Bulgaria can attract Chinese investments in energy and industry if the focus shifts from direct imports to the construction of production capacities in our country. This was stated by energy expert and former Deputy Minister of Energy Yavor Kuyumdzhiev in the program “Bulgaria, Europe and the World in Focus“ on Radio FOCUS.
According to him, Chinese capital already has a serious presence in the renewable energy sector and in large photovoltaic parks. Kuyumdzhiev pointed out that nearly 15,000 megawatt-hours of battery energy storage capacity have been installed in Bulgaria.
„Nearly 15,000 megawatt-hours of battery capacity have already been installed in our country, and almost all of them, without exception, are Chinese-made“, said Kuyumdzhiev.According to him, the price advantage of Chinese batteries is due to long-term state subsidies from Beijing. He added that Bulgarian companies have invested billions of euros in the Chinese economy to purchase batteries and solar panels.
Difference between private investments and large projects
Kuyumdzhiev made a distinction between private investments in renewable energy and battery farms and large-scale infrastructure projects. According to him, in private investments, Chinese companies participate under the same conditions as other investors, without state guarantees from the Bulgarian side.
However, in large infrastructure and hydropower projects, the Chinese state and investors require guarantees for return on capital, the expert pointed out. Among the examples he listed are the hydropower node “Lovech–Pomorie“ on the Osam River, high-speed railways and highways under concession.
Production for the European market
According to Kuyumdzhiev, the opportunities before Bulgaria will increase with the expected tightening of European rules and tariffs on the import of Chinese energy components, batteries and electric vehicles. He believes that in order to avoid high tariffs, Chinese companies will seek production on the territory of the European Union.
As Bulgaria's advantages, he pointed to the infrastructure, qualified labor force and low taxes. Kuyumdzhiev gave the example of the assembly of electric vehicles in Lovech.
According to him, the country can also attract the production of a new generation of vanadium batteries and high-efficiency photovoltaic panels intended for the European market. He also linked this opportunity to the historically good relations between Bulgaria and China.
Sources: focus-news.net