The freedom to choose our energy mix - from model to monopoly

Energy / Bulgaria
3E news
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Prof. D.Sc. Nina Dyulgerova for Dir.bg and 3eNews

Everyone at a different stage of their life is fascinated by the game "Monopoly". It is characterized by the fact that players seek to conquer and retain a street, factory, prison or resources. In the modern world, the energy mix has steadily become an object of competition and competition. The global and regional political and economic space is filled with information about negotiations, declarations and decisions in which the dictatorship oriented towards control and restrictions prevails. This has been very evident in recent years in the Paris Climate Agreement, in the European Union's Green Roadmap and in the variety of national policies aimed at protecting specific state interests. Last but not least, in this race for influence in the energy sector, corporate interests are positioned. And this is not about the indisputable presence of high-tech companies.

Increased electricity consumption increases the importance of the energy mix, in which the hierarchy and quantitative presence of different types of sources is very dynamic. Until recently, conventional raw materials (oil and gas), thermal power plants, hydropower plants and coal energy production were at the forefront of this stratification. Last but not least, over the last decade, there has been a policy of encouraging, especially in the European Union, renewables, despite their modest efficiency. The fact is that in the EU, despite the voted green road map, there is no unity regarding the use of coal, especially from Poland, the Czech Republic and Bulgaria, which have been harmed by their ban. The difference in the policies of these three countries is that Prague and Warsaw are very active and persistent in defending their national interests, while Sofia continues to be more of a spectator than an active and adequate defender of its interests in the energy field. The paradox is not so much in the political pressure of the European institutions working to reduce emissions from the Old Continent, but in the fact that non-EU countries, such as Turkey, do not have such restrictions. This allows them to be more competitive in the energy market. The result of this policy in Brussels will limit the ability of many of these countries to decide their own energy needs.

The case of the developing processes in nuclear energy is interesting. In almost all global and regional energy scenarios, with the exception of Germany and the surrounding area, the nuclear industry is at the forefront of the energy mix of the future. In recent months, there has been a dynamic transformation in this area. Bulgaria is again one of the victims. From an energy producer and exporter, mostly from Kozloduy NPP, the state is purposefully reducing its capacity for energy production. Bulgaria is moving away from EU member states such as Poland, the Czech Republic, Slovakia, Hungary and Romania and outside the EU - Turkey, which are actively making plans, building or expanding the number of nuclear reactors on its territory. Suffice it to look at Poland, which has adopted an energy strategy from the most coal-fired country in Europe to build at least six nuclear power units.

In Bulgaria, however, the long-standing "expert" pressure against the completion of the Belene NPP puts Sofia in front of an unhappy and "dark" perspective for society.

Our country is part of the "Green Deal" and the main coal-fired power plants, which currently produce more than 40% of electricity, will be closed in the near future. The closure of such facilities is expected in all EU member states, and Europe's economic development requires more and more electricity. Businesses in Bulgaria have already felt the shortage of cheap electricity, and high electricity prices on the stock exchange have not only closed a number of plants, but are a major driver of rising inflation. And the forecasts are for a new wave of rising electricity prices, and very soon. That is why the political elite, no matter how much in crisis, must wake up from its lethargy and find the vision of a timely stable and reliable source of electricity, which inevitably goes through the development of nuclear energy. Moreover, the protective price of the Belene NPP project is EUR 60 per MWh, and the electricity prices for the stock exchange business in August reached BGN 400 per megawatt-hour in the Day Ahead segment, ie. the second nuclear power plant can easily compete on the stock market, as long as some dare to "thaw" the project.

The idea of ​​shifting the production of energy through coal with the use of hydrogen allows restructuring and covert or overt privatization of various energy sources. It must not be forgotten that the pursuit of the idea of ​​an energy monopoly, both today and in the future, will be the main motive and guideline for transformations in the energy sector. The reduction of state participation in this area strengthens the uncontrolled corporate activity, which is definitely to the detriment of societies. It must not be forgotten, however, that much of the political intent remains in the realm of hypotheses, which may make it possible to find a solution that operates on the principle of "both the wolf is full and the lamb is whole." The hitherto known energy picture of the production-transit-consumption triangle may change radically after it became known that China already has a plant for the production of units that produce energy from higher vibration levels. The world is changing, but are the backstage, politicians and societies ready for the challenge of a monopoly on energy leading to greater cataclysms and new dependencies.

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