Installations (Amendment) Regulations, 2021

L.N. 282 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 (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 Competitive Bidding Rules Citation.

for Renewable Sources of Energy Installations (Amendment)

Regulations, 2021 and these regulations shall be read and construed as

one with the Competitive Bidding Rules for Renewable Sources of S.L. 545.31.

Energy Installations Regulations, hereinafter referred to as "the

principal regulations".

Regulation 1 of the principal regulations of the Maltese Substitutes

regulation 1 of

version, shall be substituted by the following new regulation

the principal

regulations.

"1. It-titolu ta’ dawn ir-regolamenti hu Regolamenti dwar

Regoli għall-Offerti Kompetittivi minn Stallazzjonijiet ta’ Sorsi

ta’ Enerġija li Jiġġeddu.".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

by the following

the principal

regulations.

(a) the marginal note of sub-regulation (1) thereof, shall

be substituted by the following new marginal note

"Interpretation.

Cap. 601.";

(b) in the definition "approved renewable energy

installation" thereof, the words "1000kWp" shall be substituted

by the words "1000kW";

(c)

the definition "common point of connection to the

grid" thereof, shall be deleted;

(d) the definition "competitive bidding process" thereof,

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 shall be a binding constraint leading to

a situation where not all bidders can receive support;";

(e) in the definition "eligible renewable energy

installation" thereof, the words "1000kWp" shall be substituted

by the words "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, pandemics, landslides, earthquakes,

storms, direct lighting strikes, floods, washouts, civil

disorder, explosions and other similar unforeseeable events,

which by the exercise of all due diligence cannot be

overcome and which, in the view of the Contracting

Authority prevent a successful bidder from adhering to his

obligations due to causes beyond his reasonable control;";

(f) the definition "full load hours" thereof, 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;";

(g) the definition "kW" thereof, shall be substituted by

the following new definition

" "kW" means kiloWatt 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 of the installation;";

(h)

the definition "kWp" thereof, shall be deleted; and

(i)

the definition "renewable energy sources" thereof,

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 Amends

regulation 3 of

as follows

the principal

regulations.

(a) in sub-regulation (1) thereof, the words "For the

purpose of calculating the capacity of a renewable energy

installation, renewable energy installations with a common point

of connection to the electricity grid shall be considered as one

installation." shall be deleted; 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 by the Guidelines on

State aid for Rescuing and Restructuring non-financial

Undertakings in difficulty (2014/C 249/01).".

Regulation 5 of the principal regulations, shall be amended Amends

regulation 5 of

by the following

the principal

regulations.

(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), only 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

regulation 7 of

substituted by the following new regulation

the principal

regulations.

"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 that

shall 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 price

that shall be payable to the successful bidder for electricity

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 to the

Contracting Authority 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) and (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" Amends

regulation 8 of

shall be substituted by the word "kW".

the principal

regulations.

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 issued in favour of 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 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.

timeframes indicated in regulation 7." shall be substituted by the words

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

regulation 18, 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 word

Amends

regulation 17 of

"1000kWp" shall be substituted by the word "1000kW".

the principal

regulations.

€0.54