LAW no. 7/2017 on encouraging the use of energy from renewable sources

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Article 3
Definitions
1. In this law, the following terms have the following meanings:
a) “Aerothermal energy” is the energy deposited in the form of heat in the air of
environment.
b) “Geothermal energy” is energy stored in the form of heat under
the surface of the earth.
c) “Hydrothermal energy” is energy stored in the form of heat in water
superficial.
ç) “Biomass” is the biodegradable part of products, garbage and waste
of biological origin from agricultural activity (including plant and animal matter),
forestry and from related industries, including fishing and aquaculture, as well as the share
biodegradable industrial, urban and rural waste.
d) “Bioliquids” are fuels in liquid or gaseous form, mixed with
hydrocarbon burners and produced from biomass, according to the provisions of law no. 9876,
dated 14.2.2008, “On the production, transportation and trade of biofuels and materials
other fuels, renewable, for transport.
dh) “Energy from renewable sources” is energy from renewable sources
non-fossil, specifically wind, solar, aerothermal energy, geothermal energy, energy
hydrothermal and ocean energy, hydropower, biomass, gas accumulated in
landfill, gas, which is collected from the treatment of waste water and biogas.
e) “Gross final energy consumption” is the entire amount of energy, delivered in
the territory of the Republic of Albania for industrial purposes, for transport, for the sector
family, for various services, including public and private services, agriculture, forests and
fishing, consumption of electricity and heat also for self-consumption throughout
energy sectors, as well as losses of electricity and heat in the system
transmission and distribution.
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ë) “Guarantee of origin” is an electronic document, which has the sole function of
prove to the final consumer that part or all of the given amount of energy
used is produced from renewable resources.
f) “Competitive bidding process” is an objective, transparent procedure,
non-discriminatory that enables the participation of a number of companies to benefit from the scheme
of support, based on the initial offer submitted by the bidder.
g) “Support Scheme” is the instrument or mechanism implemented to encourage
the use of energy from renewable sources by reducing the cost of that energy,
increasing the price at which it can be sold or increasing the volume of energy purchased
through obligations for renewable energy or other ways.
gj) “Contract for the difference” is the contract, the model of which is approved by the Council
Ministers, between the Renewable Energy Operator and the energy producer from
renewable resources, which has been declared the successful bidder in the competitive process
to benefit from the support scheme, as defined in Article 9 of this law.
h) “Fixed price” is the final price that the manufacturer will receive with the priority of
electricity, as a result of being declared the winner of a support scheme in a procedure
competitive.
i) “Reference price” is the hourly market price of the day ahead, which is based on the market
organized electricity or until its creation in an electricity market
compared to him.
j) “Producer with priority” is any producer that produces electricity from sources of
renewable energy and in the case of hydropower with an installed capacity of up to
15 MW per generating unit and benefiting from support schemes, in accordance with
the provision of this law.
k) “Renewable Energy Operator” is the responsible entity, which invoices and
collects the obligation for renewable energy applied to all end customers
electricity.
l) “Net energy measurement scheme” is the scheme that enables two-way measurement of
a total installed capacity for generating electricity from wind or solar under 500
kW, from small and medium-sized companies or family customers, who cannot
dispatched. These customers produce some or all of the energy needed for the needs
their own and inject the excess energy produced into the distribution network.
ll) “Solar photovoltaic system” is a device or plant used to convert
the energy of solar radiation into electricity for self-consumption or to distribute it to
electricity networks.
m) “Generation unit” is any technical device, which converts the energy produced by
renewable sources of electricity or heating.
n) “Installed capacity of a plant” is the power of electric energy, for which the unit
the manufacturer is technically capable of producing, when working as planned, without restrictions
time, and without taking into account small short-term interruptions.
nj) “Existing producers with priority” are the producers with priority, from sources
hydraulic, which regardless of the moment of signing the contract with the contracting authority,
have been provided with the “Certificate of acceptance of the work”, according to the relevant legislation, within the date
December 31, 2020.
o) “Renewable energy obligation” represents a fixed fee applied to
end customers, in accordance with the corresponding amount of electricity measured and
delivered by suppliers to these customers. This obligation is calculated as the product of the total quantity of
electricity produced from renewable energy sources with the given bonus
for the promotion of renewable energy sources, in relation to the total quantity of
electricity delivered from suppliers to end customers.
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p) “Ministry” is the ministry responsible for energy.
q) “Minister” is the minister responsible for energy.
2. All the terms used in this law, which are not included in point 1, of this
article, will have the same meaning as the terms defined in law no. 43/2015 “For the sector of
energy” and law no. 124/2015 “On energy efficiency”

Article 10

Supporting measures for electricity production
from small renewable sources
1. Support under the contract for difference does not apply to priority producers:
a) with installed electricity capacity up to 2 MW;
b) with installed electricity capacity up to 3 MW for wind energy;
c) for demonstration projects.
2. The purchase price of electricity from hydro sources with installed capacity up to
to 2 MW is set by ERE, in accordance with the methodology approved by the Council of
Ministers, with the minister’s proposal. The methodology defines the criteria for the calculation of
price, based on the price of the organized electricity market or up to
its creation, at comparable prices of the organized markets of neighboring countries, plus one
certain bonus for the promotion of these resources, which takes into account a return of
reasonable investment value. In any case, this price will not be lower than the price of
approved by ERE in 2016.
3. The price of purchasing electricity from any other producer with priority, determined
in point 1 of this article, is determined by ERE, in accordance with the methodology approved by
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The Council of Ministers, with the proposal of the minister. The methodology defines the calculation criteria
of the price, based on the reasonable return of the investment value, according to the type of
the technology used.
4. In the design of the methodology for determining the selling price according to points 2 and 3, of
of this article, the ministry also receives the opinion from the State Aid Commission

Article 15
Net energy metering schemes
1. In accordance with the measurement scheme, a small or medium-sized company or a customer
household can install a total capacity of up to 500 kW for energy production
wind or solar electricity to cover some or all of the energy needed for
its needs and inject the excess energy produced into the distribution network.
2. Customers, according to the net energy metering scheme, must install at the expense of
their a two-way meter.
3. Net balance and billing are done on a monthly basis for each measuring point. Excess of
electricity greater than the monthly consumption is sold to the universal service supplier, i
charged with the public service obligation, according to the price set by ERE, based on
the methodology approved by the Council of Ministers, with the proposal of the minister.
4. The Minister approves with an instruction a simplified procedure for the authorization for connection to
the distribution system of small renewable energy projects.