Traycho Traykov: No Fuel Shortage Risk, Electricity Prices Will Be Affordable

There is no danger of a shortage of kerosene and diesel for Bulgaria, assured the caretaker Minister of Energy Traycho Traykov.

Bulgaria is one of the four countries in the European Union that produce more fuels of all types than it needs for the local market, Traykov said today to journalists in the village of Gara Elin Pelin.

Traykov also commented on the expected increase in electricity prices for household consumers from July 1st. The state, through the energy regulator, has mechanisms to ensure that the price is affordable for customers, he pointed out.

Traykov explained that the prices for households are currently normal because, under liberalized market conditions, a mechanism is in place in Bulgaria that guarantees a fixed price for households. There is a difference between this price and the actual market price, and this difference is covered by the National Electricity Company, he added.

Regarding the renegotiation of the contract with Azerbaijan for the supply of natural gas, which is expected to happen in July, Traykov believes that the increase in oil prices will not affect the price of natural gas under this contract until September - December.

The oil component in the contract with Azerbaijan for the supply of natural gas is calculated within 6 to 9 months back, so there is still time until the reflection of the significant price increase. Oil prices increased sharply at the beginning of March, so it will probably be felt in September - December, explained the caretaker minister.

He added that, given the large-scale destruction of the energy structure that was inflicted in the Persian Gulf region as a result of the war in Iran, it will likely take longer for prices to return to normal levels.

Minister Traykov visited the village of Gara Elin Pelin to inspect an enterprise that received funding under the Recovery and Resilience Plan (RRP) for the construction of a facility for the storage of electricity from renewable sources.

The project was implemented in the first ceramic factory in Bulgaria in the village of Gara Elin Pelin. The battery system has a capacity of 10 megawatts (MW) and a capacity of 45 MWh (megawatt-hours).

The initiative is among a total of 81 projects under the procedure "National Infrastructure for the Storage of Electricity from Renewable Sources" (RESTORE), which will contribute to greater flexibility of our electricity system and to more efficient use of energy from renewable sources. They have a total value of 603 million euros and are aimed at building a national infrastructure for the storage of electricity with a capacity of 9750 megawatt-hours.

When I took office, I found about 160 projects of municipalities and companies that were in a slightly critical phase in terms of time, so we created an organization so that all beneficiaries could calmly arrange the deadlines within the program so that they could cope, Traykov also said.