site.btaEnergy Minister: Energy Sector Would Benefit from Bulgaria Joining the Euro Area

Minister of Energy Zhecho Stankov said in an interview for bTV on Sunday that having Bulgaria adopt the euro would benefit the country, since it would facilitate access to European funds and financing for the construction of large energy projects such as units 7 and 8 of Kozloduy NPP and the planned two pumped-storage power plants in the Rhodope Mountains. The Minister said that Bulgaria joining the euro area would in no way increase the prices of fuel or electricity in the country.

Stankov said: "I understand the concerns of Bulgarian citizens, but as energy minister my job is not to stir them up. On the contrary, we need to explain, and we need to reassure the public."

The Minister reported that electricity prices for households will be fixed and as early as July 1, 2025, which means that consumers will know what the price will be until June 30, 2026. Through the lens of the euro, this price will be divided by the rate at which Bulgaria will adopt the single European currency, namely BGN 1.95583 per euro, meaning that higher electricity prices for consumers are out of the question.

Stankov said: "Regarding the big projects, such as units 7 and 8 of Kozloduy NPP and the big pumped-storage power plants that will be built in the Rhodope Mountains, this will give us a very big advantage, an easy way to have access to European funds, which are at a much better price when we are in the euro area. There will be an opportunity for stability to improve the investment climate, so this is a good prospect for energy."

When asked about fuel prices, the Minister said that fuels are a commodity, which means that Bulgaria's entry into the euro area is not expected to affect their prices.

He said that the indefinite postponement of the liberalization of the household market means that the state will continue to look after consumers, while any potential inflationary processes that may occur in the price of household electricity have been stopped.

The Minister stated that Bulgaria can afford to switch to a free market of electricity for households only when the prices there are even lower than the regulated ones. In his words, the state will continue to invest in renovation of residential buildings and construction of solar panels, as the cheapest electricity for consumers is the one they produce themselves.

Commenting on the agreement with the Turkish state-owned energy company BOTAS, Stankov said that his Ministry is working to find the right approach, because the document was signed without a clause for termination, and its costs are a burden for the Bulgarian energy sector.