CEZ's Varna TPP gets regulatory nod to decommission three units

As a result of the decommissioning, the capacity of coal-fired TPP Varna will decrease to 630 MW from 1,260 MW, according to a statement posted on the website of the Energy and Water Regulatory Commission.

The decommissioning of the three units will cost 8.7 million euro, while the proceeds from their sale for scrap will amount to 7.1 million euro.

TPP Varna is also considering options to sell part of the equipment of the three blocks to compensate for the cost of the project, the regulator noted.

The decommissioning of three of the power plant's six units will lead to a change in its licence, the commission added. After the change, the operation of the remaining three units will be only possible after they become compliant with the environmental legislation of the EU and Bulgaria, which can be achieved through installation of specific filters and equipment.

The thermal power plant was closed in 2015 due to non-compliance with environmental limits set in its permit.

TPP Varna net loss fell to 5.3 million levs ($3.2 million/2.7 million euro) in 2016, from 13.5 million levs in 2015.

Besides Varna TPP, the assets of CEZ Group in Bulgaria include CEZ Distribution Bulgaria, the public supplier of electricity and a licensed trader CEZ Electro Bulgaria and licensed electricity trader CEZ Trade Bulgaria. The operations of those companies are managed and coordinated by CEZ Bulgaria EAD.

(1 euro = 1.95583 levs)