The National Assembly of the Republic of Srpska adopted the Law on the amendments to the Law on Renewable Energy Sources and Efficient Cogeneration (Law) in an urgent procedure, abolishing subsidies for the production of electricity from wind power plants in the Republic of Srpska. The Law will enter into force eight days after its publishing in the Official Gazette of RS. The proposer of the Law was Government of the Republic of Srpska.
The Government’s reasoning behind the adoption of the Law is the need to exclude from the incentive system certain producers of electricity from renewable sources. The adoption of the Law will result in limiting the growth of the fee for encouraging electricity production from renewable sources and an efficient cogeneration paid by the end-consumers of the electricity. For example, under the existing incentive system, for wind power plants with a capacity of around 50 MW, the Government has to ensure at least EUR 8 million annually.
The subsidies for electricity producers from other renewable sources will remain in place, since the Government’s obligation to pay the subsidies lasts 15 years.
Petar Mitrović, Partner / Independent attorney at law in cooperation with Karanovic & Partners
Nihad Sijerčić, Partner / Independent attorney at law in cooperation with Karanovic & Partners