The Energy Security Concept

Potential effectiveness of the use of solar panels on the territory of Belarus due to the favorable conditions of insolation is more than 10% higher than in Poland and the Netherlands and more than 17% higher than in Germany, Belgium, Denmark, Ireland and  United Kingdom. 

Renewable energy: 

• 1840 sites for potential wind farms location with multiple grid connection points; 
• 1600 MW possible wind energy capacity;
• 4.9-5.3 m/s is average background wind speed at the height of 10 m ;
• 3.9 MW total installed capacity in Belarus. 

The largest hydropower potential is concentrated in Grodno, Vitebsk and Mogilev regions in the river basins of Neman, Western Dvina and Dnepr;

• 33.4 MW total installed capacity of 49 existing hydropower plants;
• 850 MW possible hydroenergy capacity.

Large economic potential for the use of biogas and biomass, availability of the necessary raw materials (municipal solid waste, agricultural waste, waste water treatment facilities, etc.):

• 850 MW possible bioenergy capacity;
• 14.7 MW total installed capacity of biogas plants;
• >600 MW total installed capacity of biomass plants

Due to a high dependence on imported energy resources, development of RES industry in Belarus is one of the government’s priorities. Systematic work on development of renewable energy sector is organized and supported by all level state authorities and is expressed in:
a) providing legal guarantees
 – guaranteed connection to the state electricity grid; 
– guaranteed purchase by the state energy utility of all proposed energy produced from RES; 
– guaranteed payment of all energy produced from RES at
preferential tariffs.
b) inclusion of RES in the country’s fuel and energy complex.

Current use of renewable energy sources in the Republic of Belarus (by types of sources). As of January 1, 2016 the following sources operated in the Republic of Belarus:
 – 3265 local fuel power-suppliers with a total heat capacity of more than 6,000 MW, including 22 local fuel mini-CHPs with a total electric capacity of 129.1 MW and a total heat capacity of 345.6 MW; 
– 16 biogas plants with a total electric capacity of about 22.4 M
– 50 hydroelectric power stations with a total installed capacity of approximately 35.1 MW; 
– 56 wind turbines with a total installed capacity of approximately 43.2 MW; 
– 118 heat pumps with a total heat capacity of about 10 MW; 
– 29 photovoltaic power stations with a total electric capacity of about 13 MW; 
– 287 solar water heating installations with a total heat capacity of about 3.8 MW.

The Energy Security Concept sets threshold indicators of economic independence for the period until 2035:

• the ratio of the volume of production (extraction) of primary energy to the gross consumption of fuel and energy resources in 2020 is 16 percent, in 2025- 17 percent, in 2030- 18 percent, in 2035- 20 per cent;
• the ratio of the volume of production (extraction) of primary energy from renewable energy sources to the gross consumption of fuel and energy resources in 2020 is 6 percent, in 2025- 7 the completed large-scale projects in the field of alternative energy.    

Over the last years, among the completed projects for using of local and renewable energy sources in state production association Belenergo the following ones can be noted: mini-CHPP (Central Heating and Power Plant) functioning with the help of local fuel types of Baran, the largest hydroelectric power station of Grodno HEPS with a capacity of 17MW, the wind turbine of 1.5 MW in Grabniky settlement, Novogrudok, Grodno region.

In 2015, in the Republic of Belarus the installed capacity of energy source using solar energy amounted to 11.51 MW, electrical supply was 11 mln kWh. 

At present the capacity of the largest solar power station among other 28 exploited stations in Belarus amounts to 3.75 MW.

The allocation of quotas is made competitively. Given that the selection criteria of winners for the right to create plants with usage of renewable source of energy make it possible not only to select the best technical offers including the highest production figures but also determine the most effective plants.

The Republican Commission for fixing up and allocation of quotas established the volume of plants construction for the use of renewable source of energy for 2016-2018 in the amount of 215 MW. percent, in 2030-8 percent, in 2035-9 percent.

The Republic of Belarus has a well-developed power supply system with total installed capacity of 8,367 MW and total length of state electricity grid of more than 240 thousand kilometers, and the existing infrastructure is being developed at a significant pace.

Before the Decree, renewable energy in Belarus was regulated by The Law of the Republic of Belarus of 27 December 2010 №204-Z “On the renewable energy sources” (the Law). According to the Law the state guarantees to the investor access to public grid and purchases produced energy applying feed-in tariffs (increasing coefficients and stimulating tariffs). Until today there haven’t been any restrictions for the construction of renewable plants. Any investor could construct such a power plant and start to sell energy to the state. But the Decree introduces quotas for building renew able plants.

Quotas will apply to: 
– Construction of new power plants, 
– Modernization and reconstruction of existing plants.
Thus to increase capacity or to add a new facility to an existing one, an investor should obtain a permission of a public authority.

Quotas will not apply to: 
– Companies, which produce energy only for their own needs and not with the aim to supply the public grid, 
– Renewable power plants being built under investment agreements with the government of the Republic of Belarus concluded and registered before 20 May 2015.

Along with high resource potential and progressive legislative framework in RES sphere, the Republic of Belarus offers foreign investors a multiple number of unique advantages:

a) by concluding an investment agreement with the Republic of Belarus a foreign company:
– is exempt from import duties and VAT on imported equipment for its use within the framework of the investment project; 
– is exempt from land tax or rent payment for the land plots being the state property, provided for the construction of the objects; 
– is entitled for renting a land plot of the required size without holding an auction; 
– is entitled for the deduction of the full amount of VAT paid during the acquisition of the goods, property rights used for the project planning, construction, equipment of the objects provided by the investment project etc.
 – is entitled for determination without holding a tender of the general project organization, general contractor, subcontractor project, construction and other organizations, etc.

b) while doing business in the territory of small and medium towns and rural areas a foreign company is exempt from:
– import duties and VAT on imported equipment for its use within the framework of the investment project; 
– profit tax for the first 7 years from the registration date;
real estate tax, state duties for obtaining special permissions (licenses), contributions to innovation funds.

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