INCENTIVES FOR THE CONSTRUCTION OF SOLAR POWER PLANTS IN BOSNIA AND HERZEGOVINA

State incentives for the construction solar power plants are most important for the mass use of solar radiation to produce electricity

 

The general awareness of the negative effects of excessive CO2 emissions has become the main driving force that in the 21st century strictly determines the direction of energy development. By adopting the main energy goals of the European Union, colloquially called "20-20-20" (compared to 1990 by 20%: reduce energy consumption, reduce CO2 emissions and increase the share of renewable sources in total primary energy consumption), the path to the strong introduction of distributed systems for distributed energy production.

 

Regardless of certain obstacles that still stand in the way of the implementation of renewable energy projects, today's environment and conditions in BiH are certainly much more favorable than those a few years ago. The adopted legal provisions determining the obligation to take over electricity produced from renewable energy sources according to guaranteed tariffs certainly contribute to the growing interest of both domestic and foreign investors in renewable energy projects on the one hand, and equipment manufacturers, designers and contractors on the other.

 

Precisely because of the incentive purchase prices, the use of solar radiation energy for the production of electricity has been increasing in our environment in recent years.

 

Solar power plants have a number of advantages, but investing in their construction is still difficult to pay off without some additional incentives. It is precisely the incentive purchase prices of produced electricity and the main reason why newly built solar power plants in our environment are exclusively connected as distributed sources to the electricity distribution network. (grid-connected solar system)

 

Legislation to incentives the use of renewable energy sources

 

BiH is a signatory to the Agreement on the Establishment of the Energy Community from 2009, and has committed itself to encourage producers of energy from renewable sources. Incentives include convenience when connecting to the network, advantage in access to the network, the right to mandatory purchase of electricity and the right to a guaranteed purchase price. By the Dayton Constitution, BiH is administratively divided into the entities of FBiH and RS, which are responsible for the legal regulation of the energy sector. At the state level, there is transmission (Elektroprijenos BiH), as well as the regulator and system operator (ISO), which operate according to the rules determined by the state electricity regulatory commission (SERC). Electricity generation, distribution and trade are regulated at the level of the FBiH and RS entities. In the FBiH, the regulatory activities are performed by the Energy Regulatory Commission (FERK), and in the RS by the Energy Regulatory Commission of the Republika Srpska (RERS). The Governments of FBiH and RS passed Decrees in 2010 and 2011, and the Assemblies of FBiH and RS in 2013 and 2014 passed the Laws on the Use of Renewable Energy Sources and Efficient Cogeneration. Laws from 2013 and 2014) in FBiH established bodies dealing with renewable energy sources Operator for Renewable Energy Sources and Efficient Cogeneration - OIEiEK in FBiH, and in RS an Incentive System Operator was established. With the adopted Regulations, ie Laws, the producers were given the right to a guaranteed preferential purchase price, the amount of which depends on the size of the power plant, for a period of 12 years. To obtain a permit for the construction of a PV plant, the following is required:

registration of the activity "electricity generation" with the competent court,

·        obtaining an environmental permit from the Ministry of Environmental Protection,

·   study of technical and economic justification of construction (conditions and justification of construction, choice of equipment, description of applied technology, dynamics of construction plan, etc.),

·    obtaining consent from the competent institutions (building permit, urban consent, electricity consent from the competent electric power industry),

·   preparation of investment-technical documentation and resolving property-legal relations related to the subject location.

Work permit for the construction of solar power plants

After construction, it is necessary to obtain a use permit from the competent institutions, and then submit an application to FERK (RERS) for a work permit. By obtaining a work permit, the investor acquires the status of a qualified producer. The right to the status of a privileged producer can be acquired by legal and natural persons who have a license to operate and whose PV power plants have a capacity of less than 1 MW (inclusive). The application for obtaining the status of a privileged producer, a qualified producer submits to the Operator for Renewable Energy Sources and Efficient Cogeneration - OIEiEK, or the Incentive System Operator. The privileged producer sells electricity at the guaranteed purchase price, which is obtained by multiplying the appropriate tariff coefficient and the reference price, which is the same for all primary sources. The reference price is the price of electricity obtained from renewable sources and the production of which is not encouraged. The tariff coefficient for each group of plants is determined once in 18 months.

The status of qualified producer of solar power plants

If the solar power plant meets all the criteria and if with its fully installed capacity it enters the dynamic quota provided for that type of plant at the time of application, the Operators will grant the status of eligible / privileged producer. If the dynamic quota is filled at the time of application, the installation may be placed on a waiting list with the consent of the applicant. Incentives are collected from consumers on the basis of electricity consumption (about 2.2% of the average price of electricity in BiH). The funds collected from the fee are specially booked income that is used for: payment of the incentive part in the guaranteed price of electricity to privileged producers, covering the operating costs of the operator, payment of balancing costs of the electricity system due to discrepancies in planned and produced energy in plants using renewable sources, and for the Fund for Environmental Protection and Energy Efficiency.