Za Zemiata / CEE Bankwatch Network is looking for a consultant to map the existing situation and identify and analyse sustainable heating solutions for the Tsarkva neighbourhood of Pernik in Bulgaria. 

Za Zemiata and CEE Bankwatch Network are working extensively on implementing a just transition away from fossil fuels in a number of countries in the CEE region, including Bulgaria. Decarbonising the heating sector is a key issue, as the district heating systems in the just transition regions are dominated by coal. 

With funding available from the Just Transition Fund, this is a good time to consider what some solutions for decarbonising the heating in Pernik might be, focusing on buildings that are not connected to the district heating system as a pilot project.  

Pernik is a city with around 80,000 inhabitants; the main district heating provider is Toplofikacia Pernik, and Pernik is the town in Bulgaria with the hightest percentage of district heating customers. The district heating system runs on coal with some biomass. The quaity of the district heating service is questionable, which can be seen from the various accidents with the heat supply in the city which often leave consumers without heating in the winter. One of the key issues with decarbonising the district heating in Pernik is the fact that it is privately owned, therefore the local authority has very limited influence over the decarbonisation process. This is why the municipality is exploring alternative solutions, such as alternative district heating or smaller localised district heating units. Coming up with a solution in a timely manner is of key importance as the district heating operating company has not indicated any interest in decarbonising. 

Subject of the proposal 

The objective of the study is to provide a technical analysis of the current heating situation in Pernik with a specific focus on Tsarvka neighbourhood, which is not connected to the existing district heating. Within the study, it would be beneficial to sketch out what opportunities for district heating based on renewables might be suitable for the area. In addition to a technical feasibility study, an economic feasibility study should be covered by the report, in order to serve as a basis for developing a business case in the future. 

The study will be used to form the groundwork for the heating decarbonisation plan for Pernik’s Tsarkva neighbourhood, help inform decisionmakers’ opinions on what approach to take to sustainable distict heating, and start a conversation on potential funding sources and potential pilot project opportunities. 

The study should be approximately 35-40 pages long. It will be written in Bulgarian and translated in English, with the consultant responsible for translating the Executive Summary. The study should include the following:

1. Executive summary (2 pages)

2. Introduction (2 pages)

 – Outline of the heating situation in Pernik with information about the current heating demand

3. Mapping of the current situation (5 pages)

– Mapping of available data specifically relevant to the Tsarkva neighbourhood and Pernik in local authority documents and – where relevant – government and other stakeholder reports, as well as of the technical and economic aspects of various components of the energy transition in Tsarkva and Pernik (desk research)  

– Characteristics of Tsarkva’s heating and cooling systems: size, infrastructure, fuel sources, ownership (some element of field research might be necessary)

4. Recommendations of preferred solutions  (25 pages)

– Calculating the renewable potential: this may include deep geothermal, heat pumps, waste heat from industry (not the coal power plant ), solar thermal, heat storage, etc. Biomass should only be considered as a last resort and should not include primary forest biomass, only offcuts from sawmills, crop residues etc.  

– What alternatives might be available in the area and guidance on what the preferred approach should be – technical feasibility aspect 

– What is the economically feasible potential and costs identified with the preferred approaches?

5. Conclusions (2 pages)

The final publication outline will be agreed upon with the consultant prior to the beginning of their work. The consultant will be responsible for drafting the study, and is expected to produce two drafts and a final version. Bankwatch staff will provide comments on the drafts, and will be responsible for the proofreading, translation, design and distribution of the publication. The study will be published, and the consultant should be willing to be mentioned publicly as author. Based on the study, Bankwatch will also produce a shorter briefing paper for policymakers and a wider audience. The consultant might be required to make a few appearances at events (including local events and topical events such as webinars) in order to promote the study and its findings. Any such appearances will be organised and costs covered separately. 

Timeline 

Budget 

A maximum of EUR 10 000 including VAT, half of it to be paid upon the delivery of the first draft and the difference upon delivery of the final version of the study.  

Eligibility 

Experts in the field of sustainable energy, with a background in engineering or similar. They should have extensive knowledge of the heating sector and of renewable energy sources. Excellent knowledge of English is required. Knowledge of or previous experience specific to Bulgaria is required.   

How to apply 

Applicants should submit their offers by 26 February to t.todorov@zazemiata.org and veni.kojouharova@zazemiata.org  

The offer should contain: 

1. CV highlighting the required qualifications and experience.
2. Application consisting of technical and financial elements. The technical elements comprise a 2-page outline proposal for the study. This should include the consultant’s proposed methodology. The financial elements comprise the financial offer including VAT. The candidate should name at least two references who have agreed to support the application. 
3. Examples of similar previous work are welcome in support of the application.
4. Signed statement certifying that the candidate does not fall into any situation that is grounds for exclusion from participation in the procurement (according to Bankwatch’s internal procedures).

Selection 

The selection criteria will consist of: 

1) Professional capacities: the strength of CV, past reports, reference list of experience in similar or related projects; 

2) Quality of project proposal and alignment with requirements to consider only sustainable energy forms; 

3) Financial offer; 

4) Other added value to the analysis (e.g. knowledge of the local language). 

Applicants will be informed about the selection results by 29 February.  

Candidates will be excluded from participation in a procurement procedure if: 

• they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning these matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations; 

• they have been convicted for an offence concerning their professional conduct by a judgement which has the force of res judicata; 

• they have been guilty of grave professional misconduct proven by any means justifiable; 

• they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country where the contract is to be performed; 

• they have been the subject of a judgement which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities’ financial interests; 

• they are currently subject to an administrative penalty referred to in section 2.3.5 of the Practical Guide to contract procedures for EC external actions: 

Without prejudice to the application of penalties laid down in the contract, candidates or tenderers and contractors who have made false declarations, have made substantial errors or committed irregularities and fraud, or have been found in serious breach of their contractual obligations may be excluded from all contracts and grants financed by the Community budget for a maximum of five years from the date on which the infringement is established, as confirmed following an adversarial procedure with the contractor. That period may be extended to 10 years in the event of a repeated offence within five years of the above-mentioned date. Tenderers or candidates who have made false declarations, have committed substantial errors or irregularities and fraud, may also be subject to financial penalties representing 2% to 10% of the total estimated value of the contract being awarded. Contractors who have been found in serious breach of their contractual obligations may be subject to financial penalties representing 2% to 10% of the total value of the contract in question. That rate may be increased to 4% to 20% in the event of a repeat infringement within five years of the above-mentioned. Where the award procedure proves to have been subject to substantial errors, irregularities or fraud, the Commission shall suspend the procedure and may take whatever measures are necessary, including the cancellation of the procedure. Where, after the award of the contract, the award procedure or the performance of the contract prove to have been subject to substantial errors, irregularities or fraud, the Commission may, depending on the stage reached in the procedure, refrain from concluding the contract or suspend performance of the contract or, where appropriate, terminate the contract. Where such errors, irregularities or fraud are attributable to the contractor, the Commission may in addition refuse to make payments, may recover amounts already paid or may terminate all the contracts concluded with this contractor, in proportion to the seriousness of the errors, irregularities or fraud. The purpose of suspending the contract is to verify whether presumed substantial errors and irregularities or fraud have actually occurred. If they are not confirmed, performance of the contract will resume as soon as possible. A substantial error or irregularity is any infringement of a provision of a contract or regulation resulting from an act or an omission which causes or might cause a loss to the Community budget. 

The political crisis that has lasted for more than two years has completely blocked the processes of energy and economic transformation.

Because of politicians’ subordinance to lobby interests that call for the continued use of coal, at the end of 2022 Bulgaria lost EUR 100 million from the Just Transition Fund (JTF) due to the missed submission deadline to the European Commission of the Territorial Just Transition Plans (TJTPs) for the three coal regions: Stara Zagora, Pernik, and Kyustendil.

Thus, at the end of 2023, Bulgaria remains the only country out of all the EU Member States that does not have approved Territorial Just Transition Plans. 

At the end of September, we saw trade union protests blocking major highways while holding and chanting anti-EU slogans, targeting the European Green Deal and the TJTPs. This showed the continued trend of manipulating the people in the Stara Zagora region.

In fact, these protests have further blocked the government’s work to finalise and send the plans to Brussels. They have also led to the signing of an absurd agreement between the government and the trade unions, which contains unrealistic demands and promises. However, a further outcome is a situation in which the interests of Pernik and Kyustendil are not taken into account in any way.

In fact, the funds from the Just Transition Fund are of crucial importance for Pernik because this region is ready to undertake the energy transition. It is evident that the municipality of Pernik has very ambitious plans to make an economic and energy transition, with work already underway on some of the projects.

The resources from the fund, which amount to around EUR 92 million, could attract and multiply private capital and make the process of the region’s energy and economic transition even more certain. Pernik has the desire and the opportunity to become a positive example of a successful energy transition that could unlock the process for other regions.

The municipality is implementing the replacement of public transport buses with new and environmentally friendly ones in connection with the ambition to improve the air quality in the city. Improving the energy efficiency of buildings is also an important part of the measures that are set out in the municipal plans, along with the replacement of the heating appliances of some households in the city with environmentally friendly alternatives. An industrial park relying on renewable energy technologies is also planned.

These ambitions of the municipality, combined with the low level of unemployment in Pernik and in the region, are good precursors of a successful energy and economic transition.

For more than seven years, Za Zemiata (Friends of the Earth – Bulgaria) and CEE Bankwatch have enjoyed good cooperation with active civil society organisations in Pernik on important issues for the city, such as clean air and illegal coal mining, and in the last four years, there has also been favourable cooperation with the municipality. 

The blocking of Pernik and Kyustendil from receiving funds due to the lack of readiness in Stara Zagora and the surrounding region cannot continue, as the time frames for the preparation, submission, funding and implementation of activities under the JTF projects are very short and rely on quick action and timely planning.

We urge the government to take immediate action to ensure that the adoption of the Territorial Just Transition Plans by the European Commission is no longer delayed and to make the necessary changes to the plans in order to unlock the much-needed funds for the coal regions.

Politicians should remember that the TJTPs and these European funds are intended for the development of small and medium-sized businesses, the creation of new, green jobs and the reskilling of those employed in the sector, where necessary and if they are willing.

Blocking and delaying the energy transition process due to lobbying interests will worsen the consequences of the inevitable, gradual closure of the coal industry for economic reasons. And with the closure of the mines and the coal-fired power plants due to lack of capacity to compete with other players in the European energy market, there will no longer be the possibility to use the Just Transition Fund and other EU funds to mitigate the effects of this change on those employed in the sector.

In February and March, Za Zemiata (Friends of the Earth Bulgaria) organised several events in Stara Zagora and Galabovo, dedicated to the just energy transition and the opportunities it provides for the development of the region. The meetings were attended by stakeholders who have so far been absent from the dialogue, but whose voice is key for the future of the region – representatives of the civil society, of the small and medium enterprises, academics from the Thracian University. Despite the efforts to foster a dialogue between business, civil society, academia and the institutions, the absence of the municipality, which was invited but did not attend the meetings, was notable.

Our organisation and participation in these events, as well as in events organised by other civil society organisations, are part of our information campaign in the coal regions on the topic of just energy transition, the Territorial Just Transition Plans (TJTP) and the opportunities they provide for the overall development of the coal regions. 

The information campaign is, in fact, part of the government’s core obligations in relation to the Just Transition Mechanism, rather than an obligation of the NGO sector. 

Unfortunately, we have seen the absence of such a campaign at the national level, with the President, government and politicians instead preferring to focus on fighting for people’s votes in yet another snap general election (the fifth in two years).

The main problem in the coal regions is the lack of transparency in decision-making, the lack of information, which is a responsibility of the government. There is no way to have a successful energy transition, if people do not have information about what this transition is and how it will impact them, there is no information about the potential for positive change. All that is heard is what is in the media – the threats of the representatives of the mines, the thermal power plants and the accompanying voices of the syndicates and politicians that with the transition away from coal, people will be left without jobs and with no prospects. 

During the protest against the pollution from the Brickell TPP and the Maritza 3 TPP in September last year.

At the meetings, we noticed a very different sentiment from what is being presented in the media as ‘people’s opinions’ – in fact, the moment they get information, people become more open to change and start thinking about alternative solutions and the development of other industries. The claim that there will be no jobs and people will be left on the streets also proved to be untrue. Representatives from the Employers’ Club, the Thracian University, the Chamber of Builders, and people from the enterprises in the area all say that they have an issue with finding staff. That then is to say, there are jobs, but the workforce has been absorbed by the mines. If investment in the industrial zone were not stopped, it has the potential to develop and therefore to attract more new businesses with new job opportunities. 

When we presented the real guidelines in the draft for the Territorial Just Transition Plan for Stara Zagora and the region, and the highlights from the Just Transition Fund, we noticed that for most representatives of the civil society, the small and medium enterprises, this was new information. For two years politicians and the different governments had not found it necessary to ask the people in the region what their suggestions and preferences are. This is a huge loss of public energy, of the prospect of using people’s expertise in favour of producing better territorial plans, tailored to the specificities of the region. 

Even though there is a historical attachment to the coal industry, it is far from the only thing in the region. People are proud of their cultural and historical heritage which they want to develop, as well as with their fertile lands that have potential for development. There is a recognition that all other industries have been disrupted at the expense of mine development. 

During the protest against the pollution from the Brickell TPP and the Maritza 3 TPP in September last year.

At our meeting in Galabovo, one of the most affected places, people were unanimous that no government representatives or politicians had come to them to inform them about the territorial plans or to ask them about their opinions. The confusion of the roles of the non-governmental sector and the government on their part proved that people need to hold someone accountable for this lack of transparency. The positions of the local citizens refuted the claims of politicians and trade unions that everyone in the region wants for the mines and TPP Brikel to continue to operate – an important highlight was that everyone was against Brikel, which is poisoning people in the town, although a large part of the lives of the participants in the meetings has passed there. All examples of corruption and illegal pollution of the region by this power plant are known, as well as the cover-up of the problems by the responsible authorities. Any politician that goes to Galabovo and promises to preserve jobs in TPP Brikel should know that he is promising to continue poisoning people with air rich in various chemical compounds based on sulphur and nitrogen, that are harmful to them. 

The lack of vision and strategy at a level further than the next elections was demonstrated by politicians, as the necessary reforms in the energy sector which have the potential to unlock investments and open the market in Bulgaria, were sacrificed for the sake of party and oligarchic interests to preserve the status quo and the energy megaprojects. Even the loss of €98 million at the end of 2022 due to the failure to submit the Territorial Just Transition Plans also failed to awaken the sense of responsibility of the politicians. 

People are not prepared by the government for the upcoming changes in the energy sector, and it is the duty of politicians to present correct information for the opportunities that the energy transition gives to people and regions. If the government is not prepared to implement a smooth and just energy transition, to draw up quality territorial plans and send them to Brussels, the Bulgarian people will miss the opportunity to use EU funds for a smooth transition. What will happen is that economic coercion will close down the coal mines and power plants without compensation for those employed in the coal industry. 

It is high time Bulgarian politicians and governments start taking responsibility for the damage caused to society and the country’s economy as a consequence of their refusal to fulfil their obligations to reform the energy sector and for serving corrupt, oligarchic schemes. For this reason, the idea of both government and President to renegotiate the National Recovery and Resilience Plan with the European Commission without a guarantee of concrete measures and reforms, leading to an energy transition, is doomed to failure. Renegotiating the Plan will block and delay for months the implementation of important for the households and businesses projects such as the energy efficiency programme for multi-family residential buildings, the programme for individual RES capacities and batteries for businesses and others, which will actually reduce the bills of the households and businesses, as well as our energy dependence on foreign fossil fuel suppliers. 

The lack of vision and strategy, as well as populism, will result in the impossibility to have a smooth, just energy transition which can lead to positive changes for both mine workers and the entire coal regions, and risks an abrupt transition the price for which we will all pay. 

Read the article in Bulgarian