The nation of Bulgaria has introduced new, temporary feed-in tariff rates, including cutting the rates for solar photovoltaic (PV) plants above 200 kW by 5-39%.

These rate reductions were decided at a closed session of the Bulgarian Energy and Water Regulatory Commission (SWERC). The new rates went into effect on September 18th, 2012, and will apply to previously commissioned plants.

For PV plants 200 kW and larger commissioned between January 1st and June 30th, 2012, rates will be reduced 39%, and for plants commissioned between July 1st, 2011 and December 31st, 2011 the rates will be reduced 20%. Additionally, PV plants commissioned between July 1st and September 1st, 2012 will have rates reduced 5%.

Tariffs were also cut for wind generation by 10%, and Bulgarian Wind Energy Association says this could push the majority of renewable energy projects into bankruptcy.

Permanent prices to be based on network cost data

According to law firm Wolf Theiss, this decision was made at the behest of the Electricity System Operator EAD (ESO) and the three electricity distribution companies in Bulgaria.

The temporary prices will remain until the ESO and the distribution utilities can provide sufficient data on network management costs, which will be the basis for final prices to be approved by SEWRC.

Option for legal appeal

Wolf Theiss notes that the option for setting temporary prices was introduced in the latest Energy Act, passed by the Bulgarian Parliament in July 2012.

However, the firm notes that SWERC has failed to follow a transparent price-setting process, and appeals to the order can be filed through Bulgaria's Supreme Administrative Court through September 28th, 2012.

2012-09-19 | Courtesy: Wolf Theiss; Image Source: Sunservice Ltd. | solarserver.com © Heindl Server GmbH

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