Republika Srpska abolishes feed-in tariffs for wind farms

The Parliament of Republika Srpska has adopted a new law on renewable energy and efficient cogeneration, which abolishes feed-in tariffs for wind farms.

This is one of the major changes in the regulatory framework announced in the countries of the Energy Community, including Northern Macedonia, Bosnia and Herzegovina and Montenegro.

According to the Republika Srpska government, the reason for changing the law is the need to limit the growth of the surcharge for renewables and efficient cogeneration, which is paid by the end-consumers of electricity.

50 MW wind farm requires at least BAM 16 million in the feed-in tariffs for one year

The Government’s reasoning behind the adoption of the law by urgent procedure is the need to exclude from the incentive system certain power producers from renewables (wind energy). This move will limit increase in electricity bills, which is expected to be significant in the coming period.

The Government also noted that a 50 MW wind farm requires at least BAM 16 million in feed-in tariffs every year.

The adoption of the law by urgent procedure was also necessary in order to regulate this issue under the law, since in the near future some of the producers of electricity from wind farms in the pipeline could reserve this right under the existing law.

Three wind farms – Grebak, Hrgud and Trusina – are planned in Republika Srpska.

Recently, the RS government terminated a concession contract for the construction of the 49.6 MW Trusina wind farm.

The construction of the Hrgud wind farm, with an installed capacity of 48 MW, is being prepared by state-owned power company Elektroprivreda Republike Srpske (ERS). A EUR 60 million loan was approved for this project in 2017, and ERS has recently confirmed that it will build it.

In mid-February, the RS government granted VE Grebak a 50-year concession to build and operate a 49.5 MW wind farm.