On April 13, 2011 in the 8th and final session of the Parliamentary Economic Committee, and after more than a year of public consultations and working group sessions, the Committee approved without open public discussion amendments that seriously changed basic principles of the new law.
Periods for obligatory purchase of electricity generated from renewable sources were seriously shortened for wind and photovoltaic projects, just 2 years after such periods were prolonged at the end of 2008.
It was accepted that preferential prices shall be fixed only after completion of the construction of the projects. This means that investors would be required to make multimillion investments before they know whether and how they will be able to repay the investment. Obviously that type of rules would cease any interests of responsible strategic investors and would only accommodate speculative, risky and expensive investments. In this way the new law will fail in its main goal – to prevent speculative investments and achieve meeting Bulgaria’s commitment under the EU “20-20-20″ targets at affordable price for the public.
The essence of such proposals and the manner in which they were introduced in the last moment will cast doubts among foreign and local investors about the stability of the investment environment in Bulgaria. Their implementation would effectively freeze investments in the sector that is one of the few that bring funds, jobs and technology transfer to Bulgaria, at a time when foreign direct investment has fallen by 85% over the past year.
Borislav Boyanov & Co., as a member of the Energy Committee of CEIBG and the AmCham RES Working Group, take part in the efforts of those leading local industry associations to support reasonable amendments of the proposed rules before they are finally approved by the Parliament.