Legislation and investment environment in area of energy efficiency and RES

Eneca Company » UNECE Project EE21 » Environment and activities in energy efficiency and renewable energy resources area in the Republic of Belarus

Legislation

Main legislation acts:

Programs of development energy efficiency and RES:

Statutory acts of the control bodies:

Prepared acts and programmes:

  • Currently the work on secondary legislation for the Law “On renewable energy sources” is going on.

Normative legal acts for promotion of realization of investment projects in the Republic of Belarus:

 

Investment environment

The potential investors tend to look for more reliable projects and lower risks. Potential investors in the energy sector of the Republic of Belarus will enjoy favorable investment conditions as follows:

  • Stability of the political situation in the country and a steady growth of the national economy indicators;
  • The government control is accompanied by gradual re-structuring of the energy sector and turning part of the energy enterprises and companies into joint-stock companies;
  • Corporative financing of the energy industry development;
  • The regional energy supplying enterprises (Oblenergo) of Belarus envisage financial stability and have capital intensive infrastructures  with guaranteed growing demand for energy product, as well as most of project initiators in energy sector have financially solid infrastructures;
  • Energy product demand growth guarantees;
  • The possibility of erecting energy generating sources, partially or fully financed by foreign investors;
  • Guarantees of investors" rights and protection of investments are ensured by Law;
  • Privileges for investors when energy facilities are built in free economic zones;
  • A system of benefits when investing into renewable sources of energy and facilities based on indigenous types of fuel as well as into energy efficient technologies.

In addition, concerning just financing energy efficiency and renewable technologies introduction it is essential to emphasize the possibilities: involving state and international funds, interest of Belarus in the direct investments (private and foreign), allowability for different types and techniques of cooperation according to Belarus legislation, government support for the energy efficiency and RES projects.

There are special funds (at the levels of state, sectors of the national economy, regions, enterprises) to support energy efficiency activities, possibilities to use economy received thanks energy efficiency activity for further energy efficiency measures and projects also for awarding bonuses. Companies can involve energy economy into operating cost and create special energy saving fund. 

Special incentives are introduced for single important projects and measures for energy efficiency. Belarusian government provides guarantees to foreign investors for energy efficiency projects that have special or social significance for the country. For example, public funds were used for installation of a 230 MW gas and steam turbines at the Minsk CHP-3, erection a number biomass-fired mini-CHPs (Bobruisk, Osipovichi, Vileika, BelGRES), etc. Some preferences were given for installations water meters to residential consumers. 
 

Belarusian government guarantees state support for social important projects and develops cooperation with the World Bank. In the framework of the cooperation, the following projects have been implemented:

  • “Modernization of the Social Infrastructure in the Republic of Belarus”(12 boiler-houses on wood fuels and boiler-house “Borovliany” (with thermal capacity of 5 MW);
  • “Climate Change Prevention” (grant of the Japan Government),
  • “Rehabilitation of the Regions Suffered from the Disaster at the Chernobyl NPS”.

New stages for cooperation with the World Bank is credit granting for the future projects:

  • Modernisation of the infrastructure in the social sector of the Republic of Belarus (additional loan);
  • “Clean Water”;
  • “Electrification of the Piece “Osipovichi-Gomel” of the Belarusian Railway”;
  • “Construction of the Waste Treatment Plant”;
  • “Energy Efficiency Increase in the Republic of Belarus”.

 Cooperation with the GEF / UNDP and UN / ECE has being developed:

  • Implementation of the project "Biomass Energy for Heating and Hot Water Supply in Belarus";
  • Implementing the project "Removing barriers for increasing energy efficiency of public sector enterprises in Belarus";
  • Preparation of a new project "Increasing energy efficiency in new residential buildings in the Republic of Belarus";
  • Preparation of a new project "Development of wind power energy in the Republic of Belarus".
     

Differential tariffs system is gradually introduced for industrial, residential and other groups of consumers. 

The special Resolution N 91 of the Republic of Belarus Ministry of Economy (31 May 2006) ensures some incentives for renewable energy sources including the guarantees to be connected to the national grid, to sell producing electricity and special released prices. Besides encouraging incentives, some penalties are using for unefficient energy consumption. 
 

There are possibilities to get lax credits for realizing energy efficiency projects and measures.
 

There are preferences in payment for emissions for biomass-fired energy units and RES.  Some customs benefits are given for a number of energy efficient equipment. There are some tax incentives for RES in energy efficient and free economic zones. The recommendations to assist companies and people who intend construct RES are given to municipal authorities from government bodies. A new Law “On Renewable Energy sources” is approved, in which preferences for renewable energy development are legislatively secured. 
 

Government welcomes and promotes establishment of ESCOs.

 On the December 31, 2010 the President of the Republic of Belarus signed the Directive № 4 "On the development of entrepreneurship and business activity stimulation in Belarus." This policy document is aimed at further liberation of the economy and business initiatives, creation of favorable conditions for dynamic and sustainable development in Belarus.
The directive contains nine sections, each of which focuses on removing barriers, with which entrepreneurs constantly faced.
The names of these sections are formulated as conceptual system requirements to all public bodies and organizations, public associations and citizens of the country:

  • To ensure further development of fair competition of all the business entities regardless of ownership.
  • To create conditions for the smooth business implementation.
  •  To eliminate unnecessary administrative barriers during the interaction of state bodies and enterprises/citizens.
  •  To complete the harmonization of the national tax system with the existing in European countries. To direct tax laws on stimulating business initiative and fair tax obligations discharge.
  • To make control (oversight) activities preventive in their nature, to go to the predominant use of preventive measures aimed at stopping crimes during entrepreneurial activity.
  • To improve infrastructure and financial system of small businesses in order to enhance business activity and ensure effective (legal, organizational and financial) support for business
  • To eliminate excessive regulation of the labor market.
  • To form a legal framework that promotes public-private partnership development in Belarus.
  • To provide unambiguous legal regulation and stability of legislation, regulating business activities.