Bulgarians Join Balkan Protest Against Soaring Food Prices
Bulgaria has joined Croatia, Bosnia and Herzegovina, and Montenegro in organizing protests against rising food prices
In 2024, Bulgaria’s electricity sector faced significant challenges, with a sharp decline in exports and a rise in domestic consumption. The country’s energy production decreased by 5% compared to the previous year, largely due to reduced output from coal-fired thermal power plants. However, renewable energy sources, particularly solar power, saw notable growth. Despite producing record amounts of solar electricity, Bulgaria struggled to maintain its competitiveness in the regional energy market, where electricity prices were often higher than in Western Europe.
The most striking development was the drop in electricity exports, which reached a historic low of about 1,000 GWh. This marked a 70% reduction compared to 2023 and highlighted the changing dynamics in the region. With neighboring countries such as Serbia, Romania, and Hungary investing in more flexible and competitive capacities, Bulgaria's traditional reliance on coal and its slower reforms led to a loss of market share. The record low exports raise concerns about Bulgaria’s ability to meet its long-term export targets of 8,000 GWh annually, which have traditionally been used to justify investments in new energy capacities, including nuclear power plants.
The decline in coal-fired electricity production was accompanied by an increase in domestic consumption, which rose by 1%, or approximately 900,000 MWh. This uptick in consumption was largely driven by households shifting to electricity-powered heating solutions, such as heat pumps and air conditioners, following a warmer-than-usual year. As a result, the public electricity supplier was forced to procure additional electricity to meet growing demand.
While Bulgaria’s energy sector embraced growth in renewable energy, solar energy production was particularly notable. The country generated almost 5 terawatt-hours of solar power in 2024, marking an impressive 65% annual increase and tripling its output since 2022. Green energy now constitutes over 25% of Bulgaria’s energy mix. However, despite solar energy’s growth, other sectors faced difficulties. Hydropower, for instance, produced less due to drought conditions, and the country’s wind energy output remained relatively stable at 1.3 TWh, contributing just 3% to total electricity production.
In addition to the renewable energy growth, Bulgaria saw a drop in coal power generation, exacerbated by the closure of the ContourGlobal Maritsa-East 3 thermal power plant at the beginning of the year. This plant, with a capacity of over 900 megawatts, had been one of the country's largest producers of electricity. As a result, the overall electricity output for the year amounted to 37.9 TWh, a 5% decrease compared to 2023.
Despite the decline in coal production, Bulgaria's electricity prices remained high, especially in the latter half of 2024. Prices in Bulgaria, as well as in Serbia, Romania, and Hungary, were often higher than those in Western Europe, driven by lower production levels, particularly in Romania, and increased exports to Ukraine. The average price for electricity in Bulgaria in 2024 was 200 BGN/MWh, with prices peaking during periods of higher demand, such as the summer months and late in the year. These high prices were also influenced by the reliance on coal-fired power plants, which are heavily dependent on market conditions to cover their operating costs.
Overall, the Bulgarian energy sector’s struggles were compounded by the lack of a clear long-term strategy for coal-fired power plants and the slow pace of reforms. As the country faced challenges in maintaining its market competitiveness, the energy sector’s future remained uncertain. With energy prices rising and the pressure to adapt to new energy technologies, Bulgaria will need to accelerate its reforms to ensure its energy sector can meet both domestic needs and regional market demands in the coming years.
Source: Capital
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