Around 400 small photovoltaic plants built with EU funding face bankruptcy due to amendments to energy legislation adopted in July, according to reports of the Bulgarian Photovoltaic Association (BPVA).

Industry representatives complained that the legal amendments reduced the price of the energy produced by them by around 80%.

The BPVA declared that they would seek the support of EU institutions unless the amendments were revoked.

Meglena Rusinova, Chair of the BPVA, said in an interview for the Bulgarian National Television that it would be more reasonable for small photovoltaic plants to stop functioning as they would not be able to cover the costs.

She noted that the BPVA expected a large part of renewable energy plants in Bulgaria to stop functioning in October.

Petar Lazarov, owners of a photovoltaic plant, expressed the fears of industry representatives that they would go out of business.

Lazarov said that revenues in August usually stood at BGN 7000-8000, while the new rules were expected to shrink the amount to BGN 700, which would not suffice to cover the expenses, not to mention the settlement of the loan.

BPVA representatives also protested the decision to limit the hours during which renewable energy was purchased at preferential tariffs, describing it as a detrimental measure to the sector.

The BPVA warned that they planned to refer the matter to the European Commission, the Bulgarian President, the Bulgarian Ombudsman, highlighting the retroactive effect of the changes to the terms of their contracts.

BPVA representatives also said that they were considering addressing the European Court of Human Rights in Strasbourg.
Under the newly adopted legal amendments, renewable energy producers who have used EU funding will no longer get paid under the preferential tariff currently applicable.

As a result, instead of BGN 0.55-0.60 per KWh of energy, they will get BGN 0.10-0.15.