Auctions preparation, course, wins. Katarzyna Szwed Lipińska, counsellor at law Director, Department of Support Systems Energy Regulatory Office

Transcription

1 Katarzyna Szwed Lipińska, counsellor at law Director, Department of Support Systems Energy Regulatory Office Warsaw, March 2015

2 Installations subject to the auction procedure: existing including modernised after the effective date of Section 4, new where electricity has been first produced after the auction closure date; Article 72 in conjunction with Article 71 of the RES Act

3 Subjects eligible for participation in an auction: a producer of electricity from renewable energy sources in a mircoinstallation being an entrepreneur pursuant to the Freedom of Business Activity Act, a producer of electricity from renewable energy sources in a small installation an entry in the register of regulated activity register of producers of energy in a small installation, a producer of electricity from agricultural biogas in installations other than a microinstallation an entry in the register of regulated activity register of producers of agricultural biogas, a producer conducting business activity in the area of production of electricity from renewable energy sources on the basis of a license issued by the President of the ERO; Article 72 in conjunction with Article 71 of the RES Act

4 Objective exemptions existing installations, including modernised after the effective date of Section 4 The following installations may not participate in an auction: 1) multifuel combustion installations, with the exception of dedicated multifuel combustion installations, 2) renewable energy source installations with total installed electrical capacity higher than 5 MW, using hydropower to produce electricity, 3) renewable energy source installations with total electrical capacity higher than 50 MW, using biomass, bioliquids, biogas or agricultural biogas to produce electricity, with the exception of renewable energy source installations using biomass, bioliquids, biogas or agricultural biogas combusted in high efficiency cogeneration with maximum thermal capacity not higher than 150 MWt to produce the electricity; Article 71(2) of the RES Act

5 Article 74(1) and 74(4) premises for the purchase of electricity first produced after the auction closure date new installations, including modernised after the effective date of Section 4; Article 74(2) premises for the purchase of electricity produced in an installation modernised after the effective date of Section 4 applicable to each modernisation, including modernisation of an installation where the first production occurred after the auction closure date; Article 74(3) special cases of modernisation and the right to sell electricity by way of an auction applicable to each modernisation, including modernisation of an installation where the first production occurred after the auction closure date;

6 General principle: modernisation The sale of electricity from renewable energy sources produced in a modernised renewable energy source installation shall apply to electricity produced in proportion to the increase in total installed electrical capacity of that installation; First sentence of Article 74(5) of the RES Act

7 The President of the ERO shall announce, organise and hold auctions at least once per year; The subject of the auctions shall be the production of electricity from renewable energy sources; Article 73(1) and 73(2) of the RES Act

8 Declaration of participation in an auction: existing installations, a statement pursuant to Article 233 of the Penal Code; Formal assessment: installations that commence the production of electricity for the first time after the auction closure date, a statement pursuant to Article 233 of the Penal Code;

9 The President of the ERO shall hold a separate auction for the sale of electricity produced in the renewable energy source installations referred to in Article 72 of the Act; The auctions shall be held separately for the sale of electricity produced from renewable energy sources produced in renewable energy source installations with total installed eleactrical capacity: 1) not higher than 1 MW, 2) higher than 1 MW; Article 73 of the RES Act

10 The President of the ERO may hold subsequent auctions in a particular year; No less than 25% of electricity produced from renewable energy sources produced in the installations referred to in Article 72(2), sold by way of an auction shall be produced in renewable energy source installations with total installed electrical capacity not higher than 1 MW; Article 73 of the RES Act

11 Formal assessment Stage I: initial classification a certificate A producer of electricity from renewable energy sources that intends to participate in an auction shall be subject to a formal assessment procedure of preparation for the production of electricity in a particular installation; The application for the issuance of the certificate of admission to participation in an auction shall include: 1) the name and surname and place of residence or name, registered office and address of the producer, 2) the location and installed electrical capacity of the renewable energy source installation, 3) the signature of the producer or a person duly authorised to represent it, including attached original or certified copy of a document certifying the authorisation of such a person to act on behalf of the producer, 4) in the case of an installation using biomass, biogas, agricultural biogas or bioliquids to produce electricity a statement of non-use of specific types of fuels (substrates) and the compliance with the share of agro (exception: micro and small installations); Article 75 of the RES Act

12 The following originals or certified copies shall be attached to the application for the issuance of the certificate of admission to participation in an auction: 1) documents confirming the admissibility of location of a particular renewable energy source installation on the area subject to the planned investment: a) an extract from a local spatial development plan, b) an outline planning permission in the case of absence of the plan referred to in Article 76(5)(1)(a), if such is required pursuant to the provisions on spatial planning and development, c) a final permission to build and operate artificial islands, structures and devices in Polish maritime areas for projects located in the exclusive economic zone in the case of a renewable energy source installation using offshore wind to produce electricity, 2) a document confirming: a) the issuance of connection conditions for the connection of a renewable energy source installation to a transmission network or a distribution network or b) the conclusion of an interconnection agreement for the connection of a renewable energy source installation to a transmission network or a distribution network; Article 75(5) of the RES Act

13 The following originals or certified copies shall also be attached to the application for the issuance of the certificate of admission to participation in an auction: 3) a final building permit issued for the planned renewable energy sources installation or modernisation thereof, if required pursuant to the Building Code, 4) a final decision on environmental determinants in the case of a renewable energy source installation using offshore wind to produce electricity, 5) a schedule and budget for the implementation of the planned construction or modernisation of the renewable energy source installation or a statement of completion of an investment; Validity period of the documents; Article 75(5) of the RES Act

14 The President of the ERO shall issue the certificate of admission to participation in an auction or refuse to issue it within 30 days from the date when the application for the issuance of the certificate is filed; The President of the ERO shall refuse, by way of a decision, to issue a certificate of admission to participation in an auction. The decision may be appealed against; The a certificate of admission to participation in an auction shall be valid for 12 months from the date of issue of the certificate. The certificate cannot be valid longer than the validity of the documents referred to in Article 75(5)(1)(c), 75(5)(2)(a), 75(5)(3) and 75(5)(4); Article 76 of the RES Act

15 The President of the ERO shall specify the by-laws of an auction; The by-laws of an auction shall specify: the course and settlement of the auction, the terms and conditions for processing the data concerning the auction participants, the technical requirements for access to the internet auction platform, the procedure for ensuring security and correct course of the auction, the terms and conditions for suspending access to the internet auction platform; Article 78(9) of the RES Act

16 The auction by-laws shall be approved by a minster competent for the matters of economy; The auction by-laws shall be announced in the Public Information Bulletin of the ERO; Article 78 of the RES Act

17 The President of the ERO shall publish an announcement of the auction in the Public Information Bulletin of the ERO no later than 30 days before the day of its commencement; The announcement of an auction shall include: 1) the date of the auction session, 2) opening and closing hours of the auction session, 3) the specification of the maximum amount and value of electricity from renewable energy sources that may be sold by way of the auction; Article 39(5); Article 78 of the RES Act

18 Conditions for admission to participation in an auction: declaration of participation in an auction, a certificate of admission to participation in an auction, a bank guarantee or a proof of submission of a deposit on a dedicated bank account of the President of the ERO in the amount of PLN 30 per 1 kw of installed electrical capacity of the installation; Article 75(1) and 75(2) in conjunction with Article 78(3) and 78(4) of the RES Act

19 An auction shall be held if no less than three valid bids meeting the requirements laid down herein are submitted; An auction shall be held electronically through an internet auction platform; Article 78 of the RES Act

20 Bid elements course of the auction From the opening hour to the closing hour of the auction session the producer being auction participant shall submit a bid using the form published on the internet auction platform; One bid for electricity to be produced in a particular installation; Article 79 of the RES Act

21 Bid elements the type and installed electrical capacity of a renewable energy source installation, the amount in MWh and the price in PLN with an accuracy of 1/100 PLN per 1 MWh the specification of the obligated vendor, on whose area of activity the installation will be located (installations below 500 kw); Article 79 of the RES Act

22 Bid elements a statement of compliance with the premises laid down in Article 42(6) 42(8) applicable to producers, for installations modernised after the effective date of Section 4, the amount of electricity from renewable energy sources in MWh, which the auction participant is planning to produce in the renewable energy source installation in subsequent calendar years, the point of connection of the renewable energy source installation to a distribution network or a transmission network specified in connection conditions or an interconnection agreement; Article 79 of the RES Act

23 Bid elements the auction participant's commitment to produce for the first time within a specific deadline electricity from renewable energy sources in a renewable energy source installation that will be created or modernised after the day when the auction is held; Article 79 of the RES Act

24 Bid elements the auction participant's commitment to commence production of electricity from renewable energy sources in a renewable energy source installation no later than on the first day of the month following the lapse of a month from the month when the auction was closed in the case of the producer referred to in Article 71(1); [Article 80(9); Article 92(6) of the RES Act]; Article 79 of the RES Act

25 Bid elements a statement of non-use of specific types of fuels (substrates) and the compliance with the share of agro in the case of an installation using biomass, biogas, agricultural biogas or bioliquids to produce electricity (exception: micro and small installations); Article 79 of the RES Act

26 Bid elements a statement that the total value of the public aid referred to in Article 39(2)(2) Article 39(2)(4), received before the date the statement is made, converted into unit price of electricity after considering the planned amount of electricity produced in that renewable energy source installation as submitted in the producer s bid and the period of 15 years when the aid is granted amounts to... PLN per 1 MWh; Article 79 of the RES Act

27 Bid elements a statement that the bid sale price of electricity from renewable energy sources, increased by the unit public aid in the amount specified in Article 39(2)(2)-39(2)(4) will not exceed the reference price applicable as of the day when the bid is placed by that producer; Article 79 of the RES Act

28 The bids shall be certified by a secure electronic signature verified by a qualified certificate or by a signature confirmed by an epuap certified profile; An auction shall be held during one auction session; The bid of each auction participant shall be unavailable to other auction participants; A bid submitted one hour before the closure of an auction session shall be binding for the auction participant until the end of a particular auction session and cannot be withdrawn; Bids including prices exceeding the reference price shall be rejected; Article 79 of the RES Act

29 The producer of electricity from a renewable energy source in the renewable energy source installation referred to in Article 72 shall provide the President of the ERO with a statement confirming the fulfilment of the condition referred to in Article 39(1) on the day when the bid is placed; The President of the ERO may demand the producer of electricity to present any and all information and documents confirming the fulfilment of the condition referred to in Article 39(1) within 14 days before the auction session closure date; If non-compliance of the statement made, referred to in Article 39(4), with the facts is found, the President of the ERO shall issue a decision rejecting the bid before the auction settlement date; Article 39(4)-39(6) of the RES Act

30 An auction shall be won by auction participants that bid the lowest sale price of electricity until the amount and value of electricity from renewable energy sources specified in the announcement of the auction is exhausted; When several auction participants bid the same lowest sale price of electricity produced from renewable energy sources, and the total amount and value of electricity whose production was declared by these auction participants exceeds the amount and value specified in the announcement of the auction, the sale of electricity shall be decided on a first come, first served basis; When the amount and value of electricity produced from renewable energy sources remaining for sale is lower than the amount and value specified in the bid of the next auction participant in order, the amount of electricity attributed to this participant shall not be subject to the sale in this auction; Article 80 of the RES Act

31 Supplementary auction If during an auction for the production of electricity from RES produced in RES installations with total installed electrical capacity not higher than 1 MW the submitted bids did not match the maximum amount and value of electricity that may be sold during the auction by at least 10%, the President of the ERO shall announce the sale of that electricity in a supplementary auction; The supplementary auction may be participated by the producer referred to in Article 72(1), producing electricity in a RES installation with total installed electrical capacity higher than 1 MW, but with total installed electrical capacity not higher than 2 MW and installed electrical capacity factor higher than 4000 MWh/MW/year; Article 80(4) and 80(5) of the RES Act

32 Supplementary auction The reference price of electricity from renewable energy sources applicable in the supplementary auction shall be the weighted average of bids submitted by producers producing electricity in renewable energy source installations with total installed electrical capacity not higher than 1 MW that won the auction, in PLN per 1 MWh; Article 80(6) of the RES Act

33 Phasing out of the old support scheme ; Exclusion of feed in tariff ; Article 80(9) of the RES Act

34 Actions of the President of the ERO after auction closure Immediately after the auction closure the President of the ERO shall publish on its website the information on the results of the auction, including: the producers, whose bids have won the auction, the minimum and maximum price at which electricity has been sold by way of the auction, the total amount and value of electricity with regard to subsequent calendar years, or invalidation of the auction; Article 81 of the RES Act

35 Actions of the President of the ERO after auction closure Immediately after the closure of an auction the President of the ERO shall provide the information including the data of producers of electricity from renewable energy sources, whose bids have won the auction, and the data concerning the amount and price of electricity produced from renewable energy sources, with regard to subsequent calendar years: 1) to the relevant obligated vendors and Operator Rozliczeń Energii Odnawialnej S.A., which the obligated vendor is obligated to purchase in the case of producers of electricity in a renewable energy source installation with total installed electrical capacity lower than 500 kw; 2) to Operator Rozliczeń Energii Odnawialnej S.A. in the case of producers of electricity in a renewable energy source installation with total installed electrical capacity no less than 500 kw; Article 81 of the RES Act

36 Premises for invalidation of an auction: all bids have been rejected, the auction cannot be held for technical reasons; Article 81 of the RES Act

37 Article 82 of the RES Act duties of producers < 500 kw; Article 93 of the RES Act duties of producers 500 kw;

38 The producer of electricity in a renewable energy source installation with total installed electrical capacity lower than 500 kw, referred to in Article 72(1) and 72(2), within a month and 6 months from the auction closure date accordingly, shall conclude a power purchase agreement with a relevant obligated vendor (...); Article 82(1) of the RES Act

39 A producer of electricity whose bid has won an auction shall be provide the President of the ERO with: information on the execution status of the schedule referred to in Article 75(5)(5) within 30 days from the end of each calendar year, an information on the date of the first production of electricity from renewable energy sources certified by the power transmission system operator or a power distribution system operator within 30 days from the date of the first production of that electricity, information on the amount of electricity produced from renewable energy sources in MWh produced by it in the previous calendar year within 30 days from the end of each calendar year; The obligation to produce electricity by a producer that won an auction, in the amount specified by it in the bid, shall be settled after the end of each period of three full years when it was eligible for the aid and from the end of the aid period; Article 83 of the RES Act

40 The producer of electricity whose bid has won an auction, who does not fulfil the obligation laid down in Article 79(3)(8) within the deadline laid down therein may participate in an auction for the purchase of electricity produced in a particular renewable energy source installation again after 3 years from the day when the obligation was due; Article 83 of the RES Act

41 An obligated vendor shall purchase electricity produced in a renewable energy source installation with total installed electrical capacity lower than 500 kw from the producer of that electricity who won an auction at a fixed price specified during the auction, settled no later than by 30 June 2021, and only in the amount specified by a particular producer in the bid placed by it, referred to in Article 79; Article 92(1) of the RES Act

42 A producer of electricity from renewable energy sources produced in a renewable energy source installation with total installed electrical capacity not less than 500 kw, who won an auction settled no later than by 30 June 2021 shall have the right to cover the negative balance referred to in Article 93(2)(3); Article 92(5) of the RES Act

43 Support period under auctions for existing installations or installations modernised after the effective date of Section 4 The sale of electricity from renewable energy sources produced in the renewable energy source installation referred to in Article 72(1) shall occur from the when the production of the electricity started no later than on the first day of the month following the lapse of a month from the month, when the auction has been closed, and shall be performed for a period of 15 years from the day when electricity is first produced in the renewable energy source installation or the modernised renewable energy source installation after the effective date of Section 4, no longer than until 31 December 2035; the period shall be counted from the day when electricity is first produced as confirmed by the issued certificate of origin; Article 92(6) of the RES Act

44 Support period under auctions for installations first producing after the auction closure date (including installations modernised after the effective date of Section 4) The sale of electricity from renewable energy sources produced in the renewable energy source installation referred to in Article 72(2) shall occur from the day when the electricity is first fed into a distribution or transmission network and shall be performed for a period of 15 years from the day when electricity is first produced in the renewable energy source installations or the modernised renewable energy source installation, no longer than until 31 December 2035; the period shall be counted from the day when electricity is first sold after the auction closure date; Article 92(7) of the RES Act

45 The amount of electricity produced from renewable energy sources in a renewable energy source installation fed into a network, which: 1) an obligated vendor is obligated to purchase in the case of a producer of electricity from renewable energy sources in a renewable energy source installation with total installed electrical capacity lower than 500 kw, 2) shall be settled with Operator Rozliczeń Energii Odnawialnej S.A. in the case of a producer of electricity from renewable energy sources in a renewable energy source installation with total installed electrical capacity not less than 500 kw shall be specified on the basis of actual readouts of metering and settlement devices in a particular month; Article 92(11) of the RES Act

46 Article 168(15) of the RES Act penal sanctions Whoever: fails to produce the electricity referred to in Article 72 in the amount higher than or equal to 85% of the amount specified in the bid of the producer who won an auction in the settlement periods specified in Article 83(2) shall be subject to a financial penalty;

47 Transitory provisions Article 210 the first auction: date Schedule of actions;

48 Schedule The specification by the Council of Ministers of the maximum amount and value of electricity produced from renewable energy sources, referred to in Article 72 how to be sold by way of an auction in 2016 for the first time to be specified by 31 May 2015 Article 208(2) of the RES Act; The specification by a minister competent for the matters of economy, by way of a regulation, of the maximum amount and value of electricity produced in renewable energy source installations with total installed electrical capacity not higher than 1 MW that shall be sold after an auction is held in 2016 by 15 June 2015 Article 209(1) of the RES Act;

49 Schedule The announcement by the President of the ERO of the average electricity sales price on the competitive market in the previous quarter, referred to in Article 23(2)(18a) of the Energy Law in the wording established by Article 179 of the Renewable Energy Sources Act for the first time by 30 September 2015, no sooner than 30 days after the effective date of the Act due to the effective date of Article 179(20), which amends the Energy Law in that respect Article 195 of the RES Act; The specification by a minister competent for the matters of economy of the reference price referred to in Article 77(1) of the Act by 31 December 2015 Article 209(2) of the RES Act;

50 Schedule Technical support for ToR issues in the area of the tender for the delivery of the internet auction platform; The specification of ToR; The specification and approval of auction by-laws; Announcement of a tender for the delivery of the internet auction platform; Final settlement of the tender (having considered appeal instances) conclusion of an agreement; Testing of the internet auction platform Q1 2016;

51 Thank you for attention