Atomic energy, oil pipeline with Greece, HPP and RES in Bulgaria's energy strategy, comments Rosen Hristov

The Ministry of Energy is working on the preparation of the Energy Strategy of Bulgaria, and the department is currently focused on the electricity strategy. "We are in a very advanced phase. We have done many simulations, including with specialized consultants. We have had conversations with all branch organizations, trade unions. Literally in January, we plan to propose it for discussion. Energy Minister Rosen Hristov commented this to BTA.

Atomic energy, HPP and renewable energy sources in the energy mix foresees the energy strategy

Rosen Hristov announced that the strategy envisages several key projects. One of the projects is for the development of nuclear energy - completion of the units in "Belene" and construction of two replacement units in "Kozloduy" to replace the 5th and 6th units of the nuclear power plant after they are decommissioned. The energy department's models show an increased demand for electricity in Bulgaria and the region. In our country, the leading factor is the independence of energy supplies. There is no gas in Bulgaria. "To replace gas, we have to go to something that we produce ourselves, and that is hydrogen," said the energy minister.

Hydrogen is produced from electricity, that is, we must have stable electricity production. What the models show is a declining consumption by end users, mainly based on the energy efficiency of buildings.

On the other hand, industrial consumption is growing. The electrification of industry, the transition to hydrogen, which also requires large energy capacities, the introduction of more and more electric vehicles, including cargo ones.

When asked whether the current two blocks in "Belene" can work even without the participation of their Russian producer, the minister said that there is no problem for this to happen. Several European companies have already purchased the technology and can be finished with this equipment that is in our country. The other option is to sell this equipment and start "fresh" with another technology.

The other key projects in the strategy are related to the development of hydropower plants, Hristov added. The larger projects are to build one or two hydropower plants on the Danube River, which will be joint projects with the Romanian side. In addition, these projects are also very important for the development of transport infrastructure. "With one investment, we get both the transport infrastructure and electricity production," the minister pointed out. In addition, all other hydropower plants are planned to be developed, including the restoration of the Chaira PAVEC and the expansion of the Yadenitsa dam and the Gorna Arda hydrocascade.

A key element is also renewable energy, commented Rosen Hristov. There, an analysis is made of what kind of projects can be prepared and in what terms. This is where the electricity storage strategy comes from. In addition, it is reported that Greece wants to be a serious producer of green energy, but they do not have much potential for its storage, so the idea is for Bulgaria to provide green energy balancing and storage services. The focus is to store energy in a "green" way. The project, which is for batteries, will be optimized in order to implement more ecological resources for energy storage, in line with our natural conditions, and fewer batteries, which Bulgaria neither produces nor has a way to dispose of, explained the official minister in front of BTA.

Consumer protection is provided for in the Energy Act, which includes the definition of "energy poverty". The concept is that when the regulated market is released, energy poor consumers will remain protected. According to the definition, various percentages are discussed. Most likely 50-60 percent of the population will be energy poor and need to be protected in a similar way as in the regulated market. The minister pointed out, however, that in Europe the offensive for this deregulation is beginning to "wind down", because they see that there must be some balance. "Even in Europe they are starting to conceptually go back to some form of regulated market, so I believe that within these few years, while we have the period of standing in a protected market, within that thing and the European strategy will be optimized.", explained the Acting Minister of Energy Rosen Hristov.

On current topics, he also commented that natural gas supplies for 2023 are secured.

On the occasion of the negotiations with Turkey on access to the Turkish liquefied gas terminals, the Acting Energy Minister informed that in practice this has already been agreed. In addition, Bulgaria is negotiating with Turkey to join their negotiations on medium- and long-term contracts with liquefied gas suppliers. This is about negotiations only with European and American companies. "It is also very interesting for the suppliers to deliver to the region - Turkey, Bulgaria and already potentially to other countries. They see it as a big step to conquer the market and accordingly, based on the large quantities and strategic positioning, they are inclined to give them better prices. These negotiations will be for long-term contracts - on the order of 10 years," Hristov specified. Based on this potential, suppliers are expected to further optimize short-term supplies for the next 1-2 years, the minister added.

When asked about the negotiations that began in early December for the resumption of the Alexandroupolis - Burgas oil pipeline project, but without Russian participation, the Acting Minister of Energy replied that a memorandum with Greece will be signed within a few weeks for the resumption of this project.

Resumption of the oil pipeline project between Greece and Bulgaria

The memorandum envisages the creation of a joint working group of experts from both countries to "unearth and unearth" everything that has been done on this project. In addition, a road map will be drawn up, which will foresee what next steps will be taken, as well as in what terms, in order to start this project, the minister pointed out. Most likely, the scheme of the Greece-Bulgaria interconnector will be used. This memorandum will be signed between Rosen Hristov and the Greek Minister of Energy. Once the entire structure is worked out, the specific contracts will be signed. "This project is very important to ensure the supply of non-Russian oil in the most economically advantageous way for the refinery," Hristov pointed out. The other thing that will happen along this pipeline is that this project will expand into a multimodal transportation infrastructure. That is, to build railway lines as well as roads along the pipeline. At the moment, negotiations are underway for Bulgaria to participate in some way in the operation of the ports in Alexandroupolis and Kavala, the Acting Energy Minister also informed. He believes that thanks to this transport corridor, which can start from Greece, pass through Bulgaria, Romania, and from there reach Ukraine on the one hand, and Central Europe on the other, this can become an extremely important project for whole Europe. The first step is to build an oil pipeline between Greece and Bulgaria, at the next stage this project will be able to expand.

When asked whether the decree recently signed by Russian President Vladimir Putin to counteract the Western-imposed ceiling on Russian oil prices, which prohibits deliveries from February 1 to July 1, 2023 to buyers who adhered to the restriction, will affect Bulgaria , the acting energy minister said he was aware that there was "some sort of loophole" in this decree through which our country could continue to supply Russian oil.

However, Hristov clarified that the Ministry of Economy and Industry is responsible for oil issues. Rosen Hristov noted that Bulgaria must find a solution for supplies of non-Russian oil. The first reason is that it is not known to what extent the Russian side is ready to supply oil, as well as how long the supplies will continue. "There, things are highly politicized and the economic interest is not taken into account, and they can literally cut off these supplies at any moment, as they did with many other countries. Then there is a purely technical problem with logistics. The Black Sea, especially in the northern part, becomes more and more difficult to navigate by sea - insurers withdraw, shipping companies do not want to operate. There are hostilities, it is not known which port will operate. Even if all countries want to operate, there may still be some problems. "Lukoil "there is no large crude oil storage facility. They have the capacity to operate on the order of 10 days without supplies.

Our country is also looking for solutions and looking for an example from the neighboring countries. Romania supplies oil from Kazakhstan. Azerbaijan also have some opportunities. According to the energy minister, a permanent solution must be found, with the short-term one being delivery via tankers, and the long-term one - via oil pipeline, the energy minister also explained to BTA.