The Government of Serbia has defined a quota in the market premium system for solar power plants with an approved installed capacity of 500 kW (kilowatts) and more. The quota for those power plants is 50 MW (megawatts) in the future.
The quota, I.e. the sum determined by the contract to be paid within the established terms for those power plants, is prescribed by a special regulation.
The market premium and feed-in tariff system is otherwise defined by the Law on the Use of Renewable Energy Sources.
According to that law, the market premium is a type of state aid that represents an addition to the market price of electricity that users of the market premium deliver on a monthly basis to the power system.
It Is determined in Eurocents per kWh in the auction process and can be acquired for all or part of the power plant’s capacity.
The feed-in tariff is a type of operational state aid that is granted in the form of an incentive purchase price that is guaranteed per kWh for the delivered electricity for the duration of the incentive period.
This type of incentive is intended only for small plants, which are defined as power plants with an approved power of less than 500 kW, i.e. wind power plants with an approved power of less than 3 MW, and demonstration projects, which are defined as non-commercial projects from renewable energy sources.
Market premiums, feed-in tariffs as well as the method of determining the reference market price of electricity have recently been determined in more detail by a new regulation.