Tender (Feed-in tariff or Premium Tariff)

Updated: 06.03.2017

Author: Ivana Naydenova

In accordance with the European State Aid Guidelines and on basis of §373 EA-1, the Slovenian Energy Agency has published an open call for the support of projects for the production of electricity from renewable energy sources as well as for the cogeneration of heat and electricity with high efficiency plants.  The total allocated budget for 2017 amounts to € 10 million (in accordance with § 33 RS 76/2016). Eligible for the public call were investors with projects for production facilities as specified in § 8 in conjunction with § 4 and 5 RS 76/2016.

The winners of the call shall receive support in form of:

• (GP) price for electricity, i.e. a feed-in tariff; or

• premium tariff (operational support (OP)).

RES power plants with an installed capacity above 5 MW and CHP installations with a capacity of above 1 MW may only benefit from a premium tariff. Installations with a capacity below these thresholds have a choice between GP and OP. Installations connected to the grid after 22 September 2016 and with a capacity of more than 500 kW may benefit from a premium tariff and those with a capacity below 500 kW will continue to have the option of the feed-in tariff. The support is granted for a period of 15 years for RES installations. CHP power plants using biomass will receive aid for 15 years and those using biogas – 10 years.

Please note: The application period for the 2016 call was closed at the end of February 2017. The call for 2017 is expected to be published by October 2017.

Eligible technologies and support requirements

According to the tendering documents for the 2016 call, all renewable energy plants for the production of electricity are eligible for support, provided they meet certain capacity conditions. The available € 10 million for the 2016 call are distributed among the RES technologies as follows:

  • 10% for hydroelectric plants with a capacity of 1MW or less; o 30% for wood biomass plants with a capacity of 1MW or less;
  • 10% for CHP installations using natural gas with a capacity of 50 kW or less;
  • 30% for renovated CHP installations operating in district heating systems;
  • 20% for all other installations including those which were unsuccessful in the other four categories.
The winners of the call shall receive support either in the form of a feed-in tariff or in the form of a premium tariff:
  • Installations with an installed capacity up to 5 MW and CHP installations with a capacity of up to 1 MW may choose between a FiT or a premium tariff.
  • Installations with an installed capacity above 5 MW and CHP installations with a capacity above 1 MW may only benefit from a premium tariff
  • Installations connected to the grid after 22 September 2016 and with a capacity of more than 500 kW may benefit from a premium tariff
  • Installations connected to the grid after 22 September 2016 and with a capacity below 500 kW will continue to have the option of the feed-in tariff. The support is granted for a period of 15 years for RES installations.
CHP power plants using biomass will receive aid for 15 years and those using biogas – 10 years.

Wind energy

Onshore wind energy plants with a capacity of maximum 1MW are eligible.

Solar energy

PV plants with a capacity up to 1MW are eligible.

Geothermal energy

Geothermal energy plants with a capacity up to 1 MW are eligible.

Biogas

Eligible are plants with a capacity up to 1 MW using following energy sources:

 

  • Biogas derived from biomass energy crops (B1),
  • Biodegradable fraction of waste products (B2),
  • Residues and biological waste (B3),
  • Landfill gas;
  • Gas derived from the sludge of waste water

 

 

 

Hydro-power

Hydro power plants with a capacity up to 1 MW using the energy potential of watercourses are eligible.

Biomass

Eligible are plants with a capacity up to 1 MW using following feedstock:  

 

  • Biomass derived from forests and plantations (A1),
  • By-products and residues from wood processing industry
  • Biodegradable municipal waste (C1)
  • Biodegradable industrial waste (C2);
  • Sludge from wastewater treatment plants;

 

 

 

Tender characteristics

Bidding procedure

The 2016 call supports projects for the production of electricity from renewable energy sources as well as for the cogeneration of heat and electricity with high efficiency plants. The selection of projects for the 2016 call was divided into two rounds, whereby in the first round the following three groups could participate:

 

  • Group 1: hydroelectric power plants up to 1 MW;
  • Group 2: Biomass power plants up to 1 MW;
  • Group 3: CHP generating plants using natural gas with a capacity of up to 50 kW.

In the second round of selection, the following two groups could participate:

 

  • Group 4: restored CHP generating plants operating in the district heating;
  • Group 5: RES and CHP plants defined in § 8 in conjunction with § 4 and 5 RS 76/2016, which did not succeed in competing groups during the first round.

 

 

 

Tender constraints

The total value of funds under this public call in 2016 was € 10 million (in accordance with § 33 RS 76/2016). These resources were allocated as follows: For the first round of biddings:

 

  • Group 1: € 1 million for hydroelectric power plants up to 1 MW,
  • Group 2: € 3 million for the plant biomass up to 1 MW
  • Group 3: € 1 million for CHP generating plants using natural gas up to 50 kW rated power;

For the second round of biddings:

 

  • Group 4: € 3 million for renewed CHP generating plants, which operate in the district heating systems,
  • Group 5: € 2 million for generating plants defined in § 8 in conjunction with § 4 and 5 RS 76/2016, which did not succeed in competing groups during the first round.

 

 

 

Pricing rules

Feed-in Tariff: The amount of the feed-in tariff corresponds to the reference price of electricity as determined annually by the Energy Agency in its report on the reference prices of energy (RPE). The formula for the RPE is:

RPE = (Average prices of the 'Phelix Baseload Year Futures' product on the Leipzig EEX for the next year) – (the last published auction price for cross-border transmission capacities between Slovenia and Austria as published on the official website of the Central Allocation Office between the results of the annual auction process).

Premium Tariff: The amount of the premium tariff corresponds to the difference between the reference costs of electricity for each RES technology and the reference price of electricity. This leads to following formula:

Premium = RC (Reference costs) – RPE (Reference price of electricity)    

Lead time

The successful tenderers shall install their production facility within three years from the notification of the decision. Tenderers, whose projects are under constructions and need longer time for obtaining permits and declare this issue, shall install their production facility within five years. An applicant, whose project was rejected can submit the same project for the next call (§ 373, par. 4 EZ-1).

Frequency of tenders

The Energy Agency is obliged by law to publish a call every year by October, which is open for RES and CHP power plants. The applicants submit their projects for which they wish to receive support in the following year (§ 372, par. 1 EZ-1).

Please note: The application period for the 2016 call was closed at the end of February 2017. The call for 2017 is expected to be published by October 2017.

Addressees

Entitled party: The entitled persons are those plant operators that have a valid award decision from the Energy Agency (§ 18 RS 37/2009), and a declaration for their RES-E power plant (§ 5 and 9 RS 37/2009 in conjunction with §. 3 RS 8/2009). Obligated party: The obligated party is BORZEN (Centre for RES/CHP Support). Once the Energy Agency has issued a decision to grant support, BORZEN signs a contract with the plant operator. (§ 9 RS 37/2009).

Procedure

Process flow and deadlines

The Energy Agency issues a public call by October each year, which is open to operators of RES and CHP power plants. Applicants may submit their projects for which they wish to receive support in the following year (§ 372, par. 1 EZ-1). Projects are selected on the basis of the following criteria:

- the available funds for the support for the next year set by the Government on the basis of the adopted annual energy balance sheets (§ 25 EZ-1),

- compliance of the project with the goals of the NREAP and the goals set in the yearly energy balance sheets,

- the estimated level of guarantee of acquiring the necessary funds from the European Union funds,

- the proposed price (by the producer) of the electricity production costs that will be subject to the received support (§ 372, par. 2 EZ-1). The Energy Agency submits its decision to grant support to the plant operator (§ 372, par. 3 EZ-1). BORZEN and the plant operator shall then conclude a contract on the purchase of electricity, based on the decision (§ 18, par. 3 RS 37/2009).

Competent authority

Ministry of Infrastructure, Energy Agency and BORZEN Ltd.

Penalties

Amount of the fee

In case the decision to grant support is based on untrue statements, forged documents, false testimony or as a result of an act punishable under the Penal Code (Official Gazette of RS, no. 50 / 12 - official consolidated text), the Energy agency shall perform a retrial ex officio (375, par. 4 EZ-1)

Distribution of costs

Consumers

In Slovenia, the end consumers bear the costs arising for from the suppliers' obligation to pay for all electricity from renewable sources fed into the grid (§ 3 RS 36/2014; item 6.4.2. RS 57/2004). The exact fees and obligations are set down in § 7 - 10 RS 36/2014. The monthly payment depends on a customer's end-user classification according to the power voltage level, consumption level and end use (tables in § 6 and 11 RS 36/2014).

Slovenia

Further information

  • Ministrstvo za infrastrukturo (MZIP) – Ministry for Infrastructure; Direktorat za energijo – Directorate for Energy
  • +386 1 478 80 00
  • website
  • gp.mzip(at)gov.si

Basic information on legal sources