Market Overview: BELARUS

BELARUS

Energy system

•Total installed capacity of the energy system: 7.5 GW
•The installedcapacity ofRES is10 MW, including 0.5 MW of PVP;
•In 2012 the share of electric energy produced from natural gas amounted to 96.7%;
•Import of natural gas (over 98% of the total consumption) amounts to ~18.5 bln cubic meters* and electric energy (7%) ~1.7 bln kWh from Russia at the price of $168/1000m3 and $0.056/kWh respectively.
•The average price ofnatural gas per 1,000 m3 fromRussiato:Lithuania is $296, Ukraineis $329, Germanyis $387. The average price in Europeis $350 (2015thestimatedpriceis $387);
•Price of 1 kWh for industrial off-takers varies between $0.07–0.116.

Prerequisites for RES development:

•The government policy for import substitution of standard energysources for RES;
•The prices for Russian electric energy and natural gas are nominated in US dollars;

•In the long term perspective the price for imported gas from Russia will increase which will result in the electric energy prices to grow in direct proportion.

State regulation and sale of electric energy

•The projects that were formed prior 2015 have been implemented under investment agreements. In 2015, the quotes are expected to be introduced to prevent the uncontrolled growth of the PV power market. The main selection criteria is theprice of electric energy from PVP;
•Thefeed-in-tariff, nominated in US dollars, is calculated on the basis of an indexed tariff of $0.136/kWh, and the coefficient of 2.7 validduring 10 years, after 10-year period the coefficientbecomes 0.85**, which will be applied to theprice of electricenergy in the future.
•Electric energy will be soldto the state energy company.