The purpose of the procedure is to renovate the buildings and turn them into ones with close to zero energy consumption. The procedure is worth a total of 10.7m euros. Beneficiaries will be able to receive 100% of the value of each project, with a minimum aid amount of EUR 200,000 and a maximum of EUR 1.2 million. Eligible candidates are municipal administrations and state institutions. The application deadline is November 10, 2021.

The full terms of the procedure can be found here.

Bulgaria is actively working to ensure energy security and highly appreciates U.S. support for the implementation of the priority infrastructure projects in this area - the interconnector Greece-Bulgaria and the LNG terminal near Alexandroupolis.

According to Minister Petkova, the construction of the interconnector Greece-Bulgaria is a major priority of the Government in the energy sector. She briefed Assistant Secretary Fannon on the progress of the project – 150 km of manufactured pipes, 103 km of route clearance, 80 km of laid pipes, started process of welding activities, trench digging and pipe laying. The Energy Minister reaffirmed the Government's strong commitment to successfully completing the interconnector as infrastructure of strategic importance to the security of gas supplies in Southeast Europe.

Mr. Fannon praised Bulgaria's progress in the implementation of its energy diversification priorities and confirmed the U.S. support for these efforts. He noted that the U.S.A. welcomed Bulgaria's participation in the LNG terminal near Alexandroupolis. Ahead of his visit to Bulgaria, Mr. Fannon was in Greece together with Secretary of State Mike Pompeo, where a considerable part of the talks focused on energy diversification and energy security in the region.

Bulgaria considers the implementation of the interconnector with Greece to be in synergy with the participation in the LNG terminal project near Alexandroupolis, Minister Petkova underlined. Our country’s involvement in these projects provides for real diversification of natural gas sources and routes and Bulgaria is a key factor for this process in the region. The Energy Minister highly praised the U.S. support for transforming Bulgaria into a regional energy hub.

Minister Petkova and Francis Fannon also discussed the progress achieved in the project for diversifying fresh nuclear fuel for Kozloduy Nuclear Power Plant.

This example was explained by Peter Bernard, a senior energy and environmental consultant at Asplan Viak, an architectural consulting and design company specialized in the application of energy-efficient architectural and construction concepts, during a webinar on Near-to-Zero energy consumption buildings. The event was organized and conducted by the Ministry of Energy in its capacity of Programme operator of Renewable Energy, Energy Efficiency and Energy Security Programme (REEEES Programme) and the Norwegian Water Resources and Energy Directorate (NVE), a donor programme partner. The webinar, held through an online platform, was attended by 40 representatives of municipal administrations from Bulgaria and 10 from Georgia. The Norwegian partners shared their experience and good practices both from the point of view of the Norwegian regulator NVE and the scientific community represented by SINTEF institute.

The event is part of the bilateral initiatives of the Ministry of Energy in its capacity of Programme operator of the REEEES Programme. It aims to raise the awareness of potential beneficiaries about buildings with near to zero energy consumption. The topic is directly related to the largest planned procedure for selection of project proposals under the REEEES Programme - "Energy efficiency in buildings" which will provide 10.2 million euro. The state and the municipalities will be able to apply for the renovation of their buildings. This procedure is expected to be open for applications in October 2020.

Despite the restrictions imposed in connection with the COVID-19 pandemic, the Programme operator is looking for flexible solutions to implement the planned activities, which will lead to better absorption of financial resources under the programme and better results for beneficiaries.

The REEEES Programme is funded by the Financial Mechanism of the European Economic Area 2014-2021. Thanks to the strategic partnership between the Ministry of Energy and NVE and the National Energy Authority of Iceland, the programme is successfully developing in Bulgaria and its budget has been doubled during the current programming period to 33 million euro.

The possibility of co-operation with regard to maintaining the capacity of coal-fired power plants in Bulgaria by using the experience and technologies in the USA was discussed. According to Minister Petkova, coal-fired power plants provide over 46 per cent of the electricity generation for the country. In recent years they have made significant expenses for paying emission allowances, which affects the price of electricity they produce. It was noted that state-owned power plant Maritsa East 2 had invested over 1.2 billion BGN in treatment facilities.

The US Department of Energy presented information on research and development of coal-based energy systems and carbon capture and storage. Both sides agreed on the possibility of co-operation in order to preserve the operation of thermal power plants in Bulgaria.

Letters of confirmation of the submission of binding tenders are received by the five companies within the deadline set by 31 January. The Korean Hydro and Nuclear Power Corporation have raised some clarifying questions in order to take a final decision on their part.

The companies will be invited to sign a non-disclosure agreement and will be given the Information Memorandum and will be provided with access to the data room that contains information and is located in the "Nationalna Electricheska Kompania" EAD.The indicative deadline for submission of the binding tender is foreseen to be 31 May 2020.

As of 1 January 2020, the entry point of natural gas supply to Bulgaria has changed.  "Bulgargaz" EAD shall receive natural gas at delivery point "Strandza". Until now, the country's entry point was Negru Voda. This announcement was made at a briefing by Minister of Energy Temenzhka Petkova. The executive directors of the Bulgarian Energy Holding EAD, Mr. Jacklen Cohen, of "Bulgargaz" EAD, Mr. Nikolay Pavlov and of "Bulgartransgaz" EAD, Mr. Vladimir Malinov, also participated in the press conference.

As a result of the agreements reached between "Bulgargaz" EAD and "Gazprom Export", the prices for Bulgarian household and industrial natural gas customers will decrease by nearly 5% on an annual basis. This economy is due to the drop in the access and transmission charges through the territory of the Republic of Romania of 76 million BGN, which will not be paid by "Bulgargaz" EAD and the Bulgarian natural gas consumers during the coming year", Energy Minister Petkova announced at the briefing. Bulgaria's supplier "Bulgargaz" EAD is expected to have a positive financial result in an estimated amount of 4.6 million BGN for 2019/2020 gas year stemming from payment of the lower tariffs announced by "Bulgartransgaz" EAD at "Strandza" entry point.

According to Minister Petkova, as of 2 January a multilateral trading on the organized stock market, including a short-term segment (spot), a long-term segment and a brokering service, has started on the gas trading platform of "Balkan Gas Hub" EAD. "This will allow full liberalization of the natural gas market in our country", she underlined.

For the first time this year, "Bulgargaz" EAD has held several auctions and concluded contracts for supplies of liquefied natural gas, including from the USA, amounting to a total of 403 million cubic metres. A further 100 million cubic liquefied natural gas has been contracted for January.

"Generations of politicians have talked about diversification, but it is now that it became a reality. What is going to be built here will connect us with the Trans-Adriatic pipeline and the LNG terminal near Alexandroupolis, thus enabling the entire region to receive natural gas from the USA, Qatar, Cyprus, Azerbaijan and other destinations," Prime Minister Boyko Borissov stated during the inspection.

The on-site inspection today found that excavation activities for the first two kilometres of the interconnector track had started and the pipes for the first kilometer delivered. The length of the marked centerline and the cleared polar is four kilometers. BGN 4 million was spent only for the archaeological excavations, as artifacts dating 7 thousand years ago were found on the route, some of which were shown during the visit.

"We are also working hard to create a gas exchange and establish a gas hub in the country. They will ensure competition and cheaper deliveries for the Bulgarian economy and household consumers," Prime Minister Borissov noted.

According to Minister Petkova, the project is key to the implementation of our concept to create "Balkan" gas hub. It will allow diversification of natural gas supply sources and routes and will increase energy security in the region, Minister Petkova pointed out.

"With the implementation of these projects, we provide the Bulgarian economy with the opportunity to increase its competitiveness by using cheap raw material and our neighbouring countries will also benefit from competitive supplies," Prime Minister Boyko Borissov said before the ceremony. He underlined the key role of our country as a major gas hub that will be of benefit to neighbouring countries in the region as well. "The geostrategic location of Bulgaria provides long-term advantages for the country. By constructing gas infrastructure we create conditions for future generations to benefit from these advantages," Borissov stated.

Seven companies have expressed interest in participating as a strategic investor in the project – the Russian State Corporation "Rosatom" through the company "Atomenoergoprom", China National Nuclear Corporation, Korea Hydro Nuclear Power Co. Ltd, "Bektron-Liaz Technical Engineering"- a company registered in Germany, "Belene NPP" and "Nuclear Power Plant Belene 2019" consortiums, "IPK and UP" EOOD - a company registered in Bulgaria. The French company "Framatom" has declared interest in taking part in structuring the financing of the project for providing safety systems, including electrical, equipment and control systems and other. The US "General Electric" has declared interest in structuring the financing and in being a potential designer and a supplier of different packages, including turbine equipment, compressors, transformers and other.

Within 90 days a working group of representatives from the Ministry of Energy, Bulgarian Energy Holding EAD, Natsionalna Elektricheska Komapania EAD and Electricity System Operator EAD will prepare a shortlist of the companies that have expressed interest in taking part in the Belene project as strategic investors. The procedure is flexible and allows the selected strategic investor to negotiate with companies that have expressed interest in minority shareholding in the project or in purchasing electricity. The Republic of Northern Macedonia has expressed interest in acquiring a minority share in the project company and submitted an application for purchasing electricity from NPP Belene.  An agreement procedure relating to the application is currently ongoing. An interest in minority shareholding in the nuclear power plant has also been expressed by the Bulgarian companies "Atomenergoremont" AD and "Grand Energy Distribution" EOOD. Applications for purchasing electricity are submitted by "Grand Energy Distribution" EOOD and by "European Trade of Energy" AD.

The indicative deadline for selecting strategic investors for the implementation of the Belene project is one year.

The Bulgarian side will participate in the project company operating "Belene" NPP with an in-kind contribution of the assets, including the licensed site, the available equipment, the issued decisions, permits, licenses and other documents related to the project. A number of conditions are laid down in the procedure with the aim of maximizing the protection of the property interest of the Bulgarian side. The Bulgarian state, through NEK EAD, reserves the right of a blocking quota when deciding on certain issues within the competence of the shareholders’ general assembly in the project company. The construction of the plant is envisaged to be carried out on a market principle, without the conclusion of long-term power purchase agreements with the state or provision of any sovereign guarantees.

An application in the procedure for selection of a strategic investor or, respectively, interest in acquiring a minority share in the project company may be submitted by Bulgarian or foreign legal entities, as well as consortium thereof. The deadline for receipt of applications shall be until the 90^th day as of the date on which the call is published in the Official Journal of the European Union. The indicative deadline for completion of the procedure shall be 12 months from the date of publication of this invitation in the Official Journal of the European Union.

CALL for Expression of Interest for a Strategic Investor and/or Acquisition of Minority Shareholding and/or Purchase of Electricity

Appendix № 1 - Brief information about Natsionalna Elektricheska
Kompania EAD

Appendix № 2 - Brief history of the project

Appendix № 3 - Documentary status of Belene NPP project, including the documents issued at the time of the call - orders, decisions, permits, etc., concerning its implementation

Appendix № 4 - Brief information about the electricity market in Bulgaria

Appendix № 5 - Information on the stages of the procedure for selection of a strategic investor for construction of Belene NPP

Appendix № 6 - Application for participation

Appendix № 7 - Letter of interest for acquisition of minority shareholding

Appendix № 8 - Letter of interest for acquisition of minority shareholding and purchase of electricity

Appendix № 9 - Letter of interest for purchase of electricity