-
Todor Nedev
BULGARIA’S INDEPENDENT ENERGY EXCHANGE – POSSIBILITIES FOR RISK MANAGEMENT
Summary:
This article discusses the urgent problems of the Bulgarian energy market and its slow transformation from state monopoly to free exchange market. The paper aims at elaborating on the specific aspects of energy trading – basically, and in particular, the characteristics and disproportions imposed by the state and the state-owned energy holdings on the Bulgarian market. Ever since its establishment in 2014, the Bulgarian Independent Energy Exchange (BIEE) has adopted the model and rules of the north energy exchange – Nord Pool. The arguments for this choice have not been discussed publicly, but the necessity of a well-functioning energy exchange market and the need of its daily transparent activity, already in Bulgaria as well, are accepted as proven. The functioning and reliability of the Bulgarian stock exchange, however, are still the subject of certain discussions. What could have happened if the Bulgarian stock exchange had adopted the model of the European energy exchange – EEE?
-
Kaloyan Pargov
BULGARIA’S ENERGY BALANCE – A STRATEGIC ANALYSIS
Summary:
The Energy Balance is a strategic report which is of crucial importance to national economies. The strategic analysis of the Energy Balance of the Republic of Bulgaria for the period 2006-2020 allows drawing up key trends for determining the priorities for the development of the infrastructure of production, transfer, consumption, intersystem exchange and expanding the share of renewable sources. The research consists of two parts – the first one focuses on the methodology of preparing an Energy Balance as a statistical document with the corresponding evolution characteristics and structural components; the second one includes a verbal and graphic representation of the dynamics of some major components and indicators of the Energy Balance of the Republic of Bulgaria. As a result, we have illustrated the annual rates of change for a fifteen-year period, linear regression equations and coefficients of determination. The article ends by drawing up conclusions of strategic importance for the energy system.
-
Nikolay Kalistratov
THE SHADOW ECONOMY AND TAX EVASION – BEHAVIORAL ATTITUDES AND COUNTERMEASURES
Summary:
Taxation, corruption, excessive regulations, and ineffective governance stand out as primary drivers behind the emergence of the "shadow economy" (also known as the "grey," "informal," or "unregistered" economy). The prevailing theoretical models suggest that these variables are closely inter¬related and can lead to either a positive or negative balance. The positive balance is characterized by stable institutions, light regulatory burdens, a broad tax base, often high taxes and revenues, and a small size of the shadow economy. Conversely, the negative balance involves unstable institutions, excessive and burdensome regulation, diverse tax bases, low revenues, and a significant size of the shadow economy. The larger the tax wedge (the difference between the total labour cost and income after taxation), the larger the informal economy becomes. The aim of this study is to present the results of an empirical field research on employer and employee attitudes toward the shadow economy, along with a discussion of effective measures to limit the "grey sector."
-
Todor Georgiev
RISK AND RETURN ON INVESTMENTS IN PHOTOVOLTAIC POWER PLANTS THROUGH A PROJECT COMPANY AND LOAN FINANCING
Summary:
Abstract: The aim of this study is to present in detail the risk, financial, and engineering aspects of investments in photovoltaic power plants (PVPPs) based on the most likely scenario for financial and economic development. For investments in PVPPs with a capacity of over 1 MW, the use of the project company approach can be recommended. This approach pursues two basic goals: (1) the construction of PVPPs with optimal installed capacity and product¬ion parameters; (2) achievement of a projected level of sales and profits. Investments in PVPPs logically bear two groups of risks – systematic and unsystematic. Among these risks, attention should always be paid to the dynamics of price levels in electricity markets, which are key to the financial and economic return on investment. These calculations are also particularly sensitive to changes in interest rates when loan financing a project company with high financial leverage.
