No FIT for biomass projects after 01.01.2016

According to the current legislative provisions only new power plants which correspond to the below -mentioned requirements could benefit from the compulsory purchase of electricity at preferential prices. These are power plants with combined cycle and indirect use of biomass which shall be constructed in urbanized territories, agricultural sites and production area and

a) Have installed capacity up to 1,5 MW and indirect use of biomass, whereas 60% of the overall weight of the biomass shall be animal manure, or

b) Have installed capacity of up to 500 kW for production of energy with indirect use of biomass of plant waste from own production.

The above preference shall cease to apply for new biomass projects, which shall be put into operation after 1 January 2016.

Amendments to the preferential purchase prices of electricity from biomass, cancelling all preferences for all biomass power plants that are not commissioned until 01.01.2016 were introduced with the transitional and final provisions of the Bill for Amendments to the Agricultural Lands Protection Act, which was promulgated in the State Gazette on 18 December 2015.

Meanwhile, the Energy and Water Regulatory Commission (EWRC) announced new lower prices for electricity produced from biomass projects. The affected plants are those having installed capacity up to 1,5 MW and indirect use of biomass, whereas 60% of the overall weight of the biomass of animal manure. The new purchase prices became effective from 01.12.2015, and they are the following:

  • BGN 376,78 per MWh – for power plants having installed capacity up to 500 kW; and
  • BGN 347,46 per MWh – for the power plants having installed over 500 kW to 1,5 MW.

Due to changes in the pricing elements according to EWRC’s report, the preferential purchase price for electricity produced from power plants with combined cycle and indirect use of biomass from plant waste from own production having installed capacity up to 500 kW was also decreased – from BGN 397,09 per MWh to BGN 349.06 per MWh.

The lower prices shall apply for new biomass plants commissioned in the period 1 – 31 December 2015.