Bulgaria's renewable energy generators will compete at tenders for grid-connection and ESO, the electricity system operator of state-run power utility NEK, and power distributors will pick those that pitch the lowest price. The change will take effect in 2011 and is proposed in Bulgaria's National Renewable Energy Action Plan (NREAP) submitted with the European Commission (EC) on June 30, Mediapool reported.

Starting 2010, renewable energy investors will be required to pay a deposit fee equaling 10% per MW of planned capacity to guarantee the project will be developed. From 2012, an online information card will be developed to show investors areas where they can build renewables capacities.

"At the moment, only one-fifth of all announced capacities involve serious plans; the others have no idea how they are going to continue as they are developed mostly to be sold on to other parties. The introduction of the renewable project deposit will provide clarity who is serious and now just reserving transmission capacity," Kostadinka Todorova, head of the Energy Efficiency and Environment Protection department at Bulgaria's Ministry of Economy, Energy and Tourism (MEET), told Mediapool.

To foster renewable energy generation for heating and water heating, Bulgaria plans to introduce incentives for rooftop solar collectors. According to Todorova, an alternative option is one-family homes replacing coal with biocoal.