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DECISIONS OF THE PUBLIC UTILITIES AUTHORITY (PUA)
- According to the Government's decisions, the Public Utilities Authority is acting to determine the regulations for the purpose of encouraging construction of plants for producing electricity using renewable energies, including the solar field.
- On August 16th 2006 Public Utilities Authority - Electricity determined the tariffs for production of electricity using solar energy divided into two classes of providers: production plants of 100 Kilowatt to 20 Megawatt and large production plants of over 20 Megawatts (decision 1 of meeting 177).
Now the Authority is promoting a procedure for examining and determining updated tariffs and criteria, which will eventually replace this decision.
The PUA Prerequisites for Receiving a Fundamental License regarding mid-sized plants (51KW-5MW)
- Affinity to the land - The requestor of the license will have to prove affinity to the land available for the project, be it private land, a tender or according to the decisions of the ILA. The Authority knows that in order to construct photo-voltaic plants of an installed capacity of up to 5MW, there is need for allocating of tens of dunam land. The Authority will calculate the minimal land area required for a plant according to its electrical size and a minimal index of 8 dunam per installed megawatt. The requirement for presenting an affinity to the land indicates, at this stage, the beginning of the process of allocating the land to the project, and is a significant layer of proving the seriousness of the entrepreneurship. It will be made clear that the regularization does not require that the plants be constructed on land, it is possible and even desirable that they will be established where allocation of designated land is not required, such as existing buildings, water reservoirs or any other possibility.
- Proof of Equity - The requestor of the license will demonstrate that they can provide equity of at least 20% of the normative cost of the project. The PUA determines that the normative cost of a 1MW plant is NIS 20 million. Accordingly, the Authority will update its decisions regarding the definition of normative value for a photo-voltaic station.
- Experience in the field - When examining the fundamental request for a license, the professional team will, according to its discretion, examine various parameters of the application submission which indicate the entrepreneur's previous experience in the field, including whether the technology fulfils the criteria of photo-voltaic plants. It is not the Authority's intention to place limitations in front of technological advances, but at the same time, the entrepreneur will be required to prove experience in the field which indicates the seriousness of the request. The professional team will not disqualify a request before providing the entrepreneur with an opportunity to present his point of view.
- Connecting to the grid - The requestor of the license will provide the Authority with a document from the ESP for connecting to the electricity grid according to the tariffs determined by the Authority and according to the rules defined in the criteria for additional distance.
- Bank guarantee - As a condition for receiving the fundamental license and as a control tool over the license owner, the Authority will determine, by law, a guarantee mechanism to be included as part of the license given to the entrepreneur so that the entrepreneur will be obliged to present a guarantee of 1% of the normative cost of the plant for the period of the fundamental license until receiving the tariff approval. If the producer will not get to the stage of tariff approval which is prior to the financial closing according to the milestones determined in the license, the guarantee will be returned in full. If the producer of the license did get to the stage of tariff approval before financial closing, the guarantee will be raised to 5% of the normative cost of the station; expiry of the license will lead to full forfeit of this guarantee.
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