The revenues of Maritsa East TPP in the first six

The revenues of Maritsa East TPP in the first six months of 2023 decreased by a significant 45.55% compared to the same period last year, but the company reported a profit of BGN 142 million 751 thousand before taxes. This is clear from the published interim financial report, accompanied by an analysis of the company`s activity and financial condition. The revenues of Maritsa East 2 TPP in the first half of 2023 are in the amount of BGN 933,536 thousand compared to BGN 1,714,557 thousand reported in the same period of 2022. The reduction of the total revenue part is 781,021 BGN thousand or 45.55%, it is written in the headquarters` report, not forgetting the comparison with the record funds last year as a result of the sharp rise in the prices of all energy carriers as a result of the war between Russia and Ukraine. The analysis emphasizes the fact that TPP " Maritsa East 2 " realized its main revenues mainly from the sale of electricity on the free and balancing market, as well as from availability services for regulating the system. It is a question of an amount in the order of 924 million 988 thousand BGN. " Considered from 1.07.2022 to 30.06.2023, TPP " Maritsa East 2 " does not participate with a quota in the regulated market ", the head office reminds. According to the data, during the 6th quarter of this year, the electricity sold decreased by 56.11%. " During the past first six months of 2023, 1,932,835 MWh were realized, and for the same period of 2022, 4,403,528 MWh were sold. A decrease of 2,470,693 MWh or 56.11% is reported ", according to the analysis for the first six months of the year. Despite these significant declines, TPP " Maritsa East 2 " reported a profit before taxes of BGN 142,751,000. Compared to last year, however, when the profit for the first 6 months reached BGN 350,365 million, the current positive financial result has decreased by 59.26%. In their report, the company`s experts note the tendency to decrease the exchange prices of the traded electrical energy in the country and the region, combined with the preservation of the high prices of the quotas for greenhouse gas emissions. This severely limits the possibilities of " Maritsa East 2 TPP " EAD to realize its production at prices that cover the full costs and ensure a normal rate of return, the report states. " Production and sales also depend on the agreed production programs with " NEC " EAD and " ESO " EAD, the quotas set by EWRC, including on the basis of orders of the Minister of Energy as an additional obligation to serve the public quantities of electric energy, as well as the demand for the liberalized market, " the report added. According to the document, for the first half of 2023 " Maritsa East 2 TPP " EAD reported costs for greenhouse gases in the amount of BGN 423,571 thousand, but also a decrease compared to the previous period of 2022 by BGN 483,264 thousand, which is due to the reported lower production of the plant itself. Since 2018, the expenses for greenhouse gas emissions quotas are no longer the leading expenses in terms of size and significance, the headquarters state, which is due to the purchase after a request was submitted by " Maritsa East 2 TPP " EAD of a certain amount of European emissions quotas greenhouse gases of the " EUA " type, necessary for the operation of the plant. The company also reports the activity under the Electricity System Security Fund and expresses an expectation for a ceiling formed by the amount of BGN 350/MWh, increased by the average monthly price per ton of emission allowances per MWh multiplied by a factor of 1.32, with the period of effect being from December 1, 2022 to June 30, 2023, with the exception of transactions with balancing energy required for the balancing needs of the electricity system by ESO EAD. The amount of the targeted contribution in the first half of 2023 amounts to BGN 40 million 166 thousand. The company takes into account the impact of Covid and the war in Ukraine, as well as our country`s commitments to the green deal and, in particular, the reduction of emissions, as well as the intention to introduce new clean sources of energy, on the basis of which the thesis for the future of headquarters. In the long term, the Company is expected to be directly affected by the requirements of the European Union, laid down in the Paris Agreement adopted at the end of 2016, as well as by the processes related to increasing the share of clean energy, increasing the competitiveness of renewable energy and not lastly, the upcoming unification of the energy markets. Maritsa East 2 TPP EAD is a production source of strategic importance for the country. The plant is a key element in the Bulgarian energy system, providing the main load for consumption, as well as regulating the frequency and exchange power in the system. The plant is connected to the three voltage levels of the EEC (electric power system, b.r.) of the Republic of Bulgaria - 110, 220 and 400 kV, which makes it a major factor for the sustainable operation of the EEC. The changes in the European legislation, regarding the introduction of the requirements to the member states, with a view to achieving zero emissions of greenhouse gases in 2050, represents a serious challenge to the energy sector, respectively to TPP Maritza East 2 EAD, " the analysis states. are the experts from headquarters. In the final part of the analysis, they remind that at the moment there is no adopted regulatory framework regulating the way to distribute the burden of implementation in the Recovery and Sustainability Plan, the goal of reducing CO2 emissions, which our country emits gradually until the end of 2025 with 40% compared to the relevant year 2019. A possible adoption of a reduction in emissions compared to the base year 2019 will lead to energy shortages in the country and the region, an additional significant increase in electricity in the period 2023-2025 and beyond. Bulgaria, from being a net exporter of electricity, will become a net importer, depending on the ability of other countries to provide quantities of electricity for export, the TPP " Maritsa East 2 " reminds. The goal is to drop from the Plan (for recovery and sustainability) the commitment to reduce CO2 by 40% by the end of 2025 compared to the starting levels of 2019. The Council of Ministers should adopt such actions to ensure the implementation of the commitments for decarbonisation in line with EU-wide targets by ensuring the operation of coal plants without restrictions until 2038, the plant concluded. We remind you that this was one of the goals to which some time ago the efforts of the Ministry of Energy were directed, which aimed to build RES and complete transformation of the complex precisely in the name of revising the commitments on carbon emissions.