The forum named “ESG and the production of energy from renewable resources. A challenge or an opportunity?” brought together experts from the energy sector, from UBB, as well as representatives of the senior state administration last week. The participants in the third expert discussion within the project “24 Chasa and UBB for a Sustainable Future” discussed the challenges and opportunities which the transition to ESG poses to businesses, as well as the options for financing green projects in the sector.

“UBB evaluates its role within the ESG policy in two aspects – what carbon footprint it creates directly with its activities as a Group, but even more important for us is what is the indirect footprint via the industries whose projects we finance. In 2023, the new loan portfolio in support of green projects exceeded BGN 450 million. In the field of photo-voltaic installations, this means assistance for slightly more than 20 % of the investments in Bulgaria“, shared Dobromir Dobrev – Executive Director of Corporate Banking and Markets of UBB. 

“Energy is the key sector that will provide us with the opportunity to reach the EU-wide target of carbon neutrality by 2050. To make this possible, investments are needed to push forward the development of solar and wind power plants, of the electricity transmission system and the energy efficiency”, said the Minister of Environment and Water Mr. Yuliyan Popov.  
According to the Deputy Minister of Energy – Mr. Krasimir Nenov, the energy transition is happening faster than expected, and we are not entirely ready for it. “In this process, the government's role is to provide the investment framework and price signals to the market, to financial institutions and to investors. We are moving forward with the policies and measures which will allow achieving the decarbonisation targets with affordable and cheap energy for household consumers and the industry," Mr. Nenov assured.  

What are the challenges facing the energy sector, what are the best practices that are applied in Bulgaria, and what are the most urgent problems to be solved - all these topics were discussed by the participants in the discussion panel moderated by Assoc. Prof. Marina Stefanova, Deputy Dean of "Sustainable Development, Support and Engagement" with the Faculty of Economics of Sofia University. 

A concrete picture of the challenges facing the energy system was outlined by Mr. Angelin Tsachev, Executive Director of the Electricity System Operator (ESO). 
He pointed out that ESO has invested BGN 1.2 billion over the last 6 years in the electricity grid. The cross-border capacity has been increased, and conditions have been created for traders to be part of the common European energy market and for their customers to receive a competitive price for electricity. Over the last 2 years, 2000 megawatts of renewable capacities have been installed, and preliminary contracts for further capacities exceeding 8500 megawatts have been signed by ESO. 

"A considerable part of the investments in renewable energy sources were made because businesses saw an opportunity to reduce their electricity bills by building their own capacity," said Nikola Gazdov, Chair of the Association for Production, Storage and Trading in Electricity. "If 15 years ago photovoltaics were expensive, today they are those ensuring the lowest price", he said. 
According to him, if we have better connectivity with Central Europe, the sector will be more competitive and will export and sell energy under long-term contracts.  
The topic of guarantees of origin for green energy was raised by the Director of the Agency for Sustainable Energy Development - Mr. Ivaylo Aleksiev. According to him, there will be a significant development of this market. The Agency is taking steps towards joining the European Association of Guarantee Issuing Bodies.  
Mr. Atanas Georgiev, Dean of the Faculty of Economics at Sofia University "Sv. Kliment Ohridski", outlined three pillars of energy transition - security of supply, climate policies and market liberalization. And he advocated the opinion that it is important, during the hours of the day when the price of electricity is close to zero, to attract industries that use this energy. Mr. Georgiev added that the investments which will be made in the energy sector need to be included in a national framework.  

The forum dedicated to the energy sector is the third in a series of expert events for different industries, aiming to focus the attention on responsible and sustainable development. The objective of the project, which combines the efforts of 24 Chasa and UBB, is to prepare the representatives of businesses for the upcoming transformation towards a sustainable future, as well as to showcase successful practices in Bulgarian enterprises for smart management and use of new technologies.