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ON THE ROAD TO REFORM:Increasing the share of renewables in
Bosnia and Herzegovina in a cost-efficient manner
5 April 2017 – Part 2
Silvana Tiedemann (Ecofys)
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Agenda1) Current state of RES in BiH
2) Why is a policy reform needed?
3) What does the market look like?
4) How can reform be achieved?
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Electricity sector targets
The NREAP sets the RES-E target for 2020 (only)
57%
2009 2020
50%
future
+ 7
?
• How can the 2020 target be achieved?
• Which target is to be used beyond 2020?
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1) Current state of RES
Generation from renewables set to grow, adding also wind, solar
and biomass
775
0
00
28
23
2020
7.699
90
2015
5.665 7
Electricity generation in 2015 compared to NREAP 2020 targets in
XXXX
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Policies
Both entities have support schemes in place
• FiT in place in both entities for smaller plants
• FiP in place in the RS for projects intended for
self-consumption or selling on the market
• Duration: FBiH 12 years; RS 15 years
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Agenda1) Current state of RES in BiH
2) Why is a policy reform needed?
3) What does the market look like?
4) How can reform be achieved?
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Need for reform
Three factors motivate the reform process
• Applications for RES support exceed volume caps
• Cost of RES support requires additional funding
• Benefits from RES should be wisely leveraged
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Agenda1) Current state of RES in BiH
2) Why is a policy reform needed?
3) What does the market look like?
4) How can reform be achieved?
-
Market outlook in the RS
The RES pipeline is significant
410 310
235
30
98
398
BIOMASA (biomass)
SOLAR (solar)VJETAR (wind)HIDRO (hydro)
1.384
in planning
under construction
installed38
20
2220
10
16 16
02
HIDRO (hydro)
87
BIOMASA (biomass)
VJETAR (wind) SOLAR (solar)
Cap
acit
y in
MW
Nu
mb
er o
f p
roje
cts
Source: Data provided by the regulator and the ministry of the
RS on 31.03.2017.
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Market outlook in the FBiH
The pipeline depends on the technology
0
5
10
15
20
25
30
35
40
45
50
HIDRO (hydro) VJETAR (wind) BIOMASA(biomass)
SOLAR (solar)
MW
Capacity of project pipeline in FBiH
installed capacity
under construction
Source: Data provided by the operator in FBiH on 31.03.2017.
-
644
188
84
0
100
200
300
400
500
600
700
800 18
16
12
14
10
6
8
4
2
0Construction permit
2
Urban planning permit
12
Energy permit
4
Permits in the FBiH
Wind applications are in various project phasesPermitting stages
of wind projects in FBiH
Source: Data provided by the operator in FBiH on 27.03.2017.
MW
No
. of p
rojects
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Levies
RES require additional financial resources
Sources: Data received by the operators of RS and FBiH on March
31th Comments: concerning data for RS: bevor 2014 data are an
estimate because levies were collected by electroprivreda; *
projection by the operator of FBiH
0
5.000.000
10.000.000
15.000.000
20.000.000
25.000.000
2012 2013 2014 2015 2016 2020*
KM
PREGLED NAPLAĆENIH NAKNADA ZA OIE U PROŠLOSTI PO ENTITETIMA
(overview of collected levies in FBiH and RS)
FBIH
RS
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Consumers
Households are sensitive to price increases and are the most
relevant costumer group
Sources: * Podaci iz EE Bilansa RS za 2019. godinu (* Data from
the electricity balance of the RS for 2019 year; FERK)
0
1.000
2.000
3.000
4.000
5.000
6.000
7.000
FBiH 2015 RS 2015 RS 2019*
GW
h/a
POTROŠNJA PO KATEGORIJAMA (consumption by category) JAVNA
RASVJETA (public lighting)
OSTALA POTROŠNJA (otherconsumption)
SN KUPCI (medium voltageconsumers)
VN KUPCI (high voltageconsumers)
DOMAĆINSTVA (households)
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Benefits
RES brings additional benefits
Local valueadded
Environment & climate
Other co-benefits
Employment
…but to what extent?
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Need for reform
Three factors motivate the reform process
• Applications for RES support exceed volume caps
• Cost of RES support requires additional funding
• Benefits from RES should be wisely leveraged
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Agenda1) Current state of RES in BiH
2) Why is a policy reform needed?
3) What does the market look like?
4) How can reform be achieved?
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Objective
The objective is clearly defined
A working group will design a RES support scheme that
• generates additional benefits for BiH,
• complies with the rules defined by the Energy Community,
and
• increases the RES-E share at minimal cost.
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WORKING GROUP MEMBERS
Members of the working group
All relevant institutions work on the reform
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Next steps
The reform targets the post-2020 period
Status Quo Analysis
2030 Targets and Additional
In-Depth Analysis
Design of policy options
Design of detailed concept
Preparation for Implementation
2020Implementation
June 2018 June 2019 Jun – Dec 2019
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Energy Community
The Energy Community sets the corner stones of the new support
scheme
• Auctions are required for large-scale RES
• FiP shall replace FiT
= „market-based support schemes“
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Auctions
An auction creates a market for RES support
Government sets price, market determines volume Government sets
volume, market determines price
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FiT
A feed-in-premium “integrates” RES into the electricity
market
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FiP
A feed-in-premium “integrates” RES into the electricity
market
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FiP
Different FiP schemes lead to different levels of risk
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Questions for the discussion
Bringing down cost requires more than just auctions and FiP
• How to involve all relevant stakeholders in the reform
process?
• How to make sure that all stakeholders benefit?
• How to reduce transaction cost for stakeholders?
• How to minimise risk for stakeholders?
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Thank you for your attention!
SILVANA TIEDEMANN
Senior ConsultantEcofys – A Navigant Company
Albrechtstr. 10c | 10117 Berlin | Germany
Telefone +49 (0)30 29773579-28 | Mobile +49 (0)172 5833275
[email protected]
mailto:[email protected]
