Decreased prices of electricity from biomass

By virtue of a Resolution No Ц-1 dated 28.01.2015 SEWRC determined lower preferential off-take prices of electricity produced from renewable energy sources (RES) – biomass from wood representing wood waste, forest cleaning, forest pruning, etc., which become effective from 1 February 2015.

The decrease in the prices was imposed following public discussions held on 8 January 2015, where representatives of all interested parties participated. The decrease was approved on the basis of a report of an expert working group appointed by the Regulator.

SEWRC decreased the preferential off-take prices of electricity on the grounds of Art. 32, Para. 1, p. 2 of the Renewable Energy Act (REA). Pursuant to the said provision of the REA SEWRC is entitled to amend the preferential prices in any case, when there is material change to one or more of the price forming elements. Pursuant to §1, p. 28 of the Additional Provisions of REA „material change to a price forming element” exists, when there is a change of more than 10% in the value of the price forming element since the formation of the respective price.

SEWRC confirmed the material decrease in one of the price forming elements to the preferential price for electricity produced from direct or indirect burning of biomass from wood made from wood waste, forest cleaning, forest pruning, etc., and namely the expenses for raw materials.

In view of the above SEWRC determined lower off-take preferential prices. The decrease varies between 26%-29% for the price of electricity produced from direct burning of biomass, and between 10%-12% for the price of electricity produced from indirect burning of biomass through thermal gasification.

The Resolution may be subject to appeal before the Supreme Administrative Court within 14 (fourteen) days after its announcement.

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