Renewable energy policy database and support: single

The state promotes the purchase of heat produced from renewable energy sources (Chapter I Art. 2 Par. 2, Chapter IV Art. 25 Item 1 Law on Energy from Renewable Sources; Chapter II Art. 4 Item 3 Law on Heat Sector).

Aerothermal energy	Eligible
Hydrothermal energy	Eligible
Biogas	Eligible
Biomass	Eligible
Geothermal energy	Eligible
Solar thermal energy	Eligible

The independent heat producers are subject to regulated heat production prices, provided that at least one of the following conditions is met (Chapter IV Art. 10. Par. 3 Law on Heat Sector; Chapter III Items 9.1. and 9.2. Resolution No. O3-202/2010): • The construction or modernisation of the heat production facility or combined heat and power (CHP) plant operated by the independent heat producer was financed under the National Programme for the Development of Renewable Energy Sources, or funded by state or municipal grants or subsidies. • Electricity generated by an independent heat producer in a CHP plant is supported by the Public Service Obligation (PSO) and/or by the fixed tariff to promote the use of renewable energy sources. •The independent heat producer and the heat supplier belong to a group of related undertakings (in line with the Law on Competition), or an independent heat producer or a group of independent heat producers, belonging to a group of related undertakings (in line with the Law on Competition), produce(s) more than 1/3 of the annual amount of heat within one heat supply system. If the above given conditions are not met, the independent heat producers may freely define the price for their heat. However, in both cases (regulated and not regulated prices) heat is produced and/or purchased at a price, which cannot be higher than the comparative cost of heat production by the heat supplier, calculated in accordance with the procedure established by the NCC in Regulation No. O3-202/2010 (Chapter IV Art. 10 Par. 3 Law on Heat Sector; Chapter III Item 9.4. Resolution No. O3-202/2010).

Independent producers of renewable heat (Chapter IV Art. 25 Item 2 Law on Energy from Renewable Sources).

Process flow	If there is at least one operating independent heat producer in the heat supply system, the forecasted amount of heat, required to meet the consumer demand for heat, is generated and/or purchased through heat auctions. The generated and/or purchased heat needs to meet the requirements for quality, reliability and the environment (Chapter IV Art. 10. Par. 1 Law on Heat Sector). Heat auctions are organized by the Energy Stock Exchange operator (BALTPOOL). The heat auction regulation is approved by the NCC, on the proposal of the Energy Stock Exchange operator (Chapter IV Art. 10 Par. 1 Law on Heat Sector). The heat suppliers shall, in accordance with the procedure established by the NCC, submit to the Energy Stock Exchange operator the forecasted amount of the heat to be produced and/or purchased in order to meet the consumer demand for heat (Chapter IV Art. 10 Par. 2 Law on Heat Sector). Heat suppliers and independent heat producers participate in the heat auction, by submitting proposals for heat generation and/or purchase and, after winning the heat auction, produce and/or sell heat at the price specified in the offer (Chapter IV Art. 10 Par. 2 Law on Heat Sector). Lack of heat, which was not purchased through the heat auction, is produced by the heat supplier with the available heat production facilities (Chapter IV Art. 10 Par. 2 Law on Heat Sector). In all cases, heat is produced and/or purchased at a price, which cannot be higher than the comparative cost of heat production by the heat supplier, calculated in accordance with the procedure established by the NCC in Regulation No. O3-202/2010 (Chapter IV Art. 10 Par. 3 Law on Heat Sector). When producing and/or purchasing heat, the priority is given to the lowest price. If the same heat price is offered, the following priority ranking is applied (Chapter IV Art. 10 Par. 4 Law on Heat Sector): • high-efficiency cogeneration using renewable energy sources or incinerating waste • CHP installations using renewable energy sources or incinerating waste • heat generating facilities using renewable energy sources or incinerating waste • waste heat from industrial plants • high-efficiency cogeneration • CHP installations • fossil fuel boilers. When the proposed heat price and the above given priority ranking are the same, priority is given to the heat auction participant, which guarantees a longer period of heat production and/or sales (Chapter IV Art. 10 Par. 5 Law on Heat Sector).
Competent authority	The National Commission for Energy Control and Prices (NCC)

Process flow

If there is at least one operating independent heat producer in the heat supply system, the forecasted amount of heat, required to meet the consumer demand for heat, is generated and/or purchased through heat auctions. The generated and/or purchased heat needs to meet the requirements for quality, reliability and the environment (Chapter IV Art. 10. Par. 1 Law on Heat Sector).

Heat auctions are organized by the Energy Stock Exchange operator (BALTPOOL). The heat auction regulation is approved by the NCC, on the proposal of the Energy Stock Exchange operator (Chapter IV Art. 10 Par. 1 Law on Heat Sector).

The heat suppliers shall, in accordance with the procedure established by the NCC, submit to the Energy Stock Exchange operator the forecasted amount of the heat to be produced and/or purchased in order to meet the consumer demand for heat (Chapter IV Art. 10 Par. 2 Law on Heat Sector).

Heat suppliers and independent heat producers participate in the heat auction, by submitting proposals for heat generation and/or purchase and, after winning the heat auction, produce and/or sell heat at the price specified in the offer (Chapter IV Art. 10 Par. 2 Law on Heat Sector).

Lack of heat, which was not purchased through the heat auction, is produced by the heat supplier with the available heat production facilities (Chapter IV Art. 10 Par. 2 Law on Heat Sector).

In all cases, heat is produced and/or purchased at a price, which cannot be higher than the comparative cost of heat production by the heat supplier, calculated in accordance with the procedure established by the NCC in Regulation No. O3-202/2010 (Chapter IV Art. 10 Par. 3 Law on Heat Sector).

When producing and/or purchasing heat, the priority is given to the lowest price. If the same heat price is offered, the following priority ranking is applied (Chapter IV Art. 10 Par. 4 Law on Heat Sector):

• high-efficiency cogeneration using renewable energy sources or incinerating waste

• CHP installations using renewable energy sources or incinerating waste

• heat generating facilities using renewable energy sources or incinerating waste

• waste heat from industrial plants

• high-efficiency cogeneration

• CHP installations

• fossil fuel boilers.

When the proposed heat price and the above given priority ranking are the same, priority is given to the heat auction participant, which guarantees a longer period of heat production and/or sales (Chapter IV Art. 10 Par. 5 Law on Heat Sector).

Competent authority

The National Commission for Energy Control and Prices (NCC)

Consumers	Production and purchase of renewable heat is considered to be a Public Service Obligation (PSO) and thus the costs are passed on to the heat consumers via the heat price (Chapter II Art. 4 Items 1, 3 Law on Heat Sector).

Consumers

Production and purchase of renewable heat is considered to be a Public Service Obligation (PSO) and thus the costs are passed on to the heat consumers via the heat price (Chapter II Art. 4 Items 1, 3 Law on Heat Sector).

Renewable energy policy database and support

Legal sources on renewable energy

Price-based mechanisms (Priority purchase of heat produced from RES)

Eligible technologies

Amount

Addressees

Procedure

Distribution of costs

Further information

Basic information on legal sources