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Bulgaria to cancel PPAs with power plants of AES, ContourGlobal by end-2018 - MP

Bulgaria to cancel PPAs with power plants of AES, ContourGlobal by end-2018 - MP AES Galabovo; Author: AES Bulgaria / All rights reserved.

SOFIA (Bulgaria), May 15 (SeeNews) - Bulgaria is expected to cancel its long-term power purchase agreements (PPAs) with two coal-fired power plants owned respectively by AES Corp. and ContourGlobal by the end of the year, the head of the energy committee in parliament, Delyan Dobrev, has said.

"The contracts have to be cancelled, and these plants have to sell their energy on the free market," Dobrev told public radio BNR on Monday. "This should happen and I think it will happen by the end of the year."

According to Dobrev, in order for the liberalisation of the electricity market in Bulgaria to continue, the PPAs with the two thermal power plants should be ended.

AES, which operates the Maritsa Iztok 1 thermal power plant in Galabovo, and ContourGlobal, which owns Maritsa Iztok 3 TPP, sell their electricity output to public power provider NEK at preferential prices under long-term contracts. The two coal-fired plants together produce about 20% of Bulgaria’s electricity output.

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