Bulgaria must speed up the processes linked to its energy transition

Both the energy transition processes in Bulgaria and the retraining of the workforce in the country’s three coal regions must accelerate. The European Union has provided enough funds for the transformation, but the country still has to take advantage of these and do so with skill. Meanwhile, in addition to the national level, local governments are doing their work to attract investors to the new industries.

These were the conclusions reached by the participants in the first panel of the international forum  "Just Transition Opportunities Across Borders", part of the "Transition of Opportunities" project, financed with European funds. The project is implemented by Brand Media Bulgaria, publisher of Economic.bg.

The panel in question had the theme of "Promoting national cooperation" and its moderator was Slavtcho Neykov, director of the Energy Management Institute. The panel was attended by Ivaylo Stoyanov, head of the "Strategic Planning and Programming" department at the Ministry of Regional Development, Lyudmil Veselinov, regional governor of Pernik, Alexander Pandurski, regional governor of Kyustendil, Nikolay Dochev, deputy mayor of Kyustendil, and Stefan Krastev, deputy mayor of Pernik.

The regional administrations are worried

Upon starting this conversation, I think it is very important to realize its purpose. We need fairness to everyone, not just to the people who lose their jobs, but also to those who lose part of their business as part of this transformation. We have to be comprehensive," said the regional governor of Kyustendil, Eng. Alexander Pandurski.

He revealed that he was worried about the slow pace at which the transformation was happening. Although well received by the community, it still cannot get its real launch on the ground. "We had the misfortune to experience this transformation years ago when the mines in Bobov Dol were closed. People still ask us about our actions then and why we allowed the mines to close."

According to him, a large part of the people who lost their jobs then searched for new ones on their own - either in the capital city Sofia or abroad. According to Pandurski, the transition also has social consequences that stay for many years after the fact.

Those people who remained here needed external support. This concern lies at the heart of justice and everything else that lies ahead. We managed but it was very hard."

Regarding the current situation, Pandurski shared "with regret that the State continues to hinder us." According to him, the new subcommittees cannot start work, but the retraining of people has also been delayed. "The pace at which the documents are being prepared to start the procedure for the new skill training is very slow," he stated.

Pandurski stated that the businesses that have been involved in energy production until now have also suffered. He said that the owner of the most affected economic entity in the area is looking for solutions for diversification, which in turn will give some of his staff the opportunity to start working in enterprises that are adjacent to the energy industry in which they have been working. Pandurski revealed that there is a ready-made project for the implementation of a biogas plant and commented that such projects present an opportunity for staff to retrain.

The green transition is a cause, a unique chance for Bulgaria. It is not only a process of closing coal plants, but a process of creating communities of green economies", commented Lyudmil Veselinov, the regional governor of Pernik.

He told the audience about the large energy hybrid project (solar and battery), which began working on Tuesday in Pernik and added that large businesses have already sensed the new opportunities and that the region is actively working to attract and support innovation in various sectors.

Our goal is to create new industries and leave no one behind by giving people a chance to retrain."

According to him, the situation should be looked at from a more positive angle, since "the European Commission has presented Bulgaria with enormous opportunities for its three coal regions." According to him, all municipalities in the Pernik region are coordinating and making efforts for the successful implementation of several projects.

Municipalities work ceaselessly

To a large extent, the municipalities are left to use the funds that the EC and the EU have provided in order to carry out the transformation process", said Nikolay Dochev, the deputy mayor of Kyustendil.

According to him, the municipality began looking for such opportunities quite early. Since 2011, talks have been held with the EC on the creation of a center for innovative technologies, through which the municipality's resources and innovations can be used.

We are in the process of approval of the layout plan for a high-tech industrial zone", commented Dochev, reminding the audience about the important project.

According to him, such projects will enable Kyustendil and its region to solve their demographic problems, because an industrial zone would enable people to travel from Bobov Dol, for example. Negotiations are underway with a Class A investor so that the industrial zone can also receive funds from the State. "We are looking for opportunities, through the just transition territorial plans, to find economic activities that allow an exception for a higher percentage of grant funding."

"We are also considering applying for a program that would enable the resources we have alone or with neighboring municipalities to be compounded into a form that would be suitable for attracting investments," added Dochev.

I don’t subscribe to the general anxiety mindset. The three coal regions have similar challenges, but also specifics," said Stefan Krastev, the Deputy Mayor of Pernik.

He reminded the audience that Pernik was the cradle of Bulgarian modern industry back in the day. When the first steel mills and the like were opened, the city marked a period of development and construction, and its residents still share a sentiment of nostalgia for those times.

This type of prosperity was achieved because the cutting-edge technologies of the time were used. If we don't use them again now, we won't achieve anything," said Krastev.

According to him, although Pernik was included in the Just Transition Fund only in 2020, the municipality has already implemented other projects related to energy transformation. "It's been a long time and only last week, September 19, was the deadline for submitting proposals under the first measure. The municipality did not sit around waiting. We have been doing our best to achieve the ambition of the Green Deal with other instruments."

Economic.bg has already written about some of these projects. Public transport in the city is now ecologically clean, and three hydrogen installations have been installed as part of a pilot project for the fuel mix of energy-intensive buildings that used gas oil previously.

We have a new industrial zone with an area of ​​200 acres. A road is also being built there, which will allow the area to become even more connected."

According to the deputy mayor of Pernik, every person should receive support without having to move to another place. He thinks there are enough businesses and investors that can take in the people who would lose their jobs. Krastev also emphasized that the municipality prioritizes projects of investors who have decided to settle in the area.

When inevitable problems arise, we seem to wait until the last moment because we think they will pass us by. But this won’t happen. If we manage the processes, we will ensure that changes happen fairly. It depends on our attitude and ambition whether we will be subject or object in the transition."

Synergy between institutions

Ministry of Regional Development and Public Works is already recognized as a leading participant in the process," commented Ivaylo Stoyanov, head of the Strategic Planning and Programming Department at that Bulgarian Ministry.

He recalled that in 2022 it was decided that the department would be in charge of the just transition programs. According to him, the Just Transition Fund has a wide range of possibilities for support – in terms of economic, social and green aspects.

The process is a complicated one for the country and a new one for the Ministry of Regional Development. It requires a specific approach. People who criticize and talk about delay are missing the fact that there are procedures that need to be followed in order for the funds to be absorbed and projects to be implemented. The ministry is struggling with this," he commented.

He added that the department works well with all other institutions involved in the process – the Ministries of Energy, Labor and Social Policy, and Economy and Innovation. At the vertical level, there will be upcoming meetings of the new sub-committees, which serve as an auxiliary body of the Ministry of Regional Development. According to him, the regional development councils are also a good platform for discussing current problems and opportunities.

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Managing Authority. Neither the European Union nor the Managing Authority can be held responsible for them.

Translated by Tzvetozar Vincent Iolov

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union. The European Union cannot be held responsible for them.