site.btaAmerican Chamber of Commerce Presents Report on Decarbonization of Bulgaria’s Power System 2022-2050

The American Chamber of Commerce in Bulgaria (AmCham) presented on Tuesday its new report Energy Industry Decarbonization Study Executive Summary 2022-2050. This comprehensive analysis includes three scenarios and a package of policy recommendations that facilitate the energy transition through an appropriate investment framework. The analysis was presented by the co-chairman of the Energy and Mineral Resources Committee of the Chamber, Krassimir Nenov. The event was attended by the Chief Executive Officer Petar Ivanov and the Chief Executive Officer and member of the Energy Committee of the Chamber Ivan Tzankov.

Krassimir Nenov, co-chairman of the Energy and Mineral Resources Committee and executive director of ContourGlobal Maritza East 3, explained that the analysis was prepared using the modelling method, considering climatic features, interconnectedness, installed capacity and expected development of technology. The report proposes a strategic approach for a responsible transition to the decarbonisation of the electricity sector in Bulgaria. It does not favour any of the technologies available to achieve decarbonisation. Nenov pointed out that three scenarios were considered in the report.

The first scenario is based on the commitments under the National Energy and Climate Plan of 2020. This is the baseline scenario, which will be compared with the other two scenarios. It reflects the evolution of the production mix to achieve the 40 per cent reduction target for carbon emissions in the energy sector by 2030, stemming from the 49 per cent lower target for carbon emissions across the economy than in 1990.

The second, more ambitious scenario examines the range of options available for full decarbonisation by 2050 in line with the European Fit for 55 package. This option is expected to rely more on new investments in gas installations and accelerate the closure of coal-fired power plants by 2025.

The report also presents an alternative transition scenario that would minimize the costs of achieving an intermediate reduction in carbon dioxide emissions in Bulgaria of 55 per cent by 2030 and full decarbonisation by 2050 without exceeding the emission reduction target. According to it, a minimum of 7.5 gigawatts of wind and solar capacity is planned to be built by 2030.