Feed-in-tariffs to be replaced with premiums- Energy Community prepares guidelines to introduce auctions for RES

The Energy Community has prepared the Draft Guidelines for Introduction of Auctions for RES, according to which feed-in tariffs will be replaced with feed-in premiums (FIP), which implies that producers from renewable energy sources (RES) sell electricity at the market and get changeable or sliding premiums through electricity price.

A changeable or sliding FIP scheme is based on so-called Differential Contracts.

The draft, jointly prepared by the European Bank for Reconstruction and Development (EBRD) and the Energy Community (EC), was presented at the fourth meeting of the OSCE Coordination Group held this week at EC premises in Vienna.

Feed-in premiums instead of feed-in tariffs and standard balancing responsibility, if there is no liquid intraday market, must be introduced to integrate RES into the market, EBRD and EC stated in the draft.

A changeable or slip premium is the difference between price at auction and price of electricity on the market or reference price. This model provides similar price stability as feed-in tariff, but also allows manufacturer to sell electricity in day-to-day market or to any market participant.

The difference contract is a contract between electricity producer and the state. If prices in the market or reference price are higher than prices at an auction, manufacturer does not receive a feed-in premium.

Let us remind, in June Energy Community called Serbia to change the Law on energy to align its legal framework with legal heritage of EU for RES.

Ministarstvo rudarstva i energetike Republike Srbije

EBRD Evropska banka za obnovu i razvoj Beograd

Energetska zajednica

aukcija za OIE

OIE

fid in tarife

fid in premije

feed in

obnovljivi izvori energije

električna energija

cena električne energije

proizvodnja električne energije

zakon o energetici