The Maritsa East 2 coal-fired thermal power plant in Bulgaria, owned by the state-run Bulgarian Energy Holding (BEH), has received €1.3 billion in state aid from 2019 to 2023, as reported by Greenpeace Bulgaria. Despite this financial support, coal-fired electricity generation has significantly declined over the past two years.
2022 was a particularly profitable year for Maritsa East 2, driven by the European energy crisis, which saw electricity prices soar due to reduced Russian gas imports. However, as the market began to stabilize at the end of 2022, revenues from coal-generated electricity fell sharply, and by 2024, the sector has returned to substantial losses, with the plant’s operations largely propped up by state subsidies.
The €1.3 billion in state aid is a conservative estimate; the actual amount could be higher, as the plant relies heavily on non-market measures for survival. Currently, Maritsa East 2 is operating at only a third of its capacity, and its earnings have plummeted by 95% in the first quarter of this year compared to the previous year.
In March 2023, the European Court of Justice ruled that Maritsa East 2 must meet environmental standards, as its operations were contributing to air quality violations. Following this ruling, the Administrative Court in Stara Zagora revoked the plant’s operating permit due to excessive pollution. Both the plant and Bulgaria’s Environmental Agency have appealed this decision to the Supreme Administrative Court, which recently sent the case back to the Stara Zagora court.
In 2021, Bulgaria announced plans to potentially close all coal power plants by 2025, with discussions around converting the Maritsa East site to gas. However, little action has been taken on these proposals. According to the 2022 National Energy and Climate Plan, a coal exit could only be feasible by 2038, suggesting a gradual phase-out approach.
