Opinion regarding the Draft Act for Amendment and Supplementation of the Industrial Parks Act

TO

THE 51ST NATIONAL ASSEMBLY

WITH COPY TO:

COMMITTEE ON ECONOMIC POLICY AND INNOVATIONS (LEAD COMMITTEE)

COMMITTEE ON ENERGY

COMMITTEE ON REGIONAL POLICY, SPATIAL PLANNING AND LOCAL SELF-GOVERNMENT

POSITION

from

Association "THE BULGARIAN ENTREPRENEURIAL ASSOCIATION," with UIC 177239971, represented by Executive Director Dobromir Georgiev Ivanov

Regarding: Draft Law on Amendment and Supplement to the Law on Industrial Parks with signature 51-454-01-12 of 22.11.2024.

DEAR MEMBERS OF PARLIAMENT,

I present to your attention the position of the Association "THE BULGARIAN ENTREPRENEURIAL ASSOCIATION" regarding the Draft Law on Amendment and Supplement to the Law on Industrial Parks with signature 51-454-01-12 of 22.11.2024.

The draft law envisages the creation of a new para. 3 in Art. 5 of the Law on Industrial Parks, which reads: "(3) Regulated land plots designated for the production of electricity from renewable energy sources shall not be permitted in the industrial park."

We consider that an exception to the proposed prohibition must be explicitly provided for, namely that where the production of energy from renewable energy sources is for own needs, this shall be permissible, and enterprises shall also have the right to sell the surplus energy. The permissibility of energy production for own needs is explicitly mentioned in the explanatory notes to the draft law, but is not stated in the draft law itself.

We generally agree with the principle that industrial parks should not be entirely focused on investments in photovoltaic installations; however, we consider that the possibility for enterprises in these zones to build and operate such installations should not be restricted. These technologies can be an important instrument for industries operating in energy-intensive sectors to remain competitive and efficient. The prohibition or serious restriction of the possibility for the production and use of energy from renewable sources in industrial parks for own needs and the sale of the surplus would place enterprises at a disadvantage and would hinder their economic efficiency and market sustainability. In this context, it is important to ensure that enterprises in industrial zones will have the freedom to invest in energy solutions that meet their specific needs and requirements.

It is necessary to emphasise that the enterprises carrying out manufacturing activities in industrial parks are a key economic factor for the national economy, as they often have significant and specific energy needs for the implementation of their production activities. Energy production for own needs could provide a higher degree of energy independence and security for enterprises, reducing their dependence on other energy sources.

From a legal perspective, the admission of an exception for the production of energy for own needs and the sale of the surplus is in accordance with the principle of proportionality, as well as the principle of effectiveness, enshrined in European Union law. The principle of proportionality requires that any measure taken by national authorities be adequate, necessary and proportionate to the objective being pursued. In this case, if the legislation does not permit the production of energy for own needs, enterprises will be placed at a disadvantage, which would limit their ability to operate sustainably and effectively on the market. At the same time, by permitting such production, a balance between economic, environmental and social interests will be ensured, stimulating sustainable economic growth and energy security.

Furthermore, with regard to the so-called principle of "good governance," which requires that acts of state bodies be clearly justified and serve the public good, it should be borne in mind that enterprises in industrial parks have legitimate interests in optimising their energy consumption and reducing their costs. The production of energy from renewable sources for own needs will benefit the enterprises themselves, creating conditions for their long-term competitiveness and market sustainability. The issue of energy production for own needs in industrial parks should not be viewed solely through the lens of environmental and economic benefits, but also in the context of the social responsibility of the industrial sector. By supporting the production of energy from renewable sources for own needs, enterprises will increase the energy efficiency of the regions in which they operate.

In parallel with the above, we consider it appropriate for enterprises in industrial zones to also be permitted to sell the surplus of energy produced for own needs on the free market. This would not only provide a market mechanism for realising surpluses, but would also stimulate innovation and investment in new and more efficient technologies. Such permission would support the sustainable development of industrial enterprises and would contribute to the stability of the country's energy system.

In conclusion, the admission of an exception for the production of energy from renewable sources for own needs in industrial parks is in accordance with the fundamental principles of national and European law, while at the same time contributing to the achievement of sustainable economic development, energy security and compliance with environmental objectives. Such an exception is necessary in order to guarantee the long-term competitiveness of the industrial sector and to support the transition towards cleaner and more sustainably produced energy. In addition, we consider it appropriate for enterprises to have the opportunity to sell the surplus of energy produced on the free market. This will create an economic incentive for the efficient use of resources and will contribute to the stabilisation of the energy system, while at the same time providing enterprises with additional opportunities for financial stability and market sustainability.

We hope that the proposals and comments made in this position will be taken into account in the adoption of the law.

Yours sincerely,

Dobromir Ivanov Executive Director of the Association "Bulgarian Entrepreneurial Association"