Sale of Electricity generated from Cogeneration Units Regulations

L.N. 119 of 2017

REGULATOR FOR ENERGY AND WATER SERVICES ACT

(CAP. 545)

Sale of Electricity generated from Cogeneration Units Regulations

(Amendment) Regulations, 2017

IN exercise of the powers conferred by article 37(1) of the

Regulator for Energy and Water Services Act, the Prime Minister,

after consultation with the Regulator for Energy and Water Services,

has made the following regulations

The title of these regulations is the Sale of Electricity

generated from Cogeneration Units Regulations (Amendment)

Regulations, 2017, and these regulations shall be read and construed

as one with the Sale of Electricity generated from Cogeneration Units

Regulations, hereinafter referred to as "the principal regulations".

Regulation 2 of the principal regulations shall be amended

as follows

(a)

the definition "marginal cost per KWh" shall be

deleted;

(b)

immediately after the definition of "premises

code", there shall be added the following new definition

" "proxy for the market price" means the

average of the estimated variable cost of meeting the

demand forecast for a given year from locally generated

conventional and imported electricity, with the demand

assumption excluding that portion of the forecast demand

which is not expected to be met by conventional and

imported electricity;".

Regulation 4 of the principal regulations shall be amended

as follows

(a)

paragraphs (a) and (b) of sub-regulation (1) thereof

shall be deleted and shall be substituted by the following new

paragraphs

“(a) either sell all the electricity generated by the

cogeneration unit to the distribution system operator and

be paid by the distribution system operator the proxy for

the market price established under the Second Schedule; or

(b) generate electricity primarily for own

consumption and be paid by the distribution system

operator the proxy for the market price established under

the Second Schedule for any excess electricity generated

and exported to the distribution system

Provided that the consumption of the

electricity generated, in accordance with this paragraph,

may only be done by the installation operator who is a

registered consumer with the distribution system operator

with respect to the same premises code where the

cogeneration unit is installed.”

(b)

sub-regulation (4) thereof shall be deleted and shall

substituted by the following new sub-regulation

“(4) An installation operator who generates

electricity from a cogeneration unit connected with the

same premises code as solar photovoltaic installations

installed primarily for own consumption and exporting any

excess electricity to the distribution system and, or other

installations generating electricity from renewable energy

other than solar photovoltaic installations, being all

installed with the option to generate primarily for own

consumption, shall for any excess electricity generated and

exported to the distribution system be paid by the

distribution system operator at the proxy for the market

In sub-regulation (2) of regulation 5 of the principal Amends

regulations the words “marginal cost per kWh" shall be substituted by regulation

the principal

the words "proxy for the market price established under the Second regulations.

Schedule".

In sub-regulation (2) of regulation 6 of the principal Amends

regulations the words “marginal cost per kWh" shall be substituted regulation

the principal

"proxy for the market price established under the Second Schedule". regulations.

In regulation 7 of the principal regulations the words Amends

"marginal cost per kWh” shall be substituted by the words "proxy for regulation

the principal

the market price established under the Second Schedule".

regulations.

In regulation 11 of the principal regulations the words Amends

"marginal cost" wherever they occur shall be substituted by the words regulation

the principal

"proxy for the market price established under the Second Schedule". regulations.

Immediately after regulation 5 of the principal regulations

there shall be added the following new regulation

5A. Any installation operator, who in force

"Transitory

provision.

of these regulations, is being paid or may be paid

the marginal cost, however so described, shall, as

from the entry into force of this regulation, be

paid the proxy for the market price.".

In the First Schedule to the principal regulations the words

"marginal cost" shall be substituted by the words "proxy for the

market price".

The Second Schedule to the principal regulations shall be

deleted and shall be substituted by the following new Schedule

"SECOND SCHEDULE

(Regulations 4, 5, 6, 7 and 11)

Proxy for the market price per kWh applicable for electricity

generated by the cogeneration units and exported to the distribution

system.

The proxy for the market price per kWh referred to in

regulations 4, 5, 6, 7 and 11 shall amount to the proxy for the market

The Regulator may define which cost items may be considered

in the determination of the proxy for the market price per kWh of

electricity incurred by the distribution system operator.

The proxy for the market price per kWh for the year 2017 shall

be of seven cents and twenty-five mils (€0.07,25) per kWh.".

€0.27