The EU quota on renewables for Bulgaria stipulates that renewable energy should account for 11% of gross energy consumption after 2010 and 16% after 2020. Bulgaria has taken major legislative steps to meet the quota, leading to a boom in entrepreneurial interest and stated intentions for over 10,000MW in renewable energy projects. This is more than three times Bulgaria’s installed capacity in renewables in the beginning of 2008 and much higher than what is needed for Bulgaria to meet its quota.

Most of the increase in renewable energy production will come from wind and solar sources and biomass as there is little space left for hydro developments. Hydro power is estimated at around 2600 MW and presently composes most of Bulgaria’s installed capacity in renewables. However, with an estimated wind power capacity of 2200-3400 MW and good climatic and agricultural profile for development of solar and biomass projects, the country is well on the road to diversifying its renewables portfolio.

The Bulgarian legislature encourages energy production from renewable sources via preferential tariffs consisting of two components:

• 80% of the average end supplier price for the previous calendar year;
• A mark-up determined by the State Energy and Water Regulatory Commission.

Overall, the next ten years will be a time of increased business and political activity in the field of renewables as Bulgaria progresses towards its 2020 quota.