Installation of power generating facilities
Section 22(1) of the Electricity Market Law states that increasing, renovating, and installing new power generation capacity requires a permit from the State Construction Control Bureau (SCCB) if it is planned to connect a power generation facility with a capacity equal to or exceeding 500 kilowatts to the power transmission or distribution system.
Cabinet Regulation No. 821 ‘Regulations on permits for the installation of a new power generating facility or for the expansion of power generation capacity’ of 19 December 2023 (‘Regulation No. 821’) took effect on 1 January 2024, determining the procedure for issuing, re-registering, extending the validity period of, and revoking permits for the expansion, renovation and installation of power generating facilities, the amount of the security deposit to be paid to the State Treasury account, the procedure for the payment of the security deposit and its repayment, as well as the criteria for refusing a permit.
Power producers are urged to submit their applications and corresponding attachments to the SCCB electronically, signed with a secure electronic signature and sent to the e-mail address pasts@bvkb.gov.lv, or as printed and signed documents to the registered office of the SCCB at Krišjāņa Valdemāra iela 157, Riga, LV-1013.
Information for power producers with valid permits issued by the Ministry of Economics or the Ministry of Climate and Energy
Power producers that were issued valid permits before 1 January 2024 by the Ministry of Economics or the Ministry of Climate and Energy need not take any additional actions but must comply with the deadline set in their permits for expanding their power generation capacity or installing new power generating facilities. Since 1 January 2024, these power producers are also subject to the rights and duties set out in Regulation No. 821.
Meanwhile, in accordance with Section 36 of Regulation No. 821, until 1 July 2024, these power producers have the right to request the SCCB to cancel their permit and refund the security deposit if the power producers have decided not to carry out the activities specified in the permit.
If they decide to continue the activities specified in their permits, the power producers must submit the SCCB certificates of having begun the installation or expansion of their power generating facilities within 10 months after the permit takes effect (the certificate must be accompanied by an agreement on the connection process or a connection agreement with the system operator). If the certificate has already been submitted to the Ministry of Climate and Energy, it need not be submitted again to the SCCB.
However, within three months after the implementation of the activity authorised in the decision of the Ministry of the Economy or the Ministry of Climate and Energy, the power producer must submit the SCCB a certificate on the connection of a new power generation facility to the power system or the expansion of its power generation capacity, indicating in the certificate, the bank account to which the security deposit is to be refunded, and enclosing:
- a copy of the permit to connect the power plant to the power system or to expand its power generation capacity as issued by the system operator, or
- a copy of the final commissioning statement.
Please send documents signed with a secure electronic signature to the SCCB at pasts@bvkb.gov.lv.
Before submitting a new application
- technical specifications or an approval decision on environmental impact assessment, as issued by the State Environmental Service, must be obtained (if required under the Law on Environmental Impact Assessment, informing the SCCB of this in the application);
- the right to develop the immovable property must be filed in the Land Register (if the power producer is not the owner of the immovable property);
- a security deposit of EUR 200 per MW (also if it is a fraction of a MW) covered by the permit:
SECURITY DEPOSIT CALCULATION examples:
If the facility to be installed has a capacity of 500 kW, the security deposit is 200 euros,
If the facility to be installed has a capacity of 980 kW, the security deposit is 200 euros,
If the facility to be installed has a capacity of 1.0 MW, the security deposit is 200 euros,
If the facility to be installed has a capacity of 1.01 MW, the security deposit is 400 euros.
If a 2.7 MW facility is to be expanded to 4.4 MW, the security deposit is 400 euros (4.4 - 2.7 = 1.7 = 2 x 200 = 400).
Security deposit payment account
The security deposit must be credited to the State Treasury account LV68TREL812068601900B, indicating in the payment details one of the types of the planned activity – Security deposit for the installation of a new power generating facility, renovation of an existing facility, or expansion of the capacity of an existing facility, and the planned capacity (MW) of the power plant.
Submitting the application
When submitting a completed application to the SCCB (Annex 1 to Regulation 821), the power producer must enclose the following with it:*
- the technical characteristics of the power generating facility to be installed (Annex 2 to Regulation 821);
- the layout plan of the power generating facility within the immovable property according to the spatial data of the Cadastral Information System;
- a copy of the proof of payment of the security deposit.
* If the power producer has obtained technical specifications or an approval decision on the environmental impact assessment, as issued by the State Environmental Service, the application need not be accompanied by Annex 2 to Regulation No. 821 and the layout plan of the power generating facility within the immovable property.
Forms
- Application for a permit for the installation of a new power generating facility or for the expansion (renovation) of power generation capacity Form;
- Planned technical characteristics of the new power generating facility or the technical characteristics of the existing power generating facility after capacity expansion (renovation) Form;
- Application for the re-registration of a permit for the installation of a new power generating facility or for the expansion (renovation) of power generation capacity Form;
- Certificate on the start of the installation of a new power generating facility or for the expansion (renovation) of power generation capacity Form;
- Certificate on the connection of a new power generating facility to the power system or the expansion of the capacity of an existing facility Form.
Hybrid permits
If the power producer intends to install several types of power generation facilities as part of a single connection (e.g., a solar and wind power plant or a wind power plant and power storage), it must obtain a permit for multiple types of power generation facilities (‘hybrid permit’).
The application for a hybrid permit must include the capacity share to be contributed by the different types of power generating facilities, relative to the total designed capacity, and the sections of Annex 2 to Regulation No. 821 for each of the types of power generating facility.
The holder of the hybrid permit must maintain the relative capacity share of the types of power generating facilities specified in the hybrid permit. If one of the types of power generation facility is installed with a lower capacity than specified in the hybrid permit, the permitted installed capacity of the other types is reduced, appropriate to the proportion specified in the hybrid permit.
If the power producer has already been granted an initial permit and wishes to add, as part of the same connection, a type of power generating facility in addition to the type of power generating facility specified in the permit, the power producer must obtain a hybrid permit. The holder of the hybrid permit must maintain the relative capacity share of the types of power generating facilities specified in the hybrid permit in this case as well. If one of the types of power generation facility specified in the original permit is installed with a lower capacity, the permitted installed capacity for the other types is reduced, appropriate to the proportion specified in the hybrid permit.
Decision procedure
The SCCB examines the documents submitted by the power producer, verifies their compliance with Regulation No. 821 and, within one month, decides to issue or refuse to issue a permit, and subsequently will arrange the monitoring of the installation of the new power generating facility or the expansion in power generation capacity. The SCCB informs the system operator to whose system the power generating facility is to be connected of the issuing of the permit.
The SCCB decides to refuse to issue a permit if
- the power producer fails to submit all the necessary information or documents within the deadline set by the SCCB;
- the capacity of the solar power generating facility indicated in the application relative to the square area of the property is not technically feasible, assuming that at least 0.5 ha is required for the installation of 1 MW of capacity;
- it has been found that on the date of submission of the application the applicant has tax (state fee) arrears for taxes (state fees) administered by the State Revenue Service in Latvia that exceeded EUR 150 in total;
- at the time of the decision, insolvency proceedings were announced for the applicant, or the applicant was wound up;
- the immovable property referred to in the application was seized as part of criminal proceedings;
- the applicant (whether a natural individual or legal entity) was found to be subject to international or national sanctions;
- the right to build on the immovable property was not registered in the Land Register, or such right expires sooner than when the permit is to expire.
Expiry
The permits (including hybrid permits) remain valid for five years.
Whenever a hybrid permit replaces an original permit, the deadline for the installation of the power generation facilities specified in the hybrid permit remains as specified in the original permit.
Within ten months after the decision to issue the permit takes effect, the power producer begins the installation of the power generating facility or the expansion of the existing power generation capacity as specified in the decision, supported by a written agreement on the conditions for the connection process with the system operator or, in the case of an existing connection, by a connection agreement, which the power producer submits to the SCCB together with the certificate.
Within three months after the completion of the activity authorised by the decision, the power producer reports this to the SCCB in writing by submitting a certificate of connection of the new power generating facility to the power system or the expansion of the power production capacity, with a copy of the permit for connection to the power system or the expansion of the power production capacity, as issued by the system operator, or a copy of the final commissioning statement. In addition to this certificate, the power producer submits the SCCB an application for the refund of the security deposit. In the application, the power producer specifies its account in a credit institution to which the refund of the security deposit is to be credited.
One month before the expiry of the permit, the power producer may request an extension of the permit, by submitting the SCCB information about the progress of the installation of the new power generating facility or the expansion of power generation capacity, with an explanation of the need for the extension, also submitting the connection agreement concluded between the system operator and the power producer, if any. The SCCB may extend the permit by no more than two years.
The SCCB does not refund the security deposit and credits its amount to the national treasury if the power producer,
- within ten months after the decision granting the permit takes effect, fails to submit the SCCB the certificate and a copy of the agreement on the connection process;
- fails to submit the SCCB an application for the revocation of the permit and the refund of the security deposit within the prescribed time (ten months after the decision granting the permit takes effect), if the duty referred to in Section 19 of Regulation No. 821 is not fulfilled for reasons beyond the control of the holder of the permit;
- within three months after the fulfilment of the activities under the permit, fails to submit the SCCB an application on the repayment of the security deposit, a certificate of connection of the new power generating facility to the power system or the expansion of the power production capacity, with a copy of the permit for connection to the power system or the expansion of the power production capacity, as issued by the system operator, or a copy of the final commissioning statement.
Re-registration of a permit
The holder of a permit may request the SCCB to re-register the permit to another person if a written agreement on the conditions for the connection process or, in the case of expansion of existing power generation capacity, a connection agreement has been concluded by the holder of the permit and the system operator.
For the purpose of the re-registration of the permit, the holder of the permit and the person in whose name the permit is to be registered submit the SCCB a joint application for the re-registration of the permit, and record the right to develop for the immovable property in the Land Register if the immovable property in question is not owned by the applicant, indicating the intended course of action regarding the refund of the security deposit. Whenever the holder of the permit requests the refund of the security deposit, the application for the re-registration of the permit must be submitted with a copy of the proof of payment of the security deposit, as paid by the person in whose name the permit is to be registered.
The SCCB decides on the re-registration of the permit without changing the conditions of the permit if none of the following criteria applies to the person in whose name the permit is to be registered:
- on the date of submission of the application, the power producer has tax (state fee) arrears for taxes (state fees) administered by the State Revenue Service in Latvia that exceeded EUR 150 in total;
- at the time of the decision, insolvency proceedings were announced for the power producer, or the applicant was wound up;
- the immovable property referred to in the application was seized as part of criminal proceedings;
- the power producer (whether a natural individual or legal entity) was found to be subject to international or national sanctions;
- the right to build on the immovable property was not registered in the Land Register, or such right expires sooner than when the permit is to expire.
For questions:
Phone 28326685, e-mail Roberts.Berzins@bvkb.gov.lv
Phone 67013306, e-mail Dainis.Dravnieks@bvkb.gov.lv