CEZ Electro Establishes Bulgarian Renewable Energy Company

CEZ Electro, the Czech company administering electricity distribution in Western Bulgaria, has established a new company in charge of renewable energy. CEZ Bulgarian Investments B.V. was officially created on January 3rd 2011 and placed on the Netherlands Trade Registry a day later. It is owned completely by the CEZ Group.

The creation of a company responsible for administering electricity from renewable energy sources is a novelty in Bulgaria. CEZ electro has recognized the potential development of clean energy production in Bulgaria and has acted accordingly for its future growth in the country. It also shows that the company is interested in establishing itself on the renewable energy market through financing installations for the production of clean electricity.

This decision comes only three weeks after the German company Innovative Wind Concepts announced that it will be constructing a large wind-generator park in Bulgaria’s North-East, near the city of Shumen. The project is valued at 75 million Euro and will consists of 21 wind generators, with a total output capacity of more than 100,000 MWh annually. It also received a class-A certificate from the Ministry of Economics, Energy and Tourism, which allows it to use a simplified administrative procedure. CEZ electro’s projects could also qualify for this certificate.

With existing legislation for a simplified administrative procedure, and the expected tax-benefits yet to be accepted by Parliament, Bulgaria has become attractive for investors in renewable energy. Innovative Wind Concepts has already begun the construction of a 140,000 MWh wind-generator park near Dobrich in North-Eastern Bulgaria. Yet, for the optimization of these projects, electricity distribution companies have to adjust to buying the energy generated from these sources. CEZ has made the first steps for the achievement of this aim.

With the renewable energy market growing in Bulgaria, with companies such as Vestas, Siemens and Innovative Wind Concepts, the creation of CEZ Bulgarian Investments can only lead to greater competition. Tapping into the country’s renewable energy potential is a key priority for many investors in the Balkans at the moment, and the government has facilitated the growth of the market.

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