SMALL PHOTOVOLTAIC POWER PLANTS MAY FACE BANKRUPTCY

400 small photovoltaic power plants, built with the assistance of European funding, may face bankruptcy because of changes to the Energy Law, which were adopted at the end of July.

Representatives of the sector complain that the amendments lead to 80% reduction of the price of the power generated by them. Members of the Bulgarian Photovoltaic Association (BPVA) said that if the amendments were not revoked, they would seek the support of the European institutions.

Owners of photovoltaic power plants expressed fears they may go out of business. According to the newly adopted legal changes, renewable energy producers who used EU funding will no longer get paid under the preferential tariff, which has been applied so far. As a result, instead of 0.55-0.60 BGN per KWh for generated energy, they will be paid between 0.10-0.15 BGN.

BPVA warn that the decision to limit the hours during which the generated renewable energy is purchased at preferential tariffs would be detrimental to the sector.

BPVA say they will continue to seek dialogue with the institutions to prevent bankruptcy of the industry.