The government plans to increase the share of CO2 emission right auction funds going to the RES special account as a means of protecting payments to renewable energy producers following a decision to reduce a RES-supporting ETMEAR surcharge included on electricity bills.

This surcharge is being reduced to partially offset tariff hikes at power utility PPC, under financial pressure and needing a revenue boost.

The energy ministry intends to increase the share of CO2 emission right auction funds going into the RES special account to 70 percent, through a legislative revision in autumn, sources informed.

Renewable energy sector officials are pushing for a bigger share of 80 percent as the total amount of CO2 rights to be auctioned is being reduced, based on new EU regulations announced in July, meaning the overall funds to be generated at the auctions will be smaller.

Under current law, a 65 percent share of CO2 emission right auction funds would be kept for the RES special account, up from 60 percent in 2018, but lower than a 72 percent level that had been set for 2016 and 2017.