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ADVERTORIAL

Slovakia supports renewable energy sources

As of 1 September 2009 the new Act on Promotion of Renewable Energy Sources (“RES-Act”) became effective in Slovakia. The RES-Act introduces financial and administrative support mechanisms for producers of electricity from renewable sources and by means of combined heat and power plants.

As of 1 September 2009 the new Act on Promotion of Renewable Energy Sources (“RES-Act”) became effective in Slovakia. The RES-Act introduces financial and administrative support mechanisms for producers of electricity from renewable sources and by means of combined heat and power plants.

Renewable energy sources are defined as hydropower, solar, wind, and geothermal energy, biomass and all products from biomass processing including biogas, landfill gas, sewage treatment plant gas, and biomethane.

The following measures were introduced:

- preferential connection to the local distribution system,
- preferential power input,
- obligation of the local provider for electricity buy-off against payment
- claim by the producer for additional payment and
- transfer of responsibility for deviations between contractually agreed conditions and the amount of electricity actually supplied by the producer to the provider of the distribution system

The last three measures are limited to 15 years for plants exceeding 1MW.

At this level of support, producers are distinguished according to total installed output and other criteria, with producers totaling installed output up to 1 MW being granted the most advantages.

Based on price regulation, the Slovak Regulatory Office for Network Industries stipulates the price of buy-off electricity through individual price resolution in accordance with the type of RES, the technology used, the launch date, and installed capacity. This price is set by law for the whole duration of the promotion.

In the field of support for biomethane, producers will also have a claim to connect to the distribution network and to preferential distribution.

The State Energy Inspection (SEI) will perform official supervision in compliance with the RES-Act. In case of violations, the SEI is empowered to impose a fine up to 200,000 Euro, and even up to 400,000 Euro for repeated breaches.

The RES-Act is effective from 1 September 2009, except for articles concerning specific RES support measures and obligations of distribution network providers, effective on 1 January 2010.

Jens Quickner is a lawyer with bnt - Sovova Chudáčková & Partner, s.r.o. This article is of an informative nature only. For more information, go to www.bnt.eu .

Topic: Finances and Advisory


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