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Biofuels in Slovenia

General

The Resolution on the National Energy Programme (ReNEP) adopted by the National Assembly in 2004, defines long-term development goals of energy demand and supply, security of supply, competitiveness of energy markets and sustainability. The target of Slovenian policy defined in the Resolution on the National Energy Programme (ReNEP) was to: (a) increase the share of RES in the primary energy balance to 12% in 2010, (b) increase heat supply from RES from 22% in 2002 to 25% in 2010, (c) increase electricity production from RES from 32% in 2002 to 33.6% in 2010. A new National Energy Programme with new long-term goals is in progress.

The Energy Act sets priority to renewable energy before supplying energy from non-renewable energy resources. It also defines also that the energy policy is orientated toward renewable energy resources by ensuring appropriate measures and support mechanisms.

Since 2001 the main support mechanism for RES electricity has been feed-in. In July 2007 Slovenian parliament adopted the changes and the modification of Energy Act (70/2008) primarily in chapters dealing with the electricity from RES and from cogeneration which led to the modification of the scheme in 2009. Under the current support system RES electricity is promoted by:

(a)    feed-in tariffs  (guaranteed purchase) for RES plants up to 5 MW and CHP plants up to 1 MW. Operators can choose between feed-in tariff and feed-in premium.

(b)   feed-in premium (operation support) only for RES plants above 5 MW and CHP plants above 1 MW.

Eligible technologies are biomass, biogas, wind, solar, geothermal, hydro, biodegradable waste plants up to 125 MW capacity. Support is provided for 15 years.

 

RES are also supported through investment grants and subsidies:

 

(1)   Subsidies for households are provided by Eco fund since 2010 for solar collectors, biomass boilers, and for district heating systems on biomass.

(2)   Grants for investment projects in the field of energy efficiency, renewable energy and distribution of energy (heat) are awarded by Ministry of the Economy. The maximum support for household is set to 50% of eligible investment. The maximum support for public sector is 75% of eligible cost of projects. All RES technologies are eligible for promotion. Call for applications are set on a yearly basis. Subsidies are granted on the basis of a selective procedure.

 

The Eco Fund assigns soft loans to specific RES technologies.

Since 2008 a new building regulation on energy efficiency defines obligation that minimum  25% use of the total energy use has to be covered by RES. This applies to new buildings (residential and non-residential) as well as to buildings under a major renovation.

 

Renewable energy projections according to the National Renewable Energy Action Plan for Slovenia 

According to Directive 2009/28/EC the target in 2020 indicates 25% of renewables in the gross consumption of final energy. The National Renewable Energy Action Plan (NREAP) for Slovenia was submitted in June 2010. The projected NREAP share in the year 2020 is 25,3%. 

The NREAP Target sectoral shares of RES in 2020 are: (a) heating and cooling from RES - 30,8% , (b) electricity from RES - 39,3% (c) biofuels in transport -10,5%.    

According to the NREAP projection, the most important contribution in the year 2020 is expected from biomass (309 GWh of electricity and 526 ktoe of heat, or 41% of all renewable energy). The second important contribution is expected from small hydro power (5121 GWh or 33% of all renewable energy). The third largest contribution is from biofuels (173 ktoe of biodizel and 18.5 ktoe of bioethanol or 14% of all renewable energy). PV and solar thermal contribute 139 GWh of electricity and 21 ktoe of heat, biofuels contribute 367 GWh, wind power 191 GWh of electricity.

 

Renewables in transport: biofuels

The biofuels are promoted by quota obligation on fuel distribution. The Decree on the promotion of the use of biofuels and other renewable fuels for the propulsion of motor vehicles No. 103/2007 defines the annual share of biofuels placed on the market in Slovenia:
-    2007, equal to at least 2.0%,
-    2008, equal to at least 3.0%,
-    2009, equal to at least 4.0%,
-    2010, equal to at least 5.0%,
-    2011, equal to at least 5.5%,
-    2012, equal to at least 6.0%,
-    2013, equal to at least 6.5%,
-    2014, equal to at least 7.0% and
-    2015, equal to at least 7.5% of the total annual quantity of fuel on the market to drive motor vehicles.

The decree obliges distributors of fuels for transport vehicles to ensure that biofuels are placed in Slovenias market.

The Decree sets minimun share of biodiesel mixed to 5% of the mineral diesel and of bio-ethanol or other biofuels mixed is set to 5% of mineral gasoline. Distributors of fuels offering services at the highway have to provide pure biodiesel and bio-ethanol or other biofuels mixed in the low share of up to 10% of mineral gasoline. All mixtures have to fulfill requirement of standard SIST EN 590 and SIST EN 14214 and requirement of regulation on the quality of liquid fuels.

The Decree as well defines that the operators and owners of motor vehicles in the public transport, taxi services and operators or owners of motor vehicles in the public sector must ensure that each year at least 70% leased, and at least 70% of the newly purchased motor vehicles is driven by:
-    oil, petrol mixed as bio-ethanol or other biofuels in the proportion to 10% but greater than 5%, or
-    biodiesel in the form of pure biofuel or
-    biogas.

In 2004 the Slovenian parliament adopted amendments to the Excise Duty Act.  Pure biofuels are exempted from excise tax. For fuels with share of biofuels more than 5%, the biofuel component is exempted from excise tax and is proportionate to the share of biofuels added.

The exemption from excise duty applies to the following biofuels: bioethanol, biodiesel, biogas, bioETBE and biodimethylether.

Since 2009 aid of 45 € per hectare is granted for growing energy crops. The minimum total area which can receive the aid for energy crops is 0.30 hectare.

In January 2010 an amendment on the Law on motor vehicle tax was adopted ant it regulates the level of motor vehicle tax depending on CO2 emissions and the type of fuels that is used. Purchase of cars with lower CO2 emissions is taxed with lower motor vehicle tax  

 

Future programme changes expected

 A new Energy Act is in progress.

Sources:

-          Law on Excise taxes No. 84/98. and No. 122/2006:
(
http://www.uradni-list.si/1/objava.jsp?urlid=199884&stevilka=4323)

(http://www.uradni-list.si/1/objava.jsp?urlid=2006122&stevilka=5239)

-          Decree on the Promotion of the Use of Biofuels and other Renewable Fuels for Motor Vehicles No. 103/2007:
(
http://www.uradni-list.si/1/objava.jsp?urlid=2007103&stevilka=5135)

-          National report on the use of biofuel in transport sector in Slovenia:

(http://193.2.236.95/dato3.nsf/OC/0806262131463/$file/175v1_20.doc)

-          The amendment of Law on motor vehicles tax No. 9/2010

(http://www.uradni-list.si/1/content?id=96109)

-          RE SHAPING - Renewable Energy Policy – Country profiles, 2011 version

(http://www.reshaping-res-policy.eu/downloads/RE-SHAPING_Renewable-Energy-Policy-Country-profiles-2011_FINAL_1.pdf)

 

 

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Last update: June 2011


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