On July 4th, 2018, The AmCham Energy and Mineral Resources Committee held a meeting to discuss amendments of the Energy Law and the Renewable Energy Law related to the introduction of contracts for premiums, provide update on state aid process for Maritza plants and the latest developments in the mineral resources sector in Bulgaria.
AmCham members commented that while the amendments of the Energy Law and the Renewable Energy Law were aimed at progressing towards liberalization of the energy market, they would have serious impact on power producers. Some major concerns are that there is no guarantee for equivalence of the transition from the current feed-in tariff mechanism to the contracts for premiums and that with the introduction of the latter the regulatory and market risk is shifted towards the producers.
On the case of the state aid issue with Maritsa plants, the European Commission has not taken a decision so far. There is a recommendation for Bulgaria to propose a solution which will not conflict with investors’ interest. Negotiations between the government and the investors for reaching an agreement are ongoing.
The Ministry of Energy is working on amendments to the Underground Resources Act. The Bulgarian Chamber of Mining and Geology is actively involved in the process. The AmCham Energy and Mineral Resources Committee will keep contact with the Mining Chamber to be abreast of the legislative developments and will organize a committee meeting as soon as the Bill is published with the aim to discuss the proposed amendments and produce a position paper.
If you are an AmCham member and would like to learn more about the discussion or receive information about the activity of the Energy and Mineral Resources Committee, please write to [email protected]