From August 11 this year amendments to the Electricity Market Law entered into force, which provide for considerable changes in electricity manufacturers.

One of the most significant changes is that in the future, permits for the deployment of electricity generation installations from the Ministry of Economics will only be required for electricity generation installations with a capacity equal to or exceeding 500 kilowatts (instead of the previous 11.1 kW).

Thus, electricity generators with a capacity of installations up to 500 kilowatts will no longer need a permit from the Ministry of Economics. In such cases, electricity generators will submit an application directly to the distribution system operator in accordance with the procedure specified in the system connection regulations.

Similarly, changes have been introduced which oblige electricity generators to pay the system operator a fee for system capacity reservation if the capacity of the electricity generation installation to be connected is intended to exceed 50 kilowatts. This amendment is provided for the purpose of freeing reserved system capacities for real power plant development projects and interrupting unjustifiably initiated connection processes, thus optimising the operation of the network and promoting the deployment of renewable energy capacities. In the near future, the Public Utilities Commission (hereinafter referred to as the “Regulator”) will determine the methodology by which the fee for reserving system capacity will be calculated, as well as the procedure of application of this fee. The requirements for the capacity reservation fee apply to all electricity generators who have commenced the connection process of the power plant and have not entered into a connection agreement by the date of entry into force of the Regulator’s methodology. The relevant fee is expected to be paid within 3 months from the date of entry into force of that methodology. Manufacturers who start the connection fee after the date of the entry into force of the methodology will have to pay the relevant fee at the beginning of the connection process agreeing with the system operator on the conditions for the implementation of the connection.