PHOTOVOLTAIC PROJECT WITH APPROXIMATE
NOMINAL POWER OF 20 MWp IN BULGARIA
The Project site is situated in SouthWest direction, 25 km North of Svilengrad, in the most South part of the country, in a close proximity to Bulgarian borders with Greece and Turkey.
The plots of land that are forming the entire Project site are owned by 4 Special Purpose Companies having one beneficial owner who is willing to enter into a Partnership for their development with a prime class Investor or alternatively, to sell part of, or the entire, fully permitted Project capacity. The owner is the leading and management company amongst the afore-mentioned 4 SPC’s.
The current development phase enables starting immediate design of the PV installation with a building permit due in the end of September 2010. Main development milestones such as Urban Planning (“PUP”) and Grid Connection to Bulgarian National Electricity Company (NEK) have been passed. The change of land purpose for PV use is the last remaining hurdle which has already been addressed to the proposed authorities and can be considered rather as a “technicality”.
The plots of land forming the project are 12. Altogether, the entire Project can be accommodated on a land of total 48,6 Ha, or broken down in smaller Projects occupying the respective plots.
The local developer may opt to sell parts or the entire Project, subject to a confirmed interest by a creditworthy Investor. The eventual transaction will include the ownership of the plots and all permits, including Building permit. The owner undertakes to support the future Investor or EPC contractor vis-а-vis the local & national authorities during the construction and connection of the projects. O&M responsibilities post commissioning would also be welcome plus a full service package.
Prospective investors or buyers of this project will benefit from one of the best income taxes in Europe. In Bulgaria it is only 10 %.
Favorable feed-in tariff (FIT) for all investors in photovoltaic parks in Bulgaria of BGN 775 (EUR 386) without VAT with 25 years purchase contract.
Total project cost is estimated approximately to EUR 60 mln. This investment volume allows project owners to get class “A” investment certificate from Investment Bulgaria Agency. Investors class “A” in Bulgaria can rely tax reductions and vacations, easier procedures for licensing and other benefits, which are granted on case-by-case basis.
A) Steps in project development and in the project particularly:
1. Approval of Particular Zoning Plan (PUP)
Announcing the approved PUP to the neighbors of the plot - yes
Coordination with local Health and Sanitary authority - yes
Coordination and opinion by Ministry of Agriculture - yes
New revision by the expert architectural council in the Municipality - yes
Approval by the City Council - yes
Mayor’s order for validating the PUP - yes
Quarantine period of 2 weeks before PUP enters into effect - yes
Registration in the cadastre plan and issuance of new Plans - no
2. Change of Land usage
Package of documents (PUP, new plans, expert opinions) - yes
Filing to the Ministry of Agriculture (land of more than 5 Ha) - no
Decision from the Ministry of Agriculture - no
3. Project Phase
Issuance of a design visa - no
Preliminary contract with NEK Bulgaria (in progress) - no
Conceptual design and Final Project (el part + civil works) - no
Approval of the final Project by the Municipality - no
Building permit - no
Connection agreement with NEK Bulgaria - no
B) Steps in Grid Connection and Procedure to the Distribution Company (NEK)
1 Application to the Distribution Company for connection to the grid - yes
2 Response to the application, to serve the Design Visa - yes
3 Request for terms and conditions for connection to the grid - yes
4 Receipt of a Connection opinion with the terms and conditions - yes
5 Request for preparation of a Preliminary Contract for Connection - yes
6 Signing the Preliminary Contract for Grid Connection - no
7 After final working, coordinating with the Distribution Company - no
8 Filing a Request for signing a Grid Connection Agreement - no
9 Filing a Request for signing a Power Purchase Agreement - no
10 Signing a Grid Connection Agreement - no
11 Signing a Power Purchase Agreement - no
Tariffs for buying out electricity power from Renewable Energy Sources
Preferential buying out prices without VAT for electricity produced from RES with installed power under 10MW (in force since April 1st 2008, changed in March 30th 2009)
1. From wind generated electric power with full effective yearly hours of work up until 2250 hours and with installed power 800kW and more - 189 BGN/MWh
2. From wind generated electric power with full effective yearly hours of work over 2250 hours and with installed power 800kW and more - 172 BGN/MWh
3. From wind generated electric power with installed power under 800KW with not synchronized generator and cagetype rotor - 145 BGN/MWh
4. From electrical systems working with PV modules until 5kWp - 823.BGN/MWh
5. From electrical systems working with PV modules over 5kWp - 755.BGN/MWh
6. From electrical systems working with wood particles up until 5MWh - 217.BGN/MWh
7. From electrical systems working agricultural scraps up until 5MWh - 166.BGN/MWh
8. From electrical systems working with energy cultures up until 5MW - 187.BGN/MWh
9. From water power stations with installed power up until 10MW - 105.BGN/MWh