Bulgaria missed the oportunity to partcipate in the Blue Stream gas pipeline project. Will the implementation of the construction projects of NPP Belene and South Stream gas pipline fail as well?

Bulgaria is not a resource-rich country and, therefore, will always be dependent on external supplies, regardless of the fact whether it comes down to natural gas, oil or other basic materials. In contrast to renewable energy sources which generate expensive electricity and coal-fired power plants which pollute settlements, for our country, NPPs (nuclear power plants) remain a reliable source of power generation .

Small countries like Bulgaria cannot be energy independent and, therefore, we need a well-developed nuclear energy sector. The issue of mutually beneficial energy interdependence between individual countries is of prime importance. This was also stated in the report of scientists from the Centre for Strategic and International Studies at the Massachusetts Institute of Technology. According to them, the interdependence between consumers and producers should be used as a tool for finding common solutions on common global energy problems, including environmental protection, safety and economic considerations.

A number of experts in the branch agree that economic development needs nuclear electricity generation because it is the state-of-the-art technology in the global energy sector. And each manufacturing sector in the 21st century needs electricity, and cheap electricity at that.

And like every other technology, there is also risk involved and the ecological disaster resulting from the Japanese nuclear power plant Fukushima can serve as an example of mismanagement. It is a fact that, a year after the nuclear tragedy, Japan insists that its reactors be put into operation again. The reason is that the country generates electricity which is needed for the production of output, which Tokyo can sell on world markets at competitive prices.

There are more than 190 countries worldwide and none is energy independent. This objective is impossible to achieve - as simple as that. All these countries import energy in the form of refined petroleum products, electricity, natural gas or coal, explained experts. According to them, the interruption of commercial relations concerning trade in energy, with a view of simplifying the relationship between states, is a short-sighted policy .


What does this mean for Bulgaria?

According to our experts, the Bulgarian government should not pursue energy independence and the Energy Minister is actually responsible for explaining this fact to the Prime Minister and the President. Because, in this way, the unprofitable objective set can lead to over-expenditures as a result of excess supply, followed by the disappointment that the goal cannot be achieved.
And in order to remain competitive in the region, we must decide, as soon as possible, on the future of the Belene NPP construction project.

Our country should be aware of the fact that June is the deadline for the bid of the French company Areva for the production of electronics for the two Russian units of the new nuclear power plant. At that point, they will not give up their proposal, but will deliver a new one, which will differ from the current price conditions, explained insiders for Klassa daily. If this happens, it is possible that the construction price of the NPP will increase significantly. The logical assumption that the construction project of the NPP Belene reactor might be sold to another contractor means that there is interest in its implementation. And the logical question here is:  why should Bulgaria not profit from the electricity generation from that nuclear facility. Experts also warn about the severe winter we had this year as a result of which electricity exports from our country had to be suspended twice. These exports are one of the main budget items for Bulgarian state-run companies.

Former Minister Traicho Traikov stated that our country should seek to extend the service life of the 5th and 6th units of NPP Kozloduy, but this does not prevent the progress of the implementation of the NPP Belene construction project. However, the statements that the Russian-designed unit for a second NPP can be transferred to NPP Kozloduy, instead, are untenable because it would mean that the site should be issued a new operational license by the Bulgarian Nuclear Regulatory Agency. The unit itself is heavier than the ones installed there, while the issuing of a new license certificate will take at least seven years and, only afterwards, can the construction of the facility start, explained Head of BULATOM (Bulgarian Atomic Forum), Bogomil Manchev. The CEO of NPP Kozloduy, Alexandar Nikolov stated yesterday on BNT (Bulgarian National Television) that the NPP Belene reactor can be launched into operation at the site of the First NPP, at the earliest, in a 12-year period.

Currently, the licensed NPP Belene site has been cited by the EC as a praiseworthy example for its modern design. According to the former CEO of NPP Kozloduy, Yordan Kostadinov, Bulgaria is about to terminate the development of its nuclear energy sector. And that is the ill-intentioned purpose of the economic enemies of Bulgaria. Kostadinov has repeatedly stated that it is high time for a final decision on the the actual fate of the NPP Belene project to be taken, regardless of what it is.

The GERB (Citizens for European Development party) government is waiting to receive the financial report of the London-based HSBC London as to whether the electricity generated by the NPP Belene will find a proper market. It was scheduled for this report to be submitted within a month, while the Consultant has already repeatedly explained that the project is economically profitable. This report's conclusion solely should be enough to make "experts" like Doctor Dimitar Ivanov consider seriously tackling the matter in which they are really experienced.

Besides, the GERB government is yet to decide on the future of the South Stream gas pipeline project. Prime Minister Borissov has already stated that this project will be profitable for our country. According to the CEO of the South Stream Bulgaria JSC joint project company, Georgi Gegov, Bulgaria will earn more than $200 mln annually from the project only from collecting transit fees.


Higher energy efficiency = more benefits for the people

Besides the major projects, our country must develop its policies on energy efficiency, which should not remain on paper only. The Energy Efficiency Act also contains options stipulating that funds could be provided for the insulation of buildings other than the subsidies granted by the state budget and EU funds, but only after strictly complying with the legal framework. Thus, the funds intended for insulation can increase by tens of millions of Euros. The proper implementation of the measures can create many jobs in our country in times of economic crisis.

Bulgaria should also amend the Renewable Energy Sources Act. It is inadmissible for a law to be amended 4 times in 2 years because this indicates uncertain and unclear points in the legal base concerning investors, commented the Association of Producers of Ecological Energy to Klassa daily. Our country is discussing the main objective of development of green energy, while, simultaneously, the pursuit of a similar policy is destroying the sector. The irresponsibility of the Energy Minister has resulted in creating chaos for green energy producers at the beginning of the year. The reason was that the Agency for Sustainable Energy Development was not ready to issue certificates of origin of energy. Even now, there is no information system in this respect.


Prior to extracting shale gas, let us see how the technology develops

However, Bulgaria should not rely solely on its own resources - shale gas alone. The main problem is that the hydraulic breaking technology uses chemicals that can damage the soil and pollute the water which people drink. Experts explained that it would be good to know how shale gas extraction will be met in Poland and whether this extraction will affect local nature. Therefore, a reasonable option for us is to wait for the technology to advance and, only then, to implement researches on gas extraction. We know very well that one of the few preserved national treasures is Bulgarian nature. If we destroy it, as it happened after Dundee was granted concessions and in view of the forthcoming launching of the Gorna Arda Cascade, then Bulgaria will really suffer ...

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