The events from the recent days have reminded that Bulgaria puts efforts in its nuclear energy sector as well, as far as diversification is concerned. The negotiations with the US Westinghouse company for the construction of a new AP1000 nuclear reactor with the future 7^th unit of the Kozloduy NPP are ongoing. The facility will cost some EUR 4.7 billion at an overall price of around EUR 6.9 billion for the entire unit. The preliminary estimations on the price and the project’s potential were grounded on a shareholder agreement between the energy company and the Bulgarian Energy Holding /BEH/, signed mid-2014. Westinghouse’s Vice President Aziz Dag reported the data during a discussion, named Energy Security and Accessibility via Energy Diversification.

Aziz Dag commented the ongoing modernization of the Kozloduy NPP’s 5^th and 6^th units like that:

“The rehabilitation of the 5^th and 6^th units of Kozloduy to the tune of some EUR 89 million has been funded by the US Ex-Im Bank, as we hope to deepen our partnership in the energy sector also under the construction of the plant’s 7^th unit.”

This statement comes to show that the Ex-Im Bank could be the potential financial partner for the project on the 7^th unit, in case of an approval.

“Incomes from electricity export over the next 20 years will come up to the tune of some EUR 11.1 billion, if the government and Westinghouse finalize the contract. That makes the new power very profitable in terms of economy,” Mr. Dag further commented.

Currently Bulgaria exports electricity to Turkey and that, according to Westinghouse’s energy experts, won’t change despite the 4 nuclear units that are being constructed by our southern neighbor under a Russian project. Those won’t be able to cover Turkey’s growing needs, which annually imports electricity worth around EUR 53.3 billion.

The project’s implementation will lead to the opening of more than 20,000 new jobs and this will reduce the level of unemployment here by some 4 percent, keeping manpower in northwest Bulgaria, the US polls go on to show.

The basic price for the electricity, produced by the plant over the next 60 years, including building, fuel-providing and maintenance expenses will be around EUR 67 per megawatt hour.

At the moment Kozloduy works at EUR 30 per megawatt hour, which can be explained with the fact that the 5^th and 6^th units were built up more than two decades ago, at lower prices. To compare, the estimations of Rosenergoatom on the ceased Belene NPP project showed a basic price of around EUR 75 per megawatt hour.

The shareholder agreement, signed during the final days of the Oresharski cabinet envisages the shares within the new company – Kozloduy NPP – New Powers to be divided like that: 70 percent for the Kozloduy NPP and 30 percent for Westinghouse. The company is to deliver and install the unit, withdrawing from the project after the end of the construction activities – the state and the plant will remain the owners of all. PM Boyko Borissov has stated several times that he sees any sense in the project if Westinghouse enters it as an investor. In the words of Vice President Strategy and External Relations Europe, Middle East and Africa of Westinghouse Michael Kirst, currently there are ongoing negotiations with the Bulgarian state for determining the financial model.

“In December /2014/ we formed a working group with the new government, aiming at the continuity and approval of the project. Regarding nuclear energy, Bulgaria has as many points of view, as the number of people with any points of view.”

The final investment decision for the project is expected to be made by 2018 – 2019. Thus the new facility will be able to start working around 2025.

English version: Zhivko Stanchev