EWRC will consider changes in the Ordinance on the connection of renewable energy sources, including the introduction of a guarantee of BGN 50,000

The Commission for Energy and Water Regulation (EWRC) will examine the changes in Ordinance 6 for the connection of objects to the electricity grids within the framework of a public discussion. The document defines the conditions and procedure for connection to the relevant network, for termination of connection or supply of electricity and the boundary of ownership between electrical facilities.

Basically, the new changes introduce the requirement for a guarantee of BGN 50,000 for renewable sources, including for energy storage facilities. The introduction of this requirement aims to prevent the exhaustion of the capacity to connect to the electric networks by persons who do not have a real investor interest. At the same time, the regulation also regulates the release of this guarantee. This will be done "upon the connection of the object, and the relevant operator can carry out a set-off with the connection price due up to the amount of the smaller of the two counter-obligations".

As explained by the experts from the working group, who prepared the report on the proposed amendments to Regulation 6, in particular, the lack of a requirement to provide a guarantee in the procedures for joining electrical energy storage sites creates conditions for the emergence of speculative projects that lead to serious depletion of the free capacity for connection to the electricity networks and create significant difficulties for persons with real investment intentions. "Also, the general procedure introduced by the act for submitting a request for a study of the conditions and method of joining electricity production facilities does not sufficiently take into account the specifics of the process of building facilities for the production of electricity from renewable sources (RS), which hinders the realization of investment projects for this type of objects".

"Forecasts show that due to the lack of a regulated requirement to provide a guarantee, a significant part of the projects will not be based on real investor interest, but will only aim to block the capacity to connect to the electricity networks, which will then be transferred to individuals for a fee with actual investment intentions. The above situation unjustifiably makes investments in such facilities more expensive, due to the increased costs of ensuring transmission capacity, and may even lead to the refusal of their implementation. A similar situation also existed with regard to the sites for the production of electric energy from renewable energy until the adoption of Art. 29 of the Law on Energy from Renewable Sources", the team of the EWRC working group commented in its report. The document also examines various specific cases - the construction of sites on agricultural land and related restrictions, including for wind power plants, as well as construction in properties categorized as forests. In the amendments to Ordinance 6, based on these cases, options are proposed to ease the procedures.

In addition, new texts are created, which regulate the validity periods of the operator's opinion, with which the relevant procedures are agreed and the terms for the preparation and conclusion of a preliminary contract between the relevant operators. Texts concerning the specific deadlines for signing and returning the drafts of the preliminary agreement and the accession agreement are also specified. The possibility of concluding a connection agreement between the operators before the issuance and entry into force of the construction permit for the site of the operator of the respective electricity distribution/closed electricity distribution network is regulated.

"The requirement to provide a guarantee in the procedures for joining electric energy storage sites will lead to a more favorable and predictable environment and conditions for the implementation of such projects, which protects the rights and interests of bona fide investors. The removal of the prerequisites for speculative engagement of network capacities will minimize the risk of abuses, thus contributing to the faster commissioning of electric energy storage technologies", the experts from the EWRC working group also comment.