Chinese Investors on the Lookout for Bulgarian Partner to Build a Photovoltaic System
Chinese companies are interested in the opportunities for building photovoltaic power systems in Bulgaria, the Sofia Municipal Privatization & Investment Agency /SIA/ reports. Companies are looking for local partners operating in the renewable energy sector. Appropriate partners are landowners or stakeholders and organizations within the field of photovoltaic power system construction. Chinese partners are ready for a direct investment in the construction, percentage of the stake in the company and agreement on the allocation of the financial benefits of the project.
Criteria that are of great importance to the investors are local experience and willingness for cooperation in obtaining the required permits, environmental assessments, land rights, available areas for building a park, electrical grid connection agreements, concluding electricity purchase agreements, knowledge of the procedures for applying for funding under EU programs and other activities for participation in a joint venture for building photovoltaic power systems.
Benefits from an investment agreement with a Chinese investor for building a PV park
– China has a globally recognized experience and contribution to renewable energy.
– PV park equipment manufactured in China is cheaper than the one available for purchase in Europe
– For the last 10 years China holds the highest rate of solar energy development
– The global PV solar energy market survey from 2016 by the International Energy Agency shows that the installed solar power has increased by 75 GW in the past year, exceeding 300 GW, which is 50 times more than in 2006. The largest contributor to this growth is China with 34.5 GW (with accumulation of 78.1 GW). The other two countries in top three are the United States – 14.7 GW (with accumulation of 40.3 GW) and Japan – 8.6 GW (with accumulation of 42.8 GW).
General market data
More data from April this year by the Photovoltaic Power Systems Programme of the International Energy Agency indicates that the global share of the produced photovoltaic electricity is about 1.8% or nearly 375 billion kWh. Its share in Europe is some 4 %. After a stagnation in 2014, the global market for photovoltaics has increased almost everywhere since 2015. In 2015, the photovoltaic market broke several records and continued its global expansion. It rose by 25 percent, reaching 50 GW, according to a report on the development of the sector by the International Energy Agency (IEA).
The development of solar energy in Europe remains insignificant as there are three dominating countries – Germany with over 0.5 kW, Italy and the United Kingdom. These countries have about 71.5 GW solar power systems connected to the grid, representing nearly three quarters of the total capacity in Europe.
The market in Bulgaria
Bulgaria’s production and consumption of electricity continued to increase in the first half of 2017 compared to the same period last year, according to data of the Electricity System Operator (ESO) for the country’s energy balance. The increase in the share of Renewable Energy Sources (RES) makes the strongest impression. The RES in the transmission grid grew – up to 748 138 MWh for the period January – July 2017, compared to 680 697 MWh for the corresponding period in 2016, which was an increase by 9.91%. The highest increase was in the share of wind power – 6.61%, as with photovoltaics the increase was 0.82%. There was also growth in the share of RES in the distribution grid, which increased by 3.37%. The largest contribution was made again by wind power plants – 8.25%, while biomass rose by 10.27%. The share of solar power was negative -0.42%.
In July, the World Bank presented its study of the electricity sector in Bulgaria and the recommendations for its reform in connection with the introduction of full liberalization of the market. The analysis identifies the main problems facing the sector and the recommended measures for overcoming them. With the measures taken to stabilize the system in 2015 and 2016, financial deficits have been significantly reduced and currently the sector is developing steadily, according to the World Bank analysis.
The analysis consists of four parts and is available at the following links:
- From financial stabilization to recovery
- Transition of the energy sector to a competitive market
- The Bulgarian electricity sector – transition to financial stability and market liberalization – Contracts for difference
- Distribution of the effect of tariff changes for household users
If you are interested in the offer of the foreign investors, you can contact our team for more information and cooperation for contact with the stakeholders from China by email at contact@investsofia.com and phone +359 2 980 04 67 / +359 2 986 45 32.
