Sliding feed-in premium (Law on Energy from Renewable Sources)

Updated: 21.12.2018

Author: Jurga Tallat-Kelpšaitė

In Lithuania, renewable electricity generating technologies with the total installed capacity of up to and including 10 kW are promoted through a sliding feed-in premium, i.e. the difference between the guaranteed tariff and the sale price for electricity generated from renewable energy sources. The operators of renewable electricity generating technologies (except those generating electricity from geothermal power technologies) are entitled against an independent electricity supplier or the distribution system operator to payment for electricity exported to the grid. All electricity produced by renewable electricity generating technologies whose total installed capacity does not exceed 10 kW shall be purchased at the tariff set by the National Commission for Energy Control and Prices (NCC). 

Eligible technologies

Except for electricity generated from geothermal power technologies, all renewable electricity generating technologies are eligible for this support scheme (Chapter III Art. 13 Par. 3, Chapter III Art. 20 Par. 2, 3 Law on Energy from Renewable Sources, Chapter II Item 4. Resolution No. 827/2012).

Wind energy

Eligible.

Solar energy

Eligible.

Biogas

Eligible.

Hydro-power

Eligible.

Biomass

Eligible.

Amount

In Lithuania, renewable electricity generating technologies with the total installed capacity of up to and including 10 kW are promoted through a sliding feed-in premium, i.e. the difference between the guaranteed tariff and the sale price for electricity generated from renewable energy sources. This price shall not be lower than the average market price of the previous month and shall be calculated in accordance with the procedure set by the NCC (Chapter III Art. 20 Par. 2 and 14 Law on Energy from Renewable Sources). The guaranteed tariff for RES installations whose installed capacity does not exceed 10 kW is set by the NCC and is paid for up to 50 % of electricity generated from renewable energy sources during a calendar year (the so called ‘surplus electricity’) (Chapter III Art. 20 Par. 14 Law on Energy from Renewable Sources). The guaranteed tariffs are reassessed by the NCC every 6 months, taking into account the actual amount of electricity generated during the previous calendar year, the total installed capacity of the already operational RES installations and the total capacity of the RES installations under construction (Chapter III Art. 20 Par. 6 Law on Energy from Renewable Sources). The following tariffs for RES installations with a generating capacity up to and including 10 kW are set by the NCC by the end of 2018 (Resolution No. O3E-171/2018):

Wind energy

• Tariff rate for wind power with the installed capacity of up to and including 10 kW: € 0.052 per kWh (Item 3.1. Resolution No. O3E-171/2018)

Solar energy

• Tariff rate for building-integrated solar power installations with installed capacity of up to and including 10 kW: € 0.169 per kWh (Item 1.1. Resolution No. O3E-171/2018)

• Tariff rate for solar power installations not integrated in buildings with the installed capacity of up to and including 10 kW: € 0.136 per kWh (Item 2.1. Resolution No. O3E-171/2018)

Biogas

• Tariff rate for power plants using landfill gas with the installed capacity of up to and including 10 kW: € 0.111 per kWh (Item 7.1. Resolution No. O3E-171/2018)

• Tariff rate for power plants using biogas derived from anaerobic digestion or other biodegradable organic waste or substrates with the installed capacity of up to and including 10 kW: € 0.134 per kWh (Item 8.1. Resolution No. O3E-171/2018)

Hydro-power

• Tariff rate for hydro-power plants with the installed capacity of up to and including 10 kW: € 0.059 per kWh (Item 4.1. Resolution No. O3E-171/2018)

Biomass

• Tariff rate for new build power plants using biomass with the installed capacity of up to and including 10 kW: € 0.066 per kWh (Item 5.1. Resolution No. O3E-171/2018)

• Tariff rate for reconstructed power plants using biomass with the installed capacity of up to and including 10 kW: € 0.046 per kWh (Item 6.1. Resolution No. O3E-171/2018)

Addressees

Entitled party: The persons entitled to the purchase of electricity exported to the grid are the operators of RES installations (Chapter III Art. 20 Law on Energy from Renewable Sources).

Obligated party: Surplus electricity generated by RES installations of up to and including 10 kW is purchased on contractual basis by an independent electricity supplier. In case no agreement could be reached with the independent supplier or at the request of the consumer, the distribution system operator, supplying more than 100 000 consumers, is obliged to purchase the surplus renewable electricity, based on the agreement with the consumer (Chapter V Item 21. Resolution No. 827/2012).

Procedure

Process flow

‘Surplus electricity’ produced by RES installations whose total installed capacity does not exceed 10 kW shall be purchased at the guaranteed price set by the NCC (Chapter III Art. 20 Par. 14 Law on Energy from Renewable Sources).

RES plant operators are eligible for this support scheme only if they receive no funding under the National Programme for the Development of Renewable Energy Sources (Chapter XII Item 57. Resolution No. 827/2012).

Competent authority

The Ministry of Energy is responsible for supervising compliance with the regulations regarding the sliding feed-in premium, the NCC for setting the tariff rates (Chapter II Art. 6, 11 Law on Energy from Renewable Sources).

Cap

The Law on Energy from Renewable Sources introduced a cap for sliding feed-in premium payments for each eligible technology. This means that until 2020 only a limited amount of electricity produced with a particular technology will be supported through the sliding feed-in premium scheme. Until 2020 the following caps are set:

• For wind power plants: 500 MW (Chapter III Art. 13 Par. 3 Item 1 Law on Energy from Renewable Sources)

• For solar power plants (excluding plants of up to 30kW authorised to expand electricity generation capacity according to the applications submitted on 31 December 2012 at the latest): 10 MW (Chapter III Art. 13 Par. 3 Item 2 Law on Energy from Renewable Sources)

• For hydro-power plants: 128 MW (Chapter III Art. 13 Par. 3 Item 3 Law on Energy from Renewable Sources)

• For biogas and biomass power plants: 105 MW (Chapter III Art. 13 Par. 3 Item 4 Law on Energy from Renewable Sources) According to the NCC, all these caps have already been reached and therefore no financial support under the sliding feed-in premium scheme for new RES installations is currently available.

Eligibility period

For RES installations of up to 10 kW the feed-in premium shall be paid for 12 years from the issue of the power generation licence (Chapter III Art. 20 Par. 14 Law on Energy from Renewable Sources).

Distribution of costs

Consumers

As generation of electricity from renewable energy sources is public service obligation, the costs arising from the feed-in premium are borne by the consumers through the electricity prices (Chapter II Item 7.1 Resolution No. 916/2012).

Distribution mechanism

An independent electricity supplier or the distribution system operator purchase electricity from renewable sources from the operators of RES installation (Chapter V Item 21. Resolution No. 827/2012). The costs arising from the sliding feed-in premium are included in the PSO levy and thus borne by the consumers through the electricity prices (Chapter II Item 7.1. Resolution No. 916/2012).

Lithuania

Further information