FBiH passes law to roll out prosumers, renewable energy auctions

The Parliament of the Federation of BiH (FBiH), one of the two political entities of Bosnia and Herzegovina, has passed a set of reform energy laws, including the Law on the Use of Renewable Energy Sources and Efficient Cogeneration, which introduces prosumers as well as renewable energy auctions. The set also includes the Law on Electricity and the Law on Energy and Regulation of Energy Activities.

When it comes to prosumers, the law envisages both net metering and net billing. The maximum installed capacity per individual plant is limited to 150 kW, and the installed capacity of the power plant cannot be greater than the consumer’s approved connection capacity.

Household prosumers with a connection capacity of up to 10.8 kW will be able to opt for net metering over a 10-year period, after which they can switch to net billing.

A power plant for self-consumption can be owned by a third party

A power plant for self-consumption can be owned by a third party, based on a contract with the end consumer for whose needs the facility is installed.

When it comes to the sale of excess electricity, prosumers that deliver more electricity to the grid than they withdraw during a billing period receive a credit that is rolled over to the next billing period. The credit is expressed in kilowatt-hours in the case of net metering and in money in the case of net billing.

The law also enables prosumers to form communities

The law also allows both household and commercial customers whose facilities are located within the same building or residential complex to form communities and act jointly as prosumers.

The law envisages auctions for feed-in tariffs and for premiums

As for renewable energy auctions, the law envisages two types – for small and large-scale power plants. Small power plants will compete for a guaranteed purchase price, or feed-in tariff, and large ones for fixed premiums for delivered electricity.

The auctions will have quotas expressed in units of installed capacity.

The law on electricity streamlines procedures for renewable electricity plants

The Law on Electricity simplifies the administrative procedures for the construction and operation of renewable energy facilities, primarily solar power plants and wind farms, and introduces new categories of participants and activities in the electricity market (active customers, aggregators, energy communities, storage operators).

The law creates a legal framework for the roll-out of e-mobility and improves the regulation of the quality of supply, and it also introduces mechanisms for better protection of end consumers.

The third law requires FBiH to prepare an energy strategy

The Law on Energy and Regulation of Energy Activities sets long-term goals in implementing energy policy, which includes the preparation of an energy strategy. It also defines requirements for operating in the energy sector and introduces mechanisms to protect vulnerable consumers.

Expounding on the bills before the adoption, Minister of Energy, Mining and Industry of FBiH Vedran Lakić said they would introduce European standards.