Bulgaria officially announced its intention to take advantage of its right for postponing the requirements (derogation) for 100% payment of the emissions allowances for greenhouse gases from the generators of electricity since 2013, as it stipulated in the provisions of article 10c of Directive 2003/87/EC. On a regular meeting dated on 28.09.2011 the Council of Ministers took decision for accepting the National investment plan for the period 2013-2020 and approved Application for transitional free allocation of emissions allowances for the period 2013-2020. On the website of MEET are published Draft of the Application and National Investment Plan for the period 2013-2020.
The use of derogation under article 10c of Directive 2003/87/ EC will resulted in smoother increase of the electricity prices of the generators, as in 2013 the price will rise by 11% and the next years its increase will be in lower level than in the scenario envisaging total buying of the emissions of CO2.
However, in the both scenarios the price of electricity by generators in 2020 will reach identical levels but the use of option for derogation will have positive social effect of not allowing rapid jump in the electricity prices and will reduce/mitigate the risk of rapid worsening of the competitiveness of Bulgarian Economy.
In accepting full buying of allowances for CO2 emissions and the price level of the allowances for emissions of CO2 in a value of 15€/t the electricity price of the generators will go up by 23% in 2013. The trend will continue also next years.
The total quantity of transitional allocated free allowances in 2013 will be equal maximum of 70% of the average annual estimated emissions in the range 2005-2007. This total quantity will gradually decrease in a way that in 2020 no free emission allowances will be allocated.
In case the Bulgarian application for derogation will be approved the total amount of the provided free allowances for the whole period 2013-2020 is 48.96 or 734 mln. Euro (under emission price of 15 euro/t)
According to the draft of National plan for investments for the period 2013-2020 with amount equivalent of “saved” 734 mln. euro will finance projects leading to reduction of the emissions as follows:
· For plants and heating companies, participating in emission trading system-244.5 mln euro
· For NEK-424 mln euro
· For Bulgartransgaz-65.5 mln euro
