Legal Aspects of Solar Investments in CEE-SEE Bryan Jardine, Partner, Wolf Theiss Bucharest
TOPICS
1. Renewable Energy in CEE-SEE 2. Main legal aspects of Solar PV projects in CEE-SEE 3. Wolf Theiss RES-Electricity Guide
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CEE-SEE: European Union and Energy Community • Countries in CEE-SEE • Two main communities regarding Energy: – European Union – Energy Community
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European Union • RES-Electricity Directive 2001 – 2010 Target: 21% for RES-Electricity in total EU electricity consumption – National indicative target: Member State must take appropriate steps to encourage greater consumption of RES-Electricity (usually through support schemes)
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European Union (Continued) • Renewable Energy Directive (in force from June 2009) • Climate-Energy Package: 20-20 in 2020 – Mandatory national targets for overall share of renewable energy in gross final consumption of energy, and for share of renewable energy in transport – Rules for statistical transfers, joint projects, and access to the electricity grid for renewable energy
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Energy Community • Athens Treaty of October 2005 • Implementation of acquis communautaire for renewables • Contracting Parties: European Union, Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro, Serbia and Kosovo • Each member has now adopted targets for implementation of acquis communautaire for renewables (mainly RESElectricity and Transport)
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Solar Photovoltaic Energy • Fastest growing renewable energy technology • Cost is a major factor limiting growth BUT costs decreasing with current rapid technological advancements and volume installations • Paradigm Shift Scenario: PV electricity could provide up to 12% of EU electricity demand by 2020 Source: European Photovoltaic Industry Association
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Attractive Feed-In Tariffs • Czech Republic: 20 year tariff of 465 €/MWh (installed capacity above 30 kW) or 469 €/MWh (installed capacity below 30 kW) • Slovak Republic: 15 year tariff of 425.12 €/MWh (installed capacity above 100kW) or 430.72 €/MWh (installed capacity below 100kW) • Bulgaria: 25 year tariff of 386 €/MWh (installed capacity above 5 kW) or 421 €/MWh (installed capacity below 5 kW)
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Attractive Feed-In Tariffs
(Continued)
• Slovenia: - On-ground: 15 year tariff of 290 €/MWh (installed capacity above 1MW but below 5MW), 359 €/MWh (installed capacity below 1MW) or 390 €/MWh (installed capacity below 50 kW) - Building-Integrated: 15 year tariff of 362 €/MWh (installed capacity above 1MW but below 5MW), 437 €/MWh (installed capacity below 1MW) or 478 €/MWh (installed capacity below 50 kW)
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Legal/Regulatory Uncertainties • Czech Republic - Parliamentary Bill to remove 5% protection in some cases - Regulator: feed-in tariffs for solar PV will drop by 30% in 2011 - Distribution System Operators: suspension of all new applications to reserve grid capacity for solar PV and wind • Slovak Republic - Transmission System Operator: 120 MW aggregate cap for solar PV projects above 1MW reached in Dec 2009
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Legal/Regulatory Uncertainties (Continued) • Bulgaria - No year-on-year guarantee of amount of tariff - Conflicting Ministerial declaration regarding the future of renewables - Indications that tariff will be reduced, but year-on-year guarantee will be introduced • Slovenia - Fixed and variable parts in feed-in tariff, although currently for solar PV variable part is not significant
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Important Land-Related Factors Rough example: To generate 5000 MWh from a 5MWp solar PV installation, 15-20 hectares of land will be required
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Land-Related Legal Issues • Large plots in State ownership - Lack of overall planning regarding use of State-owned land - Uncertainty regarding competent authority - Uncertainty regarding whether secure rights can be granted over State-owned land
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Land-Related Legal Issues (Continued) • Privately-owned land - Land registry either inexistent or out-of-date - Heritage from communist era: large plots parcelled - Unclaimed plots: cumbersome appropriation process • Effect on landscape and wildlife: Strong objections from environmentalists during permitting process
• Hope: Increase in module efficiency will bring savings in land-related factors (less hectares for similar MWp)
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For other regulatory aspects, ask:
Bryan Jardine
Zoltรกn Faludi
Horst Ebhardt
Ron Given
Andreas Schmid
Jacques Isabelle
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Or refer to: 14 jurisdictions covered:
European Union: Austria, Bulgaria, Czech Republic, Hungary, Romania, Slovak Republic, and Slovenia
Energy Community: Albania, Bosnia & Herzegovina, Croatia, Kosovo, Macedonia, Serbia and Ukraine
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Wolf Theiss RES-Electricity Guide • Building Permits, Environmental Permits and Environmental Impact Assessments • Energy Permits, Concessions, and Tender Proceedings • RES-Electricity Promotion Schemes • Financial Incentives Guarantees of Origin, Grid Connection Issues, and Carbon Credits
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Thank you for your attention!
Bryan Jardine bryan.jardine@wolftheiss.com
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