GENERAL
1. What is the nature and importance of the renewable energy in your country?
In the Republic of Belarus imported energy comprises more than 80 % of the energy consumption. Therefore one of the strategic objectives of economic development of Belarus is the decrease of energy imports. The solution to this problem is possible through the enhancement of alternative energy sources and local fuels. Development and effective use of renewable energy sources (hereinafter – the RES) has a fundamental importance since in the short term they represent the real potential of local fuel and energy resources that can be efficiently involved in the economy and favor the rise of the energy security of the country.
This is clearly demonstrated at the legislative level. The main document that confirms the importance of renewable energy sources importance in Belarus is the Law of the Republic of Belarus dated 27.12.2010 No. 204-Z, "On renewable energy sources" (hereinafter the Law "On RES"), which has recently been adopted and come into effect. This law creates a legal base for renewable energy sources development.
There are also such program legislative acts as the Concept of Energy Security of the Republic of Belarus is approved by the Edict of the President of the Republic of Belarus dated 17.09.2007 No. 433. The Concept defines the goals and objectives for energy security, the main directions of strengthening energy security, including at the expense of increasing non-conventional and renewable energy sources.
It is also necessary to mention the five-year National Program of Local and Renewable Energy Sources Development, which was approved by the Council of Ministers of the
However, it should be noted that at present in
2. What is the definition and coverage of the renewable energy under the relevant legislation?
According to the Charter of the International Agency for Renewable Energy, ratified by the Republic of Belarus, the term "renewable energy" includes all forms of energy, constantly generated from renewable sources, which, inter alia, include:
• bio-energy;
• geothermal energy;
• hydroelectric power;
• ocean energy, including without limitation, tidal energy, wave energy and ocean thermal energy;
• solar energy;
• wind energy.
In Belarusian law the definitions "non-conventional sources of energy" and "renewable energy sources" are synonymous.
In accordance with the Law of the Republic of Belarus dated 15.07.1998 No. 190- Z, "On Energy Saving" non-traditional and renewable energy sources include electrical and thermal energy sources using the energy of rivers, reservoirs and industrial runoff, energy of wind, solar, natural gas reducible, biomass (including wood waste), waste water and solid waste.
According to the Law "On RES" the renewable energy sources are the energy of the sun, wind, geothermal, natural water flows, wood fuel and other biomass , biogas and also other energy sources that do not belong to a non-renewable.
This list of RES is not exhaustive. It may be added by any source of energy referred to non-renewable.
REGULATION
3. How is the renewable energy sector regulated? What are the principal laws and regulations?
Until recently, the legal regulation of RES in the Republic of Belarus has been fragmentary. The situation has changed after the adoption of the Law “On RES”. The Law “On RES” came into force recently - on 05.07.2011.
The Law “On RES” contains basic definitions in the sphere of RES use, a list of the state authorities responsible for RES use control. The Law also defines rights and responsibilities of producers of this type of energy. It establishes the order for setting prices and rates for renewable energy sources and rates for power produced from such sources. The issues of scientific, technological and innovation support are adjusted. A number of economic incentives for producers of the energy are provided. In particular, in the area of pricing it is stipulated the use of multiplying ratios to the tariffs for energy acquired by the government supplying organizations.
Regulation of the Council of Ministers dated 30.12.2008 No.2044 and Regulation of the State Committee for Standardization dated 27.02.2009 No.10 regulate the question of the labelling imported goods as equipment used for producing energy from non-conventional and renewable energy sources, as well as the procedure for issuing such an conclusion.
Certain provisions of the renewable energy regulation are contained in the Law of the Republic of Belarus dated 15.07.1998 No. 190-З "On Energy Saving", in particular the definition of the non-traditional and renewable energy sources, the use of renewable energy as one of the principles of public administration in the field of energy efficiency.
There are also numerous state and republican programs, including energy saving programs, which determine the need for use of energy produced from renewable energy sources.
Tax benefits regarding energy generation from renewable energy sources are set by the Tax Code of the Republic of Belarus.
4. What are the principal regulatory bodies in the renewable energy sector?
Considering the use of renewable energy is a complex area, the state regulation is executed by various state bodies on all levels of authorities.
The President of the Republic of Belarus determines the unified state policy in sphere of RES use.
The Council of Ministers ensures the implementation of the unified state policy. In particular its functions are:
- to establish the procedure for confirming the origin of the energy produced from RES
- to establish the procedure for conducting the State Cadastre of Renewable Energy and its data use
- to coordinate the state bodies work
- to approve state programs.
The State Committee on Standardization of the Republic of Belarus is engaged in realization of state policy and executes:
- monitoring for implementation of state, regional and sectoral programs
- carrying out works on the development of RES use
- information, scientific and technical support for production plants for use renewable energy (further – Plants)
- development of state programs in the field of renewable energy sources.
The Ministry of Energy of the
The Ministry of Natural Resources and Environment of the
The Ministry of Economy sets tariffs for energy produced from RES and provides protection of producers of such energy from unfair competition. Also the Ministry participates in the development of state programs in the field of renewable energy sources.
The State Committee on Science and Technology of the
Local executive and administrative bodies participate in the development of state programs in the field of renewable energy sources and within their competence make decisions on:
- the possibility of inclusion of sites of potential plants location in the State Cadastre of Renewable Energy Sources
- removal and assignment of land plots, as well as the conversion of land to other categories and types for location of Plants.
When developing a scheme of complex territorial organization of administrative units, general plans, town planning projects the executive and administrative bodies have to take into account the
It is necessary to note, that due to the fact that the Law "On RES" has only recently come into force some features are still in the pipeline for implementation. For example, the State Cadastre of Renewable Energy Sources is now at the stage of development, its introduction is planned in April 2012.
INCENTIVES
5. Are tax advantages available to renewable energy generation companies?
According to the Tax Code of the Republic of Belarus there is a number of tax advantages available to renewable energy generation companies:
1) Equipment used in the production or reception (receiving), transformation, accumulation and (or) the transfer of energy produced from non-conventional and renewable energy sources shall be exempt from value added tax when import into the territory of the
The reason for the exemption is a conclusion on labelling imported goods as equipment used for producing energy from non-conventional and renewable energy sources. Such a certificate is issued by the State Committee on Standardization of the Republic of Belarus.
2) Land plots under the objects and Plants for use of non-conventional and renewable energy sources are exempt from land tax (article 194).
3) The ecological tax for wastewater discharge into water objects made by thermal power stations using non-conventional and renewable energy sources, is decreased on the reduction coefficient (article 207).
6. Is there a purchase guarantee given by the relevant legislation for the electricity generated by renewable energy companies?
According to article 16 of the Law "On RES" producers of energy from RES are guaranteed the right to purchase all proposed energy produced from RES and delivered to the public power grids by state supplying organizations, as well as its payment on the tariffs in accordance with the law.
However in order to conclude a contract on the purchase of energy between the producer of energy from the RES and state supply organization it is necessary to obtain a certificate to confirm the origin of energy. Certificate confirming the origin of energy is valid for ten years from the date of its issuance. The certificate is issued by the Ministry of Natural Resources and Environment of the Republic of Belarus.
7. Is there a minimum price guarantee given by the relevant legislation for the electricity generated by renewable energy companies?
The Law "On RES" (article 20) provides the procedure for establishing the price of fuel wood, other biomass, biogas used as RES and the tariffs for energy produced from RES.
The state supplying organizations guarantee a minimum price for the electricity generated from renewable energy sources. Tariffs for this energy are established at the level of electricity tariffs for industrial and similar consumers with connected power up to 750 kW•A with the use of multiplying ratios. Value of multiplying ratios depends on the type of RES and term of plant use.
The multiplying ratios are used within the first ten years from the date of commissioning of the plant. The next ten years of the operation of plants stimulating ratios are applied.
However, by the present date the legal act that establishes multiplying and stimulating ratios for renewable energy use has not been adopted.
Similar terms of multiplying and stimulating ratios are used during commissioning of additional plants as well as increase of plant power by the reconstruction (for the volumes of increased power).
Acquisition costs of energy produced from RES on the mentioned rates are included in the cost price of electricity generation by the state supplying organizations.
8. Do the renewable energy based power plants have priority for connection to the grid?
Article 21 of the Law "On RES" states that persons who carry out activities on the use of renewable energy are provided with a guaranteed connection of plants to public power grids.
Plants connection to public power grids is made on the basis of the agreement on the purchase of energy between a producer of energy from RES and state supply organization.
According to the Law "On RES" the essential provisions of such agreement are:
- the rights and obligations of the parties
- settlement procedures
- the planned volume of energy sales
- responsibility for the quality of services provided in the frameworks of the agreement.
At the same time state supply organization:
- provides an unimpeded and non-discriminatory identification of the nearest point of public power grids and guaranteed connection of the plants to the point
- incurs costs related to the modernization of public power grids for the provision of technical connectivity of plant to the nearest point of public power grids
- sets in agreements on the purchase of energy equal conditions of connection to public power grids for all producers of energy from RES
- has the right to refuse to connect if the plant does not meet the conditions required for connection to public power grids. The state supply organization shall coordinate the decision to refuse connection with the Ministry of Energy of the Republic of Belarus.
The costs of plant direct connection to the nearest point of public power grids are defrayed by the producers of energy from RES.
9. Is there an incentive for domestic (local) manufacturing of equipment or materials used in the construction of renewable energy based power plants?
There are no special incentives in Belarus for local manufacturing of equipment or materials used in the construction of renewable energy based power plants.
10. What are the other incentives available to renewable energy generation companies?
Unfortunately, as it is specified above, legal regulation on the use of energy produced from RES in Belarus is still undeveloped. Currently there are no other benefits provided to renewable energy generation companies.
The review is prepared by senior associate
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