The Bulgarian energy regulator said on Monday it granted London-based Shell Energy Europe a 10-year permit to operate as an electricity trader in the country.
In a business plan for the 2015-2019 period which the company submitted with the regulator as part of the licensing process, it projects that the amount of electricity it will buy and sell will gradually increase from 43,800 MWh in 2015 to 7.88 million MWh in 2019, the State Energy and Water Regulatory Commission (SEWRC) said in a statement published on its website.
Sales revenues are expected to increase from 2.2 million euro in 2015 to more than 406 million euro in 2019. In 2017 Shell Energy Europe expects to turn to profit -of nearly 115 million euro - which is seen growing sharply to 405.8 million euro in 2019.
Shell Energy Europe does not plan to acquire fixed assets or make capital investments in Bulgaria.
The company applied for a 35-year licence but as the electricity market in Bulgaria is very dynamic, SEWRC decided to license it for a much shorter period, it added.
Shell Energy Europe has a capital of 933 million British pounds. It is fully-owned by Royal Dutch Shell Group.
The company operates in 19 countries in Europe.