Focus on Energy, 2010 - Karanovic & Nikolic

Focus on Energy, 2010 - Karanovic & Nikolic Focus on Energy, 2010 - Karanovic & Nikolic

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The first RES and CHP Program should be issued within one year after the coming into force of the newEnergy Law.INCENTIVES FOR THE RES AND CHP PROGRAMSThe Energy Law sets out three models of incentives which are to be: The Energy Law will set out the list of methods available to the Government to incentivize investmentsin the RES and CHP, as well as the basic elements of each particular method (presented in more detailbelow). However, the regulatory framework of incentives for RES and CHP set out in the Energy Law isincomplete. The general framework provided by the Energy Law should be supplemented by Governmentalregulations which should regulate in more detail, the incentive methods which will be providedunder the Energy Law. Such regulations should be issued within 6 months following the coming intoforce of the new Energy law.THE MINIMAL PARTICIPATION OF THE RES IN THE PRODUCTIONOF ENERGY (GREEN CERTIFICATES)78The incoming Energy Law sets out the obligations for producers of energy to undertake measures forthe increase of the quota of energy they have produced from the RES in their total amount of producedenergy. The mandatory minimal share of the RES in the total production should be established by theGovernment, in accordance with the RES Program.FOCUS ON ENERGYThe Energy Law sets out the system of certificates of origin for electricity produced from the RES or theCHP (“Green Certificates”). Suppliers will use these to prove the origin of the energy for the purpose offulfilling requirements imposed in relation to the participation of RES or CHP energy in the total amountof energy. These Green Certificates will confirm that certain quantities of energy are produced fromRES or the high-efficiency CHP (they will not be issued to producers of heat with facilities with a powercapacity below 1 MW).Green Certificates will be issued for a period of 12 months and are to be freely transferrable, i.e. they willbe transferrable by one supplier to the other supplier. Such a transfer will consequently reduce the shareof RES/CHP in the total production figures of the producer transferring the Green Certificate. Foreigngreen certificates or certificate of origin will be valid in Montenegro on the basis of reciprocity or pursuantto an existing international agreement.QUALIFIED PRODUCERS OF ENERGYProducers of energy from renewable sources of energy and high efficiency cogeneration, as definedby the relevant regulation that should be issued by the Ministry of Economy, will be able to apply forthe status of a Qualified Producer to the Agency (”Qualified Producer”). Other conditions whichthe interested applicant will need to fulfill to be granted the status of a Qualified Producer includethe following:measurement units which will measure the quantities of electricity produced in other technologicalprocesses. This way a record will exist of the amount of non RES energy received by that QualifiedProducer;energy system.

79The status of the Qualified Producer is to be granted by the Agency for a period of 12 years. Producers ofenergy having the status of Qualified Producer are to be entitled to privileged purchase prices for electricityand priority treatment with respect to accessing both the transmission grid and the distribution grid.Prices for the energy produced out of RES should be established in accordance with the tariff system forthe production of energy from RES and CHP which should be issued by the Government.A system of subsidized prices for RES is to be set up so that a supplier of energy will be required topurchase energy produced from RES (under the privileged prices), in proportion to the participation ofthe quantities of electric energy supplied to its customers in accordance with the methodology to beestablished by the Government’s regulation.FOCUS ON ENERGYThe final customers, on the other hand, will be required to pay a fee to cover the incentive for the investmentin the RES and CHP to the supplier through their electricity bills (which are to clearly state theamount of the fee, separately from the price of energy consumed).FEED-IN TARIFFSAt the time this Book went into print, the Montenegrin Government had prepared the draft proposaloutlining the Methodology for the Calculation of the Price of Electricity Produced from Renewable EnergySources (the “Draft Proposal”). The Draft Proposal aims at establishing the mandatory pricesunder which the Montenegrin suppliers of energy are to be required to purchase electricity from theQualified Producers.Under the Regulation, the proposed price for energy produced in wind plants is to be EUR 95.99 perMWh, for 2010. For energy produced in small HPPs (up to 10 MW) the price will depend on the annualproduction of energy and will range from EUR38 per MWh (for an annual production above 15 GW) toEUR 114.41 per MWh (for an annual production up to 0.5 GW). For electricity produced out of biomass,the proposed prices will depend on the type of biomass and are to be set at EUR 123.10 per MWh forwood, and EUR 137.06 per MWh for agricultural biomass.

The first RES and CHP Program should be issued within <strong>on</strong>e year after the coming into force of the new<strong>Energy</strong> Law.INCENTIVES FOR THE RES AND CHP PROGRAMSThe <strong>Energy</strong> Law sets out three models of incentives which are to be: The <strong>Energy</strong> Law will set out the list of methods available to the Government to incentivize investmentsin the RES and CHP, as well as the basic elements of each particular method (presented in more detailbelow). However, the regulatory framework of incentives for RES and CHP set out in the <strong>Energy</strong> Law isincomplete. The general framework provided by the <strong>Energy</strong> Law should be supplemented by Governmentalregulati<strong>on</strong>s which should regulate in more detail, the incentive methods which will be providedunder the <strong>Energy</strong> Law. Such regulati<strong>on</strong>s should be issued within 6 m<strong>on</strong>ths following the coming intoforce of the new <strong>Energy</strong> law.THE MINIMAL PARTICIPATION OF THE RES IN THE PRODUCTIONOF ENERGY (GREEN CERTIFICATES)78The incoming <strong>Energy</strong> Law sets out the obligati<strong>on</strong>s for producers of energy to undertake measures forthe increase of the quota of energy they have produced from the RES in their total amount of producedenergy. The mandatory minimal share of the RES in the total producti<strong>on</strong> should be established by theGovernment, in accordance with the RES Program.FOCUS ON ENERGYThe <strong>Energy</strong> Law sets out the system of certificates of origin for electricity produced from the RES or theCHP (“Green Certificates”). Suppliers will use these to prove the origin of the energy for the purpose offulfilling requirements imposed in relati<strong>on</strong> to the participati<strong>on</strong> of RES or CHP energy in the total amountof energy. These Green Certificates will c<strong>on</strong>firm that certain quantities of energy are produced fromRES or the high-efficiency CHP (they will not be issued to producers of heat with facilities with a powercapacity below 1 MW).Green Certificates will be issued for a period of 12 m<strong>on</strong>ths and are to be freely transferrable, i.e. they willbe transferrable by <strong>on</strong>e supplier to the other supplier. Such a transfer will c<strong>on</strong>sequently reduce the shareof RES/CHP in the total producti<strong>on</strong> figures of the producer transferring the Green Certificate. Foreigngreen certificates or certificate of origin will be valid in M<strong>on</strong>tenegro <strong>on</strong> the basis of reciprocity or pursuantto an existing internati<strong>on</strong>al agreement.QUALIFIED PRODUCERS OF ENERGYProducers of energy from renewable sources of energy and high efficiency cogenerati<strong>on</strong>, as definedby the relevant regulati<strong>on</strong> that should be issued by the Ministry of Ec<strong>on</strong>omy, will be able to apply forthe status of a Qualified Producer to the Agency (”Qualified Producer”). Other c<strong>on</strong>diti<strong>on</strong>s whichthe interested applicant will need to fulfill to be granted the status of a Qualified Producer includethe following:measurement units which will measure the quantities of electricity produced in other technologicalprocesses. This way a record will exist of the amount of n<strong>on</strong> RES energy received by that QualifiedProducer;energy system.

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