Tender

Updated: 15.10.2017

Author: Ivana Naydenova

In accordance to the European State Aid Guidelines and on basis of §373 EA-1, the Slovenian Energy Agency has published an open call for project applications generating plants for the production of electricity from renewable energy sources and cogeneration of heat and electricity with high efficiency for admission to the support scheme. Subject of the public calls is the selection of projects for new, predominantly new and refurbished generating plant using renewable energy sources (RES) and high-efficiency cogeneration (CHP), for which the generation of electricity producers will be entitled to obtain support. The offered price of electricity generating plants by an investor offered in the project application for the RES plant and CHP to the call may not exceed the value of the reference costs of electricity generating plant RES and CHP (RCE), which represent the upper limit of the tendered price of electricity generating plant. To ensure greater cost efficiency in the implementation of the public call the agency publishes only the variable part of RCE (VPRC). Total RCE (including FPRC) the Agency will publish on the Agency's website after the deadline for submission of applications to the public call and before opening individual applications.

All production facilities connected to the grid after 22nd September 2014, could take part in the currently open public tender published by the Energy Agency (<href>https://www.agen-rs.si/documents/10926/103769/Javni_poziv_2017_besedilo.pdf/8910fc9e-e848-4060-90d2-252820dacd88</href>).

The operators of renewable energy plants connected to the grid before 22nd September 2014 may sell their electricity to the Slovenian power market operator Borzen at a "uniform annual price", i.e. the feed-in tariff (alternatively, they can opt for a premium tariff).

Eligible technologies and support requirements

According to § 8 (2) in conjunction with § 4 and 5 RS 74/2016, eligible for support are RES generating plants with a capacity up to 10 MW (with the exception of wind plants with a capacity of maximum 50 MW). The subject of the currently open public call is the selection of projects for new, mainly new and renewed production facilities for renewable energy sources (RES) and high-efficiency cogeneration (CHP). The selection of projects shall be carried out by a two-cycle competitive procedure, where projects for new and predominantly new generating plants of RES and CHP, which are connected after 22 September 2014 could take part.

Wind energy

Eligible.

Solar energy

Eligible.

Geothermal energy

Eligible.

Biogas

Eligible.

Hydro-power

Eligible.

Biomass

Eligible.

Tender characteristics

Bidding procedure

Subject of the call is the selection of projects for new and predominantly new generating plants of RES and CHP, which are connected after 22 September 2014, which will be included in the first round of selection, namely:

  • Hydroelectric and photovoltaic power plants, and biogas installations using waste with a capacity up to 10 MW of rated power and wind power plants with a capacity not exceeding 50 MW,
  • RES and CHP generating plants whose operation is based on the purchase or production of fuels, raw materials for the production of biogas or the use of geothermal energy with a capacity up to 10 MW power, or up to 20 MW for CHP generating plants.

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

  • restored RES and CHP generation plants, connected to the grid after 22 September 2014
  • wood biomass production plants which, by reason of their age, are no longer eligible for support and low electricity prices can not cover their operating costs,
  • RES and CHP plants defined in § 8 in conjunction with § 4 and 5 RS 74/2016, which did not succeed in competing groups during the first round.

Tender constraints

The total value of funds under this public call in 2017 was € 10 million, which is in accordance with § 33 RS 74/2016. The tender was split in the two round competition proceedings as follows:

a) During the first round were granted € 9 million. The resources were allocated as follows:

  • € 7 million for hydroelectric and photovoltaic power plants, and biogas installations using waste with a capacity up to 10 MW of rated power and wind power plants with a capacity not exceeding 50 MW,
  • € 2 million for RES and CHP generating plants whose operation is based on the purchase or production of fuels, raw materials for the production of biogas or the use of geothermal energy with a capacity up to 10 MW power, or up to 20 MW for CHP generating plants.

b) During the second round were granted € 1 million. The resources were allocated for restored RES and CHP generation plants, connected to the grid after 22 September 2014, wood biomass production plants which, by reason of their age are no longer eligible for support and low electricity prices can not cover their operating costs and for RES and CHP plants defined in § 8 in conjunction with § 4 and 5 RS 74/2016, which did not succeed in competing groups during the first round.

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 tender for 2017 takes place from 4th September until 6th November 2017. The Energy Agency is obliged by the Law to publish a call every year by October, which is open for RES and CHP power plant investors, to submit their projects for which they wish to receive support in the following year (§ 372, par. 1 EZ-1).

Addressees

Entitled party: The entitled persons are those plant operators that have a valid award decision from the Energy Agency (§ 25 (1) RS 74/2016), and a declaration for their RES-E power plant (§ 7 and 8 RS 74/2016).

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. (§8 RS 74/2016).

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 (§ 25 (6) RS 74/2016)).

Competent authority

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 exported to the grid (§ 3 RS 46/2015; item 6.4.2. RS 57/2004). The exact fees and obligations are set down in § 7 - 10 RS 46/2015. 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 12 RS 46/2015).

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