In Sofia, Oettinger made clear that Brussels is not happy with Bulgaria's energy policy.
''Each project in the energy sector should be agreed with the European Commission,'' he said, stressing that ''we are very sensitive about the Belene nuclear power plant project''.
Such messages are seen by many as long overdue. For the past 20 years, governments in Bulgaria have thrown their weight behind two energy projects of questionable economic and financial sustainability: the planned Belene nuclear power plant and the 'Tsankov Kamak' hydroelectric plant, which is almost complete.
Both have disappointed in various ways, and it was recently disclosed that billions of euros had been poured into what now appear to be corruption schemes.
It was not until after the January 2009 gas crisis between Russia and Ukraine that Sofia decided to redirect its efforts to more practical projects to help diversify its gas supply.
However, as things stand the scale of investment in Belene and Tsankov Kamak is likely to remain unmatched in Bulgaria for at least the next few years.
Belene
Speaking in Sofia, the EU's energy commissioner expressed his concern over plans to construct a nuclear power plant in Belene. ''We are following very carefully and we are quite sensitive on this project,'' said Oettinger.
The reason for this seems clear: Belene is set to become the first nuclear plant in the EU that is fully reliant on Russian technology.
Following the withdrawal of Germany's RWE as a strategic partner for the project, Russia offered Bulgaria a €2 billion loan to finance the construction of the plant. The Bulgarian government initially accepted the offer, but after interference from Brussels it became clear that the project would only go ahead with a European investor (EurActiv 03/03/10).
It was originally envisaged that the plant would be completed by 2014, but this deadline is unlikely to be met due to financing problems. According to initial calculations, its construction was estimated to cost around €4 billion, but the actual amount could in fact range between €8 and €10 billion.
So far, more than €1 billion has been invested in the plant. Bulgarian Prime Minister Boyko Borissov has already said that the Belene plant is ''an example of how a project should not be made,'' but he still has to decide whether construction should stop due to lack of funding or whether the government should continue the project.
Tsankov Kamak
The Tsankov Kamak hydropower plant is Bulgaria's second most controversial project in the energy sector.
According to recent revelations, the plant might become the most expensive hydropower project in the world. Costs were originally estimated to be €220 million but have since doubled, mainly as a result of the construction of a 22-kilometre road between the towns of Devin and Mihalkovo, which is said to have cost 222 million Bulgarian levs (€114.5 million).
Prime Minister Borissov said there would be an investigation into what has been dubbed Bulgaria's "most expensive road," the construction of which he said had shown clear signs of corruption.
Similarly, construction of a cascade on the Vucha river was set to begin this year but persistent doubts over the potential misuse of funds means this deadline will probably be postponed.
Gas pipeline inter-connectors
Less controversial are a series of gas pipeline inter-connector projects. On 5 March, Bulgaria and Serbia signed a protocol in Brussels for the construction of a gas pipeline connection between the two countries, running from the Bulgarian city of Dupnitsa to the Serbian cities of Dimitrovgrad and Nis. The pipe should be completed by 2013, with €60 million coming from the European Regional Development Fund.
A memorandum to construct a gas pipeline between the Bulgarian city of Stara Zagora and the Greek city of Komotini was signed on 14 July 2009 between BEH (Bulgarian Energy Holding) and IGI Poseidon (50% owned by Depa and 50% by Edison). The project is due to benefit from EU funding under the €2.3 billion economic stimulus package aimed at helping finance 43 pipeline and electricity projects across the EU (EurActiv 05/03/10). It should be completed by 2013 and its cost is estimated at €120 million. The capacity of the pipeline would be between three and five billion cubic metres.
A projected gas pipeline connection between the Bulgarian city of Rousse, on the Danube, and its Romanian counterpart Giurgiu was drawn up by Bulgartransgas and Romanian company SNTGN Transgaz. This pipe is also included in the list of projects sponsored under the EU economic stimulus plan. Last September, Tractebel Engineering was appointed as a consultant and asked to prepare a feasibility study. Worth €27.6 million, the pipeline should also be completed by 2013. Once built, it should have a capacity of 1.5 billion cubic metres.
Nabucco and South Stream
Last but not least, Bulgaria is a key transit country for both the Nabucco and South Stream pipeline projects, which are seen by many as rivals.
Nabucco was given top priority by the EU as it is designed to brings gas from countries other than Russia. The pipeline would cost between €8 and €9 billion and should be completed by 2013. Its planned capacity is of 31 billion cubic metres. Preparations are well advanced and the project is set to benefit from a €200 million grant from the European Commission under the EU stimulus plan.
The South Stream gas pipeline is a project sponsored by Russian gas giant Gazprom. It is designed to bypass Ukraine, running under the Black Sea to Bulgaria, with one branch going to Greece and Italy, and another one to Romania, Serbia, Hungary, Slovenia and Austria.
Two working groups are currently preparing a shareholders' agreement and a technical feasibility study, which will be used to estimate the cost of the project and define the exact route of the pipeline through Bulgaria. The project should be completed by 2015. Its value is estimated at €8-10 billion and the pipeline would have a capacity of 64 billion cubic metres.
