Development of the Bulgarian Power Sector at the conditions of a functioning regional electricity market

This paper summarizes some results from a study, which was made in the framework of the project "Least Cost Plan for Bulgarian Power Sector Development till 2020", developed in 2004 by the specialists of the National Electricity Company (NEK). It is made by the following assumptions: (1) The energy policy of the country is pursuant to the national targets of economic growth and establishment of conditions for the country\´s integration into the European structures. (2) The Energy Strategy accepted by the Government in 2002 and approved by the Parliament points out, as top priority of the energy policy, achievement of energy supply security through development of a competitive energy market and compliance with environmental protection standards. (3) Energy supply security is a problem faced by Bulgaria as well as by EU member countries and can be solved through utilization of the domestic potential. In Bulgaria it is lignite, development of nuclear energy and utilization of renewable energy sources (RES). Each of these sources has its place in the structure of the country\´s energy balance. (4) The development of nuclear energy and thermal power plants on domestic coal guarantees the electricity production at competitive and predictable prices compared to the prices of the imported fossil fuels - oil and natural gas. (5) The development of renewable energy sources in Bulgaria is supported by the prevailing legislation and the utilization of that domestic energy potential will go on. (6) Establishment of a regional power market is a serious step towards full integration of the national systems into the Pan-European energy system. If Bulgaria could rehabilitate its existing thermal power plants within a short term, and performs its investment program for the power sector in a medium term, it will win very good positions in the regional power market. The price of produced electricity in the country will be competitive to the prices in the neighbour countries.