22.05.2026 Risks to the energy security of the country after the shut down of TPP AES Galabovo

The National Energy Chamber expresses serious concern over the apparent lack of timely action to ensure the continued energy security of the country and the stability of the electricity system following the expiration of the long-term agreement between the National Electricity Company (NEK) and TPP AES Galabovo. We are concerned that the imminent shutdown of the power plant exposes the country to a number of risks that are either being underestimated by the responsible institutions or not fully understood.

First and foremost, this is a risk to the country’s energy independence, as the plant, with a net capacity of 600 MW, relies entirely on domestic resources to provide baseload and dispatchable capacity with a high level of flexibility that is relatively unaffected by the volatility of global energy markets or by external political and security risks. These risks are particularly tangible during periods of peak consumption and in the winter season and have a direct impact on the country’s competitiveness. Moreover, in a world where energy resources and infrastructure are increasingly being used as instruments of geopolitical and military pressure, this risk should not be overlooked.

Secondly, but no less importantly, there is a risk to the stability of the electricity system. As is well known, including from publicly available documents of the system operator ESO EAD, the retirement of the plant deprives the system of a reliable domestic provider of critical ancillary services — frequency control and operational flexibility. In addition to frequency-related services, ESO’s ten-year network development plan recognizes the important role of the plant for providing system inertia and black-start capability following potential system disturbances.

In the current highly dynamic market environment, the system is losing a valuable dispatchable generation capacity that has no equivalent on the Bulgarian market. At present, no comparable source of generation and ancillary services has been secured that could adequately replace the retired power plant. This creates risks both for increasing energy prices and for the stability of the power system itself, together with all resulting losses under a potential adverse scenario.

As a responsible participant in the electricity market, the National Energy Chamber calls on the decision-makers not to underestimate these risks, but instead to seek an adequate solution on the basis of a new market mechanism within the European and Bulgarian legal framework in the best interest of Bulgaria’s strategic security and the stability and reliability of the energy sector.

№12

15.10.2019 

To

Mr. Tomislav Donchev 

Mrs. Temenuzka Petkova

Mr. Vladislav Goranov  

Regarding: Decision of the Council of Ministers of 11/09/2019 for giving a mandate for negotiations of the power purchasing agreement with ContourGlobal Maritsa East 3 AD

Dear Mr. Donchev,

Dear Mrs. Petkova,

Dear Mr Goranov

We approach you with regard to the published decision of the Council of Ministers mandating three cabinet members to negotiate the termination of the power purchase agreement  of ContourGlobal Maritsa East 3 AD.

Led by its principles, the National Energy Chamber expects that the legitimate interest of the investors will be respected in any discussions on the existing long-term agreements in the energy sector.

We also expect that the policies ensuring continued security of supply and electrical system stability through optimal use of indigenous resources in compliance with environmental requirements, will remain in place.  The sustainable operation of strategic power plants will benefit the Bulgarian consumers as well as the local and national economy.

We assure you that we will continue to support the efforts to advance market liberalization while ensuring a sustainable framework for all participants.

Sincerely,