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Date: July 21st 2011

RES bulgariaThe deadline for provision of a guarantee or advance by producers of electricity from RES at the stage of preliminary contract expired.

The deadline for submission of guarantee or advance of the accession fee for power plants, at stage of preliminary contract for accession, producing electricity from renewable sources, has expired on July 21st 2011.


The Law for the Energy from Renewable Sources has imposed one-month deadline, starting by the date of announcement of the preferential purchase prices for 2011/12 from SEWRC, concerning the producers of electricity from renewable sources at stage of preliminary contract for accession.


Within the deadline they should have updated their preliminary contracts in accordance with the law, and specifically:


Project owners, who have undertake obligation, by a preliminary contract, to construct accession facilities at their expenses, should pay “guarantee” of 25,000 Euro per MW for projects over 5 MW and 12,500 Euro per MW for projects up to 5 MW.


Usually such an obligation to construct the accession facilities at the expense of the producer appears in a large part of the preliminary accession contracts, as the operator of the transmission or distribution grid aims to avoid his own investments in the accession infrastructure, which subsequently will acquire “for free”.


The due guarantee should be returned within a month after the construction of the accession facilities and the obtaining of permission to use (Act 16), usually before the expiration of the terms for returning of this guarantee the operator has already acquired property rights over the facilities.


Project owners, who haven’t undertake obligation to construct accession facilities, should pay before 21.07.2011 an advance equal of this “guarantee”, as part of the price for accession. With the payment of guarantee or advance of the price for accession, the manufacturer must present a copy of design visa for the power plant or detailed development plan (DDP) for the real estates, and evidence for property rights over these estates.


All preliminary contracts of the manufacturers, who have presented an advance or guarantee, must be updated. The duration of these preliminary contracts can’t exceed the law-established deadline of one year from the enforcement of the law or the terms settled by the contract itself, smaller than a year.


After July 21st 2011 the preliminary contracts of manufacturers, who haven’t presented guarantee or advance, DDP or design visa and property rights, will consider to be terminated. Up to September 2nd 20011 SEWRC should have complete information, which contracts are terminated and which ones stand. Until then the number of standing contracts and the requested capacities for accession remains unclear.


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