The Republic of Bulgaria pursues a transparent energy policy in respect to the national and public interest. The country's energy policy aims to promote market principles in the energy sector, guarantee energy independence, develop sustainable energy, and use of energy and energy resources efficiently. The main goals of Bulgaria s energy policy are:

• Achieving of economically effective and secure delivery of electricity, meeting the requirements for environment protection;

• Turning Bulgaria into energy independent and competitive country;

• Protecting customers interests by providing of equal access, transparent procedures and economically founded prices;

• Managing effectively mineral resources to defend the national interests;

• Garnering active participation of the country in construction of unified and stable European energy market;

• Refining the energy infrastructure;

• Improving energy efficiency and reducing of greenhouse emissions in accordance with the priorities of "Europe 2020" strategy;

• Developing nuclear energy in accordance with contemporary requirements for reliability, safety and efficiency.

The country's energy policy pursues the main goals of the European Union's energy policy, namely security of supply, competitiveness and sustainability, while respecting the five interconnected dimensions of the Energy Union: energy security; the internal energy market; energy efficiency contributing to limiting consumption; decarbonisation of the economy and research, innovation and competitiveness.

Bulgarian Energy Holding EAD (BEH) is the holding company that comprises of a group of companies which principally operate in the field of generation, supply and transmission of electricity and the transmission, supply and storage of natural gas and coal. The sole owner of the capital is the Bulgarian state through the Minister of Energy.

1.1.2.1. Coal mining

1.1.2.2. Natural gas

1.1.2.3. Oil and oil products

1.1.2.4. Energy reserves

TABLE 2. ENERGY STATISTICS

Source: United Nations Statistical Division, OECD/IEA and IAEA RDS-1

* Latest available data.

** Energy consumption = primary production + recovered & recycled products + imports - exports - international marine bunkers + stock changes.

*** Solid fuels include coal, lignite, coke oven coke and coal briquettes.

According to the Energy Act, the state policy in the energy sector shall be implemented through the National Assembly and the Council of Ministers. The National Assembly shall adopt the Strategy for Sustainable Energy Development of the Republic of Bulgaria on a motion by the Council of Ministers and by the said strategy the basic objectives, stages, means and methods for the development of the energy sector shall be defined. The Council of Ministers shall direct the energy sector of the country in line with the strategy adopted by the National Assembly. The national energy policy shall be implemented by the Minister of Energy.

The Energy and Water Regulatory Commission (EWRC) shall regulate energy-sector. The EWRC shall be an independent specialized state body. In exercising its powers, the Commission shall be independent of the executive authorities and its activity shall be performed on the basis of independence, impartiality, professionalism, honesty, consistency, publicity and transparency. The Commission shall be accountable for its activities before the National Assembly. The EWRC shall by proposal of energy companies or at its own initiative, adopt or amend rules for trading in electricity and rules for trading in natural gas, as well as technical rules for the respective networks and systems, including rules for security and reliability, and shall control their compliance and perform reviews and exercise control over the results of past periods. Transactions in electricity shall be in compliance with the provisions of Energy Act and the electricity trading rules.

?lektroenergien sistemen operator (EAD) carries out unified operational planning, coordination and management of Bulgaria's electricity system, joint operation of the power system with other countries' power systems, ensuring the operation, maintenance and reliable operation of the grid, maintenance of auxiliary networks, as well as repair and service activities in the field of energy. The company transits electricity on the national network and organizes the electricity market.

Independent Bulgarian Energy Exchange EAD, (IBEX EAD) is a holder of a license for organizing a power exchange market for electricity in compliance with the Energy Act. The power exchange market for electricity organized by IBEX EAD operates in compliance with the following main principles:

1. electricity trading via an open, transparent, non-discriminatory and anonymous mechanism;

2. formation of referent prices for all traded standardized products;

3. conclusion of transactions in an easy, fast and secure manner.

The organization of operations, the rights, and the obligations of all trading participants and of IBEX EAD are defined in the Power Exchange Operational Rules. According to these rules, there are three market segments:

1. Intraday market segment Trading on the intraday market segment is conducted through an intraday electronic trading system;

2. Day-ahead market segment Trading on the intraday market segment is conducted through a day-ahead electronic trading system;

3. Bilateral contracts market segment Trading participants with an active status forbilateral contracts market segment and that have concluded a standard contract for sale and purchase of electricity, in compliance with the provisions of these rules, may conclude transactions for purchase and sale of electricity as a result of:

1. initiation and/or participation in an auction on auctions screen;

2. submission of an offer/s on continuous trading screen.

The Power Exchange Operational Rules regulate the organization of the activities, rights and obligations of the power exchange operator and all trading participants on the organized power exchange market for electricity (https://www.ibex.bg/bin/documents/1479_file.pdf).

Household customers connected to the low voltage network have not only the right but also the opportunity to actually change their electricity supplier and enter into transactions at freely negotiated prices. With the amendments to the Energy Act adopted in 2020, the obligation of final electricity suppliers to supply non-household consumers with facilities connected to the low-voltage electricity distribution network has been abolished. According to the Energy Act, final suppliers can now be suppliers of electricity at regulated prices only for household customers.

Transactions in electricity at prices regulated Energy and Water Regulatory Commission shall be concluded between:

• the producers and end suppliers or the public provider for quantities of electricity determined by the EWRC within the availability for generation of electricity for the generating companies, from which the public provider shall purchase electricity, as well as the quantity of electricity, in accordance with which the public provider shall conclude transactions with the end suppliers;

• the public provider and end suppliers for quantities of electricity determined by the EWRC;

• the end suppliers and household end customers for energy works connected to the electricity distribution network at the low voltage level, where these customers have not chosen another provider.

The electricity transmission network operator shall conclude transactions with the neighbouring systems for mutual compensation of the impact of cross-border flows of electricity.

Bulgaria's electricity system has a significant capacity for intersystem connectivity, and it is expected to grow in the coming years. It is expected that by 31 December 2025, in accordance with the requirement of Article 16, Point 8 of Regulation (EU) 2019/943 on the internal electricity market, the system operators will make available to the participants in the electricity market an interconnection capacity of at least 70% of the transmission capacity, while respecting the operational security boundaries.

Bulgaria has a diversified electricity mix, including nuclear and thermal power plants and renewable energy sources (water, wind, solar and biomass). The National Electricity Company (Natsionalna Elektricheska Kompania EAD, NEK) is a joint-stock company, the capital of which is owned by Bulgarian Energy Holding (BEH). The main activity of NEK EAD is electricity generation and trading. The company has a license for the activity of public power supply of electric power.

Electricity System Operator EAD (ESO) carries out unified operational planning, coordination and management of the electric power system of Bulgaria, performs the joint work of the electric power system with the electricity systems of other countries, ensures the operation, maintenance and reliable functioning of the electricity transmission network, and performs the maintenance of the auxiliary network as well as energy related refurbishments and services. The company transmits electricity through the national grid and to third countries. As a member at the European Network of Transmission System Operators for Electricity (ENTSO-E) and as a major partner in the Balkan region, ESO EAD seeks to increase not only transmission reliability but also cost-effectiveness in asset management by introducing and using the latest planning, maintenance and monitoring methods. ESO EAD is certified as an independent transmission operator.

IBEX holds a 10-year license issued by the Energy and Water Regulatory Commission (EWRC) for organisation of the electricity market in the Republic of Bulgaria.

IBEX is a full member of MRC (Multi-Regional Coupling), which is the largest union of market zones in the European Union (EU), as well as an associate member of Price Coupling of Regions (PCR) working on the realisation of a common energy market in the EU. IBEX is a full member of the Association of European Energy Exchanges (Europex). IBEX's efforts are fully focused on providing a reliable, transparent and competitive trading platform for electricity that enables trading participants to enter into market-based transactions through a variety of products. To this end, IBEX offers day-ahead market segment, a centralized market for the purchase and sale of electricity through bilateral contracts through auctions, continuous treading, hourly products screens, and since 2018 the intra-day market segment.

Currently the sole owner of the capital of the company is Bulgarian Stock Exchange - Sofia AD (BSE).

The electricity distribution is carried out by regional companies electricity distribution network operators:

• Elektrorazpredelenie Sever AD is a join-stock company whose licensed territory has an area of approximately 30,000 square km and covers 9 administrative districts in Northeast Bulgaria;

• CEZ Distribution Bulgaria AD is a joint-stock company in whose license territory falls Western Bulgaria and is the largest electricity distribution company in the country;

• Elektrorazpredelenie Yug EAD (ERP Yug) is the electricity distribution company in Southeaster Bulgaria, which holds a license for electricity distribution in nine districts.

• Elektrorazpredelenie Golden Sands AD has a license for electricity distribution No L-142-07/13.08.2004 on the territory on the Golden Sands, issued by the EWRC.

The gross electricity generation in 2021 was 47.6 TWh, 16.7% more than the electricity generated in 2020. There was an increase in the generation of energy by thermal power plants (+36.7%), renewable energy sources (+28.9%), factory power plants (+8.7%) and heat production or supply power plants (+5.7%). There was a decrease in gross electricity generation by the NPP units (-0.8%) and pumped storage hydropower plants (-0.5%) in 2021 compared to 2020.

The structure of electricity generation is dominated by thermal power plants using coal, followed by the Kozloduy NPP. Major sources for the electricity generation are local coal and nuclear fuel (see Fig. 1).

FIG. 1. Structure of gross electricity generation by fuel.

The share of local energy resources in electricity generation in 2021 was 93.8%, while the share of imported resources was 6.2%, where nuclear energy is reported as a local energy resource.

Gross domestic electricity consumption in 2021 was 38.8 TWh, 3.9% more that in 2020.

Electricity generation from renewable energy sources accounted for 19.4% of gross domestic energy consumption in 2021.

Final consumption of electricity in 2021 amounted to 31.7 TWh, or 4.5% more than in 2020, including for industrial and the public sectors.

Detailed information about the electric power sector is available from the Bulletin on the State and Development of the Energy Sector in the Republic of Bulgaria at the Ministry of Energy web site: www.me.government.bg.

TABLE 3. INSTALLED CAPACITY ELECTRICITY PRODUCTION AND CONSUMPTION

Source: United Nations Statistical Division, OECD/IEA and IAEA RDS-1.

* Latest available data.

** Electricity distribution losses are not deducted.

TABLE 4. ENERGY RELATED RATIOS

Source: RDS-1 and RDS-2.

* Latest available data.

The beginning of the nuclear programme in Bulgaria was set after the Geneva conference based on the atoms for peace premise and has remained the preferred strategy of the political leadership ever since.

The first step in peaceful use was the construction and commissioning of the IRT-2000 research reactor and a programme for nuclear applications and scientific research. The reactor was commissioned in 1961 and shut down with an order issued by the State Committee on the Use of Atomic Energy for Peaceful Purposes (CUAEPP) in 1989. In 1999, it was permanently shut down based on a Council of Ministers decree.

In 1966, an agreement with the former Union of Soviet Socialist Republics was signed for the procurement of commercial reactors for electricity generation. This agreement set the foundations of the Bulgarian nuclear power programme.

The first two units at the Kozloduy NPP, the WWER-440/230 model, were put into operation in 1974 and 1975 respectively. These two units were permanently shut down at the end of 2002 based on a Council of Ministers decree. In 2010, the Nuclear Regulatory Agency issued to the State Enterprise Radioactive Waste licences for operation of Units 1 and 2 as facilities for radioactive waste management, followed by decommissioning licences in 2014.

Completion of construction works and subsequent connection to the grid of the Kozloduy NPP Units 3 and 4 took place in 1980 and 1982 respectively. The two units were permanently shut down at the end of 2006. In 2013, the Bulgarian Nuclear Regulatory Agency (BNRA or NRA) issued licences to the SE RAW for their operation as facilities for radioactive waste management, followed by decommissioning licences, in 2016.

An increase in electricity demand resulted in the construction of another two 1000 MW units at the Kozloduy NPP, Units 5 and 6, which were commissioned in 1987 and 1991 respectively.

From 2014 2018, the Plant Lifetime Extension (PLEX) Project was completed. The project results demonstrated the units technical capabilities for long term operation until 2047 for Unit 5 and 2051 for Unit 6, respectively. The NRA chairperson issued operating licences for Unit 5 in 2017 and for Unit 6 in 2019.

The two storage facilities for spent nuclear fuel from WWER reactors at the Kozloduy NPP site include wet storage and dry storage. The spent nuclear fuel facility for wet storage was commissioned in 1990. Later in 2016, the NRA issued a licence for operation of the dry storage facility.

A facility for radioactive waste processing and storage was built in 2001 at the Kozloduy NPP site.

A second site for construction of new nuclear units was selected in the early 1980s near the town of Belene. About 40% of construction works and 80% of equipment deliveries for the first unit were completed in 1991, when construction was suspended owing to lack of financial resources.

In 2002, the Government initiated preliminary studies on expansion of nuclear energy, leading to a decision to resume the Belene NPP Project. In 2005, the Council of Ministers issued a decision for construction of two 1000 MW units. The Council of Ministers decision about the Belene NPP Project was subsequently suspended in 2012. In 2018, the Minister of Energy was then assigned to explore possibilities regarding the construction of the Belene NPP.

On 11 April 2012, a decision "in principle" was made by the Council of Ministers to build a new nuclear power plant on the site of Kozloduy NPP.

In order to prepare the new nuclear power project, on 5 May 2012, the Bulgarian energy holding (BEH), as a principle, gave the necessary permission to Kozloduy NPP being a sole owner of the capital, to establish on 9 May 2012, the special purpose vehicle Kozloduy NPP- New Build plc. The company has been responsible for whole management of project s processes and activities.

As a result of the compliance with the regulatory requirements, on 26 August 2013, the NRA Chairman issued a Permit for determining the location (site selection) for deployment of new nuclear power at the Kozloduy NPP site.

The project for the construction of a national disposal facility for radioactive waste is underway. This facility is intended for disposal of conditioned, short-lived, low and intermediate level waste from the nuclear facilities and nuclear applications. The Radiana site, selected for that purpose, is located in the vicinity of the Kozloduy NPP site.

ERROR_IMG_NUMBER_3IG. 2. Institutions involved in the nuclear sector.

Bulgaria has solidified the institutional framework needed for the development and implementation of the National Programme on Use of Nuclear Energy and for effective state regulation and control. Responsibilities and functions are clearly defined and distributed among the various institutions as follows (Fig. 2):

• The NRA is the national nuclear regulatory authority. It maintains the legislative and regulatory framework for the nuclear facilities and activities and conducts the licensing process and exercises regulatory control, including enforcement;

• The Ministry of Energy is responsible for state energy policy development and implementation. The Ministry develops and implements the national energy strategy and national strategy for management of spent nuclear fuel and radioactive waste;

• The EWRC performs independent control of generated electricity prices and issues licenses for generation of electricity and thermal energy;

• The Ministry of Health implements the state policy in the field of protection against the health risks due to ionizing radiation. Through its implementing bodies, the Ministry carries out responsibilities related to the state health control;

• The Ministry of Environment and Water manages the National System for Environmental Monitoring and is the competent authority for environmental impact assessments;

• The Ministry of Interior ensures the security of nuclear facilities in the area of physical protection. The Ministry, through the Fire Safety and Civil Protection General Directorate, coordinates the activities for protection of the public and the national economy in cases of disasters and emergencies;

• Kozloduy NPP is the operator of the only nuclear power plant in Bulgaria;

• SE RAW was established under the Act on the Safe Use of Nuclear Energy (ASUNE). It is the national operator of radioactive waste management facilities and nuclear facilities under decommissioning;

Pursuant to Article 5 of ASUNE, coordination between the institutions is the responsibility of the NRA chairperson.

TABLE 5. STATUS AND PERFORMANCE OF NUCLEAR POWER PLANTS

*Latest available data.

Source: RDS-2

: data not available.

FIG. 3. Kozloduy NPP geographic location.

As of 2007, only the two 1000 MW units of Kozloduy NPP are in operation (Fig. 3). In recent years, the Kozloduy NPP share in the Bulgarian electricity generation mix has ranged from 31% to 40.8%. In 2021 the share of Kozloduy NPP reached 34.6 % (Fig. 4).

FIG. 4. Nuclear energy share in the Bulgarian electricity generation mix

Also in recent years, the gross electricity generation of the Kozloduy NPP two units has ranged between 15.5 16.6 million MWh.

The result of the Kozloduy NPP Units 5 and 6 modernisation programme, completed from 1998 2008, has served as the basis for continuing activities for preparation of the Ageing Management Programme for Long Term Operation (LTO). In 2009, a two stage Programme for Preparation of the Kozloduy NPP Units 5 and 6 LTO was developed:

1. Stage 1, from 2012 to 2014: Complex assessment and residual lifetime assessment of the equipment and facilities of Kozloduy NPP Units 5 and 6 completed within the specified period.

2. Stage 2, from 2014 to 2018: Investment project for implementing the Kozloduy NPP Units 5 and 6 LTO Preparation Programme. The second stage of the Units 5 and 6 PLEX Project at the Kozloduy NPP was completed.

Based on the analyses and studies conducted, it was concluded that there are no constraints on the safe operation for the period of extended plant life until 2047 for Unit 5 and until 2051 for Unit 6, allowing for renewal of the Kozloduy NPP Units 5 and 6 operating licences.

In accordance with the ASUNE, based on the application for licence renewal (including the periodic safety review results), the NRA issued a ten year operating licence for the Kozloduy NPP Unit 5 in 2017. Further, in 2019, the NRA issued a ten year operating licence for the Kozloduy NPP Unit 6.

The planned power uprate of Unit 6 was completed in 2017. Based on the permit issued by the NRA, Unit 6 has been consistently operated at 104%N_nom (3120 MW) thermal power since March 2018. The planned power uprate of Unit 5 was completed in 2019. Based on the permit issued by the NRA, Unit 5 has been consistently operated at 104%N_nom (3120 MW) thermal power since November 2019.

The Kozloduy NPP Units 1 4 are in the process of decommissioning (Table 6). The units were shut down as pairs in 2002 and 2006, in conformity with commitments undertaken by Bulgaria during its accession to the European Union. Supervision of these units was transferred to SE RAW. In 2014 and 2016, the NRA issued decommissioning licences for Units 1 and 2 and Units 3 and 4, respectively.

TABLE 6. STATUS OF DECOMMISSIONING PROCESS OF NUCLEAR POWER PLANTS

The decommissioning strategy for Units 1-4 is for immediate dismantling, with the target date for decommissioning activities to be completed by 2030.

According to the Act on the Safe Use of Nuclear Energy, a nuclear power plant shall be constructed by a decision of the Council of Ministers. A proposal for construction of a nuclear power plant shall be submitted by the Minister of Energy, accompanied by an assessment of:

1. nuclear safety and radiation protection, environmental impact and physical protection;

2. the socio-economic significance of the construction of a nuclear power plant for the entire country or for particular functional regions;

3. radioactive waste and spent nuclear fuel to be generated as a result of the operation of the nuclear power plant and radioactive waste and spent fuel management.

2.3.1.1. Belene NPP Project

2.3.1.2. Kozloduy NPP New Build

2.4. ORGANIZATIONS INVOLVED IN THE CONSTRUCTION OF NPPs

2.5. ORGANIZATIONS INVOLVED IN THE OPERATION OF NPPs

2.6. ORGANIZATIONS INVOLVED IN DECOMMISSIONING OF NPPs

2.7. FUEL CYCLE INCLUDING WASTE MANAGEMENT

2.8. RESEARCH AND DEVELOPMENT

2.9. HUMAN RESOURCES DEVELOPMENT

2.10. STAKEHOLDER INVOLVEMENT

3.1. REGULATORY FRAMEWORK

3.2. NATIONAL LAWS AND REGULATIONS IN NUCLEAR POWER

[1] Energy Strategy of the Republic of Bulgaria till 2020, www.mi.government.bg/files/useruploads/files/epsp/23_energy_strategy2020%D0%95ng_.pdf

[2] Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC, Official Journal of the European Union L 211, Publications Office of the European Union, Luxembourg (2009).

[3] Strategy on Spent Fuel and Radioactive Waste Management until 2030 (in Bulgarian),www.me.government.bg/bg/themes/aktualizirana-strategiya-za-upravlenie-na-otraboteno-yadreno-gorivo-i-radioaktivni-otpadaci-do-2030-g-1657-0.html

[4] Council Directive 2011/70/Euratom of 19 July 2011 establishing a Community framework for the responsible and safe management of spent fuel and radioactive waste, Official Journal of the European Union L 199, Publications Office of the European Union, Luxembourg (2009).

[5] EUROPEAN COMMISSION, Communication from the Commission to the European Parliament and the Council: European Energy Security Strategy, COM (2014) 330 final (2014).

[6] Council Directive 2009/71/Euratom of 25 June 2009 establishing a Community framework for the nuclear safety of nuclear installations, Official Journal of the European Union L 172, Publications Office of the European Union, Luxembourg (2009).

Bilateral agreements include the following: