Mines and thermal power plants cannot continue working as before. Thus, the Minister of Finance Asen Vassilev defended the plans for a just transition after another day of failed dialogue between the government and the miners blocking the highway “Thrakia”.
“And it’s not because the government imposes restrictions, but because they themselves see that the market imposes restrictions. As long as an emission price of the order of 80-90 euros per ton is paid, there is no way that the electricity produced by the mines will be competitive in the volume it was in before. It will be competitive in the evening, when it is very cold, when there is no other production. And this is clear. And therefore – naturally, the market itself will limit how much electricity the mines produce and sell on the market,” said Minister Vassilev in an interview for bTV.
Stara Zagora is not a region where there is no foreign investment, there is a highway, a railway line, a region that is developing quite well, as well as Plovdiv. Both regions are developing extremely well, there is also serious investor interest in Stara Zagora for several billions, Vassilev also stated.
As for saying there will be a 40% reduction in work by 2026, there is a 50% reduction in work this year. For the two American power plants – one’s contract expires in 2024, the other in 2026, the state through NEK pays them the carbon quotas, that’s why they are currently working, Vassilev specified. Their electricity will not be able to enter the market if the carbon quotas are not paid by the state. It’s almost certain that once their contracts expire, they’ll either downsize dramatically or close anyway, Vassilev said.
The state can do something, and that is precisely why these plans for a just transition, PVU, are to direct about 4 billion BGN in the next 4-5 years to enter the region and the state to support the people so that they can earn enough good job, added the finance minister. The market for coal is disappearing because it is expensive, he added.
A huge part of these people will continue to work, even on the day when the mine produces the last ton of coal, we have at least 10 years of work so that there is no ecological catastrophe in this region – investments, reclamation, etc., noted Asen Vasilev .
If someone tells you that you will continue to do what you have been doing for the last 20 years, they are lying to you, Vassilev stressed. What has been up to now cannot continue, because they themselves see that the market imposes a limit, not the government, emphasized the finance minister. This profession has a future until 2038 with diminishing functions, but we must not delay until the last day. From now until 2038, the plan says how this process goes smoothly, he further specified.
And today, miners and energy workers blocked the Trakia highway near Stara Zagora, as well as the sub-Balkan road near Gurkovo. Threats of strike action and electricity regime were also heard.
The unions did not respond to the invitation to a meeting in the Council of Ministers with Prime Minister Nikolay Denkov. And he connected the road blockades with the “ambitions of politicians for local power”.
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2023-10-01 19:33:00
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