Bulgaria seeks a fixed price for new nuclear blocks: lessons from the past for the future of Kozloduy.

Bulgarian energy minister Trajčo Trajkov said that the state insists on a fixed price for the construction of new reactors (units 7 and 8) at the Kozloduy Nuclear Power Plant. During a meeting with representatives of the South Korean company Hyundai Engineering and Construction, it was emphasized that Bulgaria does not want a reprise of earlier unsuccessful projects whose costs had grown uncontrollably.

Minister Trajkov pointed out that endless extensions of deadlines and lack of price control have led to "traumatic experiences" in Bulgaria's earlier energy ventures. This time, Bulgaria's strategy calls for a fixed price and strict control of the pace of the work.

As for the project itself, here are the brief and detailed details. The AP1000 reactors from the American company Westinghouse were chosen. This move means Bulgaria fully distances itself from Russian VVER reactor technology on which it had previously depended. The main engineering partner is the Korean Hyundai E&C, which has pledged to assign 30% of the work to Bulgarian companies, using local expertise. The goal is for Unit 7 to be on the grid by 2035, and Unit 8 two years later (2037.).

Why is this important for the region?

Currently Bulgaria gets about a third of its electricity from the existing Units 5 and 6, but they must be replaced by 2050. Bulgaria has—like Ukraine—decided to distance itself from Russia and to move from VVER reactor technology to AP-1000 technology from Westinghouse. At the same time, Bulgaria for its operational VVER units already uses fuel produced in the West. And besides large reactors, the Bulgarian government is also considering the introduction of small modular reactors (SMRs).

But we must also keep in mind the reality of the situation: it's a huge question whether Hyundai and Westinghouse will agree to a truly "fixed" price in a situation where raw material prices are practically skyrocketing, construction times are extremely long, price fluctuations are unpredictable, and especially the potential delays or suspensions of construction are unpredictable, which prove to be the most serious source of cost increases. In fact: any delay be the only thing that can be expected almost 100 percent. Nevertheless, with this Bulgaria is setting a firm negotiating framework—and due to geographic proximity but also somewhat similar circumstances as in Serbia, we will monitor this topic closely.