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The solar energy industry is booming, Bulgarian legislation accelerates the implementation of photovoltaic projects
2023/7/26
In the context of accelerating the realization of carbon neutrality goals, the solar industry in various countries is booming. Jonathan Tourio Jacobo interviewed Vladimir Tabutov, founder and CEO of HEC Solar, a Bulgarian solar project developer, after Solar Media's major European solar show in Lisbon, Portugal. They spoke about recent changes and upcoming changes in the use of renewable energy technologies in Bulgarian regulations.
Renewable Energy Legislation in Bulgaria
In the past two parliaments, legislation in the field of renewable energy in Bulgaria, especially in the field of solar energy, has made it easier for various groups of developers to land solar projects. The revised Renewable Energy Act and Energy Act have significantly reduced the length and complexity of the development process. The time and complexity required for both residential and industrial user-owned systems are greatly reduced.
Amendments to the law created a new section, Electricity Storage, which regulates the activities of operators, energy storage facilities, equal access to transmission and distribution networks, equal access to all electricity markets and possible balancing mechanisms.
Proposed amendments to the Energy Code present an opportunity for transmission network operators. If the purpose of grid connection is network reconstruction and development, then the operator can propose a temporary grid connection plan for all or part of the applied power. Thus, generators and customers have the opportunity to choose whether to join after the relevant network transformation is completed, or to take advantage of the proposed temporary connection scheme. With total grid design and development in Bulgaria at around 12GW, it remains to be seen whether the current government will be able to push through the necessary legislative reforms.
HEC Solar's rooftop solar project
PV Tech Premium: How will the new legislation promote the accelerated development of solar PV in Bulgaria? Vladimir Tabutov: In the past two parliaments, Bulgaria's renewable energy legislation, especially solar legislation, can make it easier for different developers to realize their solar project. Both the Renewable Energy Act and the Energy Act have been amended, significantly reducing the time and complexity required for the development process. For example, the development process for own projects for residential and industrial users has been shortened from 6-8 months to the statutory period of 4 weeks.
In addition, the process of small household projects below 20kW has also been improved by eliminating several development processes. If capacity partitioning is involved, the upcoming change will introduce some improvements to the procedure, eliminating some steps in the development process, and ultimately enabling a more transparent and faster development process.
PV Tech Premium: Are legislators considering accelerated approval of nearly 30GW of solar projects awaiting grid connection? Vladimir Tabutov: In the 48th Parliament, we accepted an interim measure allowing all reserve capacity of existing substations to be used projects in the application process, which unlocked enormous potential for imminent grid capacity, almost doubling grid capacity.
As an example, a 50kVA substation is equipped with a secondary backup transformer of the same size, and so far they have not been available for new solar projects to be connected to the grid. We have amended the legislation so that project developers can temporarily use this capacity until substations built according to the new regulations are completed, which frees up the capacity of more than 300 existing substations in Bulgaria.
Another amendment in circulation is the introduction of new reserve fees and an online public register of applicants, which would dissuade unsecured developers. However, this amendment was not passed due to the short term of the 48th Parliament.
PV Tech Premium: During a large solar exhibition in Lisbon, you stated in a panel discussion that the key to developing the Bulgarian grid is existing capacity, regulation and legislation. What measures are currently being taken to improve the grid?
Vladimir Tabutov: Paradoxically, simplifying the project development process to get projects on paper into construction readiness sooner will further slow down the actual implementation of solar farms, unless the physical and legal infrastructure of the grid is improved at the same time.
The total capacity of the grid designed and developed in Bulgaria is about 12GW. Bringing all new renewable energy projects onto the grid carries risks when it comes to grid "hardware," meaning substations and transmission line infrastructure. In order to ensure that all these power plant generation can be channeled in an efficient manner, a very careful and skilled planning scheme should be implemented.
For example, the peak electricity consumption in the winter of 2023 is about 6500MWh. Peak capacity is developing faster than consumption trends, so technical solutions are needed to direct excess electricity output (currently averaging around 2000MW/h) or to store electricity. So building new grids, substations, lines and energy storage constitutes the hardware we need. In order to do this relatively quickly, we need suitable legislation.
PV Tech Premium: Are there any challenges in the growth of solar PV and/or grid capacity in Bulgaria that the legislation still does not address, or that cannot be improved upon, and will further work be required, i.e. work done through new regulations or the TSO?
Vladimir Tabutov: Building international grid connection capabilities is crucial to the balance of the integrated Bulgarian, Greek and Romanian markets. TSOs in various countries are working closely together to improve connectivity, but it will take at least a few years for these projects to materialize. Therefore, if the connectivity situation does not improve in the end, there may be price differences in these countries, depending on the supply and demand in each country.
PV Tech Premium: Are there any innovations in this new legislation that neighboring countries such as Romania, Greece, or other European countries have not implemented in their own legislation that would benefit the development of solar PV?
Renewable Energy Legislation in Bulgaria
In the past two parliaments, legislation in the field of renewable energy in Bulgaria, especially in the field of solar energy, has made it easier for various groups of developers to land solar projects. The revised Renewable Energy Act and Energy Act have significantly reduced the length and complexity of the development process. The time and complexity required for both residential and industrial user-owned systems are greatly reduced.
Amendments to the law created a new section, Electricity Storage, which regulates the activities of operators, energy storage facilities, equal access to transmission and distribution networks, equal access to all electricity markets and possible balancing mechanisms.
Proposed amendments to the Energy Code present an opportunity for transmission network operators. If the purpose of grid connection is network reconstruction and development, then the operator can propose a temporary grid connection plan for all or part of the applied power. Thus, generators and customers have the opportunity to choose whether to join after the relevant network transformation is completed, or to take advantage of the proposed temporary connection scheme. With total grid design and development in Bulgaria at around 12GW, it remains to be seen whether the current government will be able to push through the necessary legislative reforms.
HEC Solar's rooftop solar project
PV Tech Premium: How will the new legislation promote the accelerated development of solar PV in Bulgaria? Vladimir Tabutov: In the past two parliaments, Bulgaria's renewable energy legislation, especially solar legislation, can make it easier for different developers to realize their solar project. Both the Renewable Energy Act and the Energy Act have been amended, significantly reducing the time and complexity required for the development process. For example, the development process for own projects for residential and industrial users has been shortened from 6-8 months to the statutory period of 4 weeks.
In addition, the process of small household projects below 20kW has also been improved by eliminating several development processes. If capacity partitioning is involved, the upcoming change will introduce some improvements to the procedure, eliminating some steps in the development process, and ultimately enabling a more transparent and faster development process.
PV Tech Premium: Are legislators considering accelerated approval of nearly 30GW of solar projects awaiting grid connection? Vladimir Tabutov: In the 48th Parliament, we accepted an interim measure allowing all reserve capacity of existing substations to be used projects in the application process, which unlocked enormous potential for imminent grid capacity, almost doubling grid capacity.
As an example, a 50kVA substation is equipped with a secondary backup transformer of the same size, and so far they have not been available for new solar projects to be connected to the grid. We have amended the legislation so that project developers can temporarily use this capacity until substations built according to the new regulations are completed, which frees up the capacity of more than 300 existing substations in Bulgaria.
Another amendment in circulation is the introduction of new reserve fees and an online public register of applicants, which would dissuade unsecured developers. However, this amendment was not passed due to the short term of the 48th Parliament.
PV Tech Premium: During a large solar exhibition in Lisbon, you stated in a panel discussion that the key to developing the Bulgarian grid is existing capacity, regulation and legislation. What measures are currently being taken to improve the grid?
Vladimir Tabutov: Paradoxically, simplifying the project development process to get projects on paper into construction readiness sooner will further slow down the actual implementation of solar farms, unless the physical and legal infrastructure of the grid is improved at the same time.
The total capacity of the grid designed and developed in Bulgaria is about 12GW. Bringing all new renewable energy projects onto the grid carries risks when it comes to grid "hardware," meaning substations and transmission line infrastructure. In order to ensure that all these power plant generation can be channeled in an efficient manner, a very careful and skilled planning scheme should be implemented.
For example, the peak electricity consumption in the winter of 2023 is about 6500MWh. Peak capacity is developing faster than consumption trends, so technical solutions are needed to direct excess electricity output (currently averaging around 2000MW/h) or to store electricity. So building new grids, substations, lines and energy storage constitutes the hardware we need. In order to do this relatively quickly, we need suitable legislation.
PV Tech Premium: Are there any challenges in the growth of solar PV and/or grid capacity in Bulgaria that the legislation still does not address, or that cannot be improved upon, and will further work be required, i.e. work done through new regulations or the TSO?
Vladimir Tabutov: Building international grid connection capabilities is crucial to the balance of the integrated Bulgarian, Greek and Romanian markets. TSOs in various countries are working closely together to improve connectivity, but it will take at least a few years for these projects to materialize. Therefore, if the connectivity situation does not improve in the end, there may be price differences in these countries, depending on the supply and demand in each country.
PV Tech Premium: Are there any innovations in this new legislation that neighboring countries such as Romania, Greece, or other European countries have not implemented in their own legislation that would benefit the development of solar PV?
Vladimir Tabutov: A good example is that during the 48th session of Parliament, we amended the Energy Law to introduce definitions and procedures for energy storage. For example, installing battery storage in an existing solar facility does not require new construction permits, allowing capital to be leveraged and storage capacity on the grid to be rapidly developed.
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