Bulgarian Renewable and Alternative Energy Sources and Biofuels Act – 14.11.2008 – Part 4

Section II

Encouraging Production of Electricity Generated From Renewable Energy Sources

Art. 10. (1) The national indicative targets for promotion of the consumption of electricity produced from renewable energy sources shall be set as percentage of the national gross annual electricity consumption in the ten years following the year of adoption of these targets by the Council of Ministers on a motion by the Minister of Economy and Energy.

(2) The national indicative targets under para. 1 shall be updated every 5 years.

Art. 11. (1) Each year not later than 31 March, the Minister of Economy and Energy shall present for approval by the Council of Ministers a report on the achievement of the indicative targets under Art. 10, para. 1 for the preceding calendar year.

(2) The report under para. 1 shall contain a review and analysis on the progress of the measures for achieving the indicative targets pertaining to consumption of energy generated from renewable energy sources set forth in the programmes under Art. 5, item 4.

(3) The Minister of Economy and Energy shall publish the approved report under para. 1 on the web site of the Ministry of Economy and Energy.

Art. 12. The provisions of the Act on Promotion of Investments shall apply to all investment projects for construction, expansion or rehabilitation of facilities for production of electric and heat power from renewable and alternative energy sources, as well as the related infrastructure – public or municipal property.

Section III

Rights and Obligations of Participants on the Renewable and Alternative Energy Market

Art. 13. (1) Each year, while the preparing their investment and maintenance programmes, the transmission and distribution enterprises shall allocate resources for grids development aiming to promote production of electric power from renewable and alternative energy sources.

(2) The transmission company and/or distribution companies shall be obligated to assign priority to connecting all facilities for production of electric power from renewable and alternative energy sources, which comply to the specific conditions for connection to the grid as defined by the ordinance stipulated by Art. 116, para. 7 of the Energy Act.

(3) The producers of energy from renewable and alternative energy sources shall request in writing from the transmission company or the relevant distribution company a survey of the terms and conditions for connecting the power plant to the grid, enclosing to its request all documents specified by the ordinance stipulated by para. 2.

(4) In case the information contained in the request or the enclosed documents under para. 3 do not comply with the provisions of the ordinance stipulated by para. 2 and/or are incomplete, the transmission company or the relevant distribution company shall, within 14 days from receipt of the request, notify the producer about such incompleteness and deficiencies in the documentation and may request additional information about the parameters of the energy plant for which connection is requested.

(5) In case the producer fails to rectify the missing information and deficiencies in the request, or fails to present additional information about the parameters of the energy plant within 30 days from receipt of the notification under para. 4, the procedure for connecting the energy plant to the grid shall be terminated.

(6) Within 90 days from receipt of the request under para. 3, the transmission company or the relevant distribution company shall perform the survey, inform the producer in writing about the terms and conditions for connecting the energy plant to the grid and conclude a preliminary contract for connection.

(7) The contract shall determine the period for connecting the energy plant to the transmission grid or the respective distribution grid, which period may not exceed the term specified by the producer for putting the energy plant into operation.

(8) In case the applicant is also a household consumer of electric power, the transmission company or the relevant distribution company shall inform the latter in writing about the terms and conditions for connecting the energy site to the grid within 30 days from receipt of the request under para. 3. The period for connecting the energy site to the grid may not exceed 3 months from receipt of the request.

Art. 14. (1) The obligation for connecting a producer of electric power generated from renewable energy sources shall arise for the transmission company or the relevant distribution company, which is located in the closest proximity to the energy plant.

(2) The property boundaries of the electric power facilities of the producer and the location of the commercial metering devices shall be determined according to the relevant ordinance referred to in Art. 116, para. 7 and Art. 83, para. 1, item 6 of the Energy Act. In cases where the interconnection point is not located within the property boundaries of the producer’s facilities, the provisions of Art. 116, para. 5 of the Energy Act shall apply.

(3) The distribution company shall be obligated to connect to its network every producer of energy generated from renewable energy sources, which is also a household consumer of electric power. The property boundaries of the electric facilities of the producer and the location of the commercial metering devices shall be in close proximity to the existing ones owned by distribution company and the producer.

(4) The transmission company and the distribution company shall determine minimum connection requirements by specifying the connection point, which is closest to the transmission or distribution grid, and the provisional connection fee. The transmission company or the distribution company shall also inform the producer about the possibility to connect the facilities of other produces or consumers who have already been connected or are being connected to the same grid.

Art. 15. (1) The costs related to the connection of the energy plant of the producer incurred within the property boundaries of the electric facilities shall be borne by the producer.

(2) The costs pertaining to the connection of the energy site of the producer to the relevant grid outside the property boundaries of the electric facilities up to the interconnection point shall be borne by the transmission company or the relevant distribution company, whereby the producer shall pay connection fee covering only the direct connection costs incurred by the transmission company or the relevant distribution company according to the relevant ordinance referred to in Art. 36, para. 3 of the Energy Act.

(3) The costs pertaining to the expansion and reconstruction of the transmission and or distribution network with regard to the connection of the energy plant of the producer under Art. 13, para. 2, shall be borne by the transmission company or the distribution company, respectively, and may not be included in the fee for connecting the producers of renewable energy.

Art. 16. (1) The public utility company and the end suppliers, respectively, shall purchase the entire quantity of generated electric power, for which there is a certificate of origin in place according to the relevant ordinance referred to in Art. 19, para. 3, except for the contracted quantities in accordance with Chapter Nine, Section VII of the Energy Act or the quantities subject to balancing transactions, as well as the quantities generated for producer’s own needs.

(2) The public utility company and the end suppliers, respectively, shall purchase the entire quantity of energy generated from renewable and alternative energy sources, except for the power generated by hydroelectric power plants with installed capacity over 10 MW, at preferential purchase prices according to the relevant ordinance referred to in Art. 36, para. 3 of the Energy Act.

Art. 17. (1) The public utility company and the end suppliers, respectively, shall purchase the entire quantity of energy generated from renewable energy sources through the use of combined generation technology, except for quantities generated by the producer for its own needs or the contracted quantities in accordance with Chapter Nine, Section VII of the Energy Act, or the quantities subject to balancing transactions according to the relevant ordinance referred to in Art. 36, para. 3 of the Energy Act.

(2) The producer of energy generated from renewable energy sources through use of combined generation technology may sell the quantities produced at one of the following preferential prices:

1. preferential price for purchasing electricity generated from renewable energy sources in accordance with the provisions of Art. 16, para. 2 , or

2. preferential price for purchasing electricity generated in combined heat and electric power production in accordance with the provisions of Art. 162, para. 2 of the Energy Act.

Art. 18. The public utility company, respectively the end suppliers, shall purchase the electricity generated from combined use of renewable and non-renewable energy sources, depending on the share of input renewable energy sources, at prices set in accordance with the ordinance referred to in Art. 36, para. 3 of the Energy Act.

Art. 19. (1) The State Energy and Water Regulatory Committee (SEWRC) shall issue to the producers certificates of origin of the energy generated from renewable energy sources, called hereinafter "certificates of origin".

(2) The State Energy and Water Regulatory Commission shall accepts the validity of certificates of origin issued by competent authorities in other EU member states based on the principles of reciprocity.

(3) The form, content, terms and procedure for issuance of certificate of origin shall be established by an ordinance adopted by the Council of Ministers on a motion by the SEWRC.

Art. 20. (1) On the grounds of the certificate issued under Art. 19, para. 1, the SEWRC shall issue to the producers of energy from renewable energy sources a "green certificate".

(2) The rules and procedures for implementing market mechanisms for encouraging production of electric and heating power from renewable energy sources shall be determined by a special law.

Section IV

Prices of Electricity Generated from Renewable Energy Sources

Art. 21. (1) Each year no later than 31 March, the State Energy and Water Regulatory Committee shall determine the preferential prices for sale of electricity generated from renewable or alternative energy sources, except for electricity generated by hydroelectric power plants with installed capacity exceeding 10 MW.

(2) The preferential price of electricity generated from renewable energy sources under para. 1 shall be determined at 80 percent of the average sale price for public utilities or end suppliers for the preceding calendar year plus an addition determined by the SEWRC depending to the type of primary energy source as indicated by the relevant ordinance stipulated by Art. 36, para. 3 of the Energy Act.

(3) The addition referred to in para. 2 for the next calendar year may not be less than 95 percent of the addition for the current year.

Last Updated On:11th September 2009

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