Bulgaria should decide on on emissions in the energy sector by September 30, 2011

Raya Atanasova

Power stations in our country may not have to pay for emission quotas after 2013, the European Commission (EC) decided formally yesterday. Bulgaria and nine other countries will be able to grant to their power stations a certain number of emission quotas rather than selling these to them by 2019 included. Each country that chooses to grant to the respective power plants emission quotas for free must file an application to the EC by September 30, 2011.

In 2013-2020, the energy sector will have to buy all its emission quotas. The Ministry of Economy has not answered so far if it would apply for the derogation.

If the power stations do not pay for the quotas, they would have to make investments, which would again affect the price of electricity. Thus, it is not really clear which option would be most advantageous. Brussels has also set out rules for EU member-states to comply with if they want to grant emission quotas.

The main reason for the countries to demand derogation is to avoid a drastic increase in energy prices for households. Another rationale for that could be to possibility to support the energy sector cope more easily with the cost of switching to a low-carbon economy.

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