Energy in Bulgaria

Bulgaria is believed to have extensive natural gas resources[11] but, due to a successful campaign against hydraulic fracturing on land, only Black Sea exploration is permitted, such as at the Galata gas field.[12][13][14] On 8 July 2023, the petrochemical companies OMV and Total announced that after a study of natural gas deposits in the Bulgarian exclusive economic zone in the Black Sea, it was estimated that up to 13 billion cubic meters of natural gas could potentially be extracted.[15] As of 2022, domestic production of natural gas remains insignificant, at 17 million cubic meters.[2] The main consumers are the energy and the chemical sectors, which combined account for 54% of the consumption.[2]

Bulgaria consumes about 3 billion cubic meters (bcm) of natural gas.[16] The Gas Interconnector Greece-Bulgaria natural gas pipeline became operational in 2022, and Bulgaria receives about 1 bcm a year from Azerbaijan.[16][17] The country imported over 90% of its natural gas from Russia via the Turk Stream pipeline under a 10-year contract,[18] which expired at the end of 2022.[16] Due to the 2022 Russian invasion of Ukraine, on 16 March 2020 Bulgaria's deputy prime minister Asen Vasilev announced that the country would not hold talks to renew the contract.[16] In April 2022, it was announced that Russia will suspend sending gas supplies to Bulgaria and Poland, due to their refusal to pay in roubles. In response to this, Bulgaria shifted to imports of liquefied natural gas.[19]

Most oil products are consumed by transport.[20] Lukoil Neftohim Burgas, the biggest oil refinery on the Balkans, refines the predominant amount of the crude oil that eventually reaches the Bulgarian market as refined petroleum. The refinery is owned by the Russian multinational energy corporation Lukoil.[21]

Bulgaria received an exemption from the EU to continue importing oil from Russia, by ship, until December 2024.[22] Part of the terms of the exemption, was that from January 2023 Lukoil will pay taxes in Bulgaria, which it had until 2022 avoided, by paying profits to Switzerland and The Netherlands, Bulgaria believes it will receive €350m in taxes per year.[22]

In October 2023 Bulgaria noted Lukoil had found interest from potential buyers for the refinery and that the current 60% tax on revenue would fall to 15% for a new owner, with Russian oil ceasing to be processed after 1 October 2024.[23]

Coal extraction remains important for Bulgaria's energy sector.[24] Bulgaria possesses significant reserves of coal estimated at 4.8 billion tons.[25] More than 92% of them, or 4.5 billion tons,[25] is lignite, which is the lowest rank of coal due to its relatively low heat content but is widely used for electricity generation. With reserves of 2.856 billion tons Maritsa Iztok, situated in the Upper Thracian Plain, is by far the largest coal basin in the country which powers Maritsa Iztok Complex, the largest energy complex in South-Eastern Europe.[26] Other lignite basins include Sofia Valley (reserves of 870 million tons), Elhovo (656 million tons), Lom (277 million tons), Maritsa Zapad (170 million tons).[26] The reserves of sub-bituminous coal are 300 million tons, situated mainly near Bobov Dol, Pernik and Burgas.[27] The recoverable reserves of bituminous coal and anthracite are insignificant – 10 and 2.5 million tons respectively. However, there is a huge basin of bituminous coal in Southern Dobruja with estimated reserves of over 1 billion tons but its large depth (1370–1950 m) is an obstacle for its commercial exploitation.[28]

As of 2022, coal production was 36 million tons, of them 98% were lignite and 2% sub-bituminous coal. The mines of Maritsa Iztok accounted for 98.6% of the lignite etraction. About 97% of the coal production was utilised for electrical and thermal power generation and further 2% were used for the production of briquettes.[2] Bulgaria plans to reduce coal as an energy source from 2030, with coal being discontinued in 2038.[29]

Solar power installation near Aytos

Wind turbines at Cape Kaliakra

Renewable energy includes wind, solar, biomass and geothermal energy sources (although it is not yet known whether geothermal energy could generate any electrical power as only slightly over 100 degrees C had been found by 2023[31]).

Bulgaria has around 1.2 GW of solar power installed. Solar farms are under construction in 2022 to increase the capacity.[32]

In 2019 Bulgaria had 708 MW of wind power capacity, with the European Wind Energy Association stating that Bulgaria has the potential to generate up to 3.4 GW of wind power.[33]

Generating over 10% of Bulgaria's electricity, most hydro plants are located in the Rhodope Mountains.

Bulgaria has two operational reactors and four that have been closed down prior to 2006. The two operational reactors have a capacity of 2 GW in total. In 2020 nuclear energy produced 16.6 TWh, which was 41% of Bulgaria's electricity generation.[34]

In 2023, US based Westinghouse Electric Company are in the planning process with Kozloduy NPP-Newbuild to build the first of four new reactors in Bulgaria.[29][35]