The State Aid Commission (SAC) of Kosovo under the European Commission has called the feed-in-tariff (FIT) approved by the country's Energy Regulatory Office (ERO) for 20 MW of solar PV projects as being incompliant with the rules laid down by the European Union (EU).
According to local media portal Koha, the ERO had approved the decision regarding incentive tariffs to support additional capacities of 20 MW of solar energy in Kosovo setting the incentive tariff at €85.5 ($104.5) per MW on a first come, first served basis for solar energy producers, valid for 12 years.
It further said the commission took notice of the development after some media reported of irregularities in the incentive tariffs.
The reason for displeasure of the SAC is that the decision was not submitted to the competent state aid commission to be cleared before being notified. Hence it is not in line with the Guidelines on State Aid for environmental protection and energy. The commission wants ERO to review the legal framework to be in accordance with EU rules on state aid for renewable energy sources. However, Kosovo is not a EU member.
The Energy Community Secretariat called the decision an important milestone for the national state aid authorities taking responsibility for assessing renewables support schemes not only for Kosovo but for the entire region.