Tenders (name of means of promotion)

Updated: 18.02.2019

Author: Cristina Blajin

According to the new law for promoting the renewable energies, namely Law No. 10/2016, the Moldavia Government will use a tender system to select the power plants with a capacity higher than the limit established by the Government. The capacity limits for each type of technology were approved in 2018 for 2 years (until 2020) and are as follows: 4 MW for wind power plants and 1 MW for PV, CHP plants based on biomass and biogas as well as hydro power plants (Decision No. 689, Annex). The selected power plants based on the tender system will benefit from a guaranteed feed-in-tariff for 15 years which amounts to the bidding fixed price (art. 34 par. 1 letter a) Law. No 10/2016 as referred to in art. 1 par. 20 Law No. 35/2018).

Eligible technologies

The tender is organized by a commission appointed by the Government. The tender is technology-neutral and is organized in accordance with the regulations regarding the organization of the tender (art. 35 par. 2 Law No. 10/2016). Nevertheless, the Government may still announce tenders only for specific technologies in the case when the results of the technology-neutral tender are not satisfactory (art. 35 par. 21 Law No. 10/2016 as referred in art. 1 par. 21 Law. No. 35/2018). Furthermore, in order to benefit from the support scheme, the technology used for electricity generation should not be older than 48 months by the day of commissioning (art. 35 par. 6 Law No. 10/2016).

Wind energy

Wind power plants exceeding 4 MW are eligible for tenders (Decision No. 689, Annex). The requirements are specified in the tender announcements. If, based on the tender selection process, the power plant is granted the status of eligible producer, it will be guaranteed a feed-in-tariff specified by the bid for a period of 15 years. The feed-in-tariff will be adjusted according to the methodology for tariff calculation (art. 37 par. 1 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). In case of technology specific tenders, wind power plants are only eligible is specified by the tender requirements.

Solar energy

Solar PV plants exceeding 1 MW are eligible for tenders (Decision No. 689, Annex). Although the law No. 10/2016 states that the tenders should be technology neutral, there is no capacity limit established for other types of solar technologies except for the PV plants. The requirements are specified in the tender announcements. If, based on the tender selection process, the power plants is granted the status of eligible producer, it will be guaranteed a feed-in-tariff specified by the bid for a period of 15 years. The feed-in-tariff will be adjusted according to the methodology for tariff calculation (art. 37 par. 1 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). In case of technology specific tenders, solar power plants are only eligible is specified by the tender requirements

Geothermal energy

Eligible. 

Biogas

CHP plants exceeding 1 MW are eligible for tenders (Decision No. 689, Annex). So far, no capacity limit was established for other types of plants operating on biogas, except for CHP only. The requirements are specified in the tender announcements. If, based on the tender selection process, the power plants is granted the status of eligible producer, it will be guaranteed a feed-in-tariff specified by the bid for a period of 15 years. The feed-in-tariff will be adjusted according to the methodology for tariff calculation (art. 37 par. 1 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). In case of technology specific tenders, biogas power plants are only eligible is specified by the tender requirements

Hydro-power

Hydro-power plants exceeding 1 MW are eligible for tenders (Decision No. 689, Annex). The requirements are specified in the tender announcements. If, based on the tender selection process, the power plants is granted the status of eligible producer, it will be guaranteed a feed-in-tariff specified by the bid for a period of 15 years. The feed-in-tariff will be adjusted according to the methodology for tariff calculation (art. 37 par. 1 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). In case of technology specific tenders, hydro-power plants are only eligible is specified by the tender requirements.

Biomass

CHP plants exceeding 1 MW are eligible for tenders (Decision No. 689, Annex). So far, no capacity limit was established for other types of plants operating on biomass, except for CHP only. The requirements are specified in the tender announcements. If, based on the tender selection process, the power plants is granted the status of eligible producer, it will be guaranteed a feed-in-tariff specified by the bid for a period of 15 years. The feed-in-tariff will be adjusted according to the methodology for tariff calculation (art. 37 par. 1 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). In case of technology specific tenders, biomass power plants are only eligible is specified by the tender requirements

Procedure

Process flow

The central specialized body of public administration in the energy field has to submit to the Government, every year until 30 of November, a timeline with the intended tenders to be organized in the upcoming year (art. 31 Decision No. 690/2018). After the Government approves the proposed timeline, the specialized body has to make a public announcement regarding the planned tenders, including information about the deadlines and power plant capacity limits (art. 32 Decision No. 690/2018). The tender procedure is initialized when the official announcement for a specific tender is published in the Official Gazette of Moldova. From the day the official announcement is made, the investors will have at least 2 months to submit the applications, with the exact deadline specified in the announcement (art. 36 Decision No. 690/2018).

Competent authority

Three distinct bodies are responsible for the initiation and organization of the tender:

• Government

• The central specialized body of public administration in the energy field (e.g. Ministry of Energy or other designated authority)

• Tender Commission which consists of five members specialized the field of the organized tender (art. 8 Decision No. 690/2018).

Cap

If the developer fails to commission the project within the timeframe specified by law (36 months or 48 is permission for an extension is granted), the right to sell electricity for a fixed price will be cancelled and the “guaranty of good execution” will be retained and transferred to the state’s budget (art. 37 par. 3 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). A similar penalty applies if the manufacture date of the technology used for the construction of the power plant is prior to 48 months from the commissioning day (art. 37 par. 2 Law No. 10/2016 as referred in art. 1 par. 23 Law No. 34/2018). 

Eligibility period

An investor willing to participate in a tender, has to submit, along with other documents, evidences that the company is not subject to restructuring procedures or bankruptcy, as well as evidence that the investor did not had a withdrawn or suspended license for electricity generation before (art. 55 par. 2 Decision No. 690/2018).

Distribution of costs

Consumers

According to the Moldavian National Energy Regulatory Authority, the costs of the feed-in tariff for the power plants selected through tender procedures are borne by the consumers through the electricity price.