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LAW OF THE REPUBLIC OF MOLDOVA

of February 26, 2016 No. 10

About promotion of energy use from renewable sources

(as amended on 29-02-2024)

The parliament adopts this organic law.

This law partially shifts the Directive (EU) of 2018/2001 European parliament and Council of December 11, 2018 about promotion of energy use from renewable sources (reformed), published in the Official magazine of the European Union by L 328 of December 21, 2018, in the option adapted and approved by the Decision of Council of Ministers of Energy community No. 2021/14/MC-EnC.

Chapter I. General provisions

Article 1. Purpose and tasks of the law

This law is intended for creation of the legal base for promotion of energy use from renewable sources and for determination of national tasks concerning energy share from renewable sources in gross final energy consumption, in gross final energy consumption for heating and chilling, and also energy share from renewable sources in final energy consumption in the transport sector. The law establishes the regulations concerning schemes of support, guarantees of origin, applicable ministerial procedures, ensuring own consumption of the electric power due to the energy made from renewable sources, regional cooperation, access for producers of energy from renewable sources to networks and also other necessary regulations for the purpose of promotion and achievement of bigger energy consumption from renewable sources with national economy.

Article 2. Field of regulation

This law regulates area of energy from renewable sources, namely:

a) state administration;

b) calculation of share of energy from renewable sources;

c) the principles and tasks of state policy in the field of energy from renewable sources;

d) methods of achievement of national tasks;

e) conditions of integration of renewable energy resources into national power system;

f) conditions of implementation of activities for production, transportation, distribution and electricity sale from renewable sources, biogas and biofuel;

g) schemes of support for promotion of renewable energy resources;

h) methods of informing on renewable energy resources;

i) main directions of cooperation in the field.

Article 3. Basic concepts

For the purposes of this law the following concepts designate:

the aggregator - the member of electricity market rendering services in trade, purchase or tendering on any electricity market in sense of the Law on the electric power No. 107/2016 concerning the integrated loads of several final consumers or the electric power made by several sources;

biofuel - the liquid fuel for vehicles made from biomass;

advanced biofuel - the biofuel made from the types of raw materials listed in Regulations on calculation of energy consumption from renewable sources;

solid biofuel – the solid fuel directly or indirectly made from biomass;

biogas – the fuel gas made from biomass which can be used as fuel for development of energy or can be purified to quality of natural gas;

bioliquids – the liquid fuel made from biomass used in the energy purposes except transport, including power generation, energies for needs of heating and chilling;

biomass - biodegradable fraction of products, waste and remaining balance of biological origin of agricultural industry, including materials of vegetable and animal origin, forestry and allied industries of the industry, including fishery and aquaculture, and also biodegradable fraction of waste, including industrial and municipal wastes of biological origin;

the fulfilled (residual) heat and cold - heat or cold which are inevitably formed as by-products in industrial plants or installations on production of electricity or in the field of services owing to thermodynamic processes and which in the absence of access to centralized system of heating or chilling dissipate in air or in water without use if it was used, will be used process of cogeneration or if the cogeneration is economically not proved;

fuel from biomass - the gaseous and firm types of fuel (further - firm types of fuel) made from biomass;

the commission on tendering - the commission created according to this law and Regulations on tendering on assignment of the status of the competent producer for preparation of documentation on the biddings, the organizations and tenderings, estimates of offers and selection of winners for assignment of the status of the large competent producer according to Article 35;

community on energy from renewable sources - the subject:

a) which according to the national legal system is based on open and voluntary participation, is autonomous and it is actually controlled by shareholders or members;

b) shareholders or members of which are physical persons, the small and medium companies or bodies of local public authority of the first, second or special levels;

c) which main task consists in provision of communitarian economic, social or nature protection benefits to the shareholders or members or local zones where they perform the activities, except receipt of financial profits;

gross final energy consumption – the energy carriers delivered in the energy purposes for needs of the industry, transport, households, services industry including public services, for agricultural industry, forestry and fish breeding, including consumption of electrical and heat energy in the sector of production of electrical and heat energy, and also technology consumption and losses of electrical and heat energy in power and thermal networks;

the purchase agreement of the electric power from renewable sources directly from the producer - the agreement based on which the physical person or legal entity buys the electric power from renewable sources directly from the electric power producer having the license for electrical supply according to provisions of the Law on the electric power No. 107/2016;

the regulated purchase agreement of the electric power from renewable sources - the regulated standard agreement under which the central electric power supplier buys the electric power made by competent producers on the conditions established by this law. Regulated purchase agreements of the electric power from renewable sources differ in case of small competent producers and large competent producers;

the contract for difference - the contract signed between the large competent producer and the central electric power supplier on whom positive or negative differences in the form of variable award between the market price and fixed price or strike price established during bidding procedures according to this law are provided to the large competent producer selling the made electric power in the wholesale market;

the maximum level of capacity – the total value of the power of the power plants expressed in MW and established for long period of time who use identical production technologies of the electric power from renewable sources, admissible at the national level for application of the corresponding scheme of the support established by each type of technology for production of electricity from renewable sources;

food and forage crops - cultures of the plants rich with starch, sugar-bearing plants or olive plants which are grown up on farmlands as the main culture, except for remaining balance, waste or lignotsellyulozny materials and mid-season cultures, such as intermediate cultures and integumentary cultures provided that use of such mid-season cultures will not cause increase in demand for additional lands;

waste - as it is determined in article 2 of the Law on waste No. 209/2016, except for of substances which were specially modified or infected for compliance to this determination;

aero thermal energy – the energy which is kept in the form of heat in air;

energy from renewable sources - the energy received as a result of use of renewable not fossil sources (further - renewable sources), namely wind, solar, aero thermal, geothermal, hydrothermal and energy of the ocean, hydroelectric energy, biomass, biogas, the gas which is formed in case of decomposition of waste (landfill gas), and the gas which is formed at stations on sewage treatment;

the electric power from renewable sources – the electric power developed by the power plants using only renewable energy resources, and also that part of the electric power which is made from renewable energy resources by the hybrid power plants using also fossil fuel. The electric power made by pumped storage power plants at the expense of the water which is earlier repumped on higher level is not recognized the electric power from renewable sources;

geothermal power – the energy which is kept in heat form under the surface of the firm earth;

the central electric power supplier - the subject responsible for purchase of amounts of electric power at all competent producers according to Rules of the market of electrical energy based on regulated purchase agreements of the electric power from renewable sources, for the period before creation of the organized market of the electric power according to part (1) Article 38-1, and also for purchase of amounts of electric power at small competent producers who are given the corresponding status during the procedure of confirmation and who act as partners under the contracts for difference signed with the large competent producers declared by winning bidders after creation of the organized markets;

guarantee of proper execution of the agreement - the financial resources deposited by the potential producer in the order of the Government in case of provision of the status of the large competent producer at the biddings or in the order of the National agency on regulation in power in case of confirmation of the status of the competent electric power producer for ensuring accomplishment of the contractual commitments on construction and commissioning of power plant on energy production from renewable sources;

origin guarantee – the electronic document issued with the purpose to prove to the final consumer that this quantity of the electric power delivered to it was made from renewable energy resources;

offer guarantee - the financial resources deposited by the potential producer in the order of the Government for the purpose of exception of its improper conduct throughout all proposal validity;

participation guarantee - the financial resources deposited by the potential producer in the order of the National agency on regulation in power for the purpose of exception of its improper conduct within and in connection with the procedure of confirmation of the status of the competent producer;

centralized heating or centralized chilling - distribution of heat energy in the form of vapor, hot water or the cooled liquids in system of centralized heat supply and/or chilling or from the decentralized production sources through network on several buildings or sites for the purpose of use for heating or chilling of rooms or in processes of heating or chilling;

capacity limit – the size of installed capacity of power plant established depending on the technology used for production of electricity from renewable energy resources for the purpose of delimitation of applicability of schemes of support;

the liquid current market - the established and functional current market which status is established according to provisions of the Law on the electric power No. 107/2016, corresponding to the following criteria:

a) there is operational platform of sales based on the biddings or on the sale mechanism by continuous correlation where the current market is functional at least 12 months;

b) change of offers not later than for hour before delivery is possible (h-1);

c) products, available to sale, correspond to interval of calculation of imbalance in the corresponding zone of the biddings;

strike price - the price determined during bidding procedure for the purpose of support of energy from renewable sources allowing to make in the contract for difference financial calculation by correlation with difference between this price and the price of the wholesale market of the electric power;

the price of the wholesale market of the electric power (further - market price) - the price established in the market for the days ahead according to Rules of the market of electrical energy and used as the size of variable award, basic for determination;

variable award - the financial support provided in the form of positive or negative compensation on kWh, calculated as difference between the fixed price/strike price established during trading and at the price of the wholesale market of the electric power;

bidding procedure - the transparent, non-discriminatory process of the biddings providing participation of enough the companies according to Regulations on tendering on assignment of the status of the competent producer and/or documentation on the biddings in which the financial support is provided based on criterion of the smallest price during competitive process;

producer of biofuel – the legal entity making and selling biofuel in accordance with the terms, established in the laws and other regulations in the field;

the producer of biofuel - the legal entity who makes and sells biofuel, bioliquids and/or fuel from biomass;

the competent producer - the electric power producer from renewable sources having right to use of the scheme of support according to this law;

the large competent producer - the competent producer operating one power plant / several power plants on production of electricity from renewable sources with the cumulative capacity exceeding the capacity limit set by the Government according to Item e) Article 10;

the small competent producer - the competent producer operating one power plant / several power plants on production of electricity from renewable sources with cumulative capacity below the limit of capacity set by the Government according to Item e) Articles 10, including units on production of electricity in the cogeneration mode on the basis of biomass, synthesis gas or biogas, irrespective of capacity if the Government established it;

oil products - the main oil products and the main oil products of standard type as it is determined in the Law on the market of oil products No. 461/2001;

the professional consumer of electricity from renewable sources - the final consumer who makes the electric power from renewable sources for own consumption and can store or sell the made electric power from renewable sources provided that in case of not household professional consumer of electricity from renewable sources these types of activity are not its main business or professional activity;

jointly the acting professional consumers of electricity from renewable sources - the group consisting at least of two professional consumers of electricity from the renewable sources which are in the same building or the apartment house as it is specified in part (1) article 3 of the Law on energy efficiency of buildings No. 282/2023;

the scheme of support – any tool, the scheme or the mechanism used to promotion of energy use from renewable sources due to reduction of cost of this energy, increase in the price at which it can be sold, or increases, by means of adoption of obligations concerning energy from renewable sources or otherwise, the purchased quantity of this type of energy;

the peer transaction - the transaction with energy from renewable sources between participants of the market based on the agreement with in advance determined conditions regulating automatic exercise and calculation for the transaction or it is direct between participants of the market, or indirectly by proxy the third-party participant of the market, such as the intermediary/aggregator. The right to the conclusion of peer transactions does not affect the rights and obligations of parties concerned as final consumers, producers, suppliers or intermediaries/aggregators;

the actual value – the size of emission reduction of greenhouse gases for some or all stages of specific production process of biofuel, bioliquids or fuel from biomass;

typical value – the estimative size of representative emission reduction of greenhouse gases for certain method of production of biofuel, bioliquids or fuel from biomass;

standard value – the size received from typical value by application of the set coefficients which can be used instead of the actual value.

Article 4. Legal base

(1) Activities in the field of energy from renewable sources are regulated by this law, others legislative and regulations, and also the corresponding international treaties which party is the Republic of Moldova.

(2) If the international treaty which party is the Republic of Moldova contains others, than provided by this law, provisions, are applied regulations of the international treaty.

Chapter II. Principles and tasks of state policy. Administrative and regulating powers

Article 5. The principles of state policy in the field of energy from renewable sources

(1) State policy in the field of energy from renewable sources is implemented within sectoral state and local programs, monitoriruyemy by the central industry body of public management in the field of power.

(2) State policy in the field of energy from renewable sources is based on the following principles:

a) reduction of the national legislation in compliance with regulations and standards of the European Union;

b) promotion of energy from renewable sources by application of schemes of support according to this law and with compliance with law about government assistance;

c) implementation of the state administration in the field of energy from renewable sources;

d) ensuring transparency when implementing activities in the field according to this law;

e) ensuring non-discriminatory access to networks;

f) ensuring access of physical persons and legal entities to information on production and energy use from renewable sources;

g) ensuring informing and training of the public concerning production and energy use from renewable sources;

h) supervision of process of cultivation and use of genetically modified plant varieties intended for production of solid biofuel and biofuel in the closed production cycle.

(3) State policy in the field of energy from renewable sources is developed so that the level and conditions of the financial support provided on projects on production of electricity from renewable sources by means of schemes of support were reviewed by method which does not influence negatively the rights granted by the law and does not worsen economic viability of the projects which are already getting support according to this law, except for changes, caused by execution of contracts for difference according to this law, and also transposition and implementation of the European Union law accepted in the context of the obligations undertaken within the Agreement on creation of Energy community.

Article 6. Tasks of state policy in the field of energy from renewable sources

(1) Tasks of state policy in the field of energy from renewable sources are:

a) diversification of primary energy resources;

b) achievement of the minimum share of energy consumption from renewable sources in gross final energy consumption calculated according to provisions of this law and established in the National integrated plan for energy and climate;

c) achievement of the minimum share of energy consumption from renewable sources in final energy consumption in the transport sector calculated according to provisions of this law and established in the National integrated plan for energy and climate;

d) stimulation of cooperation between the central and local authorities of the public power;

e) safety, health and labor protection in energy production process from renewable sources;

f) promotion of energy use from renewable sources;

g) support of researches and sci-tech cooperation at the national and international levels, implementation of the best the practician of assistance to use of scientific results and technical developments in the field of energy from renewable sources;

h) ensuring public relations and its informing on energy from renewable sources.

(2) Other tasks of state policy in the field of energy from renewable sources are established in the National integrated plan for energy and climate approved by the Government.

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