Bulgarian Commission for Energy and Water Regulation (KEVR) adopted a decision to abolish premiums for renewable energy producers with installed capacity above 500 kW as of 1 January
2022.
These are the producers with long-term contracts signed before 2013, which received preferential prices for produced electricity as a method of incentivizing renewable energy projects.
The reason for the abolishment are extremely high electricity prices on the exchange and the fact that the state no longer has to subsidy RES sector.
KEVR decided to change the referent price of electricity which is used as a basis for determining the amount of premiums. The referent price was increased from 60.7 euros/MWh to 149.6 euros/MWh. Thus, the state will save some 180 million euros in 2022.
However, many RES producers have already signed contracts for the sale of electricity in 2022 at the referent price of 60.7 euros/MWh, which means that they cannot benefit from high prices on the exchange, but will nevertheless lose premiums from the state.
