CEZ has announced that it is to close its 1260 MW coal-fired power plant at Varna, on the Black Sea, as environmental regulations from Brussels will make it unprofitable to run.

The Czech power utility came to that conclusion after talks with Bulgaria‘s state-owned Bulgarian Energy Holding (BEH) over setting up a joint company to fund an upgrade failed.

Varna coal-fired power plant
CEZ says their analysis shows that investment is not an option due to the current costs of electricity and greenhouse emissions.

Initially both parties had entered the venture in order to perform upgrades on three of the six units in the coal-fired power plant to extend their lifespan and then lease them.

However CEZ has now announced, “The financial model showed that … the plant would be producing electricity at a cost that would not be competitive in the regional liberalised energy market.”

CEZ still will push forward with efforts to sell or rent the plant, which has been used largely as a back-up for Bulgaria’s power grid.