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Slovakia to offer feed-in-tariffs in new renewables legislation/ corrected

Alexander Richter Alexander Richter 17 Sep 2009

Slovakia's new renewable energy legislation has gone into effect September 1, 2009. The act provides a favourable feed-in-tariff system, which includes geothermal energy power generation.

In a recent release by law firm Squire Sanders details on the new renewable energy legislation in the Slovak Republic (Slovakia) are given.

According to the release ,”the long-awaited Act on the Promotion of Renewable Sources of Energy and High-Efficiency Cogeneration (the Act) (has gone) into effect on September 1, 2009. The Act revises the rules supporting electricity produced from renewable energy sources and introduces new rules supporting high-efficiency cogeneration of electricity.”

The article then talks about the definition the renewable energy sources, as “hydropower, solar, wind, geothermal, biomass (including all products derived from biomass processing), biogases, sewage treatment plant gas and biomethane.

The Act defines high-efficiency cogeneration as simultaneous generation in one technological process of (i) electricity and thermal energy; (ii) mechanical energy and thermal energy; or (iii) mechanical energy, thermal energy and electricity in (a) an installation with an installed capacity below 50 kW; (b) an installation with an installed capacity below 1 MW that provides primary energy savings when compared to the separate production of heat and electricity; or (c) an installation with an installed capacity exceeding 1 MW that provides primary energy savings of at least 10 percent.”

The feed-in tariff scheme of the act applies to electricity generation from renewable energy sources and high-efficiency cogeneration (RHEC electricity). It is based – according to the article – on a “premium payment on top of the basic electricity price set by the Office for Regulation of Network Industries (the Office) for a certain type of renewable energy. The premium payment is equal to the difference between the basic price and the price of electricity set by the Office for the electricity to cover losses in the distribution grid. The Office sets the basic price mainly depending on the date of initial operation, reconstruction or modernization of a power generating installation, its installed capacity and its used technology.

A producer of RHEC Electricity is entitled to a premium on the basic electricity price for 15 years after the initial operation, reconstruction or modernization of a power generating installation. The basic price of electricity used for the calculation of the premium will be the same for the entire period during which the electricity producer is entitled to the premium. Nevertheless, the Office may increase this price by a coefficient of nuclear inflation and a coefficient reflecting the technology used.”

The Act also provides for other support, such as (i) the right of RHEC Electricity producers to priority connection, access, transmission, distribution and supply of electricity, (ii) an offtake of RHEC Electricity by operators of regional distribution grids to cover the distribution grid’s losses and (iii) obligatory assumption of liability by an operator of a regional electricity distribution grid for a deficiency of RHEC Electricity producers.”

Source: Squire Sanders via Martindale.com