Law 2009-7 on Energy Efficiency: Renewable Energy Provisions

The 2004 Energy Efficiency Law authorised energy companies producing electricity from co-generation to sell their production to the public utility STEG and transport it through the national grid. The present Law on Energy Efficiency widens this support framework by allowing any establishment, or group of establishments in the industry, agriculture and services, to produce electricity from energy saving co-generation or renewable energy, and to sell it to STEG.

Electricty production from renewable sources should not exceed 30% of total annual production, and its purchase price will be fixed annually by the Ministry of Industry, Energy and Small and Medium enterprises.

STEG is to purchase, according to a Power purchase Agreement validated by the Regulatory Authority, the full energy production from low energy-consuming technologies. STEG will eventually provide private producers with transportation right advantages and financial support for each kWh of electricity transported into the grid, at an average price of DTN 5 millimes/ kWh in 2009. In 2009, the annual average price was DTN 92 millimes/kWh for renewable energy sourced electricity and DTN 72 millimes/kWh for electricity from co-generation.

The Legislation also implements a set of fines to be applied in case of non-compliance with mandatory rules stated in the Law 2004-72 and in the present law. A DTN twenty to fifty thousand fine will be charged to any person or company found in breach of the rules, and the revenue will fund the Energy Efficiency Fund, instituted by the law 2005-82, designed to finance both renewable energy and energy efficiency projects.

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