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BULGARIA Regional Reports on Bioheat from Solid biomass

BULGARIA Regional Reports on Bioheat from Solid biomass. 10 – 11 March 2010 Ancona , Italy. Bulgaria – energy balance. National target in the framework of the EU “Climate Change Package” until 2020 – 16% The energy balance in Bulgaria (2005) coal - 37% mineral oil - 25

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BULGARIA Regional Reports on Bioheat from Solid biomass

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  1. BULGARIARegional Reports on Bioheat from Solid biomass 10 – 11 March 2010 Ancona, Italy

  2. Bulgaria – energy balance National target in the framework of the EU “Climate Change Package” until 2020 – 16% The energy balance in Bulgaria (2005) • coal - 37% • mineral oil - 25 • nuclear energy – 20%, • natural gas – 13 %. • The share of wood and hydro energy is 4% and 1% resp. 60 % of the necessary primary energy resources are imported

  3. BIOMASS POTENTIAL Bulgaria has a large potential for biomass production. The biomass consists of about 40% of the potential for “green energy” production. The production of heat energy based only of forestry residues which are not used until now could reach 13,5 million MGWh. The total agricultural area amounts at 5,5 million ha of which 8% are not used. 4.8 – 5.2 million tones annually remain as a biomass after harvesting of plant production. The biggest share of plant by-products (around 3 million tones) comes from cereals. The total size of the wood yield is about 55 000 ha annually. The RES contribute significantly in the heating consumption. The almost whole supply is derived from wooden resources. The main share of wood used for energy purposes belongs to firewood utilized in household in the countryside which is mainly due to the cheapest price – around 41 EUR/t against 95 EUR/t for pellets and briquettes.

  4. BIOMASS POTENTIAL

  5. Production and share of RES in national heating consumption (1000 toe) Source: National Electric Company

  6. BIOFUELS POTENTIAL

  7. BIOFUELS POTENTIAL • The area of main crops that are considered and are utilized in the biomass and biofuel productions shows a considerable changes in the rapeseed, which size soared up from 9500 ha in 2000 to 102000 ha in 2008. Although the cultivation practices in Bulgaria might be considered as backward compared with the other EU countries in terms of average yield by energy crops. According to the EUROSTAT, the average yield of rape conceived as the main energy crop in Bulgaria in 2007 was 1,72 t/ha, while in EU-27, it was evaluated up to 2,8 t/ha, a discrepancy by 62%. Regardless, the national rape average yield increased in 2008 up to 2,28 t/ha, it is still at the level of 81% of the EU average level • According to the Ministry of Economy, in the biofuel sector, Bulgaria will need 509 001 ha of oilseeds which is about 16.3% of the arable landin order to be able reach the national target of 10% in 2020.

  8. BIOFUELS POTENTIAL • Bulgaria has a surplus of oilseeds. The main oil crops are sunflower and rape . The annual production is around 1 million tons while the internal consumption of sunflower oil amounts at around 140 000 – 150 000 t. 90% of it is use in the food industry. Bulgaria exports between 500 000 – 600 000 t of sunflower seed per year. • 25 000 – 30 000 t tons of rape seed is used for biodiesel production and the rest of production is exported.

  9. Production and share of RE in national diesel consumption (1000 toe)

  10. PRODUCTION OF BIOFUELS In 2008 the quantity of biodiesel and bioethanol, produced in Bulgaria are 140 000t and 20 000t respectively, but due to the uncertain tax policy and mainly the lack of taxe exemption this quantities marked a strong decrease and the share of biofuels in the final consumption for transport is only 1%. The data of the Institute of Agricultural Economy for 2008 (the only available data) show that: • Part of the output of over 1000 farms is utilized for bio-fuel production; • The bio-fuels producers are mainly big farms (with more than 100 ha rented land), registered regularly as sole traders or limited liability companies (Ltd) and partially agricultural cooperatives; • The newly provided jobs count about 400; • This production is a new incomes source (not exceeding 1 % of the agriculture incomes); • The partial use of the cereals and oil crops for bio-fuels production is contribution to a certain price stabilization; • There is not a closed production cycle in bio-fuels production- from the raw material, through the processing to the market, i.e. the raw material is usually sold to processors; • There is not observed a considerable change in the land’s utilization;

  11. BIOGAS POTENTIAL

  12. ENERGY POLICY MEASURES The state policy in the field is based upon the National Long-Term Program for Promotion Usage of Renewable Energy Sources (NLTPPURES). Its main objectives are: • Electric energy production: The share of RES during 2010 will exceed with 8% the total electric energy production and during 2015 – with 9%. The achieving of the specified for the 2010 share, combined with the EE measures will near the country to the admitted through the Bulgaria’s Accession Contract to the EU indicative aim; • Replacing of the conventional fuels and energies used for heating: to be replace conventional fuels and energies with common energy equivalent not less than 1300 ktoe per year; • Using of liquid biofuels: The undertaken commitment according to Regulation 2003/30/EU for a market share of biofuels to be in conformation with the market conditions and possibilities of the country;

  13. ENERGY POLICY MEASURES The support for the RES utilization is achieved mainly through preferential price and taxation policy. • The public provider and/or public suppliers, possessing a provision license of electric power are obliged to buy up the whole quantity of electric energy, produced by RES electric plants, registered by a certificate of origin, or participating with it at the balance market. • The public provider and/or public suppliers are obliged to buy up the electric energy produced by EP, utilizing RES, including HPP with installed capacity up to 10 MW, at preferential prices, according the corresponding Regulation. • The transition and distribution companies are obliged to connect with a priority all the plants utilizing RES for energy production.

  14. ENERGY POLICY MEASURES A specific financial support for biomass production is provided by the National Rural Development Plan 2007 – 2013 especially by the measures stimulating the diversification of agricultural farm activity. The implementation of this measure for the moment in weak because of the difficult access of farmers for credits and lack of capital for initial investments. Support for the electricity , produced by biomass

  15. CONCLUSIONS Bulgaria has a big potential of renewable resources . This could be a good opportunity for export. 1. The increase of the share of the produced energy, applying renewable energy sources (RES) will contribute to: • decrease of the country’s dependence on the import of primary energy resources; • creating of new market possibilities for trade operators (producers, service companies,etc.) of RES installations, providing of new jobs; • Increase the competitivity of national economy as a whole, • sustainable energetic development and improvement of the environmental indices; • Stabilization of the agricultural markets and development of rural economy. Therefore it is important for farmers to take their own place in as an important actor in the energy market as a biomass suppliers which will result in the redaction of the abandoned land. The micro energy projects will diversify the farmers incomes by creating an added value and increase the competitivity. 2. The legislative frame is fixed by the National Long-Term Program for PromotionUsage of Renewable Energy Sources (NLTPPURES), but it is still weak. 3. The appropriate financial instruments should be established in order to boost the development of the RES sector. 4. A lot of efforts should be done to increase the awareness of farmers for these opportunities.

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