Bulgaria is capable of overtaking the Czech Republic to become the most promising market in East Europe’s solar energy sector; however, it is possible only if the legal roadblocks that are hindering investments in the country’s highly potential solar industry are removed by the government, as reported by Reuters.

 

Spain and Germany are the global leaders in photovoltaic (PV) industry, and both the countries have already curtailed or are planning to cut incentives. Thus, investors are now heading towards Central and Southeastern Europe to explore opportunities.

 

Backed by generous subsidies, the Czech Republic up till now has captured the large chunk of investment made in the Eastern Europe. Martin Simonek, a London-based solar energy analyst with consultants New Energy Finance, stated, “Bulgaria has the potential to become a larger market than the Czech Republic in the long term because of its natural conditions,” reported Reuters on November 16, 2009. “Once the economic crisis is over, the growth rates there will be faster, so there will be demand for energy,” he added.

 

Solar feed-in tariffs must be fixed for a 25-year period by the country’s energy watchdogs, said recently established Bulgarian Photovoltaic Association. This particular move would promise stability and lower the risk for banks, serving as a booster for this fledgling sector.

 

At present, the State Energy and Water Regulatory Commission (SEWRC) can accordingly raise and lower tariffs by 5% every year. To ensure predictability and stability for clean energy investors and banks, rules in the Renewable Energy Act will be updated.

 

As per the government, Bulgaria plans to enhance its power efficiency, achieve environment targets set by the European Union, support green energy to fight climate change.

 

According to a Research Analyst at RNCOS, “Recession-affected countries like Bulgaria can resume their growth via solar industry; although, Spain warns the countries that do not consider tariffs’ impact cautiously. Tariffs are regarded as the solar industry’s livelihood until the industry has not reached the supposed grid parity. It is noted that grid parity is basically a point where the cost of renewable energy is same as the cost of the power based on fossil fuels.”