Which Producers of Electricity Have the Right to Market Premiums and Feed-In Tariffs

The right to market premiums and feed-in tariffs will be available to hydropower plants with an approved power of up to 30 MW, wind and solar power plant, as well as power plants running on biomass, biogas, biodegradable waste, landfill gas, geothermal power plants and power plants running on gas from facilities for the treatment of municipal waste waters, according to the new Decree on market premiums and feed-in tariffs, which has been adopted by the Government of Serbia.

The right to a market premium

The right to a market premium is acquired on the day of the finality of the decision on the awarding of the market premium, adopted following the auction procedure, and the right to the payment of the market premium is realized after acquiring the status of a preferred producer. The market premium is paid in the amount of the difference between the achieved price and the reference market price for the electrical energy delivered to the power system.

The authorized party to the agreement pays the market premium to the producer only in the cases when a price higher than the reference market price applicable in the matching accounting interval within the accounting period is achieved for the delivered energy.

The right to a feed-in tariff

The right to a feed-in tariff is acquired on the day of the finality of the decision on the awarding of the feed-in tariff, adopted following the auction procedure, and the right to the payment of the feed-in tariff is realized after acquiring the status of a preferred procedure, in line with the agreement on the feed-in tariffs.

The accounting period for the payment of the feed-in tariff begins at midnight of the first day of the calendar month and ends at midnight of the first day of the next calendar month.

The reference market price is set in line with the price of electrical energy realized per hour in the day-ahead organized electrical energy market in the Republic of Serbia.

The operator of the organized electrical energy market publishes the reference market prices on its web page.

Who can take part in the auctions

The decree proscribes that one can take part in the auction process provided that the applications for taking part in the auction pertain to power plants with a capacity of 500 kW and above, and to wind farms with a capacity of 3 MW and above.

If in the auction procedures in which market premiums are awarded, the participants in the auction submit applications for small facilities and demonstration projects, those applications will not be considered.

In the auction procedures for the awarding of the rights to a feed-in tariff, one can take part under the condition that the applications for taking part in the auction pertain to small facilities and demonstration projects. If in the auction procedures in which feed-in tariffs are awarded, the participants in the auction submit applications which don’t pertain to small facilities or demonstration projects, those applications will not be considered.

Applying for an auction is done by submitting a filled-out application for taking part in the auction, which is available on the Portal of RES Auctions, that is, on the web page of the ministry in the case of paper-form auctions.

I. Z.

Vlada Republike Srbije

hydro power plants

wind farms

solar power plants

biomass power plants

biogas power plants

biodegradable waste power plants

landfill gas power plants

geothermal power plants

power plants running on gas from facilities for treatment of municipal waste waters

Decree on market premiums and feed in tariffs

auctions