Bulgaria: 20% Fee To Be Imposed On Solar And Wind Power Plants

The Bulgarian Parliament has approved a controversial 20% fee on the income of solar and wind power plants, as well as a restriction -- for all renewables -- of the amount of electricity produced that can be purchased at preferential prices.

On 5 December 2013, the Bulgarian Parliament approved an amendment of the renewable energy law intended to decrease the amounts paid to renewable energy producers under the long-term power purchase agreements.

The official text of the amendment as approved by the Parliament is yet to be released. According to the draft, which is deemed to have been voted on, the main provisions are:

(a) A 20% fee on solar and wind parks

A new fee will be imposed on the income of producers of electricity from solar and wind power plants. The fee will be calculated as 20% on the amount received by the producer for the electricity purchased at the preferential price (net VAT). It will be deducted by the grid company from the payment that is