small-scale PVs

Non-auction privately owned solar energy units of up to 500 KW and energy communities with capacities of up to 1 MW have been given one-year tariff level extensions, until August 31, 2023, which partially compensates for the failure, for the time being at least, of tariff increases requested by sector officials.

The one-year tariff extension means current tariffs of 65.74 euros per MWh for private owners of solar units of up to 500 KW will be maintained for an additional year instead of being reduced to 63 euros per MWh from September 1, as had been planned by authorities.

Correspondingly, current tariffs for energy communities of up to 1 MW will remain at 68.87 euros per MWh for an extra year instead of dropping to 65 euros per MWh as of September 1.

Even so, investor representatives contend the maintenance of tariffs at present levels does not suffice for sharp development cost increases of solar energy units.

The energy ministry is considering to impose a series of limits on small-scale PV units of up to 500 KW – currently exempted from RES auctions and securing fixed tariffs through administrative decisions – as part of a wider effort to eliminate the RES special account deficit and ensure its sustainability.

Firstly, officials at the ministry are looking to set an upper limit on the total capacity of small-scale PV units that can receive tariffs administratively without participating in RES auctions.

Officials are also considering a steeper de-escalation of tariff prices for small-scale PV units. Under current terms, private investors installing units of up to 500 KW are entitled to a tariff of 70.3 euros per MWh until November 26; 65.73 euros per MWh until April 30, 2021; and 63 euros per MWh between May 1, 2021 and April 30, 2022.

Energy communities of up to 1 MW are currently entitled to 73.64 euros per MWh until November 26; 68.86 euros per MWh until April 30, 2021; and 65 euros per MWh between May 1, 2021 and April 30, 2022.

The aforementioned tariffs beyond November 26 are likely to be cut for both small-scale PV units and energy communities.

The energy ministry also intends to lower the upper limit of small-scale PV units not required to participate in RES auctions for their tariffs to 200 KW from 500 KW at present.

Small-scale PV, energy community tariff levels given one-year extension

Small-scale PV units face tariff cuts, tougher RES auction limits