Installations (Capacity between 400kWp and less than 1000kWp)

L.N. 212 of 2021

REGULATOR FOR ENERGY AND WATER SERVICES ACT

(CAP. 545)

PUBLIC FINANCE MANAGEMENT ACT

(CAP. 601)

Competitive Bidding Rules for Renewable Sources of Energy

Installations (Capacity between 400kWp and less than 1000kWp)

(Amendment) Regulations, 2021

IN EXERCISE of the powers conferred by article 37 of the

Regulator for Energy and Water Services Act and by article 4 of the

Public Finance Management Act, the Minister for Energy, Enterprise

and Sustainable Development, after consultation with the Regulator

for Energy and Water Services, and the Minister for Finance and

Employment have made the following regulations:-

The title of these regulations is the Competitive Bidding

Rules for Renewable Sources of Energy Installations (Capacity

between 400kWp and less than 1000kWp) (Amendment) Regulations,

2021 and these regulations shall be read and construed as one with the

Competitive Bidding Rules for Renewable Sources of Energy

Installations (Capacity between 400kWp and less than 1000kWp)

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

In regulation 1 of the principal regulations, the words

"(Capacity between 400kWp and less than 1000kWp)" shall be

substituted by the words "(Capacity from 40kW up to less than

1000kW)".

Regulation 2 of the principal regulations shall be amended

as follows

(a) in the definition "approved renewable energy

installation", the words "with a capacity between 400kWp and

less than 1000kWp" shall be substituted by the words "with a

capacity from 40kWp up to less than 1000kWp";

(b) the definition "common point of connection to the

grid" shall be deleted;

(c) the definition "competitive bidding process" shall be

substituted by the following new definition

" "competitive bidding process" means a non-

discriminatory bidding process that provides for the

participation of a sufficient number of undertakings and

where the support is granted on the basis of the bid

submitted by the bidder. In addition, the volume related to

the bidding process is a binding constraint leading to a

situation where not all bidders can receive support;";

(d) in the definition "eligible renewable energy

installation", the words "with a capacity between 400kWp and

less than 1000kWp" shall be substituted by the words "with a

capacity from 40kW up to less than 1000kW" and immediately

thereafter there shall be added the following new definition

" "force majeure" means acts of God, strikes, lock-

outs or other industrial disturbances, acts of the public

enemy, wars, whether declared or not, blockades,

insurrection, riots, epidemics, landslides, earthquakes,

storms, direct lighting strikes, floods, washouts, civil

disorder, explosions and other similar unforeseeable events,

which by the exercise of due diligence cannot be overcome

and which, in the view of the Contracting Authority prevent

a successful bidder from adhering to obligations due to

causes beyond his reasonable control;";

(e) the definition "full load hours" shall be substituted by

the following new definition

" "full load hours" means the equivalent number of

hours in a calendar year during which the renewable energy

installation produces at its full nominal or kW capacity;";

(f) the definition "kW" shall be substituted by the

following new definition

" "kW" means kilo Watt and in the context of these

regulations shall be taken to refer to the nominal capacity of

the renewable energy installation, which in the case of a

solar photovoltaic installation is equal to the total DC peak

power at standard test conditions of the installation;";

(g)

the definition "kWp" shall be deleted; and

(h) the definition "renewable energy sources" shall be

substituted by the following new definition

" "renewable energy sources" means renewable non-

fossil energy sources, that is, wind, solar (solar thermal and

solar photovoltaic), and geothermal energy, ambient energy,

tide, wave and other ocean energy, hydropower, biomass,

landfill gas, sewage treatment plant gas and biogas;".

Regulation 3 of the principal regulations shall be amended

as follows

(a) sub-regulation (1) thereof shall be substituted by the

following new sub-regulation

"(1) The purpose of these regulations is to introduce

the competitive bidding process as the method to determine

the fixed price per kWh to be paid for electricity generated

and sold to the distribution system operator from approved

renewable energy installations with a capacity between

40kW and less than 1000kW and hence to promote and

support the generation of electricity from renewable energy

sources."; and

(b) sub-regulation (3) thereof shall be substituted by the

following new sub-regulation

"(3) These regulations shall not apply to

undertakings in difficulty as defined in Commission

Regulation (EU) No 651/2014 of 17 June 2014 declaring

certain categories of aid compatible with the internal

market in application of Articles 107 and 108 of the Treaty,

as amended by Commission Regulation (EU) No 2017/

1084 of 14 June 2017 amending Regulation (EU) No 651/

2014 as regards aid for port and airport infrastructure,

notification thresholds for aid for culture and heritage

conservation and for aid for sport and multifunctional

recreational infrastructures, and regional operating aid

schemes for outermost regions and amending Regulation

(EU) No 702/2014 as regards the calculation of eligible

costs, and by Commission Regulation (EU) 2020/972 of 2

July 2020 amending Regulation (EU) No 1407/2013 as

regards its prolongation and amending Regulation (EU) No

651/2014 as regards its prolongation and relevant

adjustments, and as may be subsequently amended.".

Regulation 5 of the principal regulations shall be amended

as follows

(a) sub-regulation (4) thereof shall be substituted by the

following new sub-regulation

"(4) The awarded bid price per kWh shall only be

applicable to a successful bidder and only in respect of the

renewable energy installation as described in the bid

including the capacity offered in the bid (in kW), as part of

the competitive bidding process. The capacity associated

with the bid price shall be deemed to be equal to

Offered kW x Full Load Hours

1600"; and

(b) in sub-regulation (6) thereof, the words "as offered

kWp x Full Load Hours:" shall be substituted by the words "as

offered kW x Full Load Hours:".

Regulation 7 of the principal regulations shall be Substitutes

substituted by the following new regulation

"7. (1) An

approved

renewable

energy

installation shall be fully commissioned as described in

the bid, including the capacity offered in the bid, and an

application to connect the installation to the distribution

system shall be submitted to the distribution system

operator within eighteen (18) months to be reckoned as

from the date of the letter of award issued by the

Contracting Authority to the successful bidder to secure

the eligibility of the awarded bid price per kWh.

(2) If the successful bidder fails to comply with

sub-regulation (1), the time to commission and apply to

connect said fully commissioned approved renewable

energy installation to the distribution system as indicated

in sub-regulation (1) may be extended once only by six(6)

months by means of a request in writing to the

Contracting Authority, which request shall be made in the

format required by the Contracting Authority

Provided that if an extension is availed of, the

generated and sold to the distribution system operator for

the particular approved renewable energy installation

shall be equivalent to the awarded bid price per kWh, less

€0.005/kWh for all electricity generated and sold to the

distribution system operator up to the amount indicated in

regulation 5(6), for the guaranteed period.

(3) The request in writing for an extension

indicated in sub-regulation (2) shall reach the Contracting

Authority no later than one (1) month before the lapse of

the eighteen (18) month deadline indicated in sub-

regulation (1)

Provided that should an extension be

requested but not availed of, the reduction in the bid price

established in the proviso to sub-regulation (2) shall not

be applicable.

(4) The time necessary for the successful bidders

to obtain the necessary authorisations, licences and

permits as applicable, shall not suspend the running of the

time periods established in sub-regulations (1) and (2),

being the maximum time within which an approved

renewable energy installation shall be fully

commissioned and an application to connect the

installation to the distribution system shall be submitted

to the distribution system operator, for the award pursuant

to the competitive bidding process to remain valid.

Failure to comply with sub-regulations (1) (2), when a

request for an extension has been made, shall lead to the

automatic withdrawal of the award and the forfeiture of

the performance bond

Provided that a verified event of force majeure

may be invoked by a successful bidder, in line with the

provisions related thereto included in the invitation for

bids of the relevant competitive bidding process, to

request a suspension of the time periods established in

sub-regulations (1) and (2), which request may be granted

at the Contracting Authority’s discretion.".

In regulation 8 of the principal regulations, the word "kWp"

shall be substituted by the word "kW".

In the proviso to sub-regulation (1) of regulation 9 of the

principal regulations, the words "Regulation (EU) No 702/2014 as

regards the calculation of eligible costs, and as may be subsequently

amended." shall be substituted by the words "Regulation (EU) No 702/

2014 as regards the calculation of eligible costs, and by Commission

Regulation (EU) 2020/972 of 2 July 2020 amending Regulation (EU)

No 1407/2013 as regards its prolongation and amending Regulation

(EU) No 651/2014 as regards its prolongation and relevant

adjustments, and as may be subsequently amended.".

Sub-regulation (1) of regulation 10 of the principal Amends

regulations shall be substituted by the following new sub-regulation: regulation

the principal

regulations.

"(1) The successful bidder shall be required to provide a

performance bond to the Contracting Authority. The value of the

performance bond and the deadline for its submission shall be

included in the invitation for bids of the relevant competitive

bidding process.".

In regulation 11 of the principal regulations, the words Amends

"The bid price per kWh and the corresponding eligible renewable regulation

the principal

energy installation kWp capacity shall be selected pursuant to the regulations.

competitive bidding process, starting from the lowest bid offered, and

provided that the kWp available for allocation in the particular

competitive bidding process is not exceeded." shall be substituted by

the words "The bid price per kWh and the corresponding eligible

renewable energy installation kW capacity shall be selected pursuant

to the competitive bidding process, starting from the lowest bid

offered, and provided that the kW available for allocation in the

particular competitive bidding process is not exceeded.".

In paragraph (c) of regulation 12 of the principal Amends

regulation 12 of

regulations, the word "kWp" shall be substituted by the word "kW".

the principal

regulations.

In regulation 13 of the principal regulations, the word Amends

regulation 13 of

"kWp" shall be substituted by the word "kW".

the principal

regulations.

In sub-regulation (1) of regulation 15 of the principal Amends

regulations, the words "The successful bidder shall be responsible to regulation

the principal

obtain any relevant permits, authorisations and licences within the regulations.

time-frames stated in regulation 7." shall be substituted by the words

"Excepting any permits which may be required by the provisions of the

invitation for bids of the relevant competitive bidding process, to have

already been issued at the time of bidding, the successful bidder shall

be responsible to obtain any relevant permits, authorisations and

licences within the time-frames established in regulation 7.".

In sub-regulation (2) of regulation 16 of the principal Amends

regulation 16 of

regulations, the word "kWp" shall be substituted by the word "kW".

the principal

regulations.

In regulation 17 of the principal regulations, the words Amends

"with a capacity between 400kWp and less than 1000kWp" shall be regulation

the principal

deleted and substituted by the words "with a capacity from 40kWp up regulations.

to less than 1000kWp".

Regulation 18 of the principal regulations shall be

renumbered as sub-regulation (1) and immediately thereafter there

shall be added the following new sub-regulation

"(2) The rules for determining the amount of the deposit

necessary for submitting a complaint as provided for in sub-

regulation (1) shall be stipulated in the rules applicable to the

invitation for bids of the relevant competitive bidding process.".

€0.63