of the results and the conclusions
from
5th Regional Energy Conference
"Regional Energy Development and Energy Security"
held on 28-29 October, 2014 in Sofia,
Sheraton Hotel
The Conference was attended by more than 150 representatives of different energy companies, research centers and universities, politicians, state administration, financial institutions and diplomats from over 12 countries from the Region, EU member states, Turkey, USA, South Korea etc.
Matters of discussions were the condition, problems and challenges faced by the Bulgarian and Regional Energy Sector in terms of the new priorities of the European energy development.
Due to their specificity not all topical issues related to the liquidity crisis in the Bulgarian Energy Sector have been discussed in details.
Unfortunately, the Conference has not been attended by representatives of the organizations of RES energy producer, which is an evidence that they do not feel competent to discuss with the energy society the problems faced by the sector and to be involved in the process of finding of compromise solutions regarding the future RES role in the internal market that is going to be inevitably drastically changed.
The main messages of the participants have been related to the further development of the market relationships in the field of supplies and services, application of high planning and implementation standards in view of the investment projects as well as conduction of transparent policy in compliance with the public expectations for wide discussions of the sectoral reforms. There were some sincerely expressed expectations for improvement of the competency and independence of the specialized state authorities and the state administration in the power sector as a key element for elaboration of a substantiated national development strategy.
The Conference has concluded that the application of the European policies for energy security and independence, energy efficiency and competitiveness, provision of developed energy structure and accessible energy, environmental protection and some other ones are especially topical today both for Bulgaria and the Region. Meanwhile, the national features due to geographical and historical prerequisites should be considered during the application of these policies. In this regard the implementation of the energy development strategy in regional aspect would provide considerably more sustainable and long-term framework for regional development as well as for implementation of investment projects of mutual interests and aiming the most effective market mechanisms in the interest of the end consumers to be offered. The coordination of regional development provides the best conditions for implementation of scientific application researches and projects when attracting some foreign investments.
The following concrete problems of the development of the Energy Sectors of Bulgaria and the Region have been discussed and forwarded for solution to the political levels of State and EC management.
- There are some serious discrepancies in the approaches for application of the main principles and priorities in the Bulgarian and EU energy policy regarding the liberalization of the market integrations, energy infrastructure, RES role, indicative emission levels as well as the role of the national programs for development of the generating capacities. In this regard Bulgaria has to make serious revision of its national energy strategy and to harmonize it with the European priorities, but when taking into consideration the national needs and development characteristics.
- The reported successful solutions of some problems of importance for Bulgaria and other EU countries such as re-negotiations of long-term PPA agreements, RES integration in the EPSs and others shall be investigated in details.
- Bulgaria and the region as a whole are underdeveloped in the construction of electrical and gas infrastructures in conformity with the contemporary requirements so the Government should find out some EU expert and financial support in this regard. It is a matter of key importance for the successful market liberalization, bigger export and transit quantities and achievement of high level of energy security.
- The results reported on the operation of the new power plants in Maritsa East basin show high technological managerial and operation level and compliance with the contemporary environmental standards.
- The local coal of Maritsa East complex is and should remain one of the pillars of the Bulgarian Energy Sector under several conditions: they should continue to be in compliance with the environmental standards, to activate their efforts to be included in ITS, to find suitable export schemes for a part of its energy via regional exchanges and to continue its endeavours to improve the economic indicators of their productions as taking into account the expected increasing of the carbon emission prices.
- The energy efficiency is still only a "slogan" in the speeches of the Bulgarian politicians. There is no knowledge about the technical part of the problems and no analysis of the experience and good practices of other EU states and cities have been made. The results of application of the systematic approach in some EU cities that have been reported during the conference should be investigated and applied in Bulgaria.
- As per the expert data the non-utilized hydro potential of Bulgaria is above 2700 MW and this fact is systematically ignored. These projects should be taken into consideration into the future optimization analyses of the system; moreover this project would induce a number of other secondary positive effects for the national economy and regional development.
- Bulgaria continues neglecting the opportunity to be involved in the regional market of V4 countries, which does not contradict its eventual involvement in any other integration schemes.
- Since some decades the low level of the diversification of supplies of natural gas remains the vulnerable spot of the Bulgarian Energy Sector. There are some awkward actions by the State Administration at a political level that should be avoided at all. The initiatives reported by the Polish and Romanian governments regarding the preparation of shale gas production in their counties are completely opposite to the illogical and irresponsible Bulgarian policy in this regard.
- RES have serious future in EU including Bulgaria regardless the mistakes made in view of the non-overcame boom during the period 2006-2012. Another big mistake in the RES development in Bulgaria is the complete neglecting and stimulation of the development of heat generation from RES that would generate a lot of other positive effects for the economy, environment and standard of Bulgarian people.
A lot of non-governmental organizations have asked a number of critical questions regarding the trends of development of the Bulgarian Energy Sector, including the matter why no concrete measures have been undertaken up to now in order to fulfill the recommendations stated in the energy audits by the World Bank and European Commission and to make the proposed amendments of the Energy Law etc.
Some of the general messages during the conference related to the policies and principles may be summarized as follows:
1. The energy security is a general problem, but with some national aspects. From this point of view a realistic approach is needed for assessment of the concrete situations.
From the national point of view Bulgaria should not forgot that as being EU member state it should actively take part in the development of the European Energy Policy, but after its acceptance such policy should be implemented.
2. The Energy Sector needs transparency and clearly regulated and implemented development based on market principles.
3. In the field of the nuclear energy the Forum considers the sovereign right of every country to decide independently concerning the development of the national nuclear energy upon priority compliance with the contemporary nuclear safety standards and proven economic benefit of new investments in this field.
4. The cooperation in the energy field is based on general principles, but it is mostly regional. That is why the politicians from the EU and central and Eastern European regions are obligors to that region in view of the establishment of suitable political models and economic initiatives for achievement of effective regional cooperation. Such cooperation will contribute to the starting of new transboundary investment projects, new interconnectors for gas and electricity, more energy security, more work places and achievement of real market energy prices for the end consumers.
5. The provision of effective personnel for the sector is a matter of significant importance and should be promptly and adequately taken into consideration. It is very concerning that there is no state policy for attraction of young professionals with knowledge in contemporary energy management in order to assign them the forthcoming important reforms in the sector.
The present document is approved and accepted by consensus by the Panels’ Moderators.
Programme Committee of the 5th regional Energy conference "Regional Development and Energy Security", 28-29 October, Sofia, Bulgaria
