electricity sector and not in the gas sector.

In the framework of the discussion, questions were also raised about the development of offshore wind farms. According to experts from the Ministry of Energy, for example, there is no need for a special law for this sector. The construction of such facilities can be done according to the law on the organization of marine territories.

The question of the recycling of end-of-use renewable energy sources was also discussed, and as it turned out, the Ministry of Education and Culture at this stage has already started a study, but only from the point of view of "highly polluting" waste. The question of the relationship between the estimated energy consumption and the possible entry of data centers, as well as in terms of storage batteries. New ideas regarding coal plants are already forming, it became clear already during the discussion.

However, as Kaloyan Staykov from EMI put it, INPEC is a strategic document.

Mariana Yaneva from APSTE, for her part, commented that the three priorities on which the experts should focus are long-term contracts, energy storage and digitalization. Meanwhile, long-term contracts are already on the table.

The BCCI is of the opinion that the biggest disadvantage is the lack of an energy strategy.