The legal framework of electricity generation from biomass/biogas in Greece

Transcription

1 The legal framework of electricity generation from biomass/biogas in Greece Eva Keki / LL.M. Bonn / Lawyer at the First Instance Court in Athens, Associate MStR Law Sofia Deligianni / LL.B. University of Athens / Lawyer, Associate MStR Law MICHELIS STRONGYLAKI REINHARDT 23 Sina street, Athens, T: , F: info@mstr-law.gr

2 MStR Law Firm Legal Advisor for Energy and Environment Legal Studies LOIs, MOUs etc. Legal due diligence of projects and companies Support in the negotiations Transfer of projects, M&A Contracts for project development, EPC, O&A Energy savings / ESCO companies / Contracts Filing complaints appeals with RAE, Ministries etc. 2

3 Contents I. Introduction (legislation, definitions) II. Licensing Procedure (Regulatory and Environmental) Electricity Production Licence Application for a Connection Offer Environmental Terms Approval Installation Licence, Operation Licence Site selection for biogas plants III. RES support scheme in Greece L. 4414/2016: From FIT to FIP Special provisions for biomass/biogas 3

4 Legislation General Legal Framework: L. 3468/2006 L. 4414/2016: Reformation of Renewable energy in Greece introduction of competitive bidding process (auctions) 4

5 Definitions (art. 2, L. 3468/2006) Biomass: the biodegradable fraction of products, waste and residues from biological origin from agriculture (including vegetable and animal substances), forestry and related industries including fisheries and aquaculture, as well as the biodegradable fraction of industrial and municipal waste Biogas: fuel gas produced from biomass and/or from the biodegradable fraction of industrial and municipal waste, that can be purified to natural gas quality Bioliquids: liquid fuel, for energy purposes other than for transport, including electricity and heating and cooling, produced from biomass 5

6 II. Licensing Procedure 1 st Step: Electricity Production License Primary license - This license determines the feasibility of the project Certifies the technical and financial efficiency of the work Issued by the Regulatory Authority for Energy (RAE) / RAE's decision to issue or not a Production License within 2 months Duration of Production License: 25 years with possibility of renewal for another 25 years (art. 3, par. 6, L. 3468/2006) Exception (L.3468/2006, art. 4): Biogas plants < 1 MW the interested party/stakeholder should address the Hellenic Electricity Distribution Network Operator S.A. (HEDNO S.A.) 6

7 Licensing Procedure 2 nd Step (L. 3468/2006, art. 8): Grid Connection Offer Environmental Terms Approval (EPO) (L. 1650/1986, art. 4) Forest Intervention and further licenses (if required) 3 rd Step (L. 3468/2006, art. 7 and 8): Installation License Operation License 7

8 Grid Connection Offer Granting within 4 months from the respective application of a temporal grid connection offer by the competent grid operator Finalization (becomes binding) of Grid Connection Offer depends on the award of 1) environmental license (EPO / PPD) (if required) and 2) the capacitance Competent Authority HEDNO: up to 8MW, ADMIE: over 8MW Duration of Final Connection Offer: 3 years (when EPO/ PPD is required) 6 months (when the project is excluded from the obligation of Production License) Submission of Letter of Guarantee (L. 4342/2015, art. 34, 8) 8

9 Environmental Terms Approval (EPO) EPO Decision is a prerequisite for all biomass/biogas plants Granted by the competent environmental authority The application is followed by an Enviromental Impact Study (MPE) The competent authority examines the environmental impacts and the proposed preventive and restoration measures Issuance within 4 months Classification System (Category A and B) regarding the environmental impact of the project (L. 4414/2011) Duration of EPO: 10 years (can be extended twice for the same period of time) 9

10 Licensing Procedure 3 rd Step: Installation and Operation License Installation License: has a duration of 2 years (can be renewed once for another 2 years) Biomass/biogas stations up to 1 MW are excepted from the issuance of an Installation License Operation License has a duration of 20 years (can be renewed) Biogas/biomass stations up to 1 MW are excepted from the issuance of an Operation License 10

11 Biogas plants site selection Joint ministerial decision No 49828/ , art. 18 most suitable sites for locating biogas plants Site selection for biogas plants / Regions of priority: agricultural raw material production plants, landfills, sewage treatment plants, livestock farms etc.) Limitations for installation of biogas plants - regions that are excluded (e.g. Natura 2000 etc.) Guidelines for biogas plants site selection - target: greater effectiveness and efficiency of biomass/biogas plants 11

12 RES Support Scheme / Pricing Law 4414/2016, New Support Regime for RES and HECHP Monthly Support taking into consideration: reference value special market price FiP Special Premium Competitive tenders Small scale renewable energy projects are excluded from FiP and from the competitive bidding process (auctions) scheme Wind plants under 3MW, all other small scale renewable energy projects under 500kW (including biogas, biomass plants) FiT (based on Reference Price, art. 4, L. 4414/2016) Duration of Support scheme: 20 years 12

13 Biogas / Biomass Technology Biomass (or bioliquids) processed by thermal processes (combustion, pyrolysis) other than gasification, from plants with installed capacity 1MW (except for the biodegradable fraction of municipal waste) Biomass (or bioliquids) processed through gasification process from plants with an installed capacity 1MW (except for the biodegradable fraction of municipal waste) Biomass (or bioliquids) processed through thermal processes (combustion, gasification, pyrolysis) from plants with an installed capacity of 1MW to 5MW (except for the biodegradable fraction of municipal waste) Biomass (or bioliquids) processed by thermal processes (combustion, gasification, pyrolysis) from plants with an installed capacity > 5 MW (except for the biodegradable fraction of municipal waste) Biogas (energy crops, grassland cultivars, livestock and agricultural organic residues and wastes, edible oil and grease waste, expired food) and is processed by plants with an installed capacity of 3MW Biogas anaerobic digestion of biomass (energy crops, grassland, agricultural and livestock and agro-industrial organic residues and waste, edible oils and fats waste, spent food) and is processed by plants with an installed capacity of > 3 MW Reference Price ( /MWh)

14 Competitive bidding process for Biogas/Biomass plants Dec. 4488/ Participation of biogas / biomass plants in the competitive bidding process with: a) a threshold of the produced electricity from biomass/biogas plants, exceeds: 20MW and simultaneously the number of stations (in the year of exceeding the limit) is at least three (only biogas/biomass plants over 1 MW are estimated) and b) a threshold of the biomass / biogas plants receiving operating aid during the time-period from to : 40 MW and provided that the number of such stations is at least six (only biogas/biomass plants over 1 MW are estimated), Then: the a) and b) plants shall be part of a support scheme in the form of Operational Aid through a competitive bidding process (auction) from the next year of the year overrunning the said threshold. 14

15 Competitive bidding process (auctions) Min. Decision: 321/2018 (L. 4414/2016, art. 7) Within 2018: 3 separate auctions will take place for wind and solar installations granting 600MW 3 categories i. PV Stations (PPV 1MW) (offering up to 70MW) ii. iii. PV Stations (1MW) (offering up to 230MW) Wind Stations (3MW < PWIN< PPV 200MWD 50MW) (offering up to 300MW) 15

16 Special Provisions for Biomass/Biogas L. 3851/2010: aims to accelerate the licensing procedure Simplification of license procedure for biomass/biogas plants Exception from Production Licence for biomass/biogas plants under 1MW Grid Saturation Priority for biomass/biogas plants applications 16

17 Contracts Availability and perpetual supply of raw material (otherwise high transport costs) Lease Agreement: long term agreements, inclusion of necessary conditions 17

18 Thank you for your attention! Eva Keki / LL.M. Bonn / Lawyer at the First Instance Court in Athens, Associate MStR Law Sofia Deligianni/ LL.B. University of Athens / Lawyer, Associate MStR Law MICHELIS STRONGYLAKI REINHARDT 23 Sina street, Athens, T: , F: info@mstr-law.gr 18