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

Updated: 13.02.2017

Author: Jurga Tallat-Kelpšaitė

In Lithuania, renewable electricity generation plants with the total installed capacity 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 RES. The operators of renewable electricity generation plants (except those generating electricity from geothermal power technologies) are entitled against the electricity company designated by the Ministry of Energy - a public electricity supplier serving the area in which the RES producer is operating or an independent electricity supplier - to payment for electricity exported to the grid. All electricity produced by RES plants whose total installed capacity does not exceed 10 kW shall be purchased at the tariff on a quarterly basis set by the National Commission for Energy Control and Prices (NCC). 

Eligible technologies

Except for electricity generated from geothermal power technologies, all renewable generation 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 generation plants with the total installed capacity 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 RES. This price shall not be lower than the average market price of the previous month and shall be calculated according to the procedure set by the NCC (Chapter III Art. 20 Par. 2 Law on Energy from Renewable Sources). Electricity generated by renewable energy plants whose installed capacity does not exceed 10 kW shall be purchased at a guaranteed price which on a quarterly basis is set by the NCC. A guaranteed price 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. 3 - 6 Law on Energy from Renewable Sources).  From 1 January 2017 to 30 June 2017, the following tariffs for RES plants with a generating capacity up to and including 10 kW are set by the NCC (Resolution No. O3-406/2016):

Wind energy

Tariff rate for wind power with the installed capacity up to and including 10 kW: € 0.052 per kWh (Item 3.1. Resolution No. O3-406/2016)

Solar energy

  • Tariff rate for building-integrated solar power installations with installed capacity up to and including 10 kW: € 0.169 per kWh (Item 1.1. Resolution No. O3-406/2016)
  • Tariff rate for solar power installations not integrated in buildings with the installed capacity up to and including 10 kW: € 0.136 per kWh (Item 2.1. Resolution No. O3-406/2016)

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. O3-406/2016) 
  • 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. O3-406/2016)

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. O3-406/2016)

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. O3-406/2016)
  • 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. O3-406/2016)

Addressees

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

Obligated party: Surplus electricity generated in RES plants of up to and including 10 kW is purchased on contractual basis by an independent electricity supplier or a public electricity supplier to whose power grid the RES plant is connected. In case no agreement could be reached with the independent supplier, a public electricity supplier to whose power grid the RES plant is connected is obliged to purchase the surplus renewable electricity (Chapter V Item 21 Resolution No. 827/2012).

Procedure

Process flow

‘Surplus electricity’ produced by RES plants whose total installed capacity does not exceed 10 kW shall be purchased at the guaranteed price quarterly set by the NCC. (Chapter III Art. 20 Par. 14 Law on Energy from Renewable Sources) Surplus electricity is purchased on contractual basis by an independent electricity supplier or a public electricity supplier to whose power grid the RES plant is connected. In case no agreement is reached with the independent supplier, a public electricity supplier to whose power grid the RES plant is connected is obliged to purchase the surplus renewable electricity. (Chapter V Item 21 Resolution No. 827/2012) 

RES plant operators are eligible for this support scheme only if they did not receive any 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 as well as the NCC are responsible for supervising compliance with the regulations regarding the sliding feed-in premium (Chapter II Art. 6, 11 Law on Energy from Renewable Sources).

Cap

The Law on Energy from Renewable Sources introduced a cap on feed-in tariff 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 feed-in tariff 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 30 kW authorised to expand electricity generation capacity according to the applications submitted on 31 December 2012 latest): 10 MW (Chapter III Art. 13 Par. 3 Item 2 Law on Energy from Renewable Sources), 
  • For hydro-power plants: 141 MW (Chapter III Art. 13 Par. 3 Item 3 Law on Energy from Renewable Sources), 
  • For biofuel 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, except for hydropower, have already been reached and therefore no financial support under the premium feed-in scheme is currently available. However, there are ongoing discussions to increase the 2020 cap for wind power of 500 MW to 750 MW in the near future. 

Eligibility period

For RES plants of up to 10 kW the feed-in premium shall be paid for 12 years from the moment of signing an agreement for the connection to the grid with the grid operator (Chapter III Art. 20 Par. 7, 14 Law on Energy from Renewable Sources).

Distribution of costs

Consumers

As the generation of electricity from renewable energy sources is one of these services, 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

Electricity company designated by the Ministry of Energy, or a public electricity supplier serving the area in which the RES producer is operating, or an independent electricity supplier purchase electricity from renewable sources from the RES plant operators (Chapter IV Item 14, Chapter V Item 21 Resolution No. 827/2012). The costs arising from the feed-in premium are included in the charges for services of public interest and thus borne by the consumers through the electricity prices (Chapter II Item 7.1 Resolution No. 916/2012).

Lithuania

Further information