Europe urges Bulgaria to say when it will close coal-fired power plants

An indicative date for the closure of coal-fired power plants in Bulgaria is realistic to be between 2035 and 2040. But this date must be determined by the National Assembly. This was announced by the acting Deputy Prime Minister for EU Funds Atanas Pekanov during a round table "Fair Transition and Industrial Modernization in Bulgaria", organized by the Institute for Sustainable Transition and Development, and CITUB hosted the event.

According to him, it is normal to talk about an indicative date for the closure of coal production in our country and this is done in EU member states. According to Pekanov, such indicative dates are set in the national recovery and sustainability plans of each EU country. It is this deadline that is key and Europe is sticking to it in order to be able to assess how and exactly what amounts Bulgaria can receive in the forthcoming green transition. Setting a deadline for the operation of coal-fired power plants is also important for sending the Recovery Plan to Brussels.

According to Pekanov, the talks on indicative dates should go through a decision of the parliament and are a matter of negotiations. "It is not right for an official cabinet to make such important decisions for the country," the deputy prime minister explained.

He pointed out that it is important to have such solutions for the coal regions, which would provide not just jobs, but jobs with decent pay.

Bulgaria has delayed discussing these planning issues and how the energy transition will take place. Industrial parks, construction of new productions are part of the solutions, the Deputy Prime Minister believes.

Pekanov added that part of the energy sector lacks a long-term vision and it was difficult for Stefan Yanev's first office to work for such a vision. The Ministry of Energy is actively working on the issue and everything is related to the European funds that need to come. What we did in the first cabinet is to supplement the plan for recovery and sustainability - three new projects, three new reforms, which certainly raise the level of ambition, but no clear commitments have been reached for the coming years, said the Deputy Prime Minister.

Deputy Energy Minister Iva Petrova also explained during the roundtable that Parliament must decide exactly when the coal-fired power plants in Bulgaria will be closed.

We are making every effort to intensify the preparation of territorial plans and to prepare adequate assessments of the economic and social effects of the transition to the Green Deal and employment in energy-intensive regions. In order to be able to structure the plan for a fair transition, we need to set a timetable for closing coal production. This will allow us to make clearer the steps for transformation, as well as to start negotiations with local authorities and trade unions for retraining, compensation and infrastructural development of the regions, Petrova said.

The coal regions in Bulgaria, and especially Maritza East, have huge potential for industry. Along with the transition to low-carbon energy, we want to develop this potential and attract new industries. They will provide higher added value, higher wages and better working conditions, as well as significant economic growth for the region and the country. These two processes must go hand in hand, she stressed.

The Ministry of Energy has encouraged dialogue with a wide range of stakeholders, because we believe that a common contribution to a fair transition is a prerequisite for tackling the challenges. This will provide a lasting perspective for the coal regions that will be most affected. One of the most important financial instruments in support of transformation is the Fair Transition Mechanism. The funds provided under the Fund for Bulgaria are 1.178 billion euros to help economic diversification, retraining and job search, as well as to promote investments that are favorable for the climate and environment in the most affected areas. However, the fair transition mechanism must work in direct connection with the Recovery and Sustainability Plan, the Multiannual Financial Framework, the Modernization Fund and other public financial instruments to create an attractive investment environment, said Deputy Minister Petrova.

She also stressed that the agency is working with PricewaterhouseCoopers Bulgaria on a project for technical assistance in the preparation of territorial plans for a fair transition in the districts of Stara Zagora, Kyustendil and Pernik, as well as on the assessment of additional territories, including Haskovo, Sliven and Yambol. The World Bank partners with us under another agreement on the preparation of territorial plans for eight more carbon-intensive regions - Haskovo, Sliven, Yambol, Varna, Burgas, Lovech, Gabrovo and Targovishte. In this process, our country maintains that the energy transition in accordance with the Green Deal should be smooth and without shocks, in accordance with the specifics of each territory, but at the same time should be accelerated due to the great slowdown in recent years.

Our priority is security of supply, accessibility and sustainability of the system. Unfortunately, a lot of time has been lost in Bulgaria and many of the opportunities for attracting public and private investments are blocked or delayed - due to the lack of strategic vision and adequate reforms, but we are maximally mobilized in our work, said Deputy Minister Iva Petrova. .

Frans Timmermans: An urgent decision is needed on the deadline for TPPs

The round table was also attended by the Executive Vice President for European Green Deal, Frans Timmermans, outlining the prospects and responsibilities to governments, trade unions and employers for recovery through green energy and industrial transformation. He called on Bulgaria to have a sense of urgency to overcome these challenges and assured that the country has the potential to be a leader in the region in deciding the future of coal capacity. He himself fervently urged Bulgaria to take measures to close coal-fired power plants, setting an example with Greece and Romania, which already have dates to close their TPPs.

This is also the way to allocate billions of funds to our country for energy transition and to help workers not to leave the regions where they live and work, the European Commissioner stressed.

The discussion was also attended by the Deputy Minister of Labor and Social Policy Ivan Krastev, the presidents of CITUB and Podkrepa LC Plamen Dimitrov and Dimitar Manolov, representatives of international trade unions and business organizations. It was the trade unions that were the serious opponents of the EU's demands. Plamen Dimitrov reminded that in case of a new increase in the prices of harmful emissions quotas, the coal power plants will close themselves because they will not be able to sustain it financially.