Dinamic of price level in RES sector in Lithuania Jūratė Pravalackaitė Head of Renewable Resources Division National Commission for Energy Control and Prices 2014-05-14

Legislation Variable tariff Support until 2020 Connection discount Support for 12 years Feed-in tariff Connection discount Purchase of electricity Free capacity reservation Priority right of electricity transfer No balancing responsibility Variable tariff Support until 2020 Connection discount 2011-05-24

Feed – in tariff economic efficiency; technological novelty; minimal financial taxes for consumers. Future cash flows net present value (NPV) after 12 years, must be equal to zero.

Feed – in tariff, Eur/kWh investment cost decreased; more efficient technologies; WACC value decreased.

Differentiation of feed-in tariffs Definition Solar PV Non integrated <10 kW 10-100 kW >100 kW Integrated Hydro 10 -1000 kW >1000 kW Wind 10-350 kW >350 kW Biomass New 10-5000 kW >5000 kW Rebuild Biogas Sewage 10-500 kW 500-1000 kW 1000-2000 kW >2000 kW Landfill >500 kW

AUCTION – main principles Max term – 180 days Technology + installed capacity Feed – in tariff for 12 years The lowest feed – in tariff The biggest installed capacity; The following two participants can agree with the winner‘s feed - in tariff. 20 different auctions if there is enough quota

Auction’s steps RES producer request Auction announcement Auction documents and feed-in tariff registration Documents‘ scrutiny and the list of the auction participants Feed-in tariff rating and winner announcement Auction’s steps

Produced electricity, MWh Installed capacity, MW

Public Service Obligations (PSO) 2010 2011 2012 2013 2014 Total PSO budget, mln. Eur. 130,8 179,6 210,8 267,4 191,45 Total price of PSO, eur.ct/kWh 1,37 1,74 2,04 2,72 2,07 RES price of PSO, eur.ct/kWh 0,13 0,26 0,36 0,54 0,6 RES price of PSO budget, %. 9,70 15,03 17,54 19,95 32,64

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