COMMISSION STAFF WORKING DOCUMENT Country Factsheet Bulgaria Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union
Date: 2015-11-18
Institutions: European Commission, Secretariat-General
Subjects: Bulgaria, competitiveness, economic and social cohesion, electrical energy, energy policy, gas, innovation, reduction of gas emissions, regional cooperation, single market

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 18.11.2015  SWD(2015) 217 final   COMMISSION STAFF WORKING DOCUMENT Country Factsheet Bulgaria Accompanying the document COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN INVESTMENT BANK State of the Energy Union {COM(2015) 572} {SWD(2015) 208 à 209} {SWD(2015) 218 à 243}  
 
 
Towards an Energy Union  
           Bulgaria

Macroeconomic relevance of energy 

IMPORTANCE OF THE ENERGY SECTOR 

The energy sector showed a high importance in Bulgaria with a share of 4.1% of value added of the 
sector compared to the total economy in 2012, considerably higher than the EU average. The share 
of employment of the energy sector in total employment of 0.9% in 2012 was also higher than the EU 
average, even though the sector has seen its importance in employment decreasing somewhat since 
2005. 

Source: EUROSTAT – National Accounts 
According  to  EurObserv'ER,  in  2013,  the  share  of  direct  and  indirect  renewable  energy  related 
employment  in  total  employment  of  the  economy  in  Bulgaria  was  at  about  0.2%,  below  the  EU 
average of 0.53%. 

Source: European Commission, based on EurObserv'ER and EUROSTAT 

TRADE BALANCE OF ENERGY PRODUCTS 

Bulgaria showed a trade deficit in energy products of 5.8% of GDP in 2014, considerably higher than 

0.01.02.03.04.05.020052012BGEU27Value added of energy sector% of grossvalue added (total economy)0.00.20.40.60.81.01.220052012BGEU27Employment in energy sector% of total employment 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Bulgaria 

the  EU  average.  This  represents  a  modest  improvement  from  2010,  when  the  country  reported  a 
deficit of 5.9%. The overall energy deficit is mainly driven by oil and gas, while the coal deficit is close 
to  zero  and  trade  in  electricity  shows  a  surplus.  The  overall  energy  trade  deficit  has  to  be  seen  in 
context  of  an  overall  current  account  balance  that  improved  from  a  deficit  of  0.9%  in  2010  to  a 
surplus of 0.9% of GDP in 2014. 

Source: EUROSTAT 
Note: Current account balance for EU28 from European Commission (AMECO) 

1. Energy Security, solidarity and trust 

ENERGY MIX 

The  energy  mix  of  Bulgaria  shows  a  higher  use  of  solid  fuels  and  nuclear  and  lower  share  of 
petroleum and products and gases than on the EU28 average. 

Gross inland energy consumption in 2013  

Source: European Commission, based on EUROSTAT  

IMPORT DEPENDENCY 

Due  to  its  domestic  production  of  coal  and  nuclear  electricity  production,  Bulgaria  has  a  below  EU 
average  import dependency1 when  all  energy  products  are  considered  together.  However,  Bulgaria 
imports  all  its  nuclear  fuel  and  nearly  all  its  petroleum  products  and  natural  gas.  In  particular, 

1   Note: A dependency rate in excess of 100% indicates that energy products have been stocked. 

2 

-8-6-4-2024BGEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2010 -8-6-4-2024BGEU28% of GDPCoalOilElectricityGasC. A. BalanceTrade balance of energy product and currentaccount balance, 2014  
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Bulgaria 

Bulgaria imports all its gas2 and nuclear fuel from  Russia. In addition to relying on a single supplier 
and a single route for its gas imports, Bulgaria has limited alternative supplies such as LNG and gas 
storage.  Bulgaria  is  consequently  vulnerable  to  gas  disruptions.  Overall,  this  translates  into  a  high 
country supplier concentration index. Consequently, Bulgaria experiences a significant energy trade 
deficit, expressed in percentage of GDP.  

Source: European Commission, based on EUROSTAT  

2. A fully-integrated internal energy market 

INTERCONNECTIONS 

The interconnection capacity for electricity was of 11% in 
2014  for  Bulgaria,  which  is  above  the  2020  target. 
Implementing Projects of Common Interests (PCIs) would 
mean that the target of 15% for 2030 can be reached. 

Regarding  gas,  several  PCIs  are  to  be  developed  with 
Greece and Romania to increase the cross-border capacity 
and  open 
the  North-South  priority  corridor.  The 
construction  of  the  critical  infrastructure  projects,  which 
would modernize Bulgaria's gas network and reinforce the 
gas links with its neighbours (Greece, Romania, Serbia and 
Turkey),  incurs  delays  mainly  due  to  regulatory  and 
financial difficulties. 

Source: European Commission, based on ENTSO-E 
scenario outlook and adequacy forecast 2014 
Note:  Reference  to  2030  target  is  based  on 
October  2014  European  Council  conclusions 
stating  that  "the  Commission  will  also  report 
regularly  to  the  European  Council  with  the 
objective of arriving at a 15% target by 2030" 

ELECTRICITY AND GAS MARKETS 

2  

Top non-EU gas suppliers table is based on EUROSTAT data. The share of imports from non-EU countries is calculated 
as the ratio between volumes of imports from that specific non-EU supplier and total imports  (from EU and non-EU 
countries). 

3 

Top non-EU gas suppliers in 2013 (% in total imports)BulgariaEuropean Union country[%]country[%]Russia100.0Russia39.0Norway29.5Algeria9.7Qatar6.747%38%102%104%88%93%52%53%82%87%57%65%200520132005201320052013All fuelsPetroleum andproductsNatural gasBGEU28Import dependency 2013 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Bulgaria 

Market concentration index for power generation 
(left) and gas supply (right) (2013) (Herfindahl index – 
10000 means monopoly) 

Sources: European Commission based on ESTAT, CEER and Platts 
Power Vision 

Sources:ESTAT and European Commission Calculations 

purchase 

long-term 

A combination of complex problems (expansion of 
renewable  energy  power  generation  capacity 
based on generous subsidies for solar power and 
power 
co-generation; 
agreements;  delays  in  phasing  out  power  plants 
being  non-compliant  with  the  Large  Combustion 
Plant  Directive;  weak  and  politically  dependent 
energy  regulator)  and  inaction  in  reforming  the 
energy  sector  have  exacerbated  the  problems  in 
the energy sector and compromised the financial 
stability  of  public  and  private  stakeholders.  The 
revenues  from  the  regulated  end-consumer-
tariffs  are  not 
the 
sufficient 
corresponding costs borne by electricity utilities. 
The  day-ahead  market  for  electricity 
operational. There is no market for natural gas. 
While  market  concentration  in  power  generation 
is below EU average, the potential positive effects 
are  hampered  by  a  single  buyer  model  with  a 
quota 
to 
uncompetitive 
Market 
concentration  is  above  EU  average  in  gas  supply 
markets. 

system  granting  priority  access 

to  match 

is  not 

plants. 

power 

Although electricity and gas consumers are allowed to switch, no actual switching is observed, due to 
the  regulated  prices  in  electricity  and  to  DSOs  operating  exclusively  in  their  licensed  areas  of 
operation  for  gas.  The  consumer  satisfaction  in  electricity  market  is  the  lowest  among  the  EU  28, 
while in gas is just below the EU average3. 

CONTRIBUTION OF ENERGY TO CONSUMER PRICE EVOLUTION 

Consumer price inflation has decelerated rapidly in Bulgaria, from moderately high levels to below 
the EU average. In 2013 the country has experienced deflation. Energy prices have contributed to a 
limited extent to overall inflationary developments than in the EU.    

Source:DG ECFIN based on Eurostat 

3 
http://ec.europa.eu/consumers/consumer_evidence/consumer_scoreboards/10_edition/index_en.htm 

10th Consumer Markets Scoreboard (June 2014),   

4 

-505101520052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsBulgaria : Price evolution & the contribution of energy prices-10123420052007200920112013% increase on a year earlierNon EnergyEnergyAll itemsEU28 : Price evolution & the contribution of energy prices 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Bulgaria 

VULNERABLE CONSUMERS 

Source: European Commission, based on on EUROSTAT SILC survey 

Based  on  a  Eurostat  survey  on  income  and 
living  conditions,  three  proxy  indicators  are 
used  to  assess  fuel  poverty.  In  this  context, 
Bulgaria is considered the most vulnerable EU 
country in terms of fuel poverty. In particular, 
within  the  population  at  risk  of  poverty,  a 
majority is unable to keep homes adequately 
warm. The other two proxy indicators are also 
above  EU  average.  The  measures  to  reduce 
the  social  protection 
fuel  poverty  and 
schemes  supporting  vulnerable  customers 
should be improved. 

ENERGY EFFICIENCY TARGET 2020  
(16.9 Mtoe primary energy and 8.6 Mtoe final energy) 

Bulgaria updated its 2020 energy efficiency 
target in 2014. The target is now 16.9 Mtoe 
expressed  in  primary  energy  consumption 
and  8.6  Mtoe  expressed  in  final  energy 
consumption.  If  the  trend  in  primary  and 
final  energy  consumption  observed  in  the 
period  2005-2013  continues  up  to  2020, 
Bulgaria will meet its national target. 

Source:  European  Commission,  based  on  EUROSTAT  and  on  national 
energy efficiency targets as declared by the MS under the Energy Efficiency 

Directive 

ENERGY INTENSITY 

Primary energy intensity in Bulgaria has decreased at a fast pace (-27.7% between 2005 and 2013), 
although  it  remains  among  the  highest  in  the  EU.  Across  all  sectors,  the  highest  energy  intensity 
reduction  is  recorded  in  the  industrial  sector,  i.e.  almost  48%  reduction.  However,  the  energy 
intensity of the industrial sectors is still more than three times higher than the EU average. 

Primary energy intensity of the economy 

Final energy intensity in industry 

Source: European Commission based on  EUROSTAT and 

European Commission/AMECO 

Source:  European  Commission  based  on    EUROSTAT  and  European 
Commission/AMECO 

5 

 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Bulgaria 

Specific  energy  consumption  by  households  is  below  EU  average  but  it  has  decreased  at  a  higher 
pace  than  the  EU  average  between  2005  and  2013  (i.e.  by  about  14%  as  comparing  to  12%). 
Nevertheless,  the  specific  energy  consumption  by  households  remains  well  below  the  EU  average 
and  this  can  be  partially  explained  by  the  amplitude  of  fuel  poverty  in  the  country  as  well  as  by  a 
lower welfare level than the EU average, which has limited investments in buildings renovation.  
The specific energy intensity of passengers cars has decreased between 2005 and 2010 by more than 
11% (almost three times  more than the EU average)  which reflects a  more efficient  cars stock and 
usage  (i.e.  higher  stock,  maybe  more  efficient  cars  and/or  more  passengers  per  car).  The  specific 
energy  intensity  for  freight  transport  also  decreased  between  2005-2010  (by  more  than  11%  as 
comparing to 1.7% on the EU average) reflecting a higher efficency of transport (i.e. from the same 
unit of energy more tonnes of goods are transported and/or on shorter distances and/or the filling 
factor of goods in freight vehicles are lower). 

Final energy consumption per m2 in  
residential sector, climate corrected 

Specific energy intensity for passenger cars and freight 
transport4  

Source: European Commission based on  Odyssee database 

Source: PRIMES model background data and estimations based on EU 
Commission and EU MS inputs 

EU  legislation  sets  mandatory  CO2  emission  reduction  targets  for  new  cars  and  vans.  By  2021,  the 
fleet average to be achieved by all new cars is 95 grams of CO2 per kilometre. For new vans, the fleet 
average is set at 147 g/km by 2020. 

Source: European Environmental Agency. 2014 values are provisional. 2013 EU average refers to EU-27. 

Regarding transport performance, in EU-28 the inland freight modal shares are 71% by road, 17% by 
rail, 7% by inland waterways and 5% by pipelines. The respective inland passenger modal shares are 
82% by private car, 9% by buses and coaches, 7% by railways and 2% by tram and metro. Bulgaria 
reports a high use of inland waterways in freight transport. 

4  

Statistics  on  energy  demand  for  passengers  and  freight  transport  are  not  available  and  model  estimates  have  been 
used instead. These issues should be borne in mind when comparing energy intensity in freight or passenger transport 
between Member States, which should be regarded as merely indicative. 

6 

 
 
 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Bulgaria 

Modal shares Bulgaria 

Source: Eurostat and EU transport in figures 2015. Data refers to 2013. Modal shares based on tonne-kilometres for freight sector and 
passenger-kilometres for passenger sector, freight data based on activity within country territory. Estimates are made when data is missing. 

4. Decarbonisation of the economy 

 NON-ETS GHG EMISSION REDUCTION TARGET 2020  
(+20% by 2020 as compared to 2005 in the non-ETS sector) 

In Bulgaria emissions in 2014 are 1% higher 
that the 2005 ESD base year emissions.5  

According  to  its  2015  projections,  Bulgaria 
is  expected  to  reach  its  2020  target  with  a 
25% margin as compared to 2005. 

Non-ETS 
Emissions (vs. 
2005) 

Projections with 
existing 
measures 2020 

Proxy 2014 

Projections/proxy 

target 

-5% 

+1% 

+20% 

+13% 

Source: DG CLIMA  based on EEA. Based on preliminary inventory data. 

ESD (Effort Sharing Decision) emissions are the emissions from sectors not 

covered by the EU ETS 

5  

The  estimated  historic  non-ETS  emissions  in  2005,  as  displayed  in  the  graph,  are  different  from  the  2005  base  year 
used to calculate the target under the Effort Sharing Decision (ESD).  

7 

 
 
 
 
 
 
 
 
 
 
                           
 
 
                                                                 
Towards an Energy Union - Bulgaria 

RENEWABLE ENERGY SHARE TARGET 2020 (16%) 

With  a  renewable  energy  share  of  19%  in 
2013,  Bulgaria 
its  2020 
renewable energy target.  

is  already  above 

Source: European Commission based on  EUROSTAT 

GREENHOUSE GAS EMISSION INDICATORS 

  Due  to  the  large  proportion  of  coal/lignite  in  the  electricity  mix,  more  than  half  of  Bulgaria's 

emissions are in the ETS sector.   

  Bulgaria has the highest carbon intensity of the economy in the EU. 
 

In  2014,  Bulgaria's  revenues  from  the  auctioning  of  ETS  allowances  amounted  to  EUR  36.4 
million. This amount was used to partially cover the deficit arising from the renewable surcharge.  

Largest Sectors of GHG 
Emissions in 2012(*) 

Bulgaria 

EU 
Average 

Energy/power industry sector 

Transport 

Industry (incl. industrial 
processes) 

Agriculture (incl. forestry & 
fishery) 

Residential & Commercial 

Waste & others 

54% 

14% 

12% 

11% 

3% 

6% 

33% 

20% 

19% 

12% 

13% 

3% 

GHG Emissions 

Bulgaria 

EU 

EU ETS auctioning revenues in 
2014 (EUR millions) 

36.4 

3205 

Share of ETS emissions in 2013 

59% 

42% 

GHG emissions/capita in 2013 
(tCO2equivalent) 
Carbon intensity of the 
economy in 2013 
(tCO2equivalent/(EUR millions) 

7.7 

8.5 

1466 

328 

Source: European Commission,  based on EEA 

(*)Sectoral breakdown of 2013 not yet available. 

ENERGY & TRANSPORT TAXATION 

Energy and transport related taxes as a share of GDP reached 2.8% in 2012, which is higher than the 
EU average. This is largely due to a very high share of transport fuel taxation reaching 2.4% of GDP. 
Since  2007  the  share  of  energy  and  transport  taxes  have  declined  in  Bulgaria,  though  the  relative 
importance of the different components has remained stable. 

8 

 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Bulgaria 

Source: Eurostat 

5. Research, innovation and competitiveness 

RESEARCH AND INNOVATION 

Bulgaria  lags  behind  EU  average  and  main  trading  partners  on  indicators  related  to  research  and 
innovation in the field of sustainable energy and low-carbon developments. Overall, the EU fairs well 
when compared to the US but does not perform as well as Japan. One can also notice the absence of 
Bulgarian energy firms among the top EU firms according to investment levels in R&D6. 

Source: European Commission based on  EUROSTAT 

COMPETITIVENESS 

Real unit energy costs (% of value added) 

The  real  unit  energy  costs  in  Bulgaria,  which 
measures the amount of money spent on energy 
sources  needed  to  obtain  one  unit  of  value 
added, are considerably higher than the average 
in both the EU and the US. This is mostly due to 
very high energy intensity7 of the manufacturing 
sector in Bulgaria. 
Observing energy prices, Bulgaria has among the 
lowest  electricity  and  gas  prices  for  industrial 
users.  When  considering  large  industrial  users, 
electricity prices are comparable to US prices.  

Source: EU R&D innovation scoreboard: http://iri.jrc.ec.europa.eu/scoreboard.html  

6  
7 The energy intensity presented here is derived from Use Tables of WIOD, see "Energy Economic Developments in Europe 

SWD(2014)19". 

Source: European Commission 

9 

0.01.02.03.04.0BGEU-28Energy & Transport related taxes % of GDP, 2007TransportvehiclesTransport fuelHeat &Electricity0.01.02.03.0BGEU-28Energy & Transport related taxes % of GDP, 2012TransportvehiclesTransport fuelHeat &Electricity45.69.58.238.913.28.838.913.78.005101520253035404550BGEU27US200020092011 
 
 
 
 
 
 
 
 
 
                                                                 
Towards an Energy Union - Bulgaria 

Source: European Commission based on EUROSTAT and IEA 

6. Post-2020 Energy and Climate policy Strategy  

COMPREHENSIVE MEDIUM TO LONG TERM STRATEGY (post-2020) 
FOR CLIMATE AND ENERGY  

  No comprehensive medium to long term strategy post 2020. 

  Bulgaria  has  an  Energy  Strategy  until  2020.  There  are  on-going  discussions  on  a  new  energy 
strategy for 1) immediate term- next three years; 2) medium to long term  – until 2030; and 3) 
long term – for 2050.  

  Publication in 2012 of a Third National Action Plan on Climate Change for the period 2013-2020. 
Bulgaria intends to develop a national low-carbon development strategy after finalizing its new 
Energy Strategy. 

NATIONAL TARGETS, especially for 2030 

Comments 

Objective, 2030-3050 
GHG reduction  
Renewable energy  
Energy 
Efficiency 
savings 

/ 

Targets 

No 
No 
No 

7. Regional cooperation  

Bulgaria  is  a  member  of  the  High  Level  Group  on  Central  East  South  Europe  Connectivity  (CESEC) 
together with Austria, Croatia, Greece, Hungary, Italy, Romania, Slovakia and Slovenia. The objective 
of  the  High  Level  Group  is  to  establish  a  regional  priority  infrastructure  roadmap  and  advance  its 
implementation in order to develop missing infrastructure and improve security of gas supplies.   

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Towards an Energy Union - Bulgaria 

8. Cohesion policy contribution 

The EU Cohesion policy provides for important investment possibilities to implement  energy policy 
objectives  in  Bulgaria  which  will  be  complemented  by  national  public  and  private  co-financing, 
aiming at optimal leverage. It also ensures integrated territorial solutions to challenges by supporting 
capacity  building,  technical  assistance  and  territorial  cooperation,  including  the  Danube  Region 
macro-regional strategy in which Bulgaria takes part. 

Internal energy market: Over 2014-2020, EU Cohesion Policy will invest some EUR 38 million in smart 
energy storage and transmission systems in Bulgaria. 

Energy  efficiency:  Over  2014-2020,  EU  Cohesion  Policy  will  invest  some  EUR  471  million  in  energy 
efficiency  improvements  in  public  and  residential  buildings  and  in  SMEs  in  Bulgaria.  A  further 
estimated  EUR  1  174  million  will  be  invested  in  supporting  the  move  towards  an  energy-efficient, 
decarbonised  transport  sector.  These  investments  are  expected  to  contribute  to  around  12  900 
households with improved energy consumption classification and a decrease of around 140 645 000 
kWh per year of decreased primary energy consumption of public buildings, as well as to around 190 
km of reconstructed or upgraded railway lines.  

Decarbonisation:  Overall,  the  EU  Cohesion  Policy  investments  in  Bulgaria  over  2014-2020  are 
expected to contribute to an estimated annual decrease of GHG of around 198 000 tonnes of CO2eq. 
No  EU  Cohesion  Policy  investments  in  renewable  energy  infrastructure  envisaged  in  Bulgaria  over 
2014-2020; research and innovation in the area of renewable energy might be supported. 

Research,  Innovation  and  Competitiveness:  Over  2014-2020,  EU  Cohesion  Policy  will  invest 
significantly  in  R&I  and  in  SME  competitiveness  in  Bulgaria.  This  will  be  based  on  the  national 
strategy  for  smart  specialisation.  For  Bulgaria,  the  Strategy  includes  a  focus  on  assisting  clean 
technologies, including energy preservation and ecomobility. At this stage, at least EUR 58 million is 
foreseen for investments in R&I and adoption of low-carbon technologies in Bulgaria, but this might 
increase further in line with the evolving content of the smart specialisation strategy. 

11