Local Power Source – Legislation Adjustment

By project SHREC

Published on 30 June 2022

Slovakia

About this good practice

The Local Source Institute was introduced by an amendment to Act no. 309/2018 at the initiative of SAPI after 5 years of effort. It was a compromise solution to solve the previously valid so-called Stop condition, which meant the inability to connect new resources to the network. SAPI initiated legislative change and proposed the concept of local power source – possibility to connect small RES with the production of electricity mainly for own use.

Good practice example in this case – photovoltaic panels installed on the roof of an industrial hall with continuous three-shift operation and an installed capacity of 100 kWp. The investment costs (including photovoltaic panels with a supporting structure, current converters, assembly, electrical installation, and engineering) are totaling 108.000 €. Annual maintenance costs are about 500 €. The estimated annual amount of energy saved is 115,000 kWh, which at an average price of 0.12 €/kWh means 13.800 € of saved costs. The return on investment is, thus, estimated at 9 years, if taking into consideration a raise of electricity prices even less than 7,5 years. The service life of the installation has been be calculated for minimum of 30 years. The time of preparation and implementation of such a project should be reduced by the legislation adjustment from 6 to 3 months.

Result: In period from July 2020 – January 2021 there have been 62 local power sources founded (totaling 3,490 MW of installed capacity from photovoltaic units).

Resources needed

Investment: 108.000 €

Evidence of success

Evidence of success – Best practice: hotel Loft Bratislava
Installation performance 16,6 kW – energy produced for hot water, heating of hotel & brewery. Result: completely energy independent hotel in the centre of Bratislava.

Potential for learning or transfer

The concept of a local source can be considered as one of the absolutely simplest and best ways to develop RES in Slovakia. There are practically zero costs for the state itself and the local resources do not apply a load to the distribution networks. So far, the low allocated capacity has been the only problem. However, the situation after 2020 has forced the Ministry of Economy of the Slovak Republic to simplify the conditions for connecting new local resources. The 500 kW limit for local sources is to be abolished but also the 10% limit for surplus electricity supplied to the network. Moreover, it is necessary that the producers supplying the network will have to conclude a contract on access to the distribution system and distribution of electricity and ensure that the deviation is taken over if the producer does not bear it locally.