No new quotas for solar plants in BiH until 2020

Investors planning to build solar power plants in the Federation of Bosnia and Herzegovina will have to give up because there are no more available quotas before 2020.

Data from the Operator for renewable energy sources and efficient cogeneration of FBiH show that new solar quotas will be available only as of 2020. However there will be only 6 kW available which is almost not worth mentioning.

According to the Law on the use of RES and efficient cogeneration, the Power Purchase Agreement (PPA) concluded with micro power plants lasts for 12 years. Micro power plants are facilities with capacity from two to 23 kW that cost up to KM 70.000 (about EUR 35.000).

After that period the power producer has the right to a guaranteed purchase of energy at a reference price. At current prices, this investment pays off after four to five years, and then begins to turn in profits, according to Večernji List.

The paper states that some investors have received all the necessary permits and invested money, only to be stopped at the last stage when they addressed the Operator. When they submitted a request, they were told that they cannot get a quota.

The Ministry of Energy, Mining and Industry confirmed that it is looking for a way to increase the quota for solar energy. The only reason it has not been increased yet, the ministry said, is that the quota depends on the funds dedicated for the subsidies.

Bosnia and Herzegovina has a great renewable energy potential, even the prince of Jordan was interested in building solar plants there. BiH has an obligation towards the European Union to increase the share of renewable energy in total consumption to 40 percent. That share was 34 percent in 2014.