The new Law on the promotion of renewable energy sources has been published in the State Gazette (issue 35/03.05.2011) and came into force.
The most problematic changes of the law for promotion of Renewable Energy Sources are:
- The term of the feed-in-tariff is reduced from 15 to 12 years for wind energy and 20 years for all other sources.
- Preliminary payments for building grid connection infrastructure when signing the preliminary grid connection contract (GCC) are mandatory.
- Feed-in-tariffs were now to be fixed only when construction is completed, thus rendering RES projects essentially unfinanceable.
- The 5% limit in the annual variation of the feed-in-tariffs determined by the regulator (SEWRC) is removed. Allowing changes to the feed-in-tariffs with no clear floor and no clear mechanism is leading to huge feed-in tariff uncertainty.