Bulgaria’s Unproven Dedication to Energy Diversification

Posted: Tuesday, December 8, 2009
Author: Melanie Dominski

Bulgaria, long considered one of Russia’s most dependable energy consumers, is reevaluating its energy dependence on Russia. Bulgaria’s energy minister recently compared the Bulgarian energy sector to “the way English football used to be played – ‘with lots of energy, lots of running around the field, and comparatively little efficiency in achieving its goals.’” Bulgaria’s energy sector has long been inefficient since it was developed based on Bulgaria’s bonds with Russia, instead of on national utility.

Until recently, the Bulgarian energy sector was guided nearly entirely by Russian interests. This changed drastically in July with the installation of a new right-wing government that suspended Bulgarian participation in three major Russian projects: a new nuclear plant in Belene, the South Stream natural-gas pipeline and the Burgas-Alexandroupolis oil pipeline. The government’s refusal to make timely decisions regarding these three projects illustrates its desire to loosen Russia’s grip over the country. This new attitude toward Russia was likely influenced by the gas dispute in January 2008 that left Bulgarians without heat for several wintery weeks, thus demonstrating Bulgaria’s security interests in energy diversification.

This week, the United States expressed support for Bulgaria’s efforts toward increasing its energy independence. Currently, Bulgaria is exceedingly dependent on Russian energy. Bulgaria imports all of its gas and 60 percent of its oil from Russia. The new Bulgarian government has stated that it will give priority to the Nabucco pipeline, an EU-backed pipeline, over Russia’s South Stream pipeline. This statement further reflects Bulgaria’s desire to diversify its energy suppliers. However, Bulgaria’s commitment to energy diversification has not yet resulted in action and will be more clearly revealed through its final decision regarding participation in the South Stream pipeline.