15
1. INTRODUCTION This Handbook aims to provide detailed guidance to investors in the process of developing and implementing renewable energy projects, in particular, photovoltaic power plants. Yet, this Handbook does not offer an exhaustive, detailed overview. For more detailed information refer to the relevant legislation and regulatory acts listed at the end of this Handbook. This Handbook contains three parts. The first part provides an overview of the applicable support measures for electricity production from renewable sources, i.e. premiums for photovoltaic power plants. The second part provides a detailed diagram of the construction procedures and the necessary documentation. The third part provides a meticulous overview of the relevant procedures and requirements for construction, commissioning and operation of photovoltaic power plants. We advise the reader to consult this part often as well as the detailed diagram given in the second part. At the end of the brochure there is a list of all competent authorities with their addresses and contact details, as well as a list of all relevant laws and other regulatory acts. NOTE: This Handbook provides an overview of the overall process and procedures for the development and construction of a photovoltaic power plant, either as a preferential producer or as an independent producer selling electricity on the electricity market. However, please note that the possibility of signing a contract for the purchase of produced electricity (4.10) is not available to producers who do not use premium as a support measure. Also, this Handbook does not outline the specific conditions and procedures for obtaining the status of preferential producer using a feed-in tariff and the rights of such a preferential producer, since no feed-in tariffs are awarded to new investors in photovoltaic power plants formally as of February 2019. This Handbook does not address detailed issues related to: - The establishment of a company or the establishment of foreign subsidiaries; - Obtaining a construction approval, - Obtaining licenses for professional staff and other work and social permits, - Acquisition of land ownership, expropriation and other property rights, - Taxation, - The rules for granting state aid, etc. However, keep in mind that these are important issues that every investor should carefully consider when preparing a photovoltaic power plant project.

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Page 1: 1. INTRODUCTION NOTE

1. INTRODUCTION

This Handbook aims to provide detailed

guidance to investors in the process of

developing and implementing renewable

energy projects, in particular, photovoltaic

power plants. Yet, this Handbook does not offer

an exhaustive, detailed overview. For more

detailed information refer to the relevant

legislation and regulatory acts listed at the end

of this Handbook.

This Handbook contains three parts. The first

part provides an overview of the applicable

support measures for electricity production

from renewable sources, i.e. premiums for

photovoltaic power plants.

The second part provides a detailed diagram of

the construction procedures and the necessary

documentation.

The third part provides a meticulous overview

of the relevant procedures and requirements

for construction, commissioning and operation

of photovoltaic power plants. We advise the

reader to consult this part often as well as the

detailed diagram given in the second part.

At the end of the brochure there is a list of all

competent authorities with their addresses and

contact details, as well as a list of all relevant

laws and other regulatory acts.

NOTE:

This Handbook provides an overview of the

overall process and procedures for the

development and construction of a photovoltaic

power plant, either as a preferential producer

or as an independent producer selling electricity

on the electricity market. However, please note

that the possibility of signing a contract for the

purchase of produced electricity (4.10) is not

available to producers who do not use premium

as a support measure. Also, this Handbook does

not outline the specific conditions and

procedures for obtaining the status of

preferential producer using a feed-in tariff and

the rights of such a preferential producer, since

no feed-in tariffs are awarded to new investors

in photovoltaic power plants formally as of

February 2019.

This Handbook does not address detailed issues

related to:

- The establishment of a company or the

establishment of foreign subsidiaries;

- Obtaining a construction approval,

- Obtaining licenses for professional staff and

other work and social permits,

- Acquisition of land ownership, expropriation

and other property rights,

- Taxation,

- The rules for granting state aid, etc.

However, keep in mind that these are

important issues that every investor should

carefully consider when preparing a

photovoltaic power plant project.

Page 2: 1. INTRODUCTION NOTE
Page 3: 1. INTRODUCTION NOTE

2. OVERVIEW OF APPLICABLE SUPPORT

MEASURES FOR PHOTOVOLTAIC POWER

PLANTS

With the introduction of premiums as a support

measure, the process of awarding feed-in tariffs

for electricity produced by a photovoltaic power

plant to preferential producers has stopped.

Premiums represent an additional fixed amount

of the price that the preferential producer

achieved by selling the produced energy on the

electricity market. The amount of the premium

is determined at an electronic auction and does

not change for the period for which the

premium is awarded. Premiums are regulated in

the Decree on support measures for electricity

production from renewable energy sources

(“Official Gazette of the Republic of Macedonia”

no. 29/2019).

A producer whose photovoltaic power plant

meets the following requirements shall acquire

the status of a preferential producer using a

premium:

1) The installed capacity does not exceed 30

MW,

2) The equipment and facilities for production

of electricity and connection to the electricity

transmission or electricity distribution system

are a technical-technological functional unit and

the power plant has a connection to the

respective system with an independent

metering point, which is exclusively intended

for that power plant, and

3) It was not built on an existing construction,

except for underground line infrastructure, as

defined in the Law on Construction,

The status of a preferential producer that uses a

premium is acquired through a tender

procedure with an auction for granting the right

to use premiums.

The preferential producer shall have the right to

use the premium for the produced electricity

from the photovoltaic power plant in a period

of 15 years from the day of concluding the

contract for premium use.

The total installed capacity of photovoltaic

power plants for which premiums are awarded

for produced and sold electricity is determined

in the Decision on the total installed capacity of

preferential electricity producers (“Official

Gazette of the Republic of Macedonia” no.

29/2019) and currently amounts to 200 MW.

Every year, the Government of the Republic of

North Macedonia (hereinafter: the

Government) adopts a Program for financial

support for electricity production by

preferential producers that use a premium

which provides for:

The total installed capacity of the power

plants by technology type for which a

premium will be awarded after a

conducted tender procedure in the current

year and

The amount of funds required for payment

of premiums for produced and sold

electricity in the current year.

Tender procedures shall be organized and

implemented by the Ministry of Economy. The

Ministry of Economy shall conclude a contract

for the right to premium use with each selected

bidder. If the selected bidder fulfills the

obligations arising from this contract and above

all constructs the photovoltaic power plant

within the set deadline, the contract for

premium use shall be concluded. The premium

shall be paid on the basis of a submitted

monthly invoice for the produced and sold

quantity of electricity, and the funds for

premium payment shall be provided from the

Budget of the Republic of North Macedonia.

Page 4: 1. INTRODUCTION NOTE

3. DETAILED DIAGRAM FOR THE CONSTRUCTION PROCEDURE AND DOCUMENTS

Key:

Duration of the procedure

Construction works

1 Risk 1: Inability to obtain the right to use state land, delays and uncertainty of outcome and costs

2 Risk 2: Inability to obtain the construction approval or unforeseen delays

3 Risk 3: Increased connection costs if it is not possible to connect to the nearest connection

Start of production and selling electricity

Year 1 Year 2 Duration

Page 5: 1. INTRODUCTION NOTE

4. OVERVIEW OF STEPS, PROCEDURES

AND DOCUMENTS

4.1. BASIC REQUIREMENTS: ESTABLISHING A

COMPANY, AUTHORIZATION FOR

CONSTRUCTION AND LICENSE FOR

PERFORMING AN ACTIVITY

Electricity production can be performed by

domestic and foreign legal entities. The legal

entity should be registered in the Trade Register

and the register of other legal entities

maintained by the Central Register of the

Republic of North Macedonia (hereinafter:

Central Register). If the electricity producer uses

a premium, it should be registered as a capital

trading company (a Joint Stock Company or

Limited Liability Company).

If the photovoltaic power plant has a total

installed capacity of less than or equal to 10

MW, it can be built without an “authorization

for construction of new facilities for electricity

production” issued by the Government at the

proposal of the Ministry of Economy (Law on

Energy, Article 52).

Electricity production cannot start without

having obtained a license for performing an

appropriate energy activity issued by the Energy

and Water Services Regulatory Commission of

the Republic of North Macedonia (hereinafter

the Energy Regulatory Commission). The license

for performing an energy activity is issued for a

period of three to 35 years depending on the

type of energy activity, the type and scope of

the obligation to provide public service in

performing the energy activity, the volume of

funds needed to perform the energy activity,

the duration of the right to use/the concession

of the respective energy resource, as well as the

specific request of the energy activity

performer. The usual license period for

electricity production is 35 years. The same

entity may be issued several licenses for

performing one or more energy activities (Law

on Energy, Article 38). The license is issued in

the procedure described in item 4.8.

4.2. LAND USE

If the land plot on which the investor intends to

build a photovoltaic power plant is classified as

agricultural land (arable or uncultivated land,

forests, pastures, etc.), it must be converted

from agricultural to construction land. To this

end, the competent authority, which upon the

request of the investor prepares the

appropriate urban-planning documentation

(Ministry of Transport and Communications or

the municipality), must ask the Ministry of

Agriculture, Forestry and Water Economy to

make permanent conversion of the respective

agricultural land into construction land. (Law on

Agricultural Land, Article 49). The duration of

this procedure, which is implemented through

the information e-urbanism system, shall

depend on the complexity of the preparation

process and the review of the project

documentation. The Government, on the

proposal of the Ministry of Agriculture, Forestry

and Water Economy, shall adopt a decision to

give consent for permanent conversion of

agricultural into construction land. The costs for

providing project documentation and land

conversion shall be borne by the investor.

The investor shall not undertake a conversion

procedure for agricultural land into

construction land in case when in a tender

procedure he is granted the right to use a

premium for electricity production from a

photovoltaic power plant planned to be built on

state land, because in line with the model

according to which tender procedures are

carried out, the conversion is envisaged to be

performed by the competent state authorities

before the onset, during or immediately after

the completion of the tender procedure.

Page 6: 1. INTRODUCTION NOTE

Unless the land plot(s) on which the investor

intends to build a photovoltaic power plant is

not privately owned, the investor shall establish

the right to a long-term lease of state-owned

construction land. Such procedures shall be

carried out by the municipalities, the

municipalities in the City of Skopje and the City

of Skopje, each for its territory or the Ministry

of Transport and Communications as a

competent state authority for performing the

activities related to the management of

construction land owned by the Republic of

North Macedonia (Law on Construction Land,

Articles 46 - 73). The procedures for long-term

lease of state-owned construction land on

which the construction of a photovoltaic power

plant is envisaged by a preferential producer

who has acquired the right to use a premium

through a conducted tender procedure shall be

performed by way of direct agreement.

In case the land plot is privately owned, the

investor and the landowner can jointly agree on

the alienation, the long-term lease or the right

to land use.

4.3. ELABORATE FOR ENVIRONMENTAL

PROTECTION

It should be taken into consideration that

photovoltaic power plants are subject to the

requirements for preparation and submission of

an Elaborate for environmental protection.

Hence, photovoltaic power plants cannot be

built before the approval of the Elaborate in

accordance with the Law on Environment.

The elaborate for environmental protection for

activities performed on a larger scale shall

contain the following aspects and shall be

structured as follows:

1) General data;

2) Type of elaborate;

3) Authority responsible for approving the

elaborate;

4) Description of the project in which the

activity is performed;

5) Description of the environment around the

project location;

6) Impact of the project on the environment;

7) Environmental protection program;

8) Conclusion;

9) List of attachments;

10) Statement.

Any investor in a photovoltaic power plant shall

submit the prepared Elaborate to the

Directorate of Environment, a body within the

Ministry of Environment and Physical Planning.

4.4. CONSTRUCTION APPROVAL

To build a photovoltaic power plant a

construction approval is required. The

municipality on whose territory the

photovoltaic power plant is planned to be

constructed shall be responsible for issuing a

construction approval if the power plant has an

installed capacity of up to 1 MW, while the

Ministry of Transport and Communications shall

be responsible for issuing a construction

approval for photovoltaic power plants with

installed capacity over 1 MW (Law on

Construction, Articles 57, 58).

The following documents must be submitted

along with the application for a construction

approval:

- architectural-urban project certified by a

competent body, if the urban plan or urban-

planning documentation envisages

preparation of this project, i.e. infrastructure

project, if the application refers to line

infrastructure constructions,

- Basic design (revised and approved),

Page 7: 1. INTRODUCTION NOTE

- Proof of construction right (ownership, right

of use, long-term lease, concession),

- Geodetic elaborate on the numerical data for

the construction land,

- Authorization for construction of facilities for

production of electricity, if the photovoltaic

power plant has an installed capacity above

10 MW.

The municipality, or the Ministry of Transport

and Communications, depending on the case,

shall be obliged to review the documents and

adopt a decision for granting a construction

approval within 15 days from the day of

submitting the complete and accurate

documentation. During the review of the

application, the competent authority shall

submit the application for inspection of the

basic design to the entities responsible for

electricity, water supply and sewage

infrastructure. The entity in charge of electricity

infrastructure shall be obliged within five days

from the day of receiving the request for

inspection to examine the basic design and

submit an opinion on whether the facility can

be connected to the appropriate power system.

Before obtaining the construction approval, the

applicant must pay the construction land

arrangement fee. The construction approval

shall be issued within five working days from

submitting the proof of the paid construction

land arrangement fee.

The application for obtaining a construction

approval shall be submitted and the

construction approval shall be issued in

electronic form, through the information e-

construction approval system.

The construction approval shall cease to be

valid if the applicant does not start construction

within 2 (two) years, or does not complete the

construction within 10 (ten) years, in both cases

counted from the day when the construction

approval became valid (Law on Construction,

Articles 66- 68).

4.5. CONSENT FOR CONNECTION TO THE

DISTRIBUTION SYSTEM

Energy production facilities with an installed

capacity of up to 10 MW are usually connected

to the electricity distribution network.

Therefore, the consent for connection of the

photovoltaic power plants to the electricity

distribution network should be obtained from

the electricity distribution system operator

(EVN Macedonia).

The application for consent for connection shall

be submitted after obtaining the construction

approval, and in practice it is usually submitted

in the initial phase of the construction works.

The application shall be submitted to EVN

Macedonia on form BSP-2, which can be found

in the customer energy centers of EVN

Macedonia or downloaded from the website of

EVN Macedonia (https://evn.mk/Business-

customers/New-connection-fo-distributed-

producers.aspx).

The following documents shall be submitted in

addition to the application:

- Decision for enrollment in the Central

Register with current balance,

- Basic design for the production plant

subject to connection to the distribution

network,

- Excerpt from the cadastral plan with

drawn existing facilities,

- Construction approval,

- Coordinates of the location where the

production plant is to be installed, and

- Technical characteristics of the production

plant in accordance with the Grid Code for

Electricity Distribution.

Page 8: 1. INTRODUCTION NOTE

EVN Macedonia shall be obliged to adopt a

Decision for consent for connection to the

electricity distribution system within 40 days

from the day of receiving the complete

application. The issuance of the Decision for

consent for connection to the electricity

distribution system shall be followed by signing

an Agreement for connection to the distribution

network prepared by EVN Macedonia, which is

an annex to the Grid Code for Electricity

Distribution, both previously approved by the

Energy Regulatory Commission.

The fee for connection of an electricity

producer to the distribution network shall be

defined in accordance with the Methodology

for the manner of determining the fee for

connection to the electricity distribution

network, which is given in addition to the Grid

Code for Electricity Distribution.

The connection costs, as determined by EVN

Macedonia, shall be respectively borne by the

investor, and EVN Macedonia shall be obliged

to install a measuring device at its own expense.

Having in mind the cases in which a

photovoltaic power plant cannot be safely

connected to the nearest connection point, we

advise the investors to check with EVN

Macedonia where their actual connection point

will be and to make an estimate of the costs for

constructing the connection.

The connection point and the amount of the

connection fee for the electricity distribution

network of a preferential producer of electricity

produced by a photovoltaic power plant that

has acquired the right to use a premium after a

conducted tender procedure are determined in

the tender documentation. This benefit can be

used only by those preferential producers that

will build a photovoltaic power plant on state-

owned construction land determined by the

Ministry of Economy.

4.6. DESIGN AND EXECUTION OF THE

CONNECTION

After receiving the Decision for consent for

connection to the distribution network, the user

shall be obliged to conclude an agreement for

design and/or construction of a connection to

the connection point. If the investor has been

issued a Decision for consent for a non-standard

connection, i.e. connection for an isolated user

or if the connection is planned to be used

exclusively for a power plant facility, the

investor may decide that the connection is to be

designed and constructed by:

- EVN Macedonia, or

- An authorized legal entity from the list of

legal entities with which the distribution

system user can conclude an agreement for

designing an external connection previously

selected at a public bid by EVN Macedonia.

If EVN Macedonia determines that the non-

standard connection can be used by several

future users, the connection shall be designed

and constructed by EVN. In that case, the

investor shall pay an amount equal to the

product of the total value of the non-standard

connection and the quotient between the

approved maximum simultaneous capacity

assigned to the investor and the total estimated

installed active capacity of the connection.

The investor shall fully bear the costs for design

and/or construction of the connection,

calculated in accordance with the Methodology

for determining the costs for connection to the

distribution system, which is an integral part of

the Grid Code for Electricity Distribution

Page 9: 1. INTRODUCTION NOTE

4.7. COMMISSIONING

Depending on the installed capacity of the

photovoltaic power plant, commissioning shall

be performed after receiving:

- An approval for use or report for performed

technical inspection by the supervising

engineer, and

- A decision for commissioning of the

technical equipment adopted by the State

Inspectorate for technical inspection.

In case of a photovoltaic power plant with

installed capacity of up to 1 MW, the power

plant shall be commissioned based on the

report of the technical inspection of the

authorized supervising engineer, which has

been previously submitted to the municipality

along with a geodetic elaborate of a completed

survey and proof of paid costs for registration of

the facility in the public books of real estate

(Law on Construction, Article 89).

The approval for use of a photovoltaic power

plant with installed capacity of over 1 MW shall

be issued by the Ministry of Transport and

Communications based on the basic design (or

the design of the constructed condition if during

the construction, there have been major

changes), a report from the technical inspection

and an excerpt from the Real Estate Cadastre as

proof of ownership or other rights of use of the

facility (Law on Construction, Article 87). In case

of incomplete application for approval for use,

the Ministry of Transport and Communications

shall instruct the applicant to submit complete

and appropriate documentation within 7

(seven) days from receiving the application for

approval for use.

A commission composed of three authorized

supervising engineers appointed by the Ministry

of Transport and Communications shall perform

a technical inspection of the facility within 15

days from the date of receiving the complete

application for approval for use.

The commission, or the supervising engineer,

respectively, shall confirm that the facility is:

- built in accordance with the basic design or

in case of changes during the construction,

the design of the completed condition and

the construction approval, and

- safe and can be used.

If the commission or the supervising engineer,

accordingly, determines any shortages that

impair the mechanical resistance, stability and

seismic protection of the facility, it can ask the

investor to correct these aspects within 30 days,

or it can propose not to issue an approval for

use (Law on Construction, Article 90).

In case of a positive report by the commission,

the Ministry of Transport and Communications

shall be obliged to issue an approval for use

within 15 days from the date of technical

inspection of the facility. The costs for

performing the technical inspection and issuing

the approval for use shall be borne by the

investor.

4.8. LICENSE FOR ELECTRICITY PRODUCTION

The requirements for issuing a license for

production of electricity from renewable

sources are stated in the Law on Energy and the

Rulebook on Licenses adopted by the Energy

Regulatory Commission. The investor may

request to be issued a temporary license for

electricity production from renewable sources

by the Energy Regulatory Commission before

receiving the report for a completed technical

inspection by a supervising engineer or the

approval for use if:

Page 10: 1. INTRODUCTION NOTE

The investor has provided authorization

for construction of the energy facility; or

The investor has obtained a construction

approval for the facility in case the

construction of the facility does not

require an authorization for construction,

or

The investor of the energy facility has

acquired the right to build a facility on the

basis of a procedure conducted by means

of a public call for construction of facilities

for electricity production, or

The investor acquired the right to build the

facility on the basis of a granted

concession or a concluded public-private

partnership agreement.

In order to prove that it meets the general

requirements as well as the requirements

regarding the financial situation, the absence of

legal obstacles for performing the activity and

technical qualifications, the investor shall

submit the following documents to the Energy

Regulatory Commission along with the

application for issuing a license:

Statement for reliability of the data and

the attached documentation signed by the

authorized person,

Proof of paid fee for issuing a license in the

amount of EUR 500,

Current balance issued by the Central

Registry,

History with changes issued by the Central

Register,

Property sheet as proof of the right of

ownership or the right of use issued by the

Agency for Real Estate Cadastre,

Concession agreement or public-private

partnership if the activity is performed

using natural resources, that is, proof of

the right to use natural wealth in

accordance with the law,

The organizational structure of the

applicant, including information on the

number of employees, education and

professional training of the persons who

will manage the energy facility and directly

operate the equipment;

Construction approval,

Basic design,

If the facility is built, approval for using the

energy facility or report for performed

technical inspection, or an approval for

commissioning the facility,

Authorization for construction of a facility

for production of electricity, in case the

construction of the facility is subject to

such a requirement,

Document for installation of measuring

equipment,

Decision for consent for connection to the

distribution network;

Information on the economic and financial

status of the applicant issued by the

Central Register,

Certificate for paid taxes, contributions

and other public taxes issued by the Public

Revenue Office,

Confirmation that no bankruptcy or

liquidation procedure has been initiated

against the applicant,

Certificate from the Central Register or a

certificate from the basic court that no

misdemeanor sanction of prohibition to

perform a profession, activity or duty has

been imposed against the applicant,

Certificate from the Central Register or a

certificate from the basic court that the

applicant and the authorized person have

not been pronounced a misdemeanor

sanction - ban on performing a profession,

activity and duty,

Information from the Central Register or a

certificate from a basic court that no

decision has been made against the

applicant for a crime committed on the

Page 11: 1. INTRODUCTION NOTE

territory of the Republic of North

Macedonia.

In case the application and the attached

documentation are incomplete, the Energy

Regulatory Commission shall oblige the

applicant to eliminate the identified shortages

within 20 days.

Following the announcement of the submitted

application, the Energy Regulatory Commission

shall schedule a preparatory session to be held

within 30 days from the date of receiving the

complete application. If the Energy Regulatory

Commission determines from the preparatory

session, as well as from the documentation,

that the conditions for issuing the license are

met, it shall schedule a regular session within 10

days to make a decision on issuing a license.

The Energy Regulatory Commission shall publish

the decision in the “Official Gazette of the

Republic of North Macedonia” and on its

Website.

If a license has been requested for a

photovoltaic power plant that does not yet

have an approval for use or a report for

performed technical inspection, the Energy

Regulatory Commission may decide to issue a

temporary license.

At the request of the investor, the Energy

Regulatory Commission, within seven days from

the day of receiving the application, shall issue a

license for trial operation of the energy facility

through which it should perform the activity.

The holder of the trial work license, for the

duration of the trial work license shall have all

the rights and obligations in relation to the

operation of the facility, as if he were a license

holder. The trial license allows the holder-

producer to produce and sell electricity before

concluding the contract for premium use with

the Ministry of Economy.

4.9. ENROLLMENT OF THE FACILITY IN THE

REGISTER OF POWER PLANTS WHICH PRODUCE

ELECTRICITY FROM RENEWABLE ENERGY

SOURCES

The investor must enroll the photovoltaic plant

in the Register of Power Plants which Produce

Electricity from Renewable Energy Sources

(hereinafter: the Register) maintained by the

Energy Agency. To that end, the investor shall

submit a request to the Energy Agency for

enrollment in the Register along with the

following documents:

1. Approval for using the energy facility or a

report for performed technical inspection,

in case when approval for use is not

required,

2. Agreement for connection with the

operator of the electricity distribution

system with a document - control at the

metering point, i.e. agreement for using the

transmission network concluded with the

electricity transmission system operator,

3. A topographic map with a scale of 1:25,000

showing the location of the photovoltaic

power plant, and

4. Status of the photovoltaic power plant and

a schematic representation of the basic

equipment, including a display of the

measuring equipment (Rulebook on

renewable energy sources, Article 19).

If the Energy Agency, based on the request and

the accompanying documentation, as well as

based on the inspection, determines that there

are no obstacles for enrollment in the Register,

it shall make a decision for enrollment of the

power plant in the Register within 30 days from

the date of submitting the request. The Energy

Agency shall submit to the investor the decision

for enrollment in the Register within three days

from the date of adopting the decision. The

Page 12: 1. INTRODUCTION NOTE

investor shall be assigned a unique registration

serial number that cannot be changed or

transferred (Rulebook on Renewable Energy

Sources, Article 20).

4.10 SHARE IN THE ELECTRICITY MARKET

Any producer not using a preferential tariff shall

be obliged to:

sell the produced energy on the electricity

market,

be registered as a participant in the

wholesale electricity market in accordance

with the Electricity Market Rules and

assume balancing responsibility in

accordance with the Rules for balancing

the power system, unless it uses a

premium and concludes a contract for

purchase and sale of produced electricity

with the buyer in the last resort, in which

case the buyer is ultimately the

responsible party.

Additionally, the preferential producer using

the premium shall be obliged to submit

estimates for electricity production to the

Ministry of Economy in the periods determined

in the Contract for premium use and during the

operation to adhere to the obligations outlined

in the Contract for premium use.

4.10. CONTRACT FOR PURCHASE OF

ELECTRICITY WITH BUYER OF ELECTRICITY IN

THE LAST RESORT

If the premium producer using a premium fails

to conclude a contract for the sale of produced

electricity on the wholesale electricity market, it

may conclude a contract for the sale of

electricity with a trader or an electricity supplier

(buyer of electricity in the last resort) selected

by the Ministry, following a previously

conducted tender procedure by means of a

public announcement (Decree on support

measures to support for electricity production

from renewable energy sources, Article 13). The

buyer of electricity in the last resort shall be

selected for a period of 5 years; a period in

which preferential producers can request

before the beginning of each calendar year to

conclude an agreement with the buyer in the

last resort, thus ensuring a reliable placement

of the produced energy. The manner of

calculating the purchase price shall be

determined in the tender documentation for

selection of a buyer in the last resort, i.e. it shall

be known to the producers even before the

conclusion of the annual bilateral purchase

contracts.

At the same time, the buyer in the last resort is

a balance responsible party that must not

charge the preferential producer fees for

balancing the deviation from the announced

daily physical schedules for delivered electricity

which does not exceed the percentage of the

hourly level specified in the contract (in the

current contract that percentage amounts to

15% on an hourly level).

Page 13: 1. INTRODUCTION NOTE

5. ADDRESSES AND CONTACT DETAILS OF

RELEVANT INSTITUTIONS

5.1 Ministry of Economy, Energy Sector Address: Jurij Gagarin no. 15 (floor 1) 1000 Skopje Telephone: + 389 2 30 93 485, + 389 2 30 93 485 Е-mail: [email protected] Webpage: www.economy.gov.mk 5.2. Energy Agency Address: Orce Nikolov no. 68 1000 Skopje Telephone: + 389 2 32 30 300 Е-mail: [email protected] Webpage: [email protected] 5.3. Energy and Water Services Regulatory Commission Address: Dimitrie Chupovski no. 2, Floor 4 1000 Skopje Telephone: + 389 2 32 33 580, + 389 2 32 54 010 Е-mail: [email protected] Webpage: www.erc.org.mk 5.4. Electricity Transmission System Operator of Macedonia (MEPSO) Address: Maksim Gorki no. 4 1000 Skopje Telephone: + 389 2 31 49 811 Е-mail: [email protected] Webpage: www.mepso.com.mk

5.5. Electricity market operator МЕМО Address: Maksim Gorki no. 4 1000 Skopje Telephone: + 389 2 31 49 805 Е-mail: [email protected] Webpage: www.memo.mk 5.6. Electricity distribution operator/energy supply system (EVN Macedonia) Address: 11 Oktomvri no. 9 1000 Skopje Telephone: + 389 2 3205 000, + 389 89 089 089 Е-mail: [email protected] Webpage: www.evn.mk 5.7. Ministry of Environment and Physical Planning Address: Goce Delchev no. 18 1000 Skopje Telephone: + 389 2 32 51 403, + 389 2 32 51 503, + 389 2 32 51 460 Webpage: www.moepp.gov.mk 5.8. Ministry of Transport and Communications Address: Dame Gruev no. 6 1000 Skopje Telephone: + 389 2 31 45 497, + 389 2 31 23 292 Webpage: www.mtc.gov.mk 5.9. Ministry of Agriculture, Forestry and Water Economy Address: Aminta Treti no. 2 1000 Skopje Telephone: + 389 2 31 34 477 E-mail: [email protected] Webpage: www.mzsv.gov.mk 5.10. Central Register Address: Kuzman Josifovski Pitu no. 1 1000 Skopje Telephone: + 389 2 32 88 100 Webpage: www.crm.com.mk

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6. RELEVANT LEGISLATION AND BY-LAWS

1. Law on Energy (Official Gazette no. 96/2018 and 96/2019)

2. Decree on support measures for electricity production from renewable energy sources (Official Gazette no. 29/2019 and 278/2019)

3. Decision on the total installed capacity of preferential electricity producers (Official Gazette no. 29/2019 and 194/2019)

4. Rulebook on renewable energy sources (Official Gazette no. 112/2019 and 240/2019)

5. Rulebook for preferential producers that use a feed-in tariff (Official Gazette no. 116/2019)

6. Rulebook on Licenses (Official Gazette no. 51/2019, 54/2019 and 214/2019)

7. Regulations on the electricity market (Official Gazette no. 173/2018, 222/2018 and 279/2019)

8. Grid Code for Electricity Distribution (Official Gazette no. 191/2019)

9. Law on Physical and Urban Planning (Official Gazette no. 199/2014, 44/2015, 44/15, 193/15, 31/16, 163/16, 64/18 and 168/18)

10. Law on Construction Land (Official Gazette no. 15/15, 98/15, 193/15, 226/15, 31/16, 142/16, 190/16 and 275/2019)

11. Decree on the amount of the price of construction land owned by the Republic of Macedonia and the amount of special costs for conducting the alienation procedures, leasing and the establishment of the right of

real servitude (Official Gazette no. 163/2016, 190/2017 and 201/2018)

12. Law on Agricultural Land (Official Gazette no. 135/07, 18/11, 148/11, 95/12, 79/13, 87/13, 106/13, 164/13, 39/14, 130/14, 166/2014, 72/15, 98/15, 154/15, 215/15, 7/16, 39/16 and 161/2019)

13. Law on Forests (Official Gazette no. 64/2009, 24/2011, 53/2011, 25/2013, 79/2013, 147/2013, 43/2014, 160/2014, 33/2015, 44/2015, 147/15, 7/16 and 39/16)

14. Law on Property and Other Real Rights (Official Gazette no. 18/2001, 92/2008, 139/2009 and 35/2010)

15. Law on Environment (Official Gazette no. 53/2005, 81/2005, 24/2007, 159/2008, 83/2009, 48/2010, 124/2010, 51/2011, 123/2012, 93/2013, 187/2013, 42/2014, 44/15, 129/15, 192/15, 39/16 and 99/18)

16. Decree on the activities for which an Elaborate must be prepared and whose approval depends on the competent authority for performing professional activities in the field of environment (Official Gazette no. 80/2009 and 36/2012)

17. Rulebook on the form and content of the Elaborate for environmental protection in accordance with the types of activities for which the Elaborate is prepared, as well as in accordance with the performers of the activity and the scope of activities performed by legal entities and individuals, the procedure for their approval, as well as the manner of keeping the register of approved elaborates (Official Gazette no. 44/2013 and 111/2014)

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18. Law on Construction (Official Gazette no. 130/2009, 124/2010, 18/2011, 36/2011, 54/2011, 13/2012, 144/2012, 25/2013, 79/2013, 137/2013, 163/2013, 27/2014, 28/2014, 42/2014, 115/2014, 149/2014, 187/2014, 44/2015, 129/15, 217/15, 226/15, 30/16, 31/16, 39/16, 71/16, 132/16, 35/18, 64/18, 168/18, 244/19 and 18/20)