The policy priorities in the Bulgarian energy sector are part of the National Plan for Economic Development and the Energy Strategy of the country. They comply with the requirements of the European directives and market mechanisms.

The encouragement of the application of renewable energy sources plays a vital role in the current Bulgarian energy policy. The optimum usage of energy generated from renewable sources is seen as a way to reach stable energy development and to minimize the harmful influences of the energy sector for the environment.

The market for renewable energy sources (RES) in Bulgaria

• In the energy balance of Bulgaria the share of RES is significantly lower compared to the average for EU countries;
• The production of energy from RES should reach 20% from the overall energy consumption for each member state of the European Union by 2020;
• The European Commission has designated for Bulgaria a RES share of 16 % from the total energy consumption to be reached by 2020.

Government incentives

The State Energy and Water Regulatory Commission of Bulgaria (SEWRC) determines the feed-in tariffs for electricity produced from renewable energy each year on 31st March.

In 2011 a new Law on renewable energy was adopted and the current feed-in tariff are valid as of 1 July 2011:

• for wind generators with annual effective working hours of up to 2250 - 191 BGN/MWh (EUR 97.66);
• for wind generators with annual effective working hours of over 2250 - 173.06 BGN/MWh (EUR 88.48);
• for photovoltaic installations with total installed capacity of up to 30kWp - 576.50 BGN/MWh (EUR 294.76);
• for photovoltaic installations with total installed capacity of 30kWp - 200kWp - 567.41 BGN/MWh (EUR 290.11)
• for photovoltaic installations with total installed capacity of above 200kWp - 485.60 BGN/MWh (EUR 248.23).
  

Contract duration of mandatory purchase of electricity produced by RES:

• for electricity produced from solar power - mandatory purchase for a period of 20 years;
  
• for electricity produced from wind power - mandatory purchase for a period of 12 years;