Fallout from renewables tariff premium may add 4.0% to Bulgaria’s power prices
Electricity prices in Bulgaria may increase by 4.0% as of July if no mechanism is found to compensate a 220 million lev ($152 million/112 million euro) shortfall of revenues from the renewables add-on incorporated into electricity tariffs, EVN, the power distributor for southeastern Bulgaria, warned.
The shortfall was accumulated as a result of the fact that the 13.6% electricity tariff hike adopted in July last year failed to take into account the actual size of the costs that will be incurred to pay preferential prices for power generated from renewable energy sources (RES), news portal Capital.bg reported on Thursday.
To resolve the situation, EVN Bulgaria has proposed the establishment of a special fund that will incentivize the development of RES projects. The idea is to raise resources for the fund by channeling into it 50% of revenues from greenhouse emissions trading as well as revenues from the so called "green energy" premium charged from end-consumers.