AES Bulgaria is a long-term investor in the Bulgarian energy sector, with direct investments of over 1.6 billion Euro, and it is important for us that the energy market in the country is transparent and predictable, stated the president of the company Olivier Marquette during a meeting with representatives of the Bulgarian media.
Renegotiating the long-term PPAs for the energy produced in the most modern and technologically advanced plant in Bulgaria – TPP AES Galabovo is completely possible, as long as the interests of the investors in the project are protected. In February 2018 we received a methodology from the Bulgarian government to calculate the stranded costs and we are analyzing it very carefully. By the end of June, AES will have a statement on this methodology and we will present it to the Bulgarian state, thus starting the negotiation process for the long-term agreements with the National Electricity Company.
This is not the only option to take the energy we produce at our plant out onto the free market. This can happen either by NEK going out on the exchange with the energy it buys from us or by compensating for the difference between the market levels for electricity and those defined in the long-term PPA through Difference Contracts. The Bulgarian government, in coordination with the European Commission, has proposed to focus on the methodology for stranded costs and we will give our opinion, explained Marquette, saying he is optimistic about reaching an agreement with the Bulgarian government.
TPP AES Galabovo is among the baseload energy suppliers in the country, which guarantees the security of supply and generates around 10% of the electricity in the country, added the Managing Director of AES Bulgaria Ivan Tzankov. The different companies in the AES group in Bulgaria ensure over 4,500 direct and indirect jobs and are among the key clients for the coal produced in the Maritza-East mines. Each change to the long-term PPAs for AES Galabovo must be a result of an agreement reached between the Bulgarian government and the company, which must include the consent of the crediting institutions and banks which provided around 70% of the total capital invested in AES’ facilities in Bulgaria.