Bulgaria's energy consumption
Bulgaria's energy consumption reflects a complex landscape shaped by historical and geopolitical factors. With a population of approximately 7.3 million, Bulgaria maintains a highly developed energy sector, primarily known for its role as a net exporter of electricity. The country's energy infrastructure significantly expanded post-World War II, with investments leading to the construction of numerous hydropower plants and coal-fired power stations utilizing its vast lignite reserves. As of 2022, coal and nuclear energy each accounted for about 43 percent of thermal electricity generation, with the Kozloduy nuclear plant being a major contributor.
In recent years, Bulgaria has faced challenges in energy imports, particularly after geopolitical shifts following Russia's invasion of Ukraine in 2022, leading to a diversification of oil and gas sources. The government has prioritized energy efficiency and the integration of renewable energy sources (RES) into its energy mix, with notable growth in photovoltaic energy generation. The country's energy policy is overseen by the Ministry of Economy, Energy and Tourism, which aims to create a stable energy market while addressing climate change concerns. With a notable increase in electricity exports and a commitment to reduce coal dependency, Bulgaria's energy landscape continues to evolve amidst changing global dynamics.
On this Page
Subject Terms
Bulgaria's energy consumption
Official Name: Republic of Bulgaria.
Summary: Bulgaria is a southeastern European country with a territory of 363,878 square miles (110,910 square kilometers) and a population of 7.3 million inhabitants. Thanks to its highly developed energy power sector, Bulgaria is a net exporter of electricity.
The large-scale mobilization of energy resources in Bulgaria commenced only after World War II; the use of coal, fuel wood, and hydropower prior to this period was almost exclusively subsistence-oriented. The 1950s, in particular, saw an acceleration of investment in energy generation, which resulted in the construction of several large hydropower cascades in the southern part of the country, consisting of multiple-storage and run-of-the river plants. By 2024, Bulgaria had 242 hydropower plants, accounting for 8 percent of total electricity generation in 2022.
More significant, numerous coal-fired power stations were built during this period, thanks to the country’s extensive lignite reserves. The largest among these was the Maritza Istok power plant, whose construction commenced in 1952; it eventually became the largest of its kind in the region, with a total installed capacity exceeding 3,000 megawatts. The country also developed a nuclear program in the late 1960s, resulting in the commissioning of the first VVER-440/230 pressurized-water reactor at the Kozloduy nuclear power plant in 1974. An additional five units entered operation at this station until 1991, only the last two of which—with a total installed capacity of 1,920 megawatts–were operational after 2006, having been subject to safety upgrades. The plant produced about 35 percent of Bulgaria's energy in 2024.
The national electricity utility, Natsionalna Elektricheska Kompania (NEK), was the main actor in the electricity market until the mid-2000s. The company owned all nuclear, hydro, and pumped hydropower plants and was responsible for power generation and transmission, as well as energy trade in Bulgaria. However, following restructuring in 2001, NEK is in charge of only electricity transmission. Even though the production of electricity is covered by seven private companies, the Kozloduy and Maritza East 2 plants are still in public ownership. Since 2007, the seven electricity distribution companies have been privatized as well. Three privately owned companies control the gas market; while Bulgargaz is responsible for gas imports and sales, Bulgartransgaz covers its transportation and storage, and Toplivo manages its distribution to households.
The 2001 Energy Act is the main pillar of the country’s energy policy. To emphasize the need for energy efficiency, the Energy Act was supplemented by the Energy Efficiency Act in 2004. The Bulgarian Ministry of Economy, Energy and Tourism is responsible for setting national energy policies. Its main priority is to create a stable and fair energy market, while supporting energy efficiency and the use of renewable energy resources. The State Energy Regulatory Commission (SEWRC) issues and monitors permits and licenses granted to companies in the energy sector. Moreover, SEWRC develops and implements the national tariff and price systems for electricity gas and heating. The relationship between energy and climate change is among the responsibilities of the Ministry of Environment and Water, and the regulation of nuclear energy falls under the Agency for Nuclear Regulation.
Coal is responsible for 43 percent of thermal electricity generation, with nuclear energy contributing a similar share. In 2022, the country consumed more coal, dry natural gas, and petroleum and other liquids than it produced.
The country has imported most of its oil and gas from Russia, while serving as a corridor for the transit of the latter toward neighboring states. However, the situation changed in the early 2020s. Russia invaded Ukraine in February 2022, triggering global sanctions. European nations scrambled to secure energy from other sources. Although the European Union (EU) gave Bulgaria a waiver to allow it to import Russian oil for its refinery, Russia's Lukoil, which operates the refinery, was unable to procure sufficient crude by early 2024. Bulgaria replaced these imports with crude from Iraq, Kazakhstan, and Tunisia.
Bulgaria has increased generation of electricity using renewable energy sources (RES) and has worked to reduce its use of coal, replacing it with RES. Photovoltaic represented the biggest increase in RES from 2021 to 2022 at 33 percent. The country's electricity export levels increased 39 percent from 2023 to 2024.
Bibliography
Bouzarovski, Stefan. “East-Central Europe’s Changing Energy Landscapes: A Place for Geography.” Area 41, no. 4 (2009).
"Bulgaria." US Energy Information Administration, 2023, www.eia.gov/international/overview/country/BGR. Accessed 29 July 2024.
"Bulgaria--Country Commercial Guide." US International Trade Administration, 2 Jan. 2024, www.trade.gov/country-commercial-guides/bulgaria-energy. Accessed 29 July 2024.
"Bulgaria Replacing Russian Crude with Oil from Kazakhstan, Iraq, Tunisia." Reuters, 12 Jan. 2024, www.reuters.com/markets/commodities/bulgaria-replacing-russian-crude-with-oil-kazakhstan-iraq-tunisia-2024-01-12/. Accessed 29 July 2024.
Buzar, Stefan. Energy Poverty in Eastern Europe: Hidden Geographies of Deprivation. Aldershot, VT: Ashgate, 2007.
Morse, Edward L., and James Richard. “The Battle for Energy Dominance.” Foreign Affairs 81 (2002).
Ürge-Vorsatz, Diana, et al. “Energy in Transition: From the Iron Curtain to the European Union.” Energy Policy 34, no. 15 (2006).
Velody, Mark, et al. A Regional Review of Social Safety Net Approaches in Support of Energy Sector Reform. Washington, DC: U.S. Agency for International Development, 2003.
von Hirschhausen, Christian, and Thomas Wälde. “The End of Transition: An Institutional Interpretation of Energy Sector Reform in Eastern Europe and the CIS.” Moct-Most: Economic Policy in Transitional Economies 11, no. 1 (2001).