Feed-in Tariff

Updated: 10.01.2019

Author: Tim Sternkopf

The public supplier is obliged to purchase electricity from renewable energy sources for a tariff set by the Energy Regulatory Office.

The tariff as well as the duration of the incentive period vary among technologies.

Eligible technologies

Preferential tariffs are provided for solar PV, wind, small hydro power  and biomass. Annual capacity limits for each technology are defined (Decision on FiT).

Wind energy

Eligible (Decision on FiT, No. VI)

Solar energy

Eligible (Decision on FiT, No. VI)

Hydro-power

Eligible (Decision on FiT, No. VI).

Biomass

Eligible (Decision on FiT, No. VI)

Amount

The Decision on feed-in tariff (FiT) adopted by the Energy Regulatory Office on 19 May 2016 defines technology-specific tariffs for wind energy, solar PV, small hydro power and solid biomass.

Solar energy

€ 136.4 per MWh (Decision on FiT, No. VI)

Hydro-power

€ 67.47 per MWh (Decision on FiT, No. VI)

Biomass

€ 71.30 per MWh (Decision on FiT, No. VI)

Wind energy

€ 85 per MWh (Decision on FiT, No. VI)

Addressees

Entitled party: Energy enterprises generating electricity from renewable energy sources.

Obliged party: Public supplier

Procedure

Process flow

The applicant applies at the Energy Regulatory Office (ERO) which determines if the applicant is eligible for the support scheme (Decision on FiT, No. XII and XIII). The Notification on the Decision for Preliminary Authorisation and the final authorisation issued by the ERO, which determines the admission to the Support Scheme, automatically guarantees the Feed-in Tariff (Decision on FiT, No. XIV). The electricity producer eligible for the support scheme concludes a power purchase agreement and sells the generated electricity to the public supplier (Rule on Support Scheme, Art. 11).

Competent authority

Energy Regulatory Office (ERO)

Cap

The following capacity restrictions for the admission to the support scheme apply (Decision on FiT, No. VIII): 

  • Solar PV: less or equal to 3 MW
  • Solid biomass: less or equal to 14 MW
  • Wind: less or equal than 35 MW 
  • Small hydro: less or equal than 10 MW 

In the National Renewable Energy Action Plan, the capacity and electricity production targets for the different technologies for 2020 are defined as follows (4.3. h RE Action Plan):

  • Solar PV: 37 GWh / 30 MW
  • Wind: 350 GWh / 173.8 MW
  • Hydro: 706 GWh / 124.1 MW

The Support through FIT of electricity generation from RES is not conditioned by any energy efficiency criteria (4.3. i RE Action Plan).

Eligibility period

The power purchase agreement for hydro energy and solid biomass is signed for 10 years whereas for solar PV and wind energy it is signed for 12 years  (Decision on FiT, No. IX).

Distribution of costs

Consumers

Consumers bear the costs of the feed-in tariff through a specific charge on the services of the system operators.

Distribution mechanism

  • The public supplier pays the regulated tariff for the purchased electricity from renewable energy sources.
  • The entity holding the market operator license is obliged to manage the Renewable Energy Fund, which compensates the difference between reference price and feed-in tariff. It also includes 25% of the imbalance costs for installations >500 kW (Rule on Support Scheme, Art. 11 par. 1, Art. 13 par. 2, Art. 15 par. 1).
  • The costs of the Renewable Energy Fund are compensated through the charge on the transmission level for all suppliers of electricity. The specific formula for the calculation of the Renewable Energy Charge REC is stated in Art. 13 par. 3, Rule on Support Scheme).