Energy security and affordability are important prerequisites to have a competitive European industry. This was stated by the Chairman of the Board of the Association of Industrial Capital in Bulgaria, Vasil Velev, at a conference on “Sustainable and efficient energy system for a stable and secure economy”, which was held in Sofia. The event was organized jointly with the European Economic and Social Committee, with guests from abroad, as this is a common, European problem, he pointed out Vasil Velev:
“We are witnessing how Europe is deindustrializing and the share of the European Union in the world economy is constantly falling. This is not recent, but recently this pace has been accelerating… And the departure of large European companies from the basic industry is intensifying precisely because recently even more non-competitive energy prices. In the period of green transition, natural gas is a transitional fuel. In our country, this was also accepted. However, the price of natural gas in Europe is of the order five times higher than the price of natural gas in the States. This is not just any difference, it is a crushing difference, and for this reason, and lured by direct investment support in the States, many European flagship companies move their operations there, and others export towards China. And for the green transition, the basic industry is needed, the metals are needed, the building materials are needed, in addition to the energy for the production of the relevant installations and equipment. All this cannot help but worry us considering the fact that in Bulgaria the prices are also above the European average for both electricity and natural gas. And that was an important reason for holding this conference. We insist at every step of the green transition that this should be the goal that guides and optimizes all other goals and functions – a competitive energy price.”
This can be achieved by making smart investments and smart decisions. For example, investing in expensive energy that has a preferential price and paying this price through various mechanisms by consumers above the market to pay off these expensive investments is a wrong path.
In the states, the electricity market is regulated, it is more like what we gave up some time ago – the regulated market, than our free market of a commodity, which is very specific. Energy is such a commodity that is produced and consumed at the same time in order to balance the system. Energy storage systems, firstly, because they are not sufficiently developed, secondly, they are associated with large losses, and that is why the aspiration is to match the moment of production with the moment of consumption. Renewables are on an erratic schedule. Accordingly, the need for base capacities is obvious, added Vasil Velev.
The liberalization of the market for household consumers is delayed. The elections seem to be having their say again, Vasil Velev commented on the transition to the free electricity market for household consumers as well:
“From July 1 this year, the wholesale market must be liberalized. That is, not what households buy, it is the retail market… The wholesale market is the energy that is purchased by household suppliers, i.e. electricity distribution companies enterprises, the ERPs. Until now, the ERPs receive energy for households not on the market, on the exchange, but according to the relevant quotas and prices, which are determined by the Commission for Energy and Water Regulation, i.e. they have a fixed , the regulated price at which energy is supplied. To it is added the fixed price regulated by the KEVR and thus the final, fixed price per kilowatt hour at which the households are supplied July 1, but in all likelihood it will be postponed to July 1 next year, is for the PSUs to buy the energy on the market and not receive it at a fixed price.”
You can hear the whole theme in the sound file.
Tags: Energy transition clean energy competitive prices
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