from Renewable Energy Sources (Amendment) Regulations, 2025

L.N. 54 of 2025

REGULATOR FOR ENERGY AND WATER SERVICES ACT

(CAP. 545)

Competitive Bidding Rules for Installations Producing Electricity

from Renewable Energy Sources (Amendment) Regulations, 2025

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

Regulator for Energy and Water Services Act, the Minister responsible

for energy and water services, after consultation with the Regulator for

Energy and Water Services, has made the following regulations:-

The title of these regulations is the Competitive Bidding Citation.

Rules for Installations Producing Electricity from Renewable Energy

Sources (Amendment) Regulations, 2025 and these regulations shall be

read and construed as one with the Competitive Bidding Rules for S.L. 545.39.

Installations Producing Electricity from Renewable Energy Sources

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

In the Maltese version only, the principal regulations shall General

amendments to

be amended as follows

the regulations.

(a) the words "stallazzjoni" and "istallazzjoni", wherever

they occur, shall be substituted by the word "installazzjoni";

(b) the words "stallazzjonijiet" and "istallazzjonijiet",

wherever they occur, shall be substituted by the word

"installazzjonijiet".

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

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

the words "the premium per kWh that shall be paid on

electricity";

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

following new sub-regulation

"(3) These regulations shall apply to renewable

energy installations with a capacity equal to forty kilowatts

(40kW) or greater.".

Sub-regulation (2) of regulation 3 of the principal

regulations shall be amended as follows

(a) in the definition "annual cap" thereof the words "to

which the payment of the fixed awarded bid price per kWh shall

apply;" shall be substituted by the words "to which the payment

of the premium per kWh shall apply;";

(b) in the definition "approved renewable energy

installation" thereof the words "means an eligible renewable

energy installation which produces electricity from a renewable

energy source" shall be substituted by the words "means an

eligible renewable energy installation which, once

commissioned, produces electricity from a renewable energy

source";

(c) the definition "contract for difference" thereof shall

be substituted by the following new definition

" "contract for difference" means the contract entered

into between the Contracting Authority and a successful

bidder, regulating the payment of the premium per kWh of

electricity up to the annual cap for each year of the

guaranteed period, for electricity generated from renewable

energy sources and sold directly on the market from an

approved renewable energy installation;";

(d) the definition "eligible renewable energy installation"

thereof shall be substituted by the following new definition

" "eligible renewable energy installation" means a

new renewable energy installation having a capacity of

forty kilowatts (40kW) or more which, once constructed

and commissioned, produces electricity from a renewable

energy source, which may be granted financial support

for the first time following a competitive bidding process

Provided that up to five (5) new renewable

energy installations employing the same technology

which shall be installed at separate locations and, where

each has a capacity inferior to forty kilowatts (40kW),

but which together have a total capacity exceeding forty

kilowatts (40kW), may be offered by a bidder as a single

bid at the same bid price;";

(e) in the definition "guaranteed period" thereof the

words "and for which the fixed awarded bid price per kWh" shall

be substituted by the words "and for which the premium per

kWh"; and

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

following new definition

" "kW" means kilowatt, which in the context of these

regulations shall be taken to refer to the nominal capacity

of the renewable energy installation, and specifically to the

nominal direct current (kWp) rating in the case of solar

photovoltaic installations;";

(g)

the definition "market price" thereof shall be deleted;

(h) the definition "premium" thereof shall be substituted

by the following new definition

" "premium" means the difference between the

awarded bid price per kWh and the proxy for the market

Provided that the premium shall be negative

when the proxy for the market price exceeds the awarded

bid price per kWh, and that the premium shall be zero when

the market price per kWh is negative;".

Sub-regulation (1) of regulation 4 of the principal Amends

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

the principal

regulations.

"(1) The awarded bid price shall be determined through a

competitive bidding process.".

Regulation 7 of the principal regulations shall be amended Amends

regulation 7 of

as follows

the principal

regulations.

(a)

sub-regulation (1) thereof shall be amended as

follows

(i) the words "The awarded bid price per kWh

resulting from a competitive bidding process" thereof shall

be substituted by the words "The premium per kWh";

(ii) in the proviso thereof the words "awarded bid

(b)

in sub-regulation (2) thereof the words "and shall be

paid in line with the provisions of the contract for difference."

shall be deleted;

(c)

sub-regulation (6) thereof shall be amended as

follows

(i) the words "The awarded bid price per kWh"

shall be substituted by the words "The premium per kWh";

(ii) in the proviso thereof the words "for the

payment of the awarded price per kWh" shall be substituted

by the words "for the payment of the premium per kWh";

(d) in sub-regulation (9) thereof the words "laid down in

the competitive bidding procedure documents." shall be

substituted by the words "laid down in the competitive bidding

procedure documents:" and immediately thereafter there shall be

added the following new proviso

"Provided that this sub-regulation shall also be

applicable to each of the multiple installations having a

capacity inferior to forty kilowatts (40kW) and which have

been presented as a single installation having a capacity

equal to forty kilowatts (40kW) or greater.".

Regulation 10 of the principal regulations shall be amended

as follows

(a) in paragraph (d) of sub-regulation (1) thereof the

words "bid price" shall be substituted by the word "premium";

(b) in sub-regulation (2) thereof the words "The award

offered shall be formalised through a contract entered into

between the Contracting Authority" shall be substituted by the

words " The award offered shall be formalised by means of a

contract for difference entered into between the Contracting

Authority".

In sub-regulation (2) of regulation 11 of the principal

regulations the words "In the case when the capacity of an approved

renewable energy installation as installed and connected to the grid is

lower than the capacity allocated to a successful bidder on the basis of

said bidder’s proposal during the bidding process," shall be substituted

by the words "In the case when the capacity of an approved renewable

energy installation as installed, commissioned, and in respect of which

an application has been submitted for connection to the grid, is lower

than the capacity allocated to the successful bidder on the basis of the

said bidder’s proposal during the bidding process,".

Regulation 12 of the principal regulations shall be amended Amends

(a) paragraph (b) of sub-regulation (2) thereof shall be

substituted by the following new paragraph

"(b) submit the necessary applications to the

distribution system operator to connect the approved

renewable energy installation to the distribution system.";

(b)

sub-regulations (3) and (4) shall be deleted;

(c)

in sub-regulation (5) thereof the words "or, where an

extension is requested and granted, within the time limit as

extended," shall be deleted;

(d) sub-regulation (7) thereof shall be substituted by the

following new sub-regulation

"(7) The applicable time limits referred to in sub-

regulation (2) shall be as follows

(a)

for installations having a capacity less

than one thousand kilowatts (1000 kW), the

applicable time limit shall be twenty-four (24)

months from the date of the letter of award; and

(b) for installations having a capacity of one

thousand kilowatts (1000 kW) or larger, the

applicable time limit shall be thirty-six (36) months

from the date of the letter of award.".

The proviso to sub-regulation (3) of regulation 13 of the Amends

principal regulations shall be substituted by the following new regulation

"Provided that, subject to the relevant

alternative documents as established in the relative

competitive bidding process documentation being

submitted instead, an approved planning permit shall not

be a pre-requisite for the proposal in a competitive

bidding process of a renewable energy installation which

meets all three (3) of the following conditions

(a) the proposed installation shall be a solar

photovoltaic installation; and

(b) the proposed installation shall have a

capacity of one thousand (1000) kW or greater; and

(c) the proposed installation shall not be

installed on one (1) or more greenhouses.".

Regulation 15 of the principal regulations shall be amended

as follows

(a) in sub-regulation (1) thereof the words "awarded bid

(b) in sub-regulation (2) thereof the words "awarded bid

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

following new sub-regulation

" (3) The payment of the premium referred to in sub-

regulation (1) shall be without prejudice to the exclusion of

the payment of aid to any undertaking which is subject to

an outstanding recovery order following a previous

Commission decision declaring an aid granted by the

Maltese authorities to the same undertaking illegal and

incompatible with the internal market, in compliance with

Article 1(4)(a) of Commission Regulation (EU) No 651/

2014.".

€0.54