The document discusses renewable energy development in Belarus. It notes that renewable energy currently accounts for only 1% of Belarus' energy sector, which is dominated by state-owned traditional energy monopolies. The document outlines the country's potential and quotas for various renewable sources such as wind, water, solar, and biogas. It explains Belarus' new quota system for distributing renewable energy development rights and incentives like preferential treatment for projects in areas affected by the Chernobyl disaster. The document also provides details on the tariffs and policies regarding power purchase agreements, certification requirements for contractors, and other considerations for investors, service providers, and suppliers to the renewable energy sector in Belarus.

1. Renewable energy in Belarus:
for investors, contractors and suppliers

2. General information
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Traditional Energy
• State monopoly
Renewable Energy
• Private sector
• 1% of energy sector in
Belarus

3. Current situation in the industry*
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Source Potential Quota
Wind 1600 MW 3.9 MW
Water 850 MW 33,4 MW
Solar 120 MW
Biogas 850 MW 14,7 MW
* According to the National Agency of Investments and Privatization

4. Quotation
• Quotation has been introduced in 2015
• A special Republican inter-Ministerial Commission is responsible for the determination and
distribution of the quotas
• The quota is set for a 3-year period of time and adjusted annually
• First quotas:
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Source 3-year quota
Wind 50 MW
Water 82 MW
Solar 15 MW
Biogas 32 MW
Wood 36 MW

5. Quota distribution
• Annual competition
• Different criteria and tariff calculation for different sources of energy
• Preferential companies are the companies, which:
− build a power plant in territory affected by the Chernobyl disaster
− can provide power regulation during the day (i.e Belenergo may refuse to buy energy at night)
− suppose to transfer a power plan to the State or Belarusian resident
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31 March
•The Commission gathers
data on power plants in
operation as well as
plants under construction
30 April
•The Commission sets /
adjusts the quota
1 September
•Companies submit
applications for the quota
20 November
•Final list of companies
obtaining the quota is
formed

6. Tariffs: construction under investment agreements,
concluded and
registered before 20 May 2015
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Investment
agreement, concluded
before 20 May 2015
•Stabilization clause
for investors
From 20 May 2015
until 20 August 2015
•Commissioned in
transition period
After 20 May 2015
under quotas
•Only if a company
has obtained a
quota
First 10 years after
commissioning
Next 10 years After 20 years of operation
Wind, geothermal 1,30 (USD 0,17 / kWh) 0,85 (USD 0,11 / kWh 0,45 (USD 0,06 / kWh)
Biogas, biomass 1,30 (USD 0,17 / kWh) 0,85 (USD 0,11 / kWh) 0,60 (USD 0,08 / kWh)
Water 1,10 (USD 0,15 / kWh) 0,85 (USD 0,11 / kWh) 0,45 (USD 0,06 / kWh)
Solar 2,70 (USD 0,36 / kWh) 0,85 (USD 0,11 / kWh) 0,45 (USD 0,06 / kWh)

7. Tariffs: commissioning and
construction after 20 May 2015
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First 10 years after
commissioning
Next 10 years After 20 years of operation
Wind
New power plants as well as second-
hand plants in operation for up to 5
years
1,20 (USD 0,16 / kWh)
0,75 (USD 0,10 / kWh) 0,45 (USD 0,06 / kWh)
Second hand plants in operation for
more than 5 years
1,05 (USD 0,14 / kWh)
Water,
geothermal
≤ 300 kW 1,20 (USD 0,16 / kWh)
0,75 (USD 0,10 / kWh) 0,45 (USD 0,06 / kWh)
301 kW – 2 MW 1,15 (USD 0,15 / kWh)
> 2 MW
1,10 (USD 0,14 / kWh)
Biogas,
biomass
≤ 300 kW 1,30 (USD 0,17 / kWh)
0,85 (USD 0,11 / kWh) 0,60 (USD 0,08 / kWh)301 kW – 2 MW 1,25 (USD 0,16 / kWh)
> 2 MW 1,20 (USD 0,16 / kWh)
Solar
≤ 300 kW 2,50 (USD 0,32 / kWh)
0,75 (USD 0,10 / kWh) 0,45 (USD 0,06 / kWh)301 kW – 2 MW 2,30 (USD 0,30 / kWh)
> 2 MW 2,10 (USD 0,21 / kWh)

8. What service providers and
general contractors should know
• Certification for specific types of
work
• Foreign companies may obtain a
certificate
• 4 complexity classes. “Green
energy” power plants refer to the 2nd
or the 3rd complexity class
Example of criteria:
General contractor:
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Complexity
class
Criteria
2nd class • Staff – 400 employees
• 50% of the staff – certified specialists with
work experience in construction more than 3
years
• Fixed assets – approx.
EUR 3,000,000
• Experience in construction
• System of labour protection
• System of production supervision

9. What service providers and
general contractors should know
• Opening of Representation Office – not obligatory
• It is necessary to register as a tax payer and pay profit tax, if:
− for services – service period exceeds 3 month
− for construction services – service period exceeds 12 month
− for international agreements – the period may vary
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10. What goods suppliers should know
• In May 2015 restrictions for advance payment for goods and services abroad
were lifted
• Contract should include the following information:
− price
−payment terms (advance payment, payment on the basis of delivery of goods,
letter of credit etc.)
• If goods were paid in advance, they should be delivered in 60 days
• If the buyer is a state company or purchase is financed by the budget – the
sale-purchase deal should be concluded as public procurement
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11. Thank you for attention!
Eugenia Urodnich
Associate partner
Vilgerts Legal & Tax
Mobile: +375 29 377 9512
E-mail: eugenia.urodnich@vilgerts.com
Contacts
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Belarus:
Latvia:
Lithuania:
Estonia:
Timiryazeva st., 72, 6th floor, office 4, 220035, Minsk
Elizabetes iela, 33, LV-1010, Riga
Vilniaus g., 31, LT-01402, Vilnius
Tõnismägi, 3A, 10119, Tallinn
belarus@vilgerts.com
latvia@vilgerts.com
lithuania@vilgerts.com
estonia@vilgerts.com