New coefficients for renewable energy rate

Belarus: New coefficients have been set for the renewable energy rate in regard to new – and some ongoing – renewable energy sector projects.

Resolution no 55 of the Belarusian Ministry of Economy of 22.08.2016 introduces coefficients to renewable energy sources whose owners are not members of the “Belenergo” state electric power production association and sell energy to energy-supplying organizations.

Coefficients are differentiated by reference to whether a project is carried out under an investment agreement or allocated quotas, as well as on the terms of equipment installation. The following coefficients are to be used regardless of the nature of the source which produces alternative energy solely for the purpose of supplying power for their own economic activity without allocating quotas and installed after 20 August 2015 (applied to the rates for industrial and equated consumers with connected capacity until 750 kW.A):

(i) first 10 years from equipment installation – 0.7;
(ii) next 10 years of operating activity of the equipment – 0.6;
(iii) over 20 years of operating activity of the equipment – 0.45.

The amount of the coefficients depends on the nature of the energy and the demonstrated life and capacity of the equipment. The following quotas apply to equipment established under quotas allocated in 2016 and installed in the period from 1 January 2017 until 31 December 2019:

1. wind energy

Regardless of capacity:

(i) first 10 years from installation of equipment with demonstrated life from the manufacturing date:
under five years – 1.1;
over five years – 1.01;
(ii) next 10 years of operational activity – 0.75;
(iii) over 20 years of operating activity – 0.45.

2. water energy

(i) first 10 years from installation of equipment with electric capacity:
until 300 kW inclusive – 1.3;
from 301 kW to 2 mW inclusive – 1.25;
more than 2 mW – 1,2;
(ii) next 10 years – 0.75;
(iii) over 20 years of operating activity – 0.45;

3. fuel wood and other kinds of biomass energy

(i) first 10 years from installation of equipment with electric capacity:
until 300 kW inclusive – 1.3;
from 301 kW to 2 mW inclusive- 1.25;
over 2 mW – 1.2;
(ii) next 10 years of operating activity – 0.85;
(iii) over 20 years of operating activity – 0.6.

4. biogas energy

(i) first 10 years from installation of equipment with electric capacity:
until 300 kW inclusive – 1.2;
from 301 kW to 2 mW inclusive- 1.15;
over 2 mW – 1.1;
(ii) next 10 years of operating activity – 0.85;
(iii) over 20 years of operating activity – 0.6.

5. solar energy

(i) first 10 years from installation of equipment with electric capacity:
until 300 kW inclusive – 2;
from 301 kW to 2 mW inclusive- 1.7;
over 2 mW – 1.5;
(ii) next 10 years of operating activity – 0.75;
(iii) over 20 years of operating activity – 0.45.

6. geokinetic energy and other energy sources which are not non-renewable

(i) first 10 years from installation of equipment with electric capacity:
until 300 kW inclusive – 2;
from 301 kW to 2 mW inclusive- 1.7;
over 2 mW – 1.5;
(ii) next 10 years of operating – 0.75;
(iii) over 20 years of operating – 0.45.

The coefficients for equipment installed until 20 May 2015 or the building of which is carried out according to concluded and registered investment agreements until the dates specified in the investment agreements remain the same.

The Resolution entered into force on 14 September 2016.

Source: National legal Internet portal of the Republic of Belarus (NLIP) 13.09.2016, 8/31251

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