BiogasEvent
An additional 24 months of FIT/FIP support for biogas plants and small hydropower plants: little time left
Under the amendment to the Act on Renewable Energy Sources (Journal of Laws (Dz.U.) 2021, item 1873), biogas plants up to 1 MW can obtain an additional 24 months of support under FIT/FIP. The author of the analysis advised submitting the declaration in 2021.
Other language versions: polski.
Biogas plants and small hydropower plants that have used certificates of origin for at least five years can, under the amendment to the Act on Renewable Energy Sources (Journal of Laws (Dz.U.) 2021, item 1873), obtain an additional 24 months of support under the feed-in tariff and feed-in premium (FIT/FIP) systems. As the lawyer Piotr Szwarc described on 18 December 2021 in Gramwzielone.pl, the deadline for submitting the declaration expired, in his assessment, on 27 January 2022, but because of the complexity of the documents it was worth acting still in 2021.
Who can benefit
Eligible are installations that currently receive support in the form of certificates of origin, as well as those whose maximum 15-year support period in that system has already ended. The condition is at least five years of using certificates of origin. This applies to:
- agricultural biogas installations,
- biogas plants using landfill gas or gas from wastewater treatment plants,
- other biogas installations,
- small hydropower plants.
The total period during which an installation can receive support may not exceed 17 years.
How FIT and FIP work
| System | Capacity | Rule |
|---|---|---|
| FIT (feed-in tariff) | up to 500 kW | sale of energy to the obliged seller at a price equal to 95% of the reference price in force on the day the declaration is submitted |
| FIP (feed-in premium) | up to 1 MW | the generator receives 90% of the negative balance, that is, the difference between the reference price and the average market price |
Prices are indexed annually according to the Statistics Poland (GUS) consumer price index. The price in force in the year the declaration is submitted applies throughout the support period.
Uncertainty over reference prices
The author pointed out that if the Minister of Climate and Environment does not issue by the deadline a regulation with reference prices for 2022, it is unclear whether the 2021 prices will apply, or whether support will not be available in 2022, or whether the 24-month period will be counted from the moment the regulation is issued. He recommended submitting the declaration by the end of 2021 as a precaution, because preparing the full set of forms and documents takes time.
Significance for the industry
For owners of biogas plants that are finishing their support period in the certificates system, the additional two years extend stable revenue in a period of regulatory uncertainty before the new mechanisms for biomethane come in. It was estimated that about 80 biogas installations and more than 400 hydropower plants would benefit from the solution. For installations planning to switch to biomethane or to modernise, the additional years of support may allow funds to be raised for the investment.
What next
Owners should check whether they meet the conditions, prepare documents (including certificates issued by the President of the Energy Regulatory Office (URE)) and submit declarations on time. It is also worth monitoring the regulation with reference prices and URE interpretations.
Sources
Related articles
