The Bulgarian unit of Czech utility group CEZ said that, in the current context
of the regional electricity market, a reliable business plan for Varna thermal
power plant (TPP) is not possible.
CEZ and state-run Bulgarian Energy
Holding (BEH) were considering setting up a project company to finance an eco
retrofit of three units of coal-burning Varna TPP.
The work of the joint
group of CEZ and BEH finished on October 31, CEZ Bulgaria said in a statement
posted on its website on Sunday.
Its aim was to find a way for future
exploitation of Varna TPP in the free market, in accordance with European and
national regulations.
Mincho Minchev, executive director of Varna TPP's
operator, said that it will continue to look for other options such as selling
or renting the plant.
In September, CEZ Bulgaria, which owns Varna TPP,
said it had signed with BEH an agreement for cooperation to search for ways to
extend the lifespan of the TPP.
Varna TPP operates six units. Units 4 and
5 of the power plant have been off-line since January 1, 2013 and January 1,
2014, respectively, due to non-compliance with environmental limits set in the
respective integrated permit. Units 1, 2, and 3 are operating under a
“derogation regime” with limited operating hours per year.
Earlier this
year, CEZ Bulgaria told SeeNews the initial investment programme, drawn up at
the time CEZ completed the acquisition of TPP Varna in 2006, called for
replacement of three of its six 210 MW units but that the economic downturn that
ensued forced the shelving of the project.
Since it stepped into
Bulgaria, CEZ has invested 600 million levs ($383.3 million/307 million euro) in
acquiring the Varna TPP and hiking its capital, the company noted in the
statement.
The coal-fired Varna TPP posted a loss of 67.6 million levs in
2013. It generated a total of 566 gigawatt-hours (GWh) of electricity last year,
down 970 GWh (63%) from 2012.
In Bulgaria, CEZ also operates as a power
distributor, supplying electricity to 1.9 million end-users in the country's
west, including the capital Sofia.
BEH is the catch-all holding company
for the state assets in the country's energy sector.