Hong Kong's United Energy Group will build the largest solar power plant in Bulgaria

United Energy Group (UEG), a Hong Kong-based oil and gas exploration and production company, is buying the Bulgarian Green Profit, thereby indirectly acquiring the right to build the 250 MW Simeonovgrad-Polyanovo photovoltaic power plant. The news was initially reported by InvestBulgaria Agency. Economic.bg found more details about the deal in the official documents of United Energy Group (UEG).

More specifically, the Haskovo-based company will be acquired by the UEG Clean Energy subsidiary, with a purchase price of 37.5 million euros to be financed through the group's own funds.

With this transaction, the Hong Kong company will acquire the easement right over several land properties located in the town of Haskovo, as well as permits for the construction of the Simeonovgrad PV plant with a capacity of 70 MW, as well as the Polyanovo PV plant with a capacity of 180 MW. The Asian company also becomes the owner of the relevant auxiliary infrastructures and connecting facilities of the mentioned land properties.

UEG adds that after the deal is completed, "the group intends to start the construction of the project and put into operation the largest solar facility in Bulgaria by 2025."

From the InvestBulgaria Agency announcement and the corporate documents, it is not clear how advanced the administrative procedures for the construction of the project are.

The documents cite Bulgaria's commitment to the development of the renewable energy sector, which has been strengthening in recent years. UEG adds that "the strongest growth is expected in the solar segment, which makes Bulgaria one of the best in the EU in the coming years."

Combined with high electricity tariffs, well-developed infrastructure and attractive fiscal terms, the project will be immediately cash-flow positive once operational," the Hong Kong company wrote.

Green Profit is a Haskovo company owned by Delcho Pehlivanov. The deal was signed on 29 March, and the event was attended by MP Zhecho Stankov (GERB), Angelin Tsachev, the executive director of the Electricity System Operator (ESO), Yu Song, Chief Operation Officer of United Energy Group, Leslie Zhang, Vice President of UEG, as well as Plamen Dilkov, Vice President of Confindustria and owner’s engineer of EUG.

You might recall that at the beginning of the year, Resolv Energy received regulatory approval for a solar plant project with a capacity of 229 MW. According to the permits issued by the Energy and Water Regulatory Commission (DKER) so far, it was going to be the largest such in Bulgaria.

Translated by Tzvetozar Vincent Iolov