Approved by

Approved by Official translation Approved by Resolution No 1474 of 5 December 2001 of the Government of the Republic of Lithuania PROCEDURE FOR PROMOTING PURCHASING OF ELECTRICITY GENERATED BY USING RENEWABLE AND WASTE ENERGY RESOURCES I. GENERAL PROVISIONS

1. This Procedure shall establish common criteria, conditions and requirements for promoting purchasing of electricity generated in the Republic of Lithuania by using renewable and waste energy resources.
2. Definitions used in this Procedure: energy resources means natural resources and their by-products which are used to generate energy; renewable energy resources means natural resources: water potential, solar, wind, biomass, gas obtained during the course of oil production, geothermal energy the origin and renewal of which are determined by processes created by nature or man and which may be used for consumption or energy generation; waste energy resources means energy obtained in the course of any technological process through transformation of primary or any other energy which is not utilised in this technological process; producer means a person who generates electricity.
3. The following must comply with this Procedure: 3.
4. persons generating electricity by using renewable and waste energy resources; 3.
5. legal persons who purchase electricity, generated by using renewable and waste energy resources, to transmission and distribution systems.
6. The provisions of this Procedure relating to the promoting of purchasing of electricity shall not apply to legal persons who generate electricity by using renewable and waste energy resources, if: 4.
7. electricity is generated by using renewable and waste energy resources is consumed for economic needs of the producer; 4.
8. more than 10 per cent of fuel of mineral origin (oil and its products) or other fuel of non-local origin is used for generation of electricity.
9. Economic entities who wish to start generating electricity by using renewable and waste energy resources must receive an authorisation for such activities in accordance with the procedure established in Article 14 of the Law of the Republic of Lithuania on Electricity and other legal acts.
10. Accounting of purchased electricity generated by using renewable and waste energy resources, as well as openness of such accounting must meet the requirements specified in Articles 26 and 27 of the Law of the Republic of Lithuania on Electricity and other statutory acts. II. PROMOTING OF PURCHASING OF ELECTRICITY GENERATED BY USING RENEWABLE AND WASTE ENERGY RESOURCES
11. Purchase of electricity generated, by using renewable and waste energy resources, with equipment of all generators of installed aggregate power plant capacity of less than 10 MW shall be promoted, if this does not contradict the requirements laid down in paragraph 5 of this Procedure. Electricity which is generated by using renewable and waste energy resources shall be purchased at long-term tariffs set by the National Control Commission for Prices and Energy which are differentiated in accordance with a type of used renewable or waste energy resources. A system operator must ensure that electricity generated by using renewable and waste energy resources would be transported by electricity transmission networks foremost (when capacity is limited). Payment for reserve capacity at the prices set by the National Control Commission for Prices and Energy shall not apply to small (up to 10 MW installed aggregate power plant capacity of all generators) power plants which use renewable and waste energy resources . III. FINAL PROVISIONS
12. Persons who violate this Procedure shall be held liable in accordance with the procedure established by laws of the Republic of Lithuania.
13. The Ministry of Economy and the Ministry of the Environment shall, in a manner prescribed by law, control the compliance with the provisions of this Procedure.