What will be the green future for TPP "AES Galabovo" will become clear in 18 months

George Velev

The future work of the AES Galabovo TPP will depend on what fuel the plant will use to replace coal after 2026. This was explained to 3eNews and Dir.bg by Juan Ignacio Rubio, executive vice president and president of global infrastructure of AES Corporation. He presented part of the company's vision for its global assets at the Bulgarian pavilion at COP28 in Dubai during the panel he told the panel "From Fossil Fuels to a Green Transition".

Various options are currently being considered for AES to replace the existing fuel with a cleaner one. In this case, it is a matter of replacing only the fuel component while preserving the operation of the rest of the systems, and the trained specialists continue to do their work, it became clear from Rubio's words. The company's idea is to find a suitable alternative to the coal currently used in the AES Galabovo thermal power plant, which is the most modern coal-fired power plant in our country. "So far, we have looked at different options for the plant to run on biomass, natural gas, waste pellets, for example," said Rubio. And he specified that if pellets are used, it will not be a type of RDF fuel, such as is used in other heavy industry enterprises in our country.

AES is also carefully considering the possibilities of building a new energy unit near Galabovo that uses molten salt. Similar technology is currently being developed at another of the company's coal plants in Chile, South America. "This solution is a type of long-lasting and durable type of battery, through which energy can be stored in these molten salts," explained Rubio to the Bulgarian media. AES even looks even more visionary at the future of its plant near Galabovo - it is also discussed the possibility of one day building a small modular reactor on the site there. All this is combined with a series of new green energy capacities such as solar farms and batteries, they will work in addition to the already existing wind farm "St. Nikola" near Kavarna. The proposal to build a battery farm in the area around the AES Galabovo TPP is also on the table. Our goal is to preserve the production of basic energy that is secure and accessible to the population continuously, Rubio explained his vision.

The company plans to present its vision for the development of the plant to the Bulgarian society and politicians in the next 18 months. This will probably happen in 2025, until then the possibilities already mentioned will be explored. "Our goal is to offer the authorities 2 or 3 alternatives, because I think that energy capacity conversions at a global level require certain approaches that politicians must take to make them happen in reality," explained the AES expert.

The just energy transition for us is to convert assets where our employees are. On the one hand, we train our engineers for future technologies, and at the same time we discuss with experts and politicians how to introduce these important issues into the decision-making process.

Is the sale of the plant on the agenda?

When asked if the option to sell the coal plant is also currently being discussed, Rubio explained that AES's focus right now is to present its proposals for the conversion of the fuel component to the public and politicians. "And then let's see what their reaction is," he added. "I hope that we will find a solution with the authorities so that AES Galabovo TPP can continue to provide base energy in the country's electricity system, as well as security for the system as a whole.

The director at AES corporation recalled that the company has been successfully managing coal assets in various locations around the world for 50 years. “Having young stranded assets is painful for the system and the economy. We cannot afford to replace all of this energy capacity at once. Therefore, it needs to be replaced in a reasonable way. And to do it, having three aspects - to be sustainable energy, with cleaner fuels, to have security of electricity supplies and to be accessible to people. This is not an easy challenge. We face these challenges in many places. But at AES, we truly believe that technology will play a key role in the transition," Rubio shared his vision. According to him, green hydrogen will also play an important role in the energy transition, but in the medium term. At the moment, AES sees no prospect of such a project developing at the headquarters near Galabovo. The situation is similar with natural gas, which can also only be used temporarily as a type of transitional fuel, according to the EU's views on the green deal.

Regarding the pricing of CO2 allowances, Rubio explained that this trading scheme in Europe only “makes us more focused in looking for solutions in the worst possible scenarios. If we assume that we really manage to turn the assets of AES into a real clean and green solution in the future, then we should not worry about the prices of quotas", explained the expert.

We remind you that the plant currently has a signed long-term contract with the state, which expires in 2026, and NEC buys the entire amount of electricity produced. Another large power plant has a similar contract - Kontur Global Maritsa East 3 thermal power plant, which is also located near Galabovo. Her long-term contract expires next year.

Maritsa East can be a champion in the green transition

The area of "Maritsa East" has features that can make it a champion of the green transition, Minister of Environment and Water Yulian Popov. It is a huge mass of consolidated land that cannot be used for agriculture or other activities and can produce more sustainable electricity than any coal-mining region, the eco-minister believes.

In his words, the region represents a real "gold mine" for such sustainable projects, not least because of the highly qualified employees and engineers who have the knowledge and readiness for retraining in the energy transition.

Rumyana Grozeva, executive director of the Agency for Regional Economic Development of Stara Zagora and head of the "European Center for Digital Innovations ZAGORE" project, presented to the panel projects that are being developed for the future of the region, including the creation of the first hydrogen valley in our country near Stara Zagora and to develop a "digital hub" by attracting technology companies.

In the case of the "Maritsa East" complex, it is truly a "gold mine" for the region – the necessary investors, qualified employees and a vision for transformation are available. However, communication with local residents and authorities is extremely important, so that they know about these opportunities, she emphasized. When it comes to retraining, this is a huge concern for people and we must assure them that their future is being invested in, Grozeva added. When we talk about a just transition, we, the politicians, must also change our own thinking and way of speaking, pointed out Minister Popov.

We remind you that at the end of September, thousands of energy workers and miners from the coal regions of Stara Zagora, Pernik and Kyustendil protested in Bulgaria because of the changes in the Recovery and Sustainability Plan of Bulgaria. They were worried about how exactly the closure of coal-fired power plants in our country will take place, after the government has made a commitment that this will happen no earlier than 2038. However, according to a number of experts, the plants will stop working earlier due to market restrictions and high prices of CO2 allowances. Unspokenly, the government is currently also expressing these views. But they are not recorded in any strategic document.