AES Corporation is paying penalties to NEK for not produced energy

Georgi Velev

“US AES Corporation is paying penalties to our country due to the delayed launch of the Thermoelectric Power Plant AES Galabovo (formerly Maritza- Iztok1),” said yesterday Minister of Economy, Energy and Tourism , Traicho Traikov. He attended the opening of the rehabilitated 8^th block of the TPP Maritsa- Iztok 2, which was completed by Japan's Toshiba Corporation. The modernization of the facility was concluded a month before schedule and some additional 15,000 MWh of electricity were produced. Japanese Ambassador in Bulgaria Makoto Ito attended the ceremony.

Traikov did not specify what penalties AES is paying to the National Electricity Company (NEK). “There is a serious problem that the investor and the contractor of the plant must tackle,” he said. French Alstom Power was the contractor to the project. “There are two units with a total capacity of 600 MW built on the site and the project value amounts to €1.3 bn. Our country does not receive the electricity planned, and the mines are not being used at their full capacity. However, we do not have to pay the expensive electricity from the plant,” said Traikov. The electricity price from the new TPP will be BGN 137/ MWh, according to the signed long term contract with NEK.

“Toshiba is even interested in the construction of two new units in the complex. The investment in them will amount to €350 mln and the facilities can be built on the site of Maritsa Iztok 2. According to preliminary estimates, carried out by the plant, part of the structures of the Bulgarian Energy Holding (BEH) would be able to build two units with a total capacity of 500 MW,” added Traikov.

Meanwhile, ministry officials, announced that Traikov had requested further explanations and guarantees from the Russian side for the safety of the reactors in Belene NPP. The negotiations with the Rosatom Corporation on the cost of the project are expected to be continued this week.

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