EU
Energy Commissioner Günther Oettinger paid his first visit to
Bulgaria
on 3 March, the country's
national day. Although the visit received limited coverage, it gave the
commissioner an opportunity to criticise
Sofia
's sometimes questionable energy
choices, according to Panayot Angarev of Dnevnik, EurActiv's partner
publication in
Bulgaria
.
In
Sofia
,
Oettinger made clear that
Brussels
is not happy with
Bulgaria
's
energy policy.
''Each project in the energy
sector should be agreed with the European Commission,'' he said, stressing that
''we are very sensitive about the Belene nuclear power plant project''.
Such messages are seen by many as
long overdue. For the past 20 years, governments in
Bulgaria
have thrown their weight behind two energy projects of questionable
economic and financial sustainability: the planned Belene nuclear power plant
and the 'Tsankov Kamak' hydroelectric plant, which is almost complete.
Both have disappointed in various
ways, and it was recently disclosed that billions of euros had been poured into
what now appear to be corruption schemes.
It was not until after the January
2009gas crisis between
Russia
and
Ukraine
that
Sofia
decided to redirect its efforts to more practical projects to help
diversify its gas supply.
However, as things stand the scale
of investment in Belene and Tsankov Kamakis likely to remain unmatched in
Bulgaria
for at least the next few years.
Belene
Speaking in
Sofia
,
the EU's energy commissioner expressed his concern over plans to construct a
nuclear power plant in Belene. ''We are following very carefully and we are
quite sensitive on this project,'' said Oettinger.
The reason for this seems clear:
Belene is set to become the first nuclear plant in the EU that is fully reliant
on Russian technology.
Following the withdrawal of
Germany
's RWE as a strategic partner for the project,
Russia
offered
Bulgaria
a €2 billion loan to finance the construction of the plant. The Bulgarian
government initially accepted the offer, but after interference from
Brussels
it became clear that the project would only go ahead with a European
investor (
EurActiv 03/03/10
).
It was originally envisaged that
the plant would be completed by 2014, but this deadline is unlikely to be met
due to financing problems. According to initial calculations, its construction
was estimated to cost around €4 billion, but the actual amount could in fact
range between €8 and €10 billion.
So far, more than €1 billion has
been invested in the plant. Bulgarian Prime Minister Boyko Borissov has already
said that the Belene plant is ''an example of how a project should not be
made,'' but he still has to decide whether construction should stop due to lack
of funding or whether the government should continue the project.
Tsankov Kamak
The
Tsankov Kamak
hydropower plantis
Bulgaria
's second most controversial project in the energy sector.
According to recent revelations,
the plant might become the most expensive hydropower project in the world. Costs
were originally estimated to be €220 million but have since doubled, mainly as
a result of the construction of a 22-kilometre road between the towns of Devin
and Mihalkovo, which is said to have cost 222 million Bulgarian levs (€114.5
million).
Prime Minister Borissov said there
would be an investigation into what has been dubbed
Bulgaria
's "most expensive road," the construction of which he said
had shown clear signs of corruption.
Similarly, construction of a
cascade on the Vucha river was set to begin this year but persistent doubts
over the potential misuse of funds means this deadline will probably be
postponed.
Gas pipeline inter-connectors
Less controversial are a series of
gas pipeline inter-connector projects. On 5 March,
Bulgaria
and
Serbia
signed a protocol in
Brussels
for the construction of a gas pipeline connection between the two countries,
running from the Bulgarian city of
Dupnitsa
to the Serbian cities of Dimitrovgrad and
Nis
.
The pipe should be completed by 2013, with €60 million coming from the European
Regional Development Fund.
A memorandum to construct a gas pipeline between the Bulgarian city of
Stara Zagora and the Greek city of Komotini was signed on 14 July 2009 between
BEH (Bulgarian Energy Holding) and IGI Poseidon (50% owned by Depa and 50% by
Edison). The project is due to benefit from EU funding under the €2.3
billioneconomic stimulus package aimed at helping finance 43 pipeline and
electricity projects across the EU
. It should be completed by 2013 and its cost is estimated at €120
million. The capacity of the pipeline would be between three and five billion
cubic metres.
A projected gas pipeline
connection between the Bulgarian city of
Rousse
, on the
Danube
, and its Romanian counterpart
Giurgiu
was drawn up by Bulgartransgas and Romanian company SNTGN Transgaz. This
pipe is also included in the list of projects sponsored under the EU economic
stimulus plan. Last September, Tractebel Engineering was appointed as a
consultant and asked to prepare a feasibility study. Worth €27.6 million, the
pipeline should also be completed by 2013. Once built, it should have a
capacity of 1.5 billion cubic metres.
Nabucco and South Stream
Last but not least,
Bulgaria
is a key transit country for both the Nabucco and South Stream pipeline
projects, which are seen by many as rivals.
Nabucco was given top priority by
the EU as it is designed to brings gas from countries other than
Russia
. The pipeline would cost between €8 and €9 billion and should be
completed by 2013. Its planned capacity is of 31 billion cubic metres.
Preparations are well advanced and the project is set to benefit from a €200
million grant from the European Commission under the EU stimulus plan.
The South Stream gas pipeline is a
project sponsored by Russian gas giant Gazprom. It is designed to bypass
Ukraine
, running under the
Black Sea
to
Bulgaria
,
with one branch going to
Greece
and
Italy
,
and another one to
Romania
,
Serbia
,
Hungary
,
Slovenia
and
Austria
.
Two working groups are currently
preparing a shareholders' agreement and a technical feasibility study, which
will be used to estimate the cost of the project and define the exact route of
the pipeline through
Bulgaria
.
The project should be completed by 2015. Its value is estimated at €8-10
billion and the pipeline would have a capacity of 64 billion cubic metres.