New energy law and RES amendments to simplify investment in Republika Srpska

, SEE Energy News

Law on renewable energy sources and efficient cogeneration gives incentives to producers of renewable energy, and simpler procedures for investment, it was announced at the final public hearing on the draft of this law in Banja Luka.

The Law provides that the RS Government should adopt an action plan for the use of renewable energy sources for a certain period, including the objectives of the participation of the energy from renewable sources in gross final consumption of electricity, with an estimated annual participation by sectors.

For producers of electricity from renewable energy sources incentives are planned in connecting to the grid, benefits in the access to the grid, the right to compulsory purchase of electricity, and the right to a guaranteed purchase price or a “feed in” tariff, the premium on consumption for their own use or sale in the market of Republic Srpska.

Deputy Minister of Industry, Energy and Mining Sasha Savičić said that this law governs the area that has not been arranged so far, which is the obligation coming from the membership in the Energy Community of South East Europe.

He added that the incentives for producers are leveled according to the installed capacity of power plants and that the remarks during the hearing related to the capacity of facilities meaning the incentives should be given for facilities with larger installed capacity and manufacturers of thermal and mechanical energy.

“In this regard, we will consider amending the draft or the action plan that the Government is obliged to prepare in a six months period starting from the adoption of the Law” said Savičić.

According to him, to carry out operational activities in this field within six months an incentive system operator would be established as an independent non-profit organization, which will, among other things, keep records of the total quantity of electricity production and installed capacity of plants using renewable sources.

The operator will enter into contracts regarding incentives, and pay for electricity delivered, to facilities that are entitled to incentives.

Savičić said that Srpska is obliged to start applying EU directives by the end of this year and have 20 percent of electricity produced from renewable sources, according to which a scale of  dynamics of achieving that condition by 2020.

“The current share of energy produced from renewable sources is negligible in the market of Srpska, with the exception of rivers, which is why we have to develop sources of solar photovoltaic, wind, geothermal, biomass and biogas,” said Savičić.

The director of “ERS” small hydro power plants Jelena Djukic said that with the current purchase prices these energy facilities are economically viable within five to seven years.

She expressed satisfaction with the adoption of new legislation, because they can lead investors more quickly to the realization of their objectives.

Djukić notes that this company has so far built two energy facilities in Rudo municipality with total capacity of 2.8 MW, while the total investment amounted to about 10 million CM.

The law stipulates that certificates for production facilities will be issued by Energy Regulatory Commission, if electricity is produced from renewable sources or efficient cogeneration, in the economically appropriate manner while protecting the environment.

Incentive system operator is obliged, under the law, to provide access to the grid to a producer who is entitled to mandatory purchase of electricity at a guaranteed energy price.

Source Serbia Energy Magazine