Development of Renewable Energy Projects in Bulgaria

DEVELOPMENT CHALLENGES Wind power is the most promising untapped renewable energy source in Bulgaria, and the market potential for wind farm development in the country is enormous. Bulgaria has many Class 7 wind sites, which offer the best possible wind resource for power generation, and existing legislation requires purchase of green energy at preferential rates. A National Program on Renewable Energy Sources encourages development of renewable energy. There is a large opportunity and need to develop available wind resources in the country.

USAID INVOLVEMENT USAID, EnCon Services International, General Electric Corporation, and the Utility Wind Interest Group share the goals of promoting commercial wind power development throughout Bulgaria, and using public-private partnerships between municipal governments and private energy services companies to increase U.S. wind power industry investments in Bulgaria. USAID provides technical assistance with project development and the public-private partnership.

GOAL The program serves USAID strategic objectives to promote economic growth and improve local governance. The objective of the current grant is to facilitate the development of one wind farm of between 5 and 10 MW in Bulgaria to serve as a model for replication in the future.

PROJECT DESCRIPTION Specific tasks to be implemented as part of this activity include:

Project Development

• Municipality Selection. Review historical wind data for different municipalities; evaluate available wind resource data, infrastructure requirements and interconnection options, select a Municipality and potential sites.
• Structure Transaction. Establish a Public-Private Partnership between the Municipality and a private energy service company in Bulgaria, issue the necessary permits, negotiate debt financing from financing institutions.
• Wind Farm Development. Evaluate turbine site options; develop specifications and budgets for civil works, grid interconnection, and transmission grid extension; perform project risk analysis, develop and issue tenders for civil works, interconnection, grid extension and balance of plan, prepare an Environmental Assessment, obtain required permits.

Capacity building
Capacity building activities will include technology exchange programs, workshops, twinning programs between Bulgarian wind and U.S. wind farm operators, and developing the capabilities of the public-private partnership to operate the wind farm.

EXPECTED RESULTS The activities in the initial phase shall result in:

• Evaluation, classification and recommendations for potential wind farm location;
• Public-Private Partnership between one Municipality and a private energy service company registered for the purpose of implementing and operating a 5-10 MW wind farm;
• Issued permits and signed agreements.

The final result of the program is expected to be one 5-10 MW pilot wind farm commissioned and operational in one municipality in Bulgaria.

^{Last updated: 27 February 2007}