RULES AND PROCEDURES ON CERTIFICATION OF ELECTRICITY GENERATION FROM RENEWABLE SOURCES

These Rules and Procedures are compiled based on the provisions of the article 39 of the Law No.9072 date 22.05.2003 “On Power Sector”, as amended, the Treaty on Energy Community ratified with the Law nr.9051 date 3.04.2006, and are in compliance with the ERE (Energy Regulatory Entity) Rules of Practice and Procedure. These rules will be applied for the certification of electricity generation from the producers putting

in operation after 02.11.2000 that use renewable energy sources.

The steps for the certification of electricity generation from renewable sources:

a. Qualification of generation plants of electricity

b. Issuing of Guarantee of Origin (GO) and Green Certificates (GC)

Qualification of generation plants of electricity

I. The Producer wishing to get the qualification of generating plant shall file with ERE a specific written request, including all the information required by the legislation in force and these rules. The qualification of a generating plant is made only once unless major changes in the qualified generating plants of electricity have occurred. The request for qualification can be also filed for a generating plant of renewable sources

still in project which may be still in the designing or construction phase.

The Request for Qualification shall include:

• a specific technical report describing the type of generation technology as set out in the abovementioned article 6;

• a technical document describing the basic characteristics of the generator plant, including technical annexes, if any;

• the implementation project of the plant, in cases of qualification requested for a power generator, which is still in designing or construction phase; ( construction design electromechanical, to the connection system etc, that is presented for construction permit)

• any other issued documentation, providing evidences of the testing and commissioning of the generation plant.

The technical document comprise:

1. General description of the plant such as:

a) energy sources (renewable or not)

b) type of power plant

c) nominal capacity that is the sum of the nominal capacity of the turbines or engines as reported on their nameplate

d) expected annual production

2. the following graphic documents:

a) chorography

b) general lay out

c) functional scheme

d) electric scheme aiming in identification of power plant meters certified by the competent public authority

3. description of the plant must be even more detailed in case of:

a) hydro power plants, using also pumped storage, in order to calculate the percentage of energy used for this purpose given that this amount of power output is excluded from the production eligible for GO and/or Green Certificates

b) hybrid plants given that only the energy produced by renewable sources may be eligible for GO and/or Green Certificates

c) plants burning waste in order to calculate the amount of electricity attributed to the biodegradable part of wastes, given that only this may be eligible for GO and/or GC.

II. ERE, within 90 days from the decision to commence the reviewing procedure according to article 8 of these rules, shall review the application and inform the applicant on the Board decision on qualification or in refusal.

Issuing of Guarantee of Origin (GO) and

Green Certificates (GC)

I. The generator may file a request ask for the issuing of GC for the amount of electricity produced, on yearly basis, from the plants previously qualified as described in the articles 7, 8, 9, and after generation plant is in operation. The date of the first generating plant parallel with the electric network has to be after 2nd November 2000. GC can be traded in three subsequent years after their issuance. GO can be issued for:

• all the electricity annually generated from hydro power plants except from the quota ascribed to the pump storage;

• all the electricity annually generated from wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, sewage treatment plant gas and biogases power plant;

• the quota of electricity annually generated ascribed to biodegradable part of urban and industrial wastes, burned within the thermal power plant.

• the quota of electricity attributable annually to the renewable source burned within hybrid

power plant, when the electricity ascribed to the not renewable exceed the 5% of the

overall amount of electricity produced.

• every GC is equal to 50 MWh.

II. According to application ERE, shall issue annually GO, for the electricity actually produced from a plant that has already got the qualification and only if the plant is in operation, GO can be deserved for the same electricity abovementioned for the GC.

III. ERE issues the GC and GO for 12 year period.

IV. The amount of energy, to which, can be issued GC and/or GO, shall be measured or computed from the measurements. The applicant has to include proper documentation certified by the competent public authority.