Adjusting coefficients for the promotion of renewable energy

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​In a nutshell:

  • Since 21 August 2016, the volume and capacity management for Belarusian renewable power plants has been subject to a quota regime.
  • Feed-in tariffs are guaranteed for 20 years of the power plant operation and are tiered during the first 10 years based on the so-called incrementing coefficients; during the further 10 years, the feed-in tariff remains at the same level.
  •  Now, some of the coefficients which were determined in 2016 for the quota allocation for 2017-2019 are to be lowered

  • As regards the functioning of the Belarusian promotion of renewable energies: ”Energy transition in Belarus – new framework conditions for renewable energies” dated 03/07/2015

  • (available from: http://www.roedl.de/themen/energiewende-weissrussland-rahmenbedingungen-erneuerbare-energien)

The decrease of the renewable energy coefficients aims to further reduce state aid for the renewable energy market and to make it work according to market-oriented principles. The decrease does not affect companies which have already started to implement RE projects.

The go-ahead for the targeted expansion of ”green” energy in Belarus was given in form of the Presidential Decree no. 209 of 2015. The decree introduced a quota regime for the installation of renewable power plants.

 

The state buys energy not only from the power plants which participated in the public tender, but also from those who operate their power plants outside the quota system. However, the coefficients applicable in those cases are considerably lower. The production and sale of energy from old power plants which were installed under the quota system is particularly lucrative for investors. Such power plants can be purchased on the so-called secondary market. On this market they can buy existing plants or projects of which not all have  been even finished, but which have already been guaranteed a coefficient. These proceedings offers a calculable return, with a relatively low risk.

 

If you want to know more, Rödl & Partner will be happy to advise you on this topic.

 

Overview of the changed coefficients:

Figure 1 (Click to enlarge) 

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