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Rules for confirming the status of eligible producers of renewable energy approved

July 30, 2019

The National Agency for Energy Regulation approved the Regulation on the Confirmation of Eligible Producer (come into effect on 23 August 2019). It establishes the procedures for confirming and withdrawing the status of eligible producers that own or will own power plants that generate renewable electric energy.

The Regulation only applies to the producers whose power plants have a total capacity that does not exceed the limits established by Government (see below*). If their combined capacity exceeds the respective limits, the producer shall participate in public tendering to obtain the status of eligible producer.

The Regulation applies to both natural persons and legal entities.

The status is conferred by the National Agency for Energy Regulation based on the principle “first come-first served”. The application is examined within 30 days after the submission of a completed application.

The state undertakes to support the producers of renewable energy by determining fixed tariffs and prices at which they can sell the energy they produce (with the suppliers of the energy being obliged to purchase that energy). However, in order to sell the energy at the established tariffs and prices, the respective producer has to confirm its status of eligible producer (which can be done either through the tendering process or through the confirmation procedure under the aforementioned Regulation).

Under art. 36 of the Law on Promoting the Use of Renewable Energy, if potential producers of electricity from renewable sources have not obtained the status of an eligible producers under the respective procedures, they are entitled to sell the electricity produced under the conditions agreed with the participants of the electricity market.

The Law on Promoting the Use of Renewable Energy was passed in 2016 and became effective in March 2018. It establishes certain objectives to be achieved in the use of renewable energy in Moldova. So, for example, it states that in 2020 the share of such energy in the gross final energy consumption shall be not less than 17 %, and not less than 10 % of final energy consumption in transport.

However, the period from the moment when the law was passed till it became effective was not sufficient for the elaboration of the whole regulatory framework for the development of the industry of renewable energy. Only recently such framework began taking shape. The methodology for determining the fixed tariffs and prices for electricity produced from renewable sources was approved by the National Agency in 2017. In 2018 the Regulation on Tendering the Status of Eligible Producer was approved. Earlier in 2019 new regulations on the connection to the electrical networks and the provision of electricity transmission and distribution services and the supply of electricity were approved (among others, these regulations included the provisions on the connectivity of renewable energy plants to transmission and distribution networks and supply of such energy).

* The capacity limits established by Government for the producers who may confirm their status of eligible producer:

 

Producing technology

Capacity limits, 

MW

Wind farms

4

solar photovoltaic (PV) plants

1

Biogas cogeneration plants

1

Solid biomass cogeneration plants

1

Hydraulic power plants

1