The European Commission has approved, under EU State aid rules, Bulgarian plans to support the construction and operation of a high-efficient cogeneration plant to produce heat and electricity using fuel derived from unrecyclable municipal waste to be in line with EU State aid rules.
Commissioner Margrethe Vestager, in charge of competition policy, said: “The support measure will help Bulgaria achieving its energy-efficiency targets and will contribute to the reduction of CO2 emissions in line with the EU environmental objectives, without unduly distorting competition.”
On 8 October 2019, Bulgaria notified the Commission of its plans to support the construction and operation of a high-efficient cogeneration plant in Sofia, Bulgaria. The plant will produce heat and electricity with a capacity of approximately 55 megawatts (MW) of heat and 19 MW of electricity. Around 180 000 tonnes per year of unrecyclable municipal waste will be used to fuel the plant. The installation, set up by Toplofikacia EAD, a company fully-owned by the Sofia municipality, will be connected to the Sofia district heating network. The construction will be finalised by the end of 2023.
The support will consist of two distinct measures:
- a direct grant of approximately €90.8 million (around 177.6 million BGN) financed by EU Structural Funds managed by Bulgaria;
- a loan granted by the Sofia municipality to Toplofikacia EAD at a preferential rate, amounting to approximately € 3 million (around 5.8 million BGN).