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From Bulgaria

23.03.2016 10:17

Bulgaria Should Adopt Contracts for Difference in the Energy Sector (World Bank)

Tony Thompson, permanent representative of the WB for Bulgaria, said that this scheme has gained the approval of the U.K. and Finland in terms of financing renewables in liberalised markets, while Poland has been using CFD for covering the differences under existing power purchase agreements (PPAs) with coal power plants

AUTHOR: publics.bg

© publics.bg

Bulgaria is to let go of the single-buyer model of its regulated electricity market, Bulgarian energy minister Temenizhka Petkova said during an energy conference held in Sofia on Tuesday. She also spoke about the improvements at the public supplier the National Electricity Company (NEK), which is subject, along with its parent structure - the Bulgarian Energy Holding (BEH), of an upcoming analysis by the World Bank (WB).

Tony Thompson, permanent representative of the WB for Bulgaria, who was also among the speakers at the event organized by Economedia, said that the analyses commissioned by the Bulgarian energy ministry and the state-run BEH. He however went on to precise some of the major conclusions of the analyses.

The WB is to recommend that all power plants managed by BEH sell their electricity at the recently established Independent Bulgarian Energy Exchange (IBEX), another BEH subsidiary. The IBEX currently has only a day-ahead platform, but is to include also intraday and long-term contracts, possibly as soon as H2 of 2016. Mr. Thompson also said that the single buyer model should be replaced by contracts for difference (CFD), stressing that this scheme has gained the approval of the U.K. and Finland in terms of financing renewables in liberalised markets, while Poland has been using CFD for covering the differences under existing power purchase agreements (PPAs) with coal power plants.