Principles for projects over 1 MW

Overview of the principles and procedures for assessing renewable energy projects.

General principles:

• Subsection 59 (2³) of the Electricity Market Act provides that Elering AS, as the transmission system operator, is obligated to assess, based on the producer’s application, whether the producer’s investment project meets the terms and conditions for receiving renewable energy support specified in subsection 59 (2) of the Electricity Market Act.
• The support specified in subsection 59 (2) of the Electricity Market Act is state aid, the more detailed terms and conditions of which are set out in the respective state aid decision and in the European Commission guidelines on state aid for environmental protection and energy. When assessing investment projects, Elering AS is guided by the state aid decision, the referenced guidelines, the Electricity Market Act, the Administrative Procedure Act, and the procedure for paying support to Elering AS electricity producers.
• Elering AS is subject to the supervision of the European Commission when granting state aid.
• Providing an assessment is an administrative procedure, as a result of which Elering AS issues an administrative act in accordance with the Administrative Procedure Act.
• To process and assess applications, a relevant committee has been formed at Elering AS by a directive of the Chairman of the Management Board, which involves the necessary experts (e.g. legal, economic, renewable energy and construction experts) in its work. The involvement of experts depends on the content of the respective application. Committee members and experts withdraw from the work of the committee if there is a conflict of interest or a risk of a conflict of interest.

Assessment process:

• To obtain an assessment of an investment project, the applicant must submit a respective application pursuant to subsection 59 (2³) of the Electricity Market Act. The application must state the basis for the application (subsection 59 (2²) of the Electricity Market Act):

• commencement of the generation of electricity;
• commencement of building work concerning that investment project;
• assuming a definite obligation to order equipment for constructing the generating installation;
• assuming any other obligation that makes the investment project irreversible, taking into consideration that obligations making the investment project irreversible are deemed not to include acquisition of the plot on which the generating installation is to be constructed, procurement of requisite authorisations or preparatory works.

• Upon receipt of a respective application, the application is registered in the document register of Elering AS and the 90-day processing period provided for in subsection 59 (2³) of the Electricity Market Act begins from the specified date. The deadline for processing the application is suspended if the transmission system operator has not been provided with the information necessary to make a decision (for example, the time for submitting follow-up inquiries).
• After registering the application, the committee carries out an initial check of the application, analysing whether the formal conditions for submitting the application have been met – in particular, the information on the investment project submitted, the basis for submitting the application, and evidence of the circumstances presented in the application.
• The information provided in the submitted application is assessed as at 31 December 2016. Pursuant to subsection 59 (2²) of the Electricity Market Act, investment projects and their degree of completion or irreversible commitment to them are assessed as at 31 December 2016. Each investment project is assessed according to the circumstances of the respective project.
• After the initial review of the application, Elering AS decides whether additional information is needed to process the application. To obtain additional information, Elering AS may submit a follow-up inquiry directly to the applicant or request information from third parties (e.g. local governments, various authorities, the European Commission, etc.). In addition, the committee involves external experts in its work, if necessary. The involvement of experts may be necessary, for example, to assess the volume of construction work, etc.
• The applicant has the right to submit objections and to be heard during the procedure. If the applicant does not request to do so, Elering AS may submit the corresponding request itself to ensure a correct understanding of all circumstances. If additional circumstances are identified during the hearing, Elering AS gives the applicant an additional deadline to submit the relevant evidence. The processing of the application is suspended for such time.
• The committee assesses the submitted application and the evidence as a whole based on the conditions set out in the state aid decision, the European Commission guidelines on state aid for environmental protection and energy, the Electricity Market Act and other relevant legislation. The committee prepares a draft decision on the respective assessment and submit it to the head of the Renewable Energy Department of Elering AS for decision-making.
• The decision is communicated to the applicant without delay. The decision is confidential. If a request for information is submitted to Elering AS for issuing a decision, Elering AS asks the applicant to indicate the information related to business secrets in the decision before issuing the decision.
• An applicant who disagrees with the decision made by Elering AS has the right to file a challenge against the decision with Elering AS or an appeal with the administrative court. When submitting a challenge, Elering AS generally resolves the challenge within ten days of receiving it (if the challenge needs to be further investigated, the deadline for resolving the challenge may be extended by up to 30 days).

For additional information about submitting and processing the application, please contact the Renewable Energy Department of Elering AS at [email protected].