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Incentive measures of the Serbian Government for privileged producers of electricity

Decree on the measures of incentives for the production of electricity using renewable energy sources and combined production of electricity and heat (Official Gazette of RS, No. 99/2009), prescribes in more detail measures of incentives for the production of electricity using renewable energy sources and for the purchase of energy – Feed-in tariff, balancing and readout; defines energy facilities that produce electricity from renewable sources, regulates the content of the agreement on purchase of electricity per incentive measures, as well as reimbursement of costs to the purchaser of produced energy.

The terms used in this Decree have the following meaning:

– Renewable energy sources are energy sources that are found in nature and reproduced in whole or in part especially watercourses energy, wind energy, solar energy, biomass, geothermal energy, bio-fuels, biogas, synthetic gas, landfill gas, gas from sewage, water and waste water treatment plants from food and wood processing industries that do not contain hazardous substances;

– Biogas power plants are biogas plants that use gas emerged from the remains in agriculture (liquid manure and manure from livestock and poultry farms), biomass, biomass residues resulting from primary processing of agricultural products, which do not contain hazardous materials, debris and parts of animals;

– Hydroelectric power plants on the existing infrastructure are hydro power plants that use existing dam controlled by a public company, as well as hydro power plants built on pipelines designated to supply raw water to the water plant for processing.

– Power plants using landfill gas are power plants that use gas originated in the public landfills or gas created by plants for treatment of public wastewater;

– Power plants with combined production on the existing infrastructure are revitalized old power plants

with combined production of fossil fuels that were in operation for at least 25 years prior to the revitalization, as well as reconstructed old power plants with combined production of fossil fuels, which have not been in the operation for at least five years prior to reconstruction, regardless of time of operation in the plant;

Producer of energy that meets prescribed conditions is the privileged producer of electricity.

Power Plant, in the terms of this Decree, is the plant for producing electricity or combined production with one or more production units, namely:

  • hydro power plants of installed power up to 10 MW;
  • power plants of installed power up to 10 MW, which in the production process use only biomass or biomass combined with some additional fossil fuel, provided the energy value of biomass used annually makes at least 80% of total primary energy;
  • power plants which produce electricity using renewable sources of energy other than biomass, provided energy value of used renewable energy in the production process annually makes at least 90% of total primary energy, with a supplementary fuel as some of the fossil fuels, biomass or waste;
  • power plants for combined production of installed power up to 10 MW which use renewable energy sources, fossil fuels or fossil fuels combined with some renewable energy source;
  • power plants that use separated biodegradable fraction of public waste (hereinafter: the waste) of installed power up to 10 MW.

 

The right to incentive measures set forth in this Decree for electricity produced in power plants that use un-accumulated solar energy is limited to the total installed power up to 5 MW in these power plants. The right to incentive measures set forth in this Decree for electricity produced in power plants that use wind energy is limited to the total installed power up to 450 MW in these power plants. Besides the privileged producers that are entitled to incentive measures in terms of paragraph 2 of this Article, the right to incentive measures set forth in this Decree may also be obtained by privileged producers of electricity in wind power plants at a total of installed power equal to the amount of 10% of the capacity to produce electricity, which is built by a public company for production, distribution and trading of electricity within the period of validity of this Decree.

Incentive measures, in terms of this Decree, include the purchase price determined by this Decree, according to the type of power plant that produces electricity using renewable energy sources as well as according to the installed power (R) expressed in MW. Type of power plant, as well as installed power is determined by the act on acquiring the status of privileged producers of electricity.

Produced energy can be purchased at prices prescribed by this Decree, which is valid for a period as of 1 January 2010 to 31 December 2012. Price is determined in EUR per kilowatt hour and provides different amounts, depending on the installed power of facility and other parameters shown in the above scale, and is paid in dinars counter value by the middle exchange rate of NBS on the date of invoicing. Purchaser of produced electricity is a public company for production, distribution and trade of electricity. The rights and obligations of the purchaser and the producer shall be defined by the Agreement, which is concluded for the period of 12 years, while the purchaser prepares the model of this Agreement and submits it to the competent Ministry, for its approval. Privileged producer, who concluded such an agreement, does not pay for balancing, or the read-out of electricity. Before signing the agreement, the initial state is read out, and within 3 days the information on that is provided to the purchaser and the producer.