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The new price period in the energy sector - the point of view of RES-producers.

News • BPVA •
The new price period in the energy sector - the point of view of RES-producers.

Producers of electricity from RES, in particular from photovoltaic power plants and from hydropower plants are quite pleased with the changes envisaged by the Energy and water regulatory commission in the new price period. They commented during the discussion: Price "Duty to the society" and market forecasts for the next price period, part of the Energy Managers Forum series. Representatives of the photovoltaic association and the hydro power sector. Chairman of the BPVA Meglena Rusinova has reviewed the price levels of solar energy. 

It also presented a review of the impact on prices in the lunch hours of market segment Day ahead of the participation of the photovoltaic power plants of IBEX. According to data released by solar energy, solar energy prices have had a positive effect in both morning and evening hours, and has risen from 15.5% in 2017 to 25.2% in 2019 (data from the beginning of the year until May 31) in the morning hours and from 6% in 2017 to 20% in 2019 in the evening hours. Accordingly, in her words, this was also reflected in the determination of the forecast market price for photovoltaic power plants from July 1 this year to June 30, 2020 to be 96 levs and 35 sts. For MWh. By comparison, this price period is 78 leva and 98 cents. Or, we have a 22% growth over the current price period. According to Rusinova, the Energy and water regulatory commission should continue to monitor trends and, in raising this positive effect, reflect this in the price earlier than the next price period. 

The Chairman of the Photovoltaic Association paid special attention to the change of the model by the regulator, which reduces the price duty to the society. In particular, Rusinova drew attention to reducing the burden of the green component, which no longer weighs the market, on electricity consumers. "With the change in the model in 2015, our assessment and the introduction of new expertise in the regulator and the adoption of the new pricing model stabilize the financial system and in the upcoming price decision we see how stabilization works. Equalization of the price obligation to the public for household consumers and business users results in overcoming the burden of the proposed 20% higher base cost with a reduction in public spending for the non-market participants involved. In the current price period, support for business, and in particular for high-intensity business, which according to EC State aid guidelines could benefit from the green component was 120 million lv. Now, in the new price decision it is 12 million leva or 10 times less. But on the other hand, we see this is another kind of policy of managing revenues from carbon emissions, but on the other hand this support extends to all Bulgarian consumers, including households. For us this is a new revolutionary moment, I would say, without overestimating the word revolutionary, because for the first time EU support for Bulgarian consumers has a very clear expression. Bulgarian consumers de facto from 1 July will not have green energy and high-efficiency cogeneration, "Rusinova said. 

Not so much the pricedecision, but the challenges of the market turned out to be the emphasis of Boyron Karshakov, Chairman of the Hydroenergy Association. He recalled the main estimated market prices in the Energy and water regulatory commission’s decision. Changes in the Energy Act will in practice lead to the removal all hydropower plantsover 1 MW to contracts with a premia since  the 1st of October, which will increase to 68 hydropower plants and the installed capacity to be added will be 140 MW of hydropower plants that will be actively involved in the market. This in principle has a positive effect on market liberalization and effect on improving liquidity, said Karshakov.