#1Support schemes for renewable energy in Bosnia and Herzegovina ******* Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina#2Renewable energy in Bosnia and Herzegovina Total capacities of renewable energy: 2373 MW 172 420 35 1 1,12 87 Annual capacity change: + 22 MW 1657 Wind Large hydropower Solar Small hydropower <10 MW Biogas Pumped storage Biomass#3+ Existing Support Schemes for RE in BiH Feed-in-tarife . Existing RE support schemes are not sustainable • The goals of electricity production from RES cannot be met through existing schemes incentives in BiH NEED FOR REFORM OF THE RENEWABLE ENERGY SUPPORT SCHEME SYSTEM IN BOSNIA AND HERZEGOVINA WHY New Support Schemes for RE in BIH? The "RE world" dramatically changed since existing support schemes were introduced: • Tremendous development of RE generation installed capacities . Extraordinary technology improvement Significant price drop per installed kW Challenges in networks related to higher feed-in of intermittent RE • New EU regulation for RE reflects the recent developments#4New RE Support Schemes in Bosnia and Herzegovina New RES support schemes are transparent and non-discriminatory - auctions are introduced instead of "allocation by the order of application" (first come first serve) RES capacity that is supported, on: • Support for large installations RES support in BIH is divided by: Support for small installations Type of support, on: • Direct support (FIP, FIT and tax rebates), and Indirect support (participation in balancing costs, priority dispatching, network connection costs, etc.) Allocation support methods, on: • Auction (open or site specific auctions), and • Administrative (based on expert estimation) New RES support schemes provide: . Either more projects, i.e. MW/MWh from RES than so far, for the same spent funds, • Or the same amount of projects, i.e., MW/MWh from RES as so far, for less spent funds Significant improvements are proposed in legal/regulatory framework for consumers that produce electricity for own needs (Prosumers) Institution of so called community energy projects is introduced in legal-regulatory framework for RES#5General concept new RE Support Schemes in BIH Different support schemes for small and large RES installations Large-Scale Installations: Incentives based on Feed in premiums and whole sale price/market reference price Small-Scale Installations: Incentives based on Feed in tariff or net collection (up to the defined capacity limit)#6Overview of Support Schemes for Small-Scale Installations Technologies Parameter setting Support scheme Generator (type) Feed-in-tariff Administrative / expert based Small generators Prosumers Net billing Tax incentives Community based RE#7Overview of Support Schemes for Large-Scale Installations Technologies Parameter setting Support scheme Generator (type) Auction based ☑ Administrative / expert based h Feed-in-premium Tax incentives Commercial Application Community based RE#8New RE Support Schemes in Bosnia and Herzegovina Federation of Bosnia Republika Srpska small installations (<150/500 kW) - guaranteed redemption price large installations (>150/500 kW) - market variable premium (auctions 2 years - Operator) 15 years Prosumer - net metering and net billing and Herzegovina small installations (<150/250/500 kW) - guaranteed redemption price (small auctions) large installations (>150/250/500 kW) - fixed premium (auctions 2 years - Operator) 12 years Prosumer - net metering and net billing#9Support For Prosumers: Net Metering / Net Billing • Definitions: Net metering refers to physical, net billing to monetary compensation of prosumers by their supplier for excess generation fed into the grid Excess generation Physical compensation 4 Monetary compensation ☐ RE self-consumption should be actively promoted by net billing suggestion) (preliminary ☐ Net billing is preferred option for prosumer support for the following reasons • technology neutral, • applicable only to the households and small businesses, • connected to the low voltage networks (0.4kV) ☐ Detailed recommendations in line with report by Energy Community#10Community Energy Projects Through the benefits of the realization of the community energy projects, part of the RES support funds returns to the place of origin" - end consumers of electricity in BIH. Implementation of Community Energy projects significantly increases awareness of the importance and value of the RES ☐ It is necessary to enable participation of community energy projects within foreseen main and complementary support schemes, such as: ■ Net billing (if/when enabled) ☐ FiT for small installations / FiP for large installations ■ Supplementary exemption of taxes and fees payment ☐ Community energy projects should be additionally supported through: ☐ ■ Development of changes and amendments in relevant legal and regulatory framework ■ Definition of quotas/upper limits for community energy projects, ■ Inclusion of Community Energy projects in strategies, action plans and RES target#11Jun 19 Aug'19 Prior consent of the decision maker Time frame for reform Okt 19 Jan 20 Final consent of the decision maker Preparation of the final work package, in the framework Working groups, consisting of: ✓ Draft legislation ✓ Draft PPA / FAA forms ✓ Cost calculation methodology ✔ Guidelines for institutions and investors ✔ Accompanying documents for defining the institutional structure and process Final review and adjustment of the reform (FIT/ FIP levels, thresholds, roles, technology quotas and quantities) Preliminary consultations Finalization of the reform package Jan 21 Final consultations (institutions' websites, events) Adoption of reform legislation/in progress#12Thank you for your attention! Tamara Bajkuša Aldina Imširović Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina Sector for Energy Musala 9, 71 000 Sarajevo T: +387 33 407 264 F: +387 33 552 512 e-mail: [email protected] [email protected] web:mvteo.gov.ba