Federation of Bosnia and Herzegovina: Feed-in tariff (Guaranteed Price)

Updated: 07.02.2017

Author: Ivana Naydenova

In the Federation of Bosnia and Herzegovina, the main support scheme for the production of electricity from renewable energy sources is a feed-in tariff, regulated by the RES Law FBiH and special Decrees and Rulebooks. The plant operators need to obtain the status of a „privileged power producer“ („privilegovani proizvođač električne energije“) and in order to acquire the right to a price support for the generated electricity under the legal requirements. After having concluded a power purchase agreement with the plant operator, the Operator for Renewable Energy Sources and coefficient cogeneration (hereinafter: RES Operator) is legally obliged to buy the total amount of electric energy from privileged producers at an incentive price. The amount of the feed-in tariff is determined in the Decision on the determination of the guaranteed prices for electricity from renewable energy sources and efficient cogeneration and depends on the type of technology and the capacity of the power plant.

Eligible technologies

In general, all technologies are eligible; however, some limitations with regard to the installed power (in particular micro-plants from 2 kW – 23 kW) apply.

Solar energy

Eligible (Art. 19 § 2 lit. c RES Decree FBiH).

Wind energy

Eligible (Art. 19 § 2 lit. b RES Decree FBiH).

Geothermal energy

Eligible (Art. 19 § 2 lit. f RES Decree FBiH).

Biogas

Eligible (Art. 19 § 2 lit. e RES Decree FBiH).

Hydro-power

Eligible (Art. 19 § 2 lit. a RES Decree FBiH).

Biomass

Eligible (Art. 19 § 2 lit. d and g RES Decree FBiH).

Amount

The method of calculating or changing the feed-in tariff follows the Rulebook on the Methodology on determining the Guaranteed Prices for Electricity from Renewable Energy Sources and Efficient Cogeneration. The particular amount depends on the technology and the “size category”, i.e. the capacity of the facility, under which the power plant falls (see classification in Art. 15 RES Decree FBiH): a) micro plants: 2 kW – 23 kW, b) mini plants: 23 kW – 150 kW, c) small plants: 150 kW – 1 MW, d) medium plants: 1 MW – 10 MW, e) large plants: over 10 MW. The current amounts are determined in the Decision on the determination of the guaranteed prices for electricity from renewable energy sources and efficient cogeneration. During the trial operation the purchase price amounts to the reference price, which is at 0,099458 BAM/kWh = 5.11292 €ct/kWh since 1.03.2016 (Art. 1 Reference Price Decision). For micro-plants the same values apply for the respective technology (Art. 27 § 4 RES Law FBiH).

Wind energy

• Micro: BAM 0.37124 (approx. €ct 17.86) per kWh

• Mini: BAM 0.22140 (approx. €ct 10.65) per kWh

• Small: BAM 0.18917 (approx. €ct 9.10) per kWh

• Medium: BAM 0.16033 (approx. €ct 7.71) per kWh

• Large: BAM 0.14766 (approx. €ct 7.10) per kWh

Solar energy

• Micro: BAM 0.54190 (approx. €ct 27.70) per kWh

• Mini: BAM 0.35806 (approx. €ct 18.31) per kWh

• Small: BAM 0.30866 (approx. €ct 15.78) per kWh

Geothermal energy

The Guaranteed Price Decision entails no feed-in tariff for geothermal power plants.

Biogas

• Micro: BAM 0.71160 (approx. €ct 36.37) per kWh

• Mini: BAM 0.66637 (approx. €ct 34.07) per kWh

• Small: BAM 0.27891 (approx. €ct 14.26) per kWh

Hydro-power

• Micro: BAM 0.29036 (approx. €ct 14.84) per kWh

• Mini: BAM 0.18192 (approx. €ct 9.30) per kWh

• Small: BAM 0.13751 (approx. €ct 7.03) per kWh

• Medium: BAM 0.12373 (approx. €ct 6.33) per kWh

Biomass

• Micro: BAM 0.31292 (approx. €ct 16.10) per kWh

• Mini: BAM 0.24987 (approx. €ct 12.77) per kWh

• Small: BAM 0.24067 (approx. €ct 12.30) per kWh

• Medium: BAM 0.22706 (approx. €ct 11.61) per kWh

Addressees

This support scheme is addressed to plant operators, who hold the status of privileged producers. The obligated party is the Operator for Renewable Energy Sources and Efficient Cogeneration (see III.IV Decision on the establishment of the Operator for Renewable Energy Sources and Efficient Cogeneration).

Procedure

Process flow

Status of “qualified producer”

First of all, the plant operator needs to request from the Regulatory Commission (Regulatorna komisija za energiju u Federaciji Bosne i Hercegovine, Art. 17 Electricity Law FBiH) to give him the status of a “qualified producer” (Art. 20 § 2 RES Law FBiH, also see Art 42 § 2 Electricity Law). He can obtain this status, if he has an operation permit for a power plant that produces energy from renewable energy sources (or efficient cogeneration) and fulfils the requirements in Art. 6 and 8 Qualified Producer Decree.

The qualified producer is always entitled to sell the produced electricity for a uniform “reference price” for all technologies (see Art. 3 § 1 lit. z.dd. RES Law FBiH). The price is calculated pursuant to the Rulebook on the Methodology for Determining the Reference Price for Electricity (Pravilnik o metodologiji za utvrđivanje referentne cijene električne energije) and the current amount is determined by the Decision on the Reference Price for the Year 2014 (Odluka o referentnoj cijeni za 2014. Godinu).

Status of “privileged producer“

Secondly, the plant operator needs to obtain the status of a “privileged producer“. A privileged producer of electricity is a qualified producer, who has been given the right to demand the guaranteed price for the purchase of all of the produced electricity from RES (Art. 23 § 1 RES Law FBiH). In order to receive this status, the plant operator files a request to the RES Operator (Art. 23 § 3 RES Law FBiH). This request entails (Art. 23 § 7 RES Law FBiH):

  • Name and address of the investor
  • Location of the plant
  • Capacity of the plant
  • Technology of the plant
  • Timeline for the building and connection of the plant

The plant producer also needs to show the use permit for his power plant from renewable energy sources, by which he also proves that he already is a qualified producer (see Art. 3 § 1 lit. q RES Law FBiH), and an energy permit. If the RES Operator issues a favourable decision, the qualified producer obtains the status of privileged producer for a period of 12 years (Art. 23 § 16 RES Law FBiH) and has the right to conclude a power purchase agreement (see below).

It is also possible to obtain the status of “potentially privileged producer” (“potencijalni privilegovani proizvođač“), if the special requirements from Art. 20 § 5 RES Decree, such as a construction and an energy permit, can be met.

Power purchase agreement

The privileged power producer needs to put forward a request for the conclusion of a “power purchase agreement for a guaranteed price” (“Ugovor o otkupu električne energije po garantovanim otkupnim cijenama“, Art. 10 § 1 lit. C RES Law FBiH). Among other things this agreement regulates the rights and obligations between the privileged power producer and the RES Operator, the exact price, contract period, technical issues and information obligations (Art. 26 § 5 RES Law FBiH). Thus, the RES Operator is obliged to purchase the total amount of produced energy from renewable energy sources.

If the plant operator only obtained the status of a potentially privileged power producer, he may conclude a “preliminary power purchase agreement” (“Predugovor za otkup električne energije od privilegovanih proizvođača“, Art. 26 § 2 RES Law FBiH). The preliminary agreement includes basically the same provisions as the ordinary power purchase agreement, with the shorter contract period and the deadline for the construction being the main difference. For this purpose, he files a written request to the RES Operator and, if all the requirements are met, the RES Operator is obliged to conclude the contract (compare Art. 25 § 5 and 6 RES Decree FBiH).

Micro-plants

Pursuant to Art. 27 § 2 RES Law FBiH a shortened procedure applies to owners of micro power plants (2 kW – 23 kW) in accordance with the Rulebook for micro plants using renewable energy sources (“Pravilnik za mikro-postrojenja obnovljivih izvora energije“). Moreover, the owner of micro-plants are exempt from the costs associated with the balance responsibility (Art. 27 § 6 RES Law FBiH).

Competent authority

The competent authority is the Operator for Renewable Energy Sources and Efficient Cogeneration (RES Operator).

Cap

Pursuant to Art. 22 RES Decree FBiH the total installed power is laid down in the National Action Plan for the use of renewable energy sources 2010-2020 (“Akcioni Plan Federacije BiH za korištenje obnovljivih izvora energije“, APOEF) placed in the Annex of “Action Plan for the use of renewable energy in Bosnia and Herzegovina until 2020” (NREAP BiH). Until the year 2020 following limitations are foreseen :

1. Hydro power plants with a capacity of < 1 MW cannot exceed 25 MW, 1 MW – 10 MW cannot exceed 55 MW, > 10 MW cannot exceed 85 MW,

2. Solar power plants < 1 MW cannot exceed 1 MW,

3. Wind power plants cannot exceed 230 MW.

APOEF is available under: Link

NREAP BiH is available under: Link

Eligibility period

The power purchase agreements have a duration of 12 years (Art. 26 § 6 RES Law FBiH).

Distribution of costs

Consumers

The support scheme is funded by a fee that is charged on each kWh purchased by the final consumers (Art. 22 § 1 RES Law FBiH). The fee is subject to the provisions of the Decree on the promotion of the electricity production from renewable energy sources and efficient cogeneration and on the determination of the incentive fee (“Uredba o podsticanju proizvodnje električne energije i OIEiEK i određivanju naknada za podsticanje”). The current amount is described in Art. 4 § 6 RES Decree FBiH and depends on the voltage level.

Distribution mechanism

The distribution mechanism is described in the RES Decree FBiH:

All final consumers are obliged to pay an incentive fee for the promotion of the electricity production from renewable energy sources and efficient cogeneration (“naknada za podsticanje proizvodnje iz OIEiEK”) for each delivered kWh of electriticy, which the supplier is required to indicate separately in the electricity bill (Art. 3 § 2 and 3 RES Decree FBiH).

According to Art. 10 § 1 RES Decree FBiH the fee represents the income of the RES Operator, who consequently is responsible for the collection of the funds from the supplier (Art. 10 § 1 lit. l RES Law FBiH). The RES Operator also has information duties towards the Ministry of Energy, Mining and Industry with regards to the actual and estimated consumption in order to create a basis for the yearly decision on the amount of the fee (Art. 4 § 4 and 5 RES Decree FBiH). 

Bosnia and Herzegovina

Further information

  • Državna Regulatorna Komisija za Električnu Energiju (DERK) – State Electricity Regulatory Commission (SERC)
  • +387 35/30 20 60
  • SERC website
  • info(at)derk.ba
  • Regulatorna Komisija za Energiju u Federaciji Bosne i Hercegovine (FERK) – Commission for Energy Regulation of the Federation of Bosnia and Herzegovina
  • +387 36/44 99 00
  • FERK website
  • kontakt(at)ferk.ba