Klaus-Dieter Borchardt: Bulgaria Has Potential to Develop into Gas Hub

"For too long Bulgaria and other countries of the region have been concentrating on large scale pipeline projects such as South Stream and have left behind the development of important regional infrastructure, notably interconnections with neighbouring countries," Klaus-Dieter Borchardt, Director Internal Energy Market at the European Commission's Directorate-General for Energy, has told Novinite.

Mr Borchardt was asked to comment on the challenges facing Bulgaria's energy sector at a time the country is no the road to electricity market liberalization and is pinning hopes on building a number of gas link with its neighbours.

Borchardt, whose professional experience at the EU Commission began in 1987, is no stranger to energy developments in Bulgaria. He is coming to the country on December 9 to attend several events here and also to meet Energy Minister Temenuzhka Petkova.

Mr Borchardt, with Bulgaria's energy exchange due to have its test launch very soon, and liberalization of the electricity market forthcoming, is there any risk of deepening the crisis in the country's energy sector, rather than solving its problems?

No, there is no alternative to market liberalization and full integration into the Single European Energy Market. Why do you have the crisis in your energy sector? It is mainly because of an old fashioned regulatory framework, too much and badly targeted state interventions and the lack of competition. All this does not create incentives for new investments which are necessary in order to modernise and transform the energy system into a system which delivers on the overarching energy objectives which are the providing security of supply through a sustainable...