RES licenses

Big investors warn against RES licensing priority revisions

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Any changes to the existing order for RES project connection-term application appraisals would seriously set back the domestic RES market, sources linked to foreign institutional investors have noted, adding that even mere rumors on possible changes could unsettle and discourage investors.

Power grid operator IPTO’s next round of connection-term appraisals is planned to assess applications for Group B projects, grouping together prospective RES units intended for green-energy power purchase agreements between RES producers and industrial consumers.

Any revisions affecting the current appraisal procedure for Group B projects would impact RES investments in Greece, the sources noted.

Investors behind Group B projects have already reached preliminary PPA agreements with off-takers so that they can secure entry into this category. Priority changes concerning appraisals would impact these tentative PPAs and even put their eventual implementation in doubt.

Off-takers would also be greatly affected by any priority revisions to RES connection-term appraisals as they consider PPAs to be a key tool for subduing energy costs.

Greek industry would miss out on a great opportunity to keep production costs at competitive levels if processing priority changes were to be made, the sources noted.

Ministry rules out RES licensing-priority revisions

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The energy ministry has ruled out any possibility of licensing priority revisions in a ministerial decision detailing power grid operator IPTO’s order of RES project connection-term application appraisals to specifically promote new solar energy projects equipped with batteries, energypress sources have informed.

Power grid operator IPTO is currently assessing connection-term applications submitted by RES producers with projects in top-tier Group A. The procedure may have already been completed.

Assessments of applications for Group B projects, grouping together prospective RES units intended for green-energy power purchase agreements between RES producers and industrial consumers, will follow.

The ministry revised the ministerial decision last January to increase the grid capacity that may be occupied by PPA-linked RES units as an upper limit for Group B projects was raised to 4,000 MW.

The issue has become complex as new PVs will need to start being equipped with batteries in order to minimize RES output cuts, carried out to prevent grid overloading.

However, the growing need for combined RES-and-storage facilities, to enable more efficient usage of grid capacity, changes financial factors taken into consideration by RES producers and industrial consumers for their green-energy PPAs. These factors are invalidated as the addition of batteries increases the development cost of projects.

 

Industrial sector PPAs with PPC enter unchartered waters

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An energy ministry intention to offer licensing priority to new photovoltaic parks with batteries behind the meter threatens to greatly impact green-energy PPAs reached between industrial players and power utility PPC.

Off-takers are already experiencing delays as connection-term offers for RES units in Group B, including PPC’s solar farms intended for PPAs, have essentially been put on hold until the energy ministry reaches a final decision on the licensing-priority details for new PVs with batteries.

Delays could become even longer if the energy ministry decides to establish an additional category for PVs with batteries securing tariffs through auctions.

Worse still, if the PPAs need to be combined with storage units, to enable more efficient usage of grid capacity, then the financial aspects taken into consideration by PPC and industrial consumers for their green-energy PPAs will no longer be valid as the addition of batteries would increase the development cost of projects.

Connection-term priority for RES projects with storage units

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The energy ministry is planning to revise the process for licensing renewable energy projects by giving connection-term priority to projects that include energy storage batteries. This move is driven by the need to address grid capacity shortages resulting from the rapid increase in RES projects in recent years.

The promotion of energy storage promises to complement the effectiveness of an enormous amount of ongoing investments in grid upgrades, energy minister Theodoros Skylakakis noted during a TV interview while commenting on the country’s grid capacity issues.

Both solar and wind energy projects would be given priority status for connection terms if batteries are incorporated into their plans, an addition minimizing their usage of grid capacity, the minister clarified.

Energy ministry officials have already begun work on a formula for the connection-term priority plan.

At present, operating RES projects are estimated to represent a total capacity of 26 to 27 GW, meaning grid capacity for new RES units is expected to be fully taken by 2030, if taking into account that approximately 2 GW will also be needed for offshore wind farms planned to be developed by the end of the decade.

Further step taken for roof-mounted solar panel licenses

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Distribution network operator DEDDIE/HEDNO has taken a further step towards completing a licensing framework for roof-mounted solar panels by enabling such systems that have qualified for subsidy support to engage in net-metering at a capacity of up to 10.8 kW.

DEDDIE/HEDNO has underlined that PV units need to be electrified before supporting documents for subsidies can be submitted.

Subsidy amounts may be lowered or even cancelled if, following initial approval, discrepancies are found during inspections of data and supporting documents.

Some 12,500 grid-capacity reservation applications have been submitted by PV investors for small-scale systems with generation capacities of up to 10 kW.

Of these 12,500 applications, 7,500 combine batteries and, as a result, have secured subsidies. The other 5,000 or so grid-capacity reservation applications, submitted for standard residential solar panels, have been lodged by private owners not interested in qualifying for subsidy support.

Over 20% of older RES applications no longer valid

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Between 20 and 30 percent of older RES project applications submitted to power grid operator IPTO have been cancelled as a result of the failure of project investors to deliver letters of guarantee by a November 4 deadline.

This deadline has essentially served as a filter removing abandoned RES projects for which grid capacity bids had been submitted by investors.

The cancelled RES applications represent a total capacity of 4 to 6 GW, while investors behind RES projects representing between 14 to 16 GW reconfirmed their interest.

Authorities estimate that available grid capacity for these older RES applications will total 6.5 GW, meaning grid capacity will still be insufficient to host all these projects.

 

 

 

Static RES projects occupying grid capacity to be cancelled

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The energy ministry plans to stop granting free-handed connection term extensions to RES projects that have not made licensing progress over considerable periods, the objective being to reserve as much grid capacity as possible for renewable energy investors determined to push ahead with their project plans.

Ministry action is expected to lead to the termination of RES project plans that have secured connection terms but remained stagnant for no apparent reason. The resulting free space will be made available to investors keen to push ahead with green energy projects.

However, in taking action to make rules stricter for RES investors, the energy ministry will tread carefully to establish a formula that will avoid cancelling out projects that have been delayed for reasons beyond the control of their investors.

For example, development of some RES projects has been held back by legal wrangles. The ministry does not intend to cancel such projects.

However, the energy ministry believes a considerable number of RES projects have no reason to be stagnant. The focus will be on such cases.

Power grid operator IPTO has granted RES connection terms totaling approximately 11 GW, of which 3 GW, sources informed, concern projects not making any progress.

 

RES project deadlines trim accumulation, still considerable

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Three key deadlines set by authorities to terminate idle RES project plans have expired, reducing the number of accumulated pending projects, still considerable.

Producer certificates for pending projects have, as a result, been reduced to represent a total capacity of approximately 80 GW, still enormous, from 95 GW.

RES investors, for one of the expired deadlines, had until March 15 to cancel producer certificates received for projects – a preliminary licensing step – and be able to have related issuance fees returned. Investors who missed this deadline are no longer entitled to receive this payment return should they not proceed with their projects.

Another deadline expired on March 31, until which RES project investors needed to submit to RAE, the Regulatory Authority for Energy, production licenses and spatial details of projects, or have licenses for these projects revoked. Authorities had extended this deadline.

Most recently, a third deadline expired on April 15. It required RES project investors to deliver guarantee payments of 35,000 euros per MWh for older RES producer certificates obtained through applications submitted to a June, 2021 cycle. These certificates have been cancelled for investors who failed to meet the deadline.

 

 

 

RES producer certificate applications up in February

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RES producer certificate applications rebounded in the February cycle to reach a total of 221 for a capacity of 3,196 MW, more than three times the capacity of the previous cycle, last October, whose slowdown was prompted by a new regulation requiring letters of guarantee worth 35,000 euros per MWh to accompany applications.

Net-metering and green PPA prospects are believed to be the main driving forces behind this elevated RES interest.

A total of 127 RES producer certificate applications representing a total capacity of 960 MW were submitted in October.

Of the February cycle’s 221 applications, 73 concern solar energy projects representing a total capacity of 1,833 MW. These applications include a number of exceptionally big projects, such as a 300-MW solar energy park in Thessaly, central Greece, as well as a 250-MW project in the mainland.

Wind energy projects followed with 70 applications totaling 1,118 MW. A prospective 315-MW wind energy farm planned for the Peloponnese is the biggest among these applications, followed by a 147.5-MW facility in Greece’s northeast.

Small-scale hydropower unit applications also figured prominently in the February cycle, reaching 66 for a total of 52.8 MW.

The February cycle also included 7 applications for hybrid RES units totaling 124 MW, as well as 5 applications for biomass units with a total capacity of 18.5 MW.

RES licensing simplification aims to cut process to 14 months from 5 yrs

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A draft bill for further RES licensing simplification, set for consultation within the next few days, carries revisions that will aim to shorten the time required by investors to obtain RES licenses to 14 months from five years at present.

Energy minister Kostas Skrekas is determined to simplify the RES licensing procedure to facilitate a total of 12 GW in licenses needed for renewable energy projects to meet National Energy and Climate objectives set for 2030.

As part of the plan to hasten the RES licensing procedure, the total number of steps will be reduced from seven to five. Also, applications lodged will be filtered to eliminate bids lacking serious intentions, while non-binding connection term offers will be scrapped.

The simplified licensing procedure will also spare investors from needing to resubmit supporting documents more than once, to various agencies, as has been the case until now.

In addition, the energy ministry will establish a one-stop service center enabling applicants to monitor the progress of their licensing applications.

RES license simplification bill reducing steps from 7 to 5

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An energy ministry draft bill carrying a second round of RES license simplification measures for prospective projects carries revisions designed to merge three licensing steps into one in order to quicken the overall procedure.

According to the draft bill, three stages needed to be satisfied by investors, the connection term process, installation permit, and establishment of an operating aid contract with RES market operator DAPEEP, will be carried out concurrently.

Until now, one stage has needed to be completed before the next can commence.

This revision will reduce the total number of RES licensing stages to five from seven at present.

Under the new system, the RES licensing procedure will begin with the producer certificate, which investors must obtain before applying for an environmental permit as the second step, and then applying for connection terms as step three. The fourth step for investors will entail establishing agreements with DAPEEP and the grid operator, while the fifth and final stage will involve obtaining an operating license.

The total number of supporting documents required by RES investors for the overall licensing procedure is being reduced from 91 to 54, the energy ministry announced.

 

Legislative revision designed to cool overheated PV market

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A legislative revision whose ratification will require RES investors to provide letters of guarantee worth 35,000 euros per MW for producer certificate applications concerning projects of more than 1 MW, the intention being to desaturate solar energy market capacity clogged up by excess applications not being followed through by investors, will be submitted to parliament either today or tomorrow.

Making letters of guarantee worth 35,000 euros per MW mandatory for investors means that a PV project with a planned capacity of 50 MW, for example, will require its investor to forward a sum of 1.75 million euros.

The RES market, especially its solar energy sector, is seen as an overheated market, prompting authorities to take action that will decongest and hasten the licensing procedure.

 

Letters of guarantee at €35,000 per MW possible for bigger PVs

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RES investors applying for producer certificates concerning facilities over 1 MW may need to also submit accompanying letters of guarantee worth 35,000 euros per MW as part of the application process, the objective being to make this procedure more demanding and restrict applications to investors with serious intentions of following through on their plans.

Heightened investment interest has led to an overheated RES market, especially in the large-scale PV category, prompting saturation at various stages of the licensing process.

Restricting applications to investors with serious intentions will help free precious system capacity currently taken up by PV investors acting in a haphazard fashion without full commitment to their plans.

If the measure is eventually implemented, an investor behind a solar energy project plan with a capacity of 50 MW, for example, will need to submit a letter of guarantee worth 1.75 million euros.

The energy ministry does not intend to take immediate action but is likely to adopt a wait-and-see approach over a six-month adjustment period before deciding on whether to require letters of guarantee.

 

Municipal solar parks to help low-income household energy needs

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Municipalities and prefectures will be offered 100 million euros in subsidies, through the recovery fund, for the development of solar energy farms whose resulting earnings will be used exclusively to cover the energy needs of approximately 30,000 low-income household around the country, energy minister Kostas Skrekas has announced in an interview with Greek daily Kathimerini.

These solar parks will offer a total capacity of 120 MW, the minister noted.

The minister also noted, in the interview, that a further 40 million euros from the recovery fund will be used to subsidize the replacement of 2,000 conventional taxis with electric-powered models.

Taxi owners will be entitled to 22,500 euros in subsidies for each vehicle replaced, the minister said, while adding that a variety of criteria, including car age, will be taken into account.

Support is also planned for energy communities, according to the minister.

“Energy communities are important when they serve their purpose and not merely promote capital-intensive investment. That is why we will support energy communities that will benefit those in need,” Skrekas explained.

Responding to a question regarding widespread resistance of local communities against wind energy installations and criticism faced by the ministry for being too cooperative with investor plans in this domain, the minister remarked: “We don’t license everything. Investor proposals currently exceed 100 GW, but we, through the National Energy and Climate Plan (NECP), estimate that, realistically, approximately 10 GW will be installed – in other words, one in ten.”

Revisions to a revised, and stricter, RES spatial plan will be completed by the end of the year, the minister told.

RAE launches latest cycle for RES producer certificate applications

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RAE, the Regulatory Authority for Energy, has just launched a latest cycle offering RES producer certificates, the third to be held under a new framework. Applicants face a June 10 deadline.

This third cycle for producer certificates, the initial step in the RES licensing process, follows rounds staged last December and February, which attracted applications representing total project capacities of 45.45 and 8.86 GW, respectively.

The authority, which completed processing a backlog of December-cycle applications in mid-April, has announced that 1,544 applications, of 1,865 in total, fulfilled all criteria. These successful applications represent a total project capacity of 34.48 GW.

Applications submitted in the February cycle are still being processed.

Applications blocked by the authority as a result of overlapping properties declared by investors as project sites are, in many cases, being amicably resolved between opposing sides, energypress sources have informed.

It remains to be seen if the big turnout experienced for the December and February cycles will be smaller in this latest cycle, given lower tariffs secured by investors at these previous rounds.

The energy ministry is still entertaining thoughts of requiring investors to accompany their producer certificate applications with letters of guarantee or proof of property ownership.

Market players have expressed concern, noting such measures would emerge belatedly and introduce new rules that have not applied for previous cycles.

 

RES licensing procedure revision plan troubling players

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A new RES licensing model being worked on by the energy ministry, especially two aspects, one requiring letters of guarantee from investors even if they have previously obtained production certificates, and the other, offering licensing-procedure priority to investors who opt to negotiate and establish bilateral power purchase agreements (PPAs) with industrial consumers rather than secure fixed tariffs through RES auctions, are details troubling players.

Under current licensing rules, RES investors must submit letters of guarantee only when connection terms have been signed, in other words, at the very end of the procedure.

This order of things is saturating the market as players not fully committed to their investment plans are haphazardly submitting licensing applications and occupying capacity that is valuable for investors with serious intentions.

The energy ministry now intends to revise this procedure so that RES investors submit their letters of guarantee at the beginning of the licensing process.

Over the past few weeks, the energy ministry has examined the prospect of requiring investors, old and new, to forward letters of guarantee along with their producer certificate applications. This ministry plan, still lacking full clarity, has unsettled market players.

The ministry’s plan to offer favorable licensing procedure treatment to RES investors opting to negotiate PPAs with industrial consumers rather than seek fixed tariffs at auction has also raised concerns. The resulting monitoring effort to be needed could be complicated and uncertain, players and critics fear.

Licensing procedure priority for RES investors holding PPAs

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RES investors opting to establish bilateral power purchase agreements (PPAs) with industrial consumers will be given licensing priority for the projects over peers planning to secure tariffs the customary way, through RES auctions staged by RAE, the Regulatory Authority for Energy, according to an energy-sector bill expected to be submitted to Parliament in June.

This plan essentially aims to offer investors incentive to stop focusing their efforts on how they will secure fixed tariffs for their RES projects by offering favorable licensing treatment for projects holding bilateral tariff agreements.

Over the next three years, a RES capacity totaling 3.5 GW is expected to be offered by authorities to investors.

It should be pointed out that projects linked to fixed tariffs gained through RES auctions are likely to enjoy more favorable bank treatment for project financing. On the contrary, RES investors holding PPAs will need to have struck handsome deals to convince banks for money.

Majority 80% of RES applicants provide certificate payments

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A sizeable portion of RES investors, approximately 20 percent, who were entitled to producer certificates after submitting related applications, abandoned their plans by not paying their resulting fees, latest data released by RAE, the Regulatory Authority for Energy, for a December 2020 cycle has shown.

The majority 80 percent of applicants, numbering 1,249, followed through with their producer certificate payments to add a further 27 GW to the accumulation of RES license applications, all at various maturity stages.

A May 11 deadline was set for the December 2020 cycle’s producer certificate payments.

Investors submitted a total of 1,865 applications to the December 2020 cycle, representing a total of approximately 45 GW. Of these, 1,544 applications, representing 34.4 GW, fulfilled all criteria and their investors were invited to pay fees for the issuance of producer certificates.

The remainder of applications that failed to qualify, representing approximately 10 GW, were held back by a variety of problems, primarily property overlapping issues.

RES investors with property overlapping issues will need to resolve matters between them so that producer certificate applications represent one property per application.

In terms of RES technology, 79.6 percent of solar energy project applicants paid their fees for producer certificates in the December 2020 cycle.

The figure was slightly higher for wind energy applications, reaching 81 percent.

Legislative proposals for further streamlining of RES licensing process

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By Dimitris Assimakis

Partner, Reed Smith LLP

Overview of the main legislative proposals for the further streamlining of the process for the licensing of renewable energy projects that are under consideration by the Greek Ministry of Environment and Energy: 

  • Establishment of a single point of contact for RES investors and digitalisation of the whole licensing process up to the award of the Operation Licence.
  • Limitation of the requested documentation and data for the granting of the Grid Connection Offer, the conclusion of the Grid Connection Agreement and the award of the Installation Licence and the Operation Licence. Abolition of the non-binding (preliminary) Grid Connection Offer licensing step.
  • Submission of a bank guarantee upon the application for the granting of the Grid Connection Offer and not upon the acceptance of the offer, as it is the case now.
  • Limitation of the cases necessitating the modification of the Grid Connection Offer, the Grid Connection Agreement, the Installation Licence and the Operation Licence.
  • Introduction of a more flexible application framework for the granting of the Gird Connection Offer and a more flexible process for the energisation of the connection of new power plants to the grid.
  • Land titles audit from external lawyers in case the land wherein a project is going to be installed is owned by a private party.
  • Breaking up of the Grid Connection Agreement in two distinct parts i.e. the Main Part and the (project specific technical) Supplement; and partial disassociation of this agreement from the Installation Licence.
  • Introduction of exclusive deadlines for the filing of an application for the award of the Installation Licence as from the time of issuance of the Grid Connection Offer.
  • Possibility to extend the term of the Grid Connection Offer and the period within which the developer has to apply for the award of the Installation Licence against the payment of a relevant fee.
  • Periodic publication of data from the competent grid operators (TSO /DSO) on the status of the applications for the granting of Grid Connection Offers, as well as of the status of the Grid Connection Offers granted and the Grid Connection Agreements signed, together with adequate info relating to the local grid and the development of the grid connection works associated with any such offers and agreements.
  • Introduction of a special framework for the licensing of energy storage units.
  • Addressing various issues relating to forestry legislation and their interface with the RES licensing process (e.g. intervention permit, reforestation process, forestry road network).
  • Introduction of a simple notification scheme for the licensing of micro power generating facilities that are connected to the distribution network.

RES installation permit deadline for producer certificate validity

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The energy ministry’s RES licensing committee has proposed an additional deadline, for installation permit applications, as part of a second wave of interventions in the licensing simplification effort for new RES projects.

According to the proposal, if investors miss their installation permit application deadline, then producer certificates obtained for related projects would automatically expire.

Investors would be given a twelve-month period to submit their installation permit applications once connection offers have been accepted for solar energy projects, onshore wind farms and hybrid units, and 18 months for all other RES technologies and combined cooling, heart and power (CCHP) facilities, according to the committee’s proposal.

Prioritization for RES projects with producer certificates proposed

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The energy ministry’s RES licensing committee has recommended a four-month prioritization period by power grid operator IPTO in its processing of connection term applications submitted by investors already holding producer certificates. This prioritization would be implemented at the expense of small-scale RES unit applications, which have swamped licensing system and caused problems.

The proposal, presented at a committee meeting yesterday, would effectively push forward, by four months, connection term applications submitted for projects already issued producer certificates.

The main topic of yesterday’s committee meeting concerned a presentation of this body’s proposal for RES licensing simplification procedures, during the latter stages, such as when finalized connection terms are offered and operating licenses are issued.

 

Extra RES measures to simplify installation, operating permits

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The energy ministry is preparing to include simplification measures it appears to have settled on for the second stage of RES licensing procedures, concerning installation and operating permits, into the one draft bill to also incorporate EU energy efficiency directives being adopted.

The draft bill is expected to be forwarded for public consultation within the next few weeks, prior to Greek Orthodox Easter, in early May.

Public consultation on the energy efficiency EU directives being adopted has already been completed.

The imminent draft bill is not expected to bring about any fundamental changes to the second stage of the RES licensing procedure, as had been the case with a major first-stage change abolishing production licenses, sources have informed.

Instead, a series of revisions will be introduced to remove various obstacles encountered by investors in the maturity process of their projects, the objective being to significantly reduce the time needed for project maturity.

The second-stage RES licensing simplification plan promises to lessen both the number of steps and supporting documents needed for RES installation and operating permits.

The energy ministry also intends to revisit the first stage to implement further improvements, needed to counter the flood of producer certificate applications being submitted to RAE, the Regulatory Authority for Energy.

The government has declared its objective is to reduce the overall RES licensing procedure in Greece to two years, the EU average.

IPTO preparing new formula for grid capacity availability

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Power grid operator IPTO is preparing revisions to a framework for incoming RES project applications, including, as the first major change, a new formula calculating available grid capacity, the operator’s deputy director Giannis Margaris (photo) has noted during an online update.

This new formula will factor in all offers made by the operator in the market as well as new RES projects, both in development and at the planning stage, Margaris pointed out.

IPTO expects to have finalized the formula within April, before presenting it to the energy ministry and then the market.

The operator is also preparing a tracking system that will enable investors to be updated, at any given moment, on the progress of their connection term applications, the IPTO deputy informed.

These upcoming changes come in the wake of a flood of group applications for small-scale RES projects, seeking direct links to the grid, as well as complaints by ABO Wind over IPTO’s delay in examining the company’s connection term applications.

Such objections serve as an opportunity for a reexamination of the grid entry framework, Margaris noted.

The problems that need to addressed concern the licensing and grid entry frameworks, not grid capacity, neither now nor until 2030, the IPTO deputy stressed.

Over 30% of RES project bids show territorial overlap issues

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Nearly one in three RES project plans submitted to December’s licensing round are problematic as they display territorial overlaps concerning envisaged project sites, energypress sources have informed.

More than 30 percent of 1,864 producer certification applications submitted to the December round claim overlapping territory for RES project development, especially in the solar energy sector.

This latest concern comes as yet another sign of an overheated market and this condition’s possible repercussions.

The territorial overlap problem makes clear that a significant number of project plan licensing applications were lodged in a haphazard fashion without any organized registration work for land claims, placing in doubt the feasibility of these project plans.

Licensing application numbers were also sizeable for an ensuing round last month. A total of 477 applications representing 8.8 GW were submitted, increasing the likelihood of the implementation of filters, currently being examined by the energy ministry, to block baseless applications from licensing procedures.

Ministry measures to block unrealistic RES license bids

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The energy minister appears determined to cool off what it sees as an overheated renewable energy market, fearing the relentless, often unrealistic, drive by prospective investors for producer certificates during recent licensing cycles, peaking with last December’s 1,864 applications representing 45.55 GW, will inevitably lead to side effects for the sector.

The ministry is now looking to introduce filters that would limit the processing of applications to those linked with investors possessing the financial means to carry out project plans, and to RES applications that have secured legal possession of required property.

Applicants may need to attach letters of guarantee or other documents proving their financial capability to their producer certificate applications. Such a measure, it is believed, will block the mass inflow of applications submitted by applicants who stand no chance of actualizing their project plans.

A second filter being considered at the ministry would immediately reject applications that do not possess the required land. This measure could be introduced in the form of a preliminary concession agreement concerning property use.

As part of this measure, procedures enabling property owners to block RES license applications submitted by investors who have not been given consent for land they intend to use will most likely be simplified. Under current rules, land owners seeking to reclaim their property need to apply for RES licenses themselves.

New round for RES producer certificates to open December 1

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The energy ministry is expected to introduce, within the next few days, a new regulation enabling the issuance of electricity producer certificates for RES and CCHP (Combined Cool Heat and Power) projects, in accordance with recent legislation that has eliminated production licenses as part of an effort to simplify the RES licensing procedure.

The new rule will come into effect on time to enable a new round of RES license applications staged by RAE, the Regulatory Authority for Energy, to proceed as planned between December 1 and 10, energy ministry officials have informed.

The upcoming round for new RES license applications, via an online platform developed by RAE, will be the first in over a year following a freeze imposed by the authority so that it can process a backlog of older applications.

RAE has now worked through the older applications and issued production certificates to eligible applicants.

Processing of the new applications will be based on the new rules, designed to improve and simplify licensing procedures and help the country attain its renewable energy objectives.

RAE will present its new online application system today through a virtual event. The system, described as user-friendly, is expected to boost transparency and drastically reduce previous bureaucracy.

Environmental terms for RES licenses ‘still tough’, investors note

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Contrary to popular opinion, recently ratified environmental impact licensing rules remain strict for renewable energy investors despite upper-limit capacity increases for wind and solar energy installations, sector officials have pointed out in comments to energypress.

Last August, the energy ministry increased the upper-limit capacity for Category B wind energy installations from 5 MW to 10 MW and Category B solar energy installations from 2 MW to 10 MW.

Investors behind Category B projects do not need to provide environmental impact studies but must meet predetermined environmental terms and all related terms included in a ministerial decision implemented back in January, 2013.

“It is not true that investors merely submit statements declaring that their projects do not have environmental impact, as has been generally said,” a sector official explained. “Investors must observe specific environmental terms and submit studies and data required by the ministerial decision from 2013,” the official added.

Special Ecological Assessments must be conducted for projects planned for protected Natura areas. Also, bird fauna studies must be included in investment applications for Special Protection Zones.

Furthermore, the ministry has advised licensing authorities to be particularly careful when examining project applications slicing big RES projects into a series of smaller projects as a means of simplifying licensing procedures. Such practices need to be stopped, the ministry has stressed.

RAE nearly done with processing for backlog of RES license applications

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RAE, the Regulatory Authority for Energy, is close to completing its processing effort for a backlog of some 1,400 RES license applications representing approximately 24 GW in wind and, primarily, solar projects.

RAE’s processing of a backlog of applications submitted during four cycles from September, 2018 to June, 2019 has been completed, while the authority’s examination of applications submitted in September, 2019 is expected to be completed within the next few days, sources informed.

Once RAE officials complete their processing of last September’s applications, they will begin work on applications submitted last December, which should result in the completion of processing work for the entire backlog by the end of this month, officials have estimated.

A small fraction of the RES license applications submitted during the four cycles between September, 2018 to June, 2019 were rejected. More specifically, of 811 applications examined by the energy authority, 246 were granted production licenses for 1.522 GW in wind energy projects and 430 investment plans were given licenses for 6.2 GW in solar projects.

Meanwhile, public consultation staged by RAE for new rules concerning producer certificates in the RES and combined heat and power (CHP) domains has been completed.

A new platform being developed by RAE for producer certificates will be simple, safe and transparent, and also linked to platforms operated by other entities, including DAPEEP, the RES market operator, so that applications may be swiftly processed, authority officials have informed.

RAE facing backlog of RES license bids as new round nears

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RAE, the Regulatory Authority for Energy, is battling against time to process a backlog of RES production license applications ahead of a new round of applications, to be staged as a revised system offering producer certificates. This new framework is legislated to commence in October.

The authority is concurrently examining older applications submitted until June, 2018, applications lodged between October, 2018 and December, 2019, and also preparing new terms for the forthcoming applications scheduled to begin in October.

An overwhelming majority of investors has responded to a recent RAE request calling for reconfirmations and updates of older applications.

Older applications submitted until June, 2018 are being processed with support from software designed specifically for this purpose. These applications, numbering approximately 300, will also need to be examined, one by one, by the RAE board.

Similar software is also being used for the processing and examination of applications submitted between October, 2018 and December, 2019. Though this process is simpler, the numbers are bigger, tallying some 1,400.

RAE still has plenty of work to do to finalize a detailed proposal for producer certificate terms. Once ready, it will need to be forwarded to the energy ministry, which, in turn, must sign a ministerial decision to bring the plan into effect.

Two previous rounds that had been scheduled for March and June this year were not staged as a result of the upcoming new rules and change of licensing framework. Judging by current RES investor indications, the next round is expected to attract a record number of applications.

This forecast adds to RAE’s concerns about the backlog of applications that need to be cleared.