Republic of Serbia Net-Metering Study: First Report
Total Page:16
File Type:pdf, Size:1020Kb
REPUBLIC OF SERBIA NET-METERING STUDY FIRST REPORT: ANALYSIS OF LEGAL FRAMEWORK AND MARKET STRUCTURE IDENTIFYING ANY IMPEDIMENTS ENHANCING CAPACITY FOR LOW EMISSION DEVELOPMENT STRATEGIES (EC-LEDS) PROGRAM CONTRACT NUMBER AID-OAA-M-15-00005 January 2019 This publication was produced for review by the United States Agency for International Development. It was prepared by RTI International. iii This page is intentionally left blank. REPUBLIC OF SERBIA NET-METERING STUDY FIRST REPORT – ANALYSIS OF LEGAL FRAMEWORK AND MARKET STRUCTURE IDENTIFYING ANY IMPEDIMENTS January 2019 Enhancing Capacity for Low Emission Development Strategies (EC-LEDS) Program Contract Number AID-OAA-M-15-00005 DISCLAIMER The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. This document is intended to comply with Section 508 Standard of the Federal Acquisition Regulation. If you have any difficulties accessing this document, please contact [email protected]. v This page is intentionally left blank. FOREWORD RTI International was asked by the U.S. Agency for International Development (USAID) to perform a study of net-metering in the Republic of Serbia (Serbia), the purpose of which is to assist Serbia to define and introduce, if feasible, a successful approach to net-metering. In broad terms, the study comprises three reports: First Report: An analysis of the present market structure and legal and regulatory framework with special emphasis on impediments or issues preventing the introduction of net-metering in Serbia. This report contains that analysis. Second Report: A study of examples and models of net-metering practice in other countries, resulting in a report on examples of good practice in countries that have successfully implemented net-metering. This report was delivered on April 16, 2018. Third Report: A proposal for introducing net-metering in Serbia, including a concise set of recommendations on how Serbia may re-shape existing rules to incentivize the introduction of, and engagement of investors in, net-metering. This first report under the net-metering study: • contains a description of the legal/regulatory framework presently applying to, and the market structure of, the electricity sector in Serbia; • examines the key elements of net-metering and their present status or treatment under legislation in Serbia, and whether impediments to the introduction of a net-metering scheme exist—such as electricity pricing and incentives for potential small-scale investors in renewable energy (RE), and the regulatory regime applicable to installation and construction, connection, and metering; • identifies in broad terms the areas of Serbia’s Energy Law and other relevant laws that would require amendment if such a scheme were to be introduced, and why. A more detailed description of the recommended amendments will be contained in the third report; • examines the taxation regime that would be applicable to prosumers; • describes the institutions and companies whose roles in the energy sector are important in terms of any introduction of a net-metering scheme; • reports on the potential for RE investment in Serbia and the incentives for investment in RE that presently exist; and • looks at other potential issues that could create impediments to the introduction of a net- metering scheme. Republic of Serbia Net-Metering Study First Report: Analysis of Legal Framework and Market Structure Identifying any Impediments iii Draft January 2019 TABLE OF CONTENTS FOREWORD ............................................................................................................................. III LIST OF FIGURES ....................................................................................................................VI LIST OF TABLES ......................................................................................................................VI DEFINITIONS AND ACRONYMS.............................................................................................VII EXECUTIVE SUMMARY ............................................................................................................ 1 1. INTRODUCTION TO NET-METERING ................................................................... 4 2. SERBIA’S ENERGY LEGAL/REGULATORY FRAMEWORK AND MARKET STRUCTURE ........................................................................................................... 5 2.1 Present Structure .......................................................................................................... 6 2.2 Small-Scale Renewable Energy and Net-Metering ...................................................... 7 3. KEY ELEMENTS OF NET-METERING AND THEIR PRESENT STATUS UNDER SERBIAN LAW ........................................................................................... 8 3.1 Electricity Pricing .......................................................................................................... 8 3.1.1 Electricity sale to households and SMES at the regulated prices (guaranteed supply) ................................................................................. 9 3.1.2 Other relevant financial and economic indicators used in cost- benefit analyses ..................................................................................... 11 3.2 Energy Activities and Classification of Prosumers ...................................................... 13 3.3 Construction and Environmental Permitting of Electricity Facilities by SMEs/Domestic Consumers ....................................................................................... 14 3.3.1 Construction and Permitting Legislation ................................................. 14 3.3.2 Environmental Legislation ...................................................................... 15 3.4 Metering ...................................................................................................................... 16 3.5 Connection to Distribution Network ............................................................................ 17 3.5.1 Typical process and cost of connection to the distribution network ....... 17 3.6 Taxation Overview as It Applies to Small Producers .................................................. 18 4. DIVISION OF RESPONSIBILITIES ACROSS INSTITUTIONS, AGENCIES, AND ELECTRICITY SECTOR COMPANIES ......................................................... 20 4.1 Ministry of Mining and Energy .................................................................................... 20 4.2 Energy Agency of the Republic of Serbia ................................................................... 20 4.3 JP Elektroprivreda Srbije ............................................................................................ 21 4.4 EPS Distribucija d.o.o. Beograd ................................................................................. 21 4.5 JP EPS – Ogranak EPS Snabdevanje ....................................................................... 22 4.6 Ministry of Finance ...................................................................................................... 22 4.7 Ministry of Construction, Transport, and Infrastructure (MCTI)................................... 22 4.8 Elektromreza Srbije .................................................................................................... 22 4.9 Commission for Protection of Competition ................................................................. 22 4.10 Other Entities of Interest ............................................................................................. 23 Republic of Serbia Net-Metering Study First Report: Analysis of Legal Framework iv and Market Structure Identifying any Impediments 5. POTENTIAL FOR RENEWABLE ENERGY IN SERBIA AND PRESENT INCENTIVES .......................................................................................................... 24 5.1 Potential of Renewable Energy Sources in Serbia ..................................................... 24 5.1.1 Solar PV ................................................................................................. 24 5.1.2 Small hydro ............................................................................................ 24 5.1.3 Wind ....................................................................................................... 24 5.2 Current Incentives for Generation of Electricity using Renewable Energy Sources ....................................................................................................................... 25 6. OTHER POTENTIAL ISSUES OR IMPEDIMENTS ............................................... 27 7. POSSIBLE LEGAL AMENDMENTS/CHANGES RECOMMENDED ...................... 28 7.1 Energy Law ................................................................................................................. 28 7.2 Other Legislation ......................................................................................................... 32 ANNEX 1. RELEVANT LEGISLATION ..................................................................................... 35 Republic of Serbia Net-Metering Study First Report: Analysis of Legal Framework and Market Structure Identifying any Impediments v Draft January 2019 LIST OF FIGURES FIGURE 1. Electricity Market In Serbia ...................................................................................... 7 FIGURE 2. Structure Of Average