AES long-term PPA is fully compatible with the energy market liberalization

March 22, 2016

Long-term power purchase agreement is fully compatible with the energy market liberalization. We expect the World Bank to propose a suitable mechanism for transition from current contract to entering of AES to the Energy Exchange, said Olivier Marquette, AES Bulgaria Managing Director, during the annual energy conference “The liberalization of the energy market and new trends in the sector” organized by Economedia in “Balkan” hotel.

“We have the will to successfully implement the changes,” he added and stressed that liberalization is a slow process, highlighting the UK model, where the changes begun in 1980 as a milestone in the energy market transformation. Marquette pointed out the need of consumer protection, developing and implemention of energy poverty program in Bulgaria.

Olivier Marquette welcomes the government efforts to stabilize the financial situation of the energy sector and NEC, and noted that the success of the second selection procedure for financial institutions to provide loan BEH is indicative of progress in this area.

Ensuring of financial resources to cover the liabilities of BEH to AES will serve as a needed cash injection for the implementation of the Mini Maritsa Iztok investment program because arrears to MMI will be paid in full once NEK pays in full its arrears to AES.

Marquette pointed out that among the major challenges that our country is facing, is the extension of the scope of the power exchange, improving stability and modernization of the electricity grid, the development of energy production from renewable sources and ensuring the competitiveness of the energy industry.

“Everywhere in Europe renewables are seen as the future of the energy systems and Bulgaria has been in leader in this area among Member States of the EU,” said Olivier Marquette. He stressed the need for new generation capacity to offset planned retirement of older and less efficient plants.