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From Bulgaria

29.01.2013 16:53

Grid Access Fee Takes Off 20% of Renewable Energy Producers' Earnings

Financial reports show more tempered numbers than the prognosis of RES associations, but are nevertheless considerable, especially for smaller wind and solar parks

AUTHOR: Reporting by Gergana Mihailova, editing by Lyudmila Zlateva

© Lyudmila Zlateva, publics.bg

Financial reports of producers of renewable energy in Bulgaria showed the actual impact of the so called grid access imposed in September 2012 by the State Energy and Water Regulatory Commission. The addition concerns PV and wind parks which as of Sept 14 were obliged to pay a monthly fee for access to the electricity transmission grid. The decision of the regulator was justified by the boom in renewable energy production sites which caused the need for massive grid investments, unbearable for the grid operator and the energy utilities which manage the distribution grid.

While Bulgarian renewable energy associations raced to cast murky prognosis about the new fee levying up to 40 percent from the producers earning, the real numbers turned out different, but nevertheless considerable, especially for the smaller-scale wind and PV parks.

RES Project AD is a public company that is a good example. It runs a 63 kW photovoltaic park in Strumiani Municipality since 2011. According to the Q4 report of RES Project AD, the company paid BGN 139.82 (about EUR 70) per MWh to the local electric utility managed by CEZ. The grid access fee led to approximately 20% drop in the company’s net earnings for the period, from RES Project AD informed.

For the entire 2012 the company sold electricity worth BGN 66,000, while its net earnings were reported at BGN 28,000. Besides the PV park, RES Project AD also develops other activities which allow for better financial results. The assets of the company are estimated at BGN 2.6 million.

Like many others, the company has obligations to its bondholders. RES Project AD has debt issuance of EUR 1 million, which is to be repaid by 2016 with 8.5% annual dividend to the bondholders.