Minister Stankov before the Energy Committee on concerns about a punitive procedure by the EC due to RES, the reforms on the Renewable Energy Sources, the Green Corridor and more

Within a few weeks, a punitive procedure may be opened against Bulgaria, due to the fact that our country has not transposed the updated requirements of the EU Renewable Energy Directive (RED III) into the Renewable Energy Sources Act (ZEVI). This became clear from the words of the Minister of Energy Zhecho Stankov before the Energy Committee of the National Assembly. He specified that the Ministry of Energy has prepared the necessary legislative texts, asking the Energy Committee to react quickly so that our country can avoid the sanction of 9,000 euros per day in the event of a punitive procedure.

During today's blitz control, Minister Stankov answered a number of questions. A large part of them concerned the reforms under the Recovery and Sustainability Plan (RSP), which are to be renegotiated with the European Commission. In connection with the future of the complex, a question was also raised about the future of the Contour Global Maritsa East 3 TPP. In response, the Minister of Energy gave a detailed answer about the time from receiving the information about the dismissal of workers from units 3 and 4 of the plant and the meeting with the management to the present moment and outlined its possible future, including that of the complex. As the Minister explained during the meeting with the management of the Contour Global Maritsa East 3 TPP, represented by the current CEO Shtonov and other representatives, he stated that our country sees potential in this plant and wants it to continue operating and being part of the energy system. After the continued dismissal of workers, according to him, a new meeting was held, at which he advised the plant management to launch a procedure for a new operator if the current one does not wish to continue to own and manage the plant.

The Minister specified that the owners of the Contour Global Maritsa East 3 TPP have a "green bond", which is also the obstacle to owning the plant. In this regard, Stankov specified that by the end of the month he expects a response from potential candidates who could take over the management of the plant. According to Zhecho Stankov, units 1 and 2 of the Contour Global Maritsa East 3 TPP will require 30 million leva for repair work, but the other two units - 3 and 4 - can function. It is one thing to look for an investor, another to keep the systems alive, the Minister of Energy made a difference. That is why his proposal is to continue paying salaries to workers in order to maintain the plant in good technical condition until a new operator is found and it can continue to operate.

In response to a question about the former caretaker minister's promise to create a socially oriented commercial company, which would include laid-off workers from the Stara Zagora coal enterprises, Minister Zhecho Stankov explained that this is indeed a commitment under the PVP, but at the moment there is no way to create one. The task is to create new jobs, he said. In particular, he explained the economic obligations that our country undertakes to fulfill, but at the same time explained that in no way will people be removed from the enterprises.

The Minister of Energy also answered the MPs' question about the reforms under the PVP, which are the so-called "stumbling blocks" for receiving the second payment. Once again, he explained that one of them concerns the removal of ESO and Bulgartransgaz from the composition of BEH, which, however, constitute 42% of the holding's assets. At the same time, he reminded that there are issued bond loans worth 2.4 billion. BGN, and such an action would cause bondholders to demand their early repayment. In addition, as he said, a new bond procedure is coming up at the end of the year. Therefore, efforts are aimed at convincing the European Commission that the companies remaining in the BEH will not lead to cross-subsidization. The second reform that is encountering difficulties concerns the reduction of CO2 emissions, which is linked to the operation of the three TPPs in the Maritsa East 3 complex and the concern that if they are exceeded, our country will be subject to sanctions. The goal is to explain during the conversation with the EC that the CO2 reduction goal can be reached in another way.

At the beginning of the hearing, Minister Zhecho Stankov also answered the question about the negotiations held in Ukraine for the transfer of green energy. The Minister of Energy specified that this is about the project for the transfer of green energy from the Caspian region to Central Europe, in which our country has so far been an observer, and is now about to join as a participant. This project envisages the laying of an underwater cable laid along the bottom of the Black Sea with a capacity to transmit 10 gigawatts of electricity. The aim is for it to "go out" to both Bulgarian and Romanian territory. According to him, our country sees the prospect of building two additional interconnectors with Romania, which will increase the possibility of electricity transit to other countries.

It is planned that BEH and ESO will participate in the project, since the construction of a new energy infrastructure is planned. The project will be hybrid - for direct and alternating current, so that it can transport larger amounts of electricity.

The project is still at the feasibility study stage, specified Minister Stankov, adding that he has undertaken to launch all necessary procedures for a decision by the Council of Ministers, and if necessary - for ratification by the National Assembly, for Bulgaria's accession.

The Minister of Energy added that work is also being done on a parallel project, which envisages the construction of an overhead power line between Azerbaijan, Georgia, Turkey and Bulgaria, since the expectation is that the energy produced in the Caspian region will exceed the capacity of the submarine cable through the Black Sea. In addition, additional solutions are being sought.

Minister Zhecho Stankov also provided details on the payment of the state aid of 2 million and 200 thousand leva to household customers left without electricity during the Christmas and New Year holidays, for the damage to the LNG terminal in Alexandroupolis, as well as on a number of other issues, including the licensing of the AP-1000 technology.

At the beginning of the meeting, the deputies of the Energy Committee did not accept any of the three proposals on the bills providing for the postponement of the liberalization of the electricity market. From the discussions it became clear that this issue remains unresolved, there is no clarity on an information campaign, the envisaged compensations for household consumers will probably only be enough for a transitional period of about six months. The resolution of this problem is clearly forthcoming, but as is known, the liberalization of the household electricity market is tied to the RSP.