Sofia municipality is planning to invest 12.6 million leva in new energy efficient hydropower stations, "in one of the most ambitious schemes ever contemplated to process resources from structural funds as part of the public-private development programme," said  the deputy Sofia construction mayor Irina Savina, reported by Stroitelstvo Gradut.

This particular project would entail the construction of eight hydroelectric stations with 10 megawatt capacity each,  absorbing a total of 12.6 millio leva.

According to the initial analysis from municipality-conducted research,  the gross annual output of all stations would be 50019 mWh. By 2012 it is possible that the carbon emissions trade programme under the Kyoto Protocol will be activated; thus, under the most pessimistic scenario, of five euro per ton of carbon, Sofia municipality believe that they can generate a profit of 2.05 million leva annually.

The municipality is entrusted with deciding how exactly to realise the investment – through their own financial resources or through a public/private enterprise. The issue of land and equipment ownership must also be addressed.

"The project currently is at the planning phase under the long term energy efficiency programme for the period 2009-2013," said Irina Savina. "The energy efficiency document was presented before the commission of engineer infrastructure on March 23. The document also includes a short term phase extending to the period 2009-2011 – the aforementioned paper with both phases will be introduced for approval by the Sofia Municipal Council," she said.

Furthermore, the municipality contemplates investing in the installation of  water heating systems powered by solar energy in schools, playhouses and social homes. The programme could be expanded to cover other municipal and government institutions.

In the future, the municipality will introduce a strategy for alternative energy by installing solar panels on all government and municipal buildings for water heating and electrical production. Such installations would work with an average coefficient of efficiency of about 12 to 14 per cent.

The municipality has forwarded a letter to all boroughs in Sofia requesting information for convenient parcels where such alternative energy systems can be installed. One such location is Suhodol, where solar panels and biomass energy can be produced.