Bulgaria Solar Energy Market - Growth, Trends, and Forecast (2020 - 2025)
The Bulgaria solar power market report provides an insight into the market size, growth, trends, analysis, government policies and regulations, competitive landscape, market dynamics, and opportunities.
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Scope of the Report
Key Market Trends
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The Bulgaria solar energy market is expected to grow at a CAGR of more than 2% during the forecast period. The primary driver for the market includes the government initiatives that include the uses of clean and alternative sources of energy in order to reduce carbon emissions. However, factors such as delays in projects are expected to hinder the market growth during the forecast period.
The growing investment in the renewable sector is expected to drive the solar energy market during the forecast period.
The Institute of Hydrology and Meteorology (IHM) of the Bulgarian Academy of Sciences (BAS) has estimated the solar energy potential of the country, which is around 12,995 million tonnes of oil equivalent (Mtoe). The estimation was done on the basis of sunshine hour data from 45 sites covering 30 years and actual solar radiation (SR) measurements from 5-6 stations. Up till 2018, the country has utilized a negligible percentage of the total potential. Such a high potential is expected to provide solar energy companies a significant opportunity to tap into this market in the near future.
On the flip side, high solar PV installation costs (about 10% higher than the weighted-average of European countries outside Southeast Europe) are expected to restraint the market growth during the forecast period.
Scope of the Report
The Bulgaria solar energy market report includes:
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Key Market Trends
Growing Investment to Drive the Market
Electricity plays a vital role as a factor of economic growth and social welfare, in which it is essential to have an accessible, reliable, and sustainable form of energy. Investment in the renewable sector, like solar, is expected to meet the rising demand for electricity in the country.
During 2018, Bulgaria planned to allocate EUR 33 million for the development of renewable energy sources and to improve energy efficiency. These investments will allow sectors like solar energy, wind energy, etc. to grow further in the coming years.
Moreover, as of January 2020, the European Investment Bank has provided Bulgaria with EUR 15 million to support climate action projects, which is likely to help in solar power market expansion as well.
The investment is estimated to increase the solar installed capacity up to 1180 megawatts (MW) in 2025 from 1065 MW in 2019, and electricity generation is expected to get increased to around 1340 gigawatts hour (GWh) in 2025.
A 195 kWp solar power plant for the needs of textile products manufacturer Delta Textile-Bulgaria is under the various segment of implementation. It is expected that the plant is to be operational by 2020.
Moreover, with the objective of increasing its renewable energy, the country has set a target of increasing renewable energy percentage share in electricity generation to around 17% by 2021 and to 18% by 2026. Thus, it is likely that the country to have more investment to achieve its targets during the upcoming years.
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High Installation Cost to Restrain the Market Growth
Although the cost of producing photovoltaic devices continues to fall across the globe, the rate of adoption of solar PV is not that too rapid as expected. Although there are numerous socio-technical and regional policy challenges in place, the economic factor of the high installation cost of investments required for setting up of a solar PV plant acts as a major restraint. As of 2018, the installation cost of solar PV in southeast Europe is around USD 1215/kW, which is higher as compared to other parts of European nations.
Apart from the costs of the solar PV modules, costs such as high installation cost, operation cost, maintenance and repair costs, and the low costs of competing sources of energy, also add to the cost of investments required for solar PV installations.
Installation of a solar photovoltaic (PV) array is not only an environmental-specific decision but also a financial decision as well. Irrespective of the decreasing cost of equipment, the cost of permits, and labor, along with the installation of solar PV installation with challenging and complex orientation, add to a great deal to the final installation costs.
Furthermore, the payback period risks and return on investment of solar PV compared to other sources of fuels, when environmental factors are not considered, is high. Thus, all these factors are likely to act as a restraint for the market to grow during the forecast period.
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The Bulgaria solar energy market is partially fragmented. Some of the key players in the market include JinkoSolar Holding Co. Ltd, Solarity BG, Hermes Solar Ltd., Solarpro Holding Plc., NEMCOM Energy Company, ELSOL Ltd., and SkyTech Energy Ltd.