CHINESE BUSINESS THREATENS TO QUIT BULGARIA'S RENEWABLE ENERGY SECTOR

Chinese business might quit investing in renewable energy in Bulgaria because of the Bulgarian government's abrupt policy change on green energy, the Bulgarian-Chinese Chamber of Commerce and Industry declared in an open letter.

At present the planned Chinese investments in renewable energy projects in Bulgaria are estimated at roughly BGN 220 million. Since 2012 Chinese company "Wiscom" has perfect a solar park near the Western Bulgarian town of Ihtiman.

Another Chinese company - "Astroenergy" - has announced plans to invest over BGN 100 M in in Bulgarian green energy projects, reported Mediapool, quoted by Sofia News Agency.

Last week Bulgaria's State Commission for Energy and Water Regulation (DKEVR) made a controversial decision to reduce the purchasing rates for electricity produced from renewable energy sources (RES). The planned reduction is between 20 to 30% for wind power plants, and over 50% – for solar stations, the Commission's report stated. The new purchase rates are to come into force from the 1st of July.

"DKEVR's report and the announced new preferential prices for electricity produced from renewable energy sources – wind and photovoltaic plants - provokes strong unrest and leads to definite economic unpredictability for investors from China, who have for years tried to adapt to our country", stated Viktor Azmanov, the head of the Bulgarian-Chinese Chamber of Commerce and Industry in the open letter sent Tuesday, and made available to the public on Wednesday.

Azmanov also voiced his concerns that this abrupt change of conditions for doing business in Bulgaria comes in a moment when considerable resources have already been invested.

"We are forced to voice our disappointment with the Bulgarian government's stance and the DKEVR's policy as the regulator and moderator of the government's economic will, which create an atmosphere of economic intolerance and investment unpredictability for companies from China, willing to do business in Bulgaria", the letter also stated.

In the present situation, the affected Chinese companies will be forced to cease operations and hold the Bulgarian authorities responsible for the sustained damages, Azmanov threatened. The Bulgarian-Chinese Chamber of Commerce and Industry calls for the DKEVR report on the RES-energy purchasing prices for July 2012 – July 2013 to be amended according to the actual economic indicators and investment expenses on green energy development.

The Bulgarian-Chinese Chamber of Commerce and Industry is a public platform, created in 2010, for developing active commercial and investing activity in Republic of Bulgaria and People's Republic of China.

It currently has offices in Sofia and Shanghai and its members are companies from all economic sectors as well as public organisations in both Bulgaria and China. The Chamber also acts as an information system for the companies that wish to develop a business in both countries.