D5.2 MANUAL ADDRESSED TO STAKEHOLDERS

Transcription

1 D5.2 MANUAL ADDRESSED TO STAKEHOLDERS WITH THE DESCRIPTION OF METHODOLOGIES TO IMPROVE SHP IMPLEMENTATION IN SEE COUNTRIES WORK PACKAGE 5 - COMMON STRATEGIES TO IMPROVE SHP IMPLEMENTATION Final Version Date J. Alterach (RSE), B. Popa (POLI-B), R. Magureanu (POLI-B), S. Šantl (UL), D. Kozelj (UL), G. Rak (UL), A. Skroza (UL), F. Steinman (UL), G. Zenz (TUG), G. Harb (TUG), I. Bostan (MOLD), V. Dulgheru (MOLD), V. Bostan (MOLD), A. Sochirean (MOLD)

2 INDEX 1. PREFACE INTRODUCTION (UL) LEGAL ASPECTS (UL) BASIC PROCEDURE FOR HP IMPLEMENTATION CONDITIONS AND PROCESS FOR WATER CONCESSION GRANTING FOR HYDROPOWER WATER USE Spatial Planning Design and construction DETAILED INTRODUCTION TO THE REGULATIONS Waters Act (WA) Environment protection act (EPA-1) Nature conservation act (NCA) Freshwater fishery act (FFA) Spatial planning act Construction act (ZGO-1) Act on physical assets of the state, regions and municipalities Energy act TECHNICAL ASPECTS (UL) GENERAL DESCRIPTION OF STRUCTURES AND FACILITIES Structures and facilities for water intake and conveyance Hydropower plant equipment SHP operation /grid connection Investment costs in SHP implementation CURRENT CONDITIONS IN THE FIELD OF WATER USE IN SHP HOW TO INCREASE THE EXISTING SCOPE OF ENERGY PRODUCED BY SHP New water rights granting SHP concessions Reconstruction and optimization of the already-granted water potentials ECONOMIC ASPECTS (UL) INVESTMENT DOCUMENTATION STIMULATION FOR INCREASE OF RENEWABLE ENERGY RESOURCES ELECTRICITY PRODUCTION INVESTMENT COSTS ESTIMATION MAIN PROBLEMS VAPIDRO-ASTE: INTEGRATED TOOL TO CALCULATE THE HYDROPOWER POTENTIAL (RSE) VAPIDRO-ASTE METHODOLOGY Available, natural and hydropower flow Potential hydropower production calculation Economic feasibility GUIDELINES FOR THE PRODUCER OF ELECTRICITY FROM RENEWABLE ENERGY SOURCES (E-RES) (RO) REASONS FOR PROMOTING THE ELECTRICITY PRODUCED FROM RENEWABLE ENERGY SOURCES NECESSARY STEPS FOR STARTING-UP A GENERATION CAPACITY BASED ON E-RES, TRADING THE E-RES AND BENEFITTING FROM THE E-RES PROMOTION SYSTEM REQUIRED DOCUMENTS IN ORDER TO START-UP AN E-RES GENERATION CAPACITY SELLING AND OBTAINING OF INCOMES FROM E-RES THE E-RES PROMOTION SYSTEM IN ROMANIA

3 7.6. GREEN CERTIFICATES OBTAINING AND SELLING INSTITUTIONS INVOLVED AND RESPONSABILITIES OTHER USEFUL INFORMATION ALTERNATIVE SHP (TUG) HYDRODYNAMIC SCREW CASE STUDIES HYDRODYNAMIC SCREWS DRINKING WATER PLANTS IN DRINKING WATER NETWORKS EXAMPLES OF DRINKING WATER PLANTS SHP IN COMBINATION WITH SNOWMAKING SYSTEMS ( BESCHNEIUNGSTEICHE ) NUMERICAL PROCEDURES FOR RIVER SYSTEM OPTIMIZATION CASE STUDY PÖLS METHODOLOGIES TO IMPROVE KINETIC TURBINES IMPLEMENTATION CONCLUSIONS REFERENCES Figure index FIGURE 1 DEFINITION OF FEASIBLE SOLUTION SPACE CONSIDERING LEGAL, TECHNICAL AND ECONOMIC ASPECTS OR BOUNDARY CONDITIONS FIGURE 3 BASIC PROCESS OF HYDROPOWER WATER USE IN SLOVENIA FIGURE 5 SHP ON TORRENTIAL WATERCOURSES WITH RELATIVELY LOW FLOW AND HIGH HEAD FIGURE 6 SHP ON LOWLAND WATERCOURSES WITH HIGH FLOW AND LOW HEAD (RUN-OF SCHEME) FIGURE 7 SHP BUILT ON ARTIFICIAL CANALS MILL STREAMS FIGURE 8 DROP INTAKE ( TYROLEAN TYPE) FIGURE 9 LATERAL WATER INTAKE FIGURE 10 SCHEMA OF COMBINED INTAKE SYSTEM WITHOUT ACCUMULATION FIGURE 11 EXAMPLE OF CALCULATION OF GENERAL EFFICIENCY IN THE CASE BEFORE (UPPER TABLE) AND AFTER RENOVATION (BOTTOM TABLE) OF EXISTING HPP FIGURE 12 TURBINES' TYPE FIELD OF APPLICATION (SOURCE: GUIDE ON HOW TO DEVELOP A SMALL HYDROPOWER PLANT, ESHA) FIGURE 13 TURBINE EFFICIENCY OF VARIOUS TURBINES BASED ON DISCHARGE RATE (SOURCE: FIGURE 14 NUMBER OF CONCESSION GRANTING FOR HYDROPOWER WATER USE BY YEAR FIGURE 15 SHARES OF ENERGY PRODUCED BY POWER PLANTS IN FIGURE 16 COMPARISON OF SHARES OF ENERGY PRODUCED BY POWER PLANTS IN FIGURE 17 ESTIR TURNKEY INVESTMENT COSTS FOR SMALL HYDRO FIGURE 18 LAND CADASTRE IN THE AREA OF PLANNED WATER INTAKE STRUCTURES AND FACILITIES FOR SHP FIGURE 19 MAIN PHASES OF THE PROJECT AND THEIR OVERLAPPING FIGURE 20 PROJECT PHASES IN INVESTMENT PROCESSES FIGURE 21 PARALLELISM AND INTERDEPENDENCE OF LEGAL, TECHNICAL AND ECONOMIC DOCUMENTATION ACQUIRING OR ELABORATION WITH INCLUSION OF HYDROPOWER WATER USE FIGURE 22 REDISTRIBUTION OF CONTRIBUTIONS (ECO-TAX) COLLECTED FROM CONSUMERS OF CONVENTIONAL PRODUCED ENERGY TO RES PRODUCER TO COVER HIGHER ENERGY PRODUCTION COSTS FIGURE 23 RCE AND ITS STRUCTURE FOR HYDRO POWER PLANTS FIGURE 24 ESTIMATED COSTS FOR WEIR, WATER INTAKE AND ENVIRONMENT REQUIREMENTS FOR STRATEGIC PLANNING FIGURE 25 ESTIMATED COSTS FOR WEIR, WATER INTAKE AND ENVIRONMENT REQUIREMENTS FIGURE 26 ESTIMATED COSTS FOR WEIR, WATER INTAKE AND ENVIRONMENT REQUIREMENTS FIGURE 27 COMPUTATION/INTERPOLATION PROCESS TO CALCULATE THE HYDROPOWER WITHDRAWAL FLOW FIGURE 28 FLOW MEASURE CROSS SECTION AND UPSTREAM WITHDRAWAL/RESTITUTION SCHEME FIGURE 29 WATERCOURSE SCHEME WITH 3 FLOW MEASURE SECTIONS FIGURE 30 WITHDRAWAL SCHEME BETWEEN THE INTAKE AND RESTITUTION POINTS

4 FIGURE 31 SCHEME OF A HYDROPOWER SNAIL (RITZ-ATRO GMBH, 2010) FIGURE 32 EFFICIENCY FACTOR FOR HYDRODYNAMIC SCREWS (RITZ-ATRO GMBH, 2010) FIGURE 33 KINDBERG HYDRODYNAMIC SCREW (LEFT), HYDRODYMANIC SCREW WITH FISH PASS (RIGHT) (SONNWEBER, 2009) FIGURE 34 STRUCTURE WITH A HYDROPOWER SCREW NIKLASDORF (SONNWEBER, 2009) FIGURE 35 DRINKING WATER SUPPLY SYSTEM (AREAM, LEV, OCEN, RHÔNALPÉNERGIE-ENVIRONMENT,1998) FIGURE 36 DRINKING WATER PLANT MAUER (VIENNA) (KLEINWASSERKRAFT ÖSTERREICH, 2005 AND PAPP, 2008) FIGURE 37 SPRING AREA IN THE MÜHLDORFER DITCH (LEFT), 380KW DRINKING WATER TURBINE (RIGHT) (VERBUND, 2006) FIGURE 38 DRINKING WATER PLANT, PELTON-TURBINE (ZWHS, 2010) FIGURE 39 MAP OF THE PROJECT AREA WITH THE 12 SMALL HYDRO POWER STATIONS FIGURE 40 TYPICAL SHPS IN THE PROJECT AREA FIGURE 41 THREEDIMENSIONAL VIEW OF THE WEIR KATZLING IN THE NUMERICAL SOFTWARE HEC-RAS FIGURE 42 OPTIMIZATION OF A FLUSHING EVENT FIGURE 43 FLOATING MICRO HYDROELECTRIC POWER PLANT WITH WATER WHEEL Table index TABLE 1 DIFFERENT STRATEGIES TO STIMULATE RES: SIZE CATEGORIES OF RES GENERATING PLANTS FOR RCE TABLE 2 DIFFERENT STRATEGIES TO STIMULATE RES TABLE 3 INPUT DATA FOR DETERMINING RCE OF HYDRO POWER PLANTS TABLE 4 GUARANTEED PURCHASE AND PREMIUMS FOR DIFFERENT SIZES OF SHP (YEAR 2010) TABLE 5 FACTS OF THE HYDRODYNAMIC SCREWS (JOHANNA SONNWEBER, 2009)

5 1. Preface The present work is an outcome of the project SEE HYDROPOWER, targeted to improve water resource management for a growing renewable energy production, in the frame of the South-East- Europe Transnational Cooperation Programme, co-funded by the European Regional Development Fund ( The project is based on the European Directive on the promotion of Electricity from Renewable Energy Sources respect to the Kyoto protocol targets, that aims to establish an overall binding target of 20% share of renewable energy sources in energy consumption to be achieved by each Member State, as well as binding national targets by 2020 in line with the overall EU target of 20%. Objectives of the SEE HYDROPOWER deal with the promotion of hydro energy production in SEE countries, by the optimization of water resource exploitation, in a compatible way with other water users following environmental friendly approaches. Therefore, it gives a strong contribution to the integration between the Water Frame and the RES-e Directives. Main activities of the project concerns the definition of policies, methodologies and tools for a better water & hydropower planning and management; the establishment of common criteria for preserving water bodies; to assess strategies to improve hydropower implementation, such as small hydropower; testing studies in pilot catchments of partner countries; promotion and dissemination of project outcomes among target groups all over the SEE Region countries. In particular, here is presented report D5.2 - Manual addressed to stakeholders with the description of methodologies to improve SHP implementation in SEE countries, which is part of the Work Package 5 - Common strategies to improve SHP implementation remaining hydropower assessment, site public database, methods for improving SHP implementation and cost-benefit analysis. 2. Introduction (UL) Hydropower implementation as all other investments is governed by different terms or conditions, the interconnection of which defines the space of feasible solutions, which meet all criteria and terms. Roughly, the conditions can be divided into three areas: Legal, Technical and Economic conditions (or terms or aspects) (Figure 1). Legal conditions mainly define the rules which have to be considered in the entire process of investment implementation. It is the widest aspect since it includes all different social, environmental and other aspects and conditions the objectives of which are assured by regulations. In a certain way, legal conditions also define the other two conditions, since economy and technology are also regulated to prevent risk or abuses of stakeholders involved in the process of decision making, resources management, procurements etc

6 Economic aspects Space of feasible solutions Technical aspect Legal aspects Figure 1 Definition of feasible solution space considering legal, technical and economic aspects or boundary conditions The solution space of technical conditions is mostly defined by limitations in technologies, human capacities and expert knowledge and it can be described as a condition of what a human society is capable to produce, construct and manage on the basis of its technical or technological developmental phase. For the implementation of investments nowadays, beside a vision and good will, also financial resources - economic and financial aspect or conditions have to be considered. These terms define the viability of the investment through financial resources and welfare of a certain community or society. They can be called the fuel for a realistic technical idea to be implemented and become operational. In cases when a feasible solution cannot be determined (Figure 2) an increase of possible solution areas is necessary. For example, if subsidies for renewable energy producers are increased, this measure will increase positive solution space of economic conditions and provide space for feasible solutions. Of course, the Figure 2 is a simplification (it is drown for better imagination) and the measures to meet a feasible solution space must be considered carefully and comprehensively to prevent other anomalies to arise or to still assure meeting other objectives

7 Subsidiaries, efficient resources management, cost reduction, better enterprise approach etc. Efficiency increase, new technologies, efficient water and sediment management, remote control technologies etc. Amendments to regulations, improvement of administrative procedures, efficient supervision approach etc. Figure 2 Increase of feasible solution space considering legal, technical and economic aspects or boundary conditions In continuation, the mentioned aspect will be presented in more detail with a focus on Slovenian situation and current practice. At first, legal aspects with the presentation of the processes of hydropower implementation and main regulations will be described. One of the efficient approaches to improve hydropower implementation, to make it clearer for investment opportunities as well as for efficient supervision, is an establishment of a transparent information system of the existing and possible hydropower water use, which also simplifies decision making. For that reason, this report includes at its end a proposal of a framework of efficient geographic information system. 3. Legal aspects (UL) 3.1. Basic procedure for HP implementation In the Republic of Slovenia water concession granting is regulated by Water Act and it is under the competency of Government, or more precisely, the administrative procedure is under competency of Ministry of the Environment and Spatial Planning (MESP). By law the waters in Slovenia are defined as a public good, hence it follows that for water use which exceed general use (drinking, bathing, diving, ice skating, fire protection etc.) water right is needed, which can be obtained as water permit or water concession depending on the extent and commercial value of water use. In accordance with the Water Act water permit for water use is obtained in the process of administrative procedure which starts with the application for acquiring water permit. For example, water permit can be obtained for: private supply of drinking water or supply of drinking water provided as a commercial public service; technological purposes; - 7 -

8 the activity of bathing areas and natural health spas pursuant to healthcare regulations; the extraction of heat; the irrigation of agricultural land or other areas; electricity network; propelling water mills, saws or similar installations; for cultivation of fresh water organisms if fresh water outtake or if fresh water pond area is less then 0.5 km 2 ; a port, if the investor is a person under public law; the provision of ski slopes with snow etc. On the other hand, Water Concession has to be granted in the process of public tendering which usually starts with the private or public sector initiative. For example, water concession has to be acquired for: the production of beverages; the needs of bathing areas and similar, if the use involves mineral, thermal or thermal mineral water; the production of electricity in a hydroelectric power plant; a port, if the investor is a person under public law; the removal of alluvium, except for the provision of public services pursuant to this Act; the cultivation of sea water organisms or fresh water organisms if fresh water pond area exceeds 0.5 km 2. It is important to stress that for obtaining the water right the relevant spatial planning act must regulate and allow the construction of all constructions and facilities which are needed for the planned water use. In the case of requiring a water permit, the investor must also have the right to build (land owning or agreement with the land owner for servitude right). As written above, hydro electricity production (for all capacities) in Slovenia requires Water Concession which is granted in the process of public tendering. Figure 3 shows the basic process of water use for hydropower in Slovenia including all important phases from Initiative to Electricity production and Supervision. The process usually starts with the initiative of interested parties and if the basic conditions which are checked by the Water Institute of Republic Slovenia (relevant Spatial Act, other environmental and water management objectives) can be considered, the MESP starts at this point the administrative process of the preparation of the decree proposal, which is sent to the Government for the adoption of the Decree

9 Initiative for concession granting Government of RS adopts a Decree for concession granting Water Institute of RS - Overview of relevant Spatial Acts - Consideration of other environmental objectives (fresh water fishery, nature preservation ), - Consideration of existing water rights - Water management objectives (erosion, flood management), - Terrain research Process of concession granting YES Is Concession granting eligible? NO Concession granting does not proceed Design and construction Operation and electricity production Supervision Figure 3 Basic process of hydropower water use in Slovenia In the following paragraphs the process shown in the previous Figure is described in more detail, especially in regard to regulations and competencies. Also, the Paragraph 2.2 gives a more detailed description of the most relevant regulations Conditions and process for water concession granting for hydropower water use Legislation: Water Act 1 with the following sub-legislation on the subject: Decree on criteria for determination and on the mode of monitoring and reporting of ecologically acceptable flow 2, Decree on provisional river basin management plan 3, Decrees on the concession for the exploitation of certain river reach 4. Competent authority: Ministry for Environment and Spatial Planning (MESP). 1 Published in OG of RS, no. 67/02, 57/08. 2 Published in OG of RS, no. 97/09; Decree is an act which is adopted by the Government. 3 Published in OG of RS, no. 4/09. 4 Decrees are published in Official Gazettes of Republic of Slovenia. For the term Ecologically Acceptable flow in other countries of EU also terms as Minimum Instream Flow or Environmental Flow are in use

10 Conditions to start the process of concession granting: The result of River Basin Management Plan (RBMP) 5 must base upon the quantity and quality of water and sediments because the hydropower use of water in the concerned water body and adjacent area should be allowed only where also the principle of sustainable water use is already applied or considered, Since the construction of HP (also SHP) requires a building permit, the condition to start the process of concession granting is also adopted by Spatial Planning Document (paragraph 2.1.2) which defines and regulates hydropower land use (terms and conditions for design and construction of structures and facilities of HHP) in the respective area or river reach. In this phase (or in more detail lately in the phase of concession granting) main limitations and conditions are defined, especially Ecologically Acceptable Flow (EAF or MIF), which is determined according to the Decree. The value of MIF can be increased if objectives which arise from the Freshwater Fishery Act 6 or Nature Conservation Act 7 are not reached by MIF determination according to the Decree. Concession granting process: The process usually starts with the initiative of interested parties (investors, local communities) to the MESP, Control of the above-mentioned conditions 8, Administrative procedure of the preparation of the proposal of the Decree by the MESP (usually for several locations at once), Adoption of the Decree on concession granting of certain river reach 9 by the Government Procurement for concession granting (the MESP or Environmental Agency of RS EARS as body under the MESP) (next Figure), Signature of Concession contract 10 with awarded bidder (EARS). 5 Preparation of the RBMP is the implementation process of the WFD, where competent authority is the MESP. Slovenia has decided to adopt two RBMPs (one for the catchment of Danube basin, the other for river catchments of the Adriatic Sea). The elaboration of the RBMPs is in the phase of proposal, which is currently announced on the web pages of the Ministry of the Environment and Spatial Planning for public participation. The RBMPs will be adopted by the Government. 6 Published in OG of RS no. 61/ Published in OG of RS, no. 96/04 8 Although the conditions from RBMP and Spatial planning document allow hydropower use, the government still has a right not to start with the process of concession granting. The reasons for that are mainly national strategic issues. 9 Decree defines the influential area, ecologically acceptable flow, different spatial, ecological and technical terms, competencies in the process of public procurement, criteria for the evaluation of bids (offered concession fee over defined threshold, land owning, quality of basic design, financial ability of the bidder etc.), duration of concession, minimum concession fee, etc.. 10 Contract defines the river reach of concession, obligations of assuring ecologically acceptable flow, concession payment, duration of concession, dead line to start the production of electricity and other rights and obligations already defined in the Decree. Contract is usually signed for a period of 30 years

11 Adoption of a Decree for concession granting Formation of Expert Commission at the Agency for the Environment Elaboration of Terms of reference and announcement of tender in the Official Gazette Evaluation of submitted bids Adoption of Decision on selected Concessionaire Preparation of Concession Contract at the Agency for the Environment Signature of Concession Contract Figure 4 Procurement process for concession granting Spatial Planning Legislation: Spatial Planning Act 11 Competent authorities: State (Ministry for Environment and Spatial Planning) -> National spatial planning document, Municipality -> Municipal spatial planning document or in the case of involvement of several municipalities -> Inter-municipal spatial document. Main Directives and Conditions which have to be considered for hydropower land use in the process of spatial planning: Harmonization with directives and conditions of decision making stakeholders: Environment (nature preservation, water management, environment protection), Agriculture and Forestry (irrigation,...), Riparian (Land owners), Existing water right holders, Other competent authorities (transport, tourism,...), Elaboration of Comprehensive Environment Impact Assessment (CEIA) if reservoir of HP exceeds m 3 or installed power is more than 1 MW (regulated by The Environment Protection Act 12 ) or planning area is situated in nature conservation protected area (regulated by Nature Conservation Act), Acquirement of Energy Permit if installed power of HP is more than 1 MW and it is connected to the energetic network (regulated by Energy Act 13 ). 11 Published in OG of RS, no. 33/07, 108/ Published in OG of RS, no. 41/04, 39/06, 20/06, 70/08 and 108/ Published in OG of RS, no. 79/1999 (EZ), 26/2005 in 27/2007 (EZ-UPB2)

12 Strategic Support Acts To harmonize the decisions stakeholders in the process of spatial planning, the following strategic documents are planned to be elaborated and adopted by the Government: Mentioned RBMP, currently in the phase of public consultation, Resolution on the National Energy Programme 14 -> National Action Plan for use of RES Design and construction Legislation: Construction Act 16 with most relevant sub-legislation on the subject 17 : Regulation on classification of construction with regard to their complexity 18, Rules on design documentation 19, Rules on construction sites 20. The Environment Protection Act in the field of Environment Impact Assessment (EIA), Decree on the categories of activities for which an environmental impact assessment is mandatory 21. Hydropower plant is defined as a complex or in the case of the smallest HPP a less complex construction for which a building permit is required. The building permit is decreed by regional Administrative units which are under the Ministry of Public administration. Basic requirements for building permit acquisition: project and technical documentation has to be elaborated according to the above mentioned Rules, obligatory Revision (done by licensed Engineers) of relevant technical and project documentation if construction is defined as complex construction. Basic condition for definition of complex object: if EIA is required (reservoir of HP exceeds m3 or installed power is more than 1 MW), for power lines more than 110 kv of voltage, for dams or weirs more than 10 m of height or with crest longer than 250 m in the case of earth dam or 50 m in the case of concrete dam or 300 m in the case of weir, for constructions and objects with deep foundations, All Consents which are defined in terms of elaboration of documentation for acquisition the building permit are basically already defined in relevant spatial planning document. Contents are decreed by competent sector authorities (for example Water content is decreed by EARS). 14 Adoption by Parliament is planned at the end of Implementation of the RES Directive is under competency of Ministry of the Economy. 15 Adoption by the Government is planned in Published in OG of RS, no. 27/2007, 70/2008. In June 2010 next amendment is predicted. 17 Design and construction legislation is a large area (competencies and requirements for elaboration, revision, construction, supervision; types of technical and project documentation; requirements for using of objects etc.) and it is not separately defined for hydropower. 18 Published in OG of RS, no. 37/08, 99/08 19 Published in OG of RS, no. 55/08 20 Published in OG of RS, no. 55/08, 54/09 21 Published in OG of RS, no. 78/06, 72/07, 32/

13 Construction: Construction has to take into account: The above-mentioned Rules on construction sites which define marking and management of construction site, content and mode of work progress reporting and construction control. It is also more precisely defined in the Project for Building Permit requirement, Legislation in the field of safety, Assurance of the supervision Start of operation: After the construction, technical inspection is performed, which is required in order to obtain the Permit of use as a written order decreed by regional administrative unit. The following documentation regulated by the above-mentioned construction legislation is required: The project of works executed, The land surveying plan of the new situation, of the land after the completion of construction, Evidence of the reliability of the structure, Guidelines for the maintenance and operation of the structure. The Building Permit (terms of the consents) can also require the Operational monitoring 22 for certain monitoring parameters for all or some time of the operation of Plants. In that case, before the Permit of use is decreed, also Test operation has to be carried out Operation and electricity production Legislation: Energy Act 23 with the following sub-legislation on the subject: Decree on the requirements to be met for obtaining the status of a qualified electricity producer 24, Regulation on supports for the electricity generated from renewable energy sources 25 Decision laying down fee to assure support to production of electricity from cogeneration with high efficiency and from renewable sources 26 Methodology for Determining Reference Costs of Electricity Generated from Renewable Resources 27 Competent authority: Ministry of the Economy 22 For structures and facilities, where different environmental parameters have to be monitored (emission of waste water, air pollutants etc.), Operational monitoring has to be carried out. Requirements for operational monitoring are regulated by different sub-legislation mainly in the field of environment protection. For example Decree on criteria for determination and on the mode of monitoring and reporting of ecologically acceptable flow requires operational monitoring of ecologically acceptable flow for certain water uses, one of them is also hydropower water use. 23 Published in OG of RS, no. 27/2007, 70/2008. In June 2010 next amendment is predicted. 24 Published in OG of RS, no. 71/07 25 Published in OG of RS, no. 37/09, 53/09, 68/09, 76/09 26 Published in OG of RS, no.113/09 27 Adopted by the Ministry of the Economy in

14 Supervision Legislation: Water Act with next sub-legislation on the subject: Decree on the water fee Decrees on the concession for the exploitation of certain river reach Competent authorities: Ministry for Environment and Spatial Planning, Environmental Agency of RS and Inspectorate of the RS for Environment and Spatial Planning Although the Guidelines for the maintenance and operation of the structure have to be elaborated for complex structures and facilities (as mentioned in the case of HPP that applies to structures with reservoirs exceeding m3 or installed power more than 1MW) the water right owner must elaborate Rules for the operation and maintenance for water structures or facilities (defined by Water Act) 28 The paying of Concession Fee and Water Fee is financed by the Water Fund (by Water Act) which is a financial fund for water-management-related purposes. Concession Fee is shared (usually 50:50 defined in the Decree on concession granting) between the Water Fund and the budget of the related municipality. The Concession can be withdrawn if terms in the Concession Contract are not met (if use permit is not obtained in defined time, requirements about ecologically acceptable flow are not fulfilled, no electricity production for longer period etc.). It has to be stressed that with new RES support scheme (more precise with the Regulation on supports for the electricity generated from renewable energy sources, mentioned under paragraph 2.1.3) subsidies for hydropower plants which do not fulfil obligations on Ecologically Acceptable Flow will not be granted or paid to hydropower electricity producers. In continuation relevant legislation and regulations are presented in more detail Detailed introduction to the regulations Waters Act 29 (WA) In the Republic of Slovenia, the use of water that exceeds general use, the use of debris or groundwater require the acquisition of water rights on the basis of a water permit or water concession in accordance with the Waters Act (Official Gazette of the Republic of Slovenia, No. 67/02, 110/02 ZGO-1, 2/04 ZZdrI-A, 41/04 ZVO-1 and 57/08; in continuation WA). 28 The content is defined by internal rules, prepared at the EARS 29 Waters Act (OG of RS, no. 67/02, 110/02 - ZGO-1, 2/04, 10/2004)

15 The article 136 of the WA states that the use of water for the generation of electricity in a hydroelectric power plant requires concession. The article 136 of the WA states that the use of water for the generation of electricity in a hydroelectric power plant requires concession. The concession can be granted to physical or legal entities meeting all the required terms. The concession is granted for a limited time and not exceeding 50 years and can be extended upon the owner s application provided all the terms for its acquisition are fulfilled at the time of its termination. The terms of concession granting are defined by the concession act that can be issued in accordance with the article 137 of the WA on the basis of the law on concession in the area of natural goods when the plan of water management ensures that the quality and quantity of the water or debris allow the indented use which in turn is in accordance with the principle of sustainable water use. The concession act is issued in accordance with the terms and conditions defined by governmental regulations and water management plans. When the use of water requires the acquisition of a permit for land use in accordance with the regulations on spatial planning and construction of facilities, the concession act is based also on the spatial acts of the state or local community. Legal or physical entities can submit to the government a proposal for issuing a concession act for use based on the first paragraph of the article 136 of the WA. The proposal for issuing a concession act must include all the elements necessary for defining the contents of the concession act, primarily the area of concession, the type, the scope and the length of use. Within three months from the receipt of the proposal, the government informs the proposing party whether the granting procedures will commence. The concession is granted by the government on behalf of the Republic of Slovenia in accordance with the provisions of the WA. The concession is granted with an act on selection on the basis of a public tender. To extend the length or to increase the scope of concession, the concession is granted to the existing holder without public tender when the conditions remain unchanged and when the concession holder meets all the required conditions. Another article to be considered is article 150 of the Water Act which defines that any land use with possible temporary or permanent influence on the water regime or water state can only be implemented on the basis of a water consent. Such interventions include the use of water for the generation of electricity. Decree on criteria for determination and on the mode of monitoring and reporting of ecologically acceptable flow 30 The third paragraph of the Article 71 of the WA states that the government of the Republic of Slovenia defines the criteria for determination of the ecologically acceptable floe (Qes) and the manner of its monitoring and reporting. The Article 90 of the Act amending Waters Act (OG of RS, No 57/08) state s that the granted water rights need to be adjusted to the amended Article 71 within five years from adoption of this decree. 30 Decree on criteria for determination and on the mode of monitoring and reporting of ecologically acceptable flow (OG of RS, no. 97/09)

16 The decree defines the starting points and criteria for defining the Qes. The starting points for defining Qes are the data on the medium small flows (sqnp) and medium flows (sqs) in the area of special use. sqs and sqnp are defined by the Environmental Agency of the Republic of Slovenia on the basis of data from the state hydrological monitoring or when those are not available on the basis of measurements. The measurements are provided by the initiator or the owner of the water right. Qes is calculated with equations in regard to the correlation of the data on Qes identified in the previous years with the data on the medium small and medium flows in the area of special use. The equations vary in regard to the relation between sqnp and sqs, relation between both, the length and the quantity of intake and the returnability of the intake. Qes, defined by equation, is checked additionally in special cases and can be decreased or increased when required by specific conditions in the area of special use. Special cases are thus defined for special used of water for drinking water provision, for special water use on protected or conserved areas and for special use in the areas with emissions of substances permitted in accordance with environmental regulations. The granted water rights, which need to be adjusted within five years to the terms of the decree in accordance with the Act amending Waters Act, have specific criteria for Qes definition which take into account the actual conditions in individual water rights. The decree defines the criteria for Qes monitoring and it prioritizes the obligatory design of intake structures in a manner that prevents water intake when the water flow in the area of special use is falls below Qes. When such design of intake facilities is not possible it is necessary to monitor the relevant parameters to ensure the control of Qes. The decree defines the parameters to be measured for such purpose. The decree defines the manner of reporting data on Qes required by competent authority for water management or competent inspectorate as well as the control of the ensuring and monitoring of Qes. 31 Decree on provisional river basin management plan3 The decree is the basis for a provisional plan of water management defining the necessary foundation for implementing individual tasks of water management and preparing detailed plans of water management. The provisional plan is regarded as the environmental starting point in the area of water management in accordance with environmental regulations. The goals of the provisional plan ensure the implementation of tasks for transferring to the new system of planning and implementing water management in the areas of the Danube and the Adriatic Sea. Provisional plan goals: 1. Adjustment of database or appropriate connections between databases to prepare and implement water management, 2. Establishing a system of a combined approach to the control of point and diffuse sources of pollution, 3. Establishing the public relations system, 31 Decree on provisional river basin management plan (Official Gazette RS, No. 4/09)

17 4. Definition of the environmental standards of chemical and ecological state of the water bodies in surface waters, 5. Definition of the environmental standards of quality for the chemical state of groundwater, 6. Definition of the parameters and criteria for the assessment of the quantity of the water bodies of groundwater, 7. Establishing Water Book and Water Cadastre, 8. Preparation of a program for a precise planning of flood evaluation and management, 9. Preparation of methodologies for the analyses of costs and benefits and assessment of cost efficiency of the programs of interventions, 10. Management of databases on chemical and ecological states of water bodies of surface water and chemical and quantity state of water bodies of groundwater on the basis of monitoring the state of surface and groundwater, 11. Establishing and managing the records of emission, discharge and leakage of priority substances and priority hazardous substances and other water pollutants, 12. Management of database of production monitoring in accordance with regulations governing the emission of substances in discharge of water, for inserting into inventories of emissions, releases and losses of priority substances and priority hazardous substances into water 13. Reviewing and updating the description of water bodies of surface and groundwater in the articles 2 and 3 of the decree, especially the definition of the severely transformed water bodies of surface water, 14. Reviewing and updating the economic assessment of the use of water or debris in the article 13 of the decree, 15. Reviewing and updating the demonstration of impact and influence of human activities on the state of the surface and groundwater in articles 4 and 7 of the decree, 16. Evaluation of probability of reaching the environmental goals by 2010 for water bodies of surface and groundwater in regard to the expected trends of the individual types of water use and water impacts and in regard to the expected efficiency of the interventions of operative programs in accordance with environmental regulations, 17. Updating the scheme of areas with special requirements in article 8 of the decree and 18. Updating the scheme of network and results of monitoring of surface and groundwater in articles 9 and 10 of the decree. The objectives must be reached at the latest by the adoption of the first plan on water management in the water area of the Danube (also River Basin Management Plan for Danube Basin) and the first plan on water management in the water area of the Adriatic Sea (also River Basin Management Plan for Adriatic Sea) in accordance with water regulations Environment protection act 32 (EPA-1) As defined by the article 164 of the Environment protection act the state or the municipality can sell the concession for managing, using or exploiting natural goods on its property or under its legal 32 Environemnt protection act (OG of RS, no. 41/04, 17/06)

18 authority of managing to a legal or physical entity (in continuation: concession holder) if the latter is qualified for the implementation. When the concession for natural goods is granted by the state, a part of the payment for the concession is allocated to the municipality where the concession is implemented or is influenced by it, the ratio of which is defined in cooperation with the municipality in the concession act on the basis of the identified level of development of the infrastructure and impact on the environment. The criteria for defining the level of the development of infrastructure and environmental impact are defined by the government. The concession for natural goods can be granted if all environmental terms for dealt activities in the environment defined by this act or other acts on the protection and use of natural goods are met. The concession can be granted only on the basis of a public tender unless defined differently by law. In the acquisition of concession based on a public tender the right to priority can be exercised. The priority to be granted the concession is given to owners of land where the natural good is located if the owner meets all the terms in the first paragraph of the article defining the qualifications for implementing the concession. In accordance with article 165 of the Environment protection act the basis for granting the concession is a concession act, which is governmental or municipal regulation. The concession act primarily includes: 1. Definition of the natural good for which the concession is granted, 2. The object of concession and the definition of the range and possible exclusiveness of the concession, 3. Definition of environmental terms, terms of protection regime and management regime, use or exploitation of the natural good, 4. The activity that can be implemented by the concession holder in regard to the rights related to the concession, 5. Conditions to be met by the concession holder, 6. Possible public authority of the concession holder, 7. Starting and terminating date of the concession, 8. Area of the concession, 9. Payment for the concession and the ratios of the state and the municipality, 10. Authorization for supervision of the concession implementation, 11. Reasons for and the manner of terminating the concession, 12. Obligations of the concession holder in regard to repairing, restoring previous or establishing new environmental conditions, and 13. Authorization for and conditions of drawing and validating the concession contract. Acquisition and selection of concession holders, public tenders, all concession contract issues, protection of concession holders and dispute resolution, termination of concession, transfer of concession, obligatory concession, force majeure and responsibility of concession holder for the acts of the employees are reasonably governed by the act defining concession for public utilities 33 unless stated otherwise by the law. 33 Public utilities act (OG of RS, 32/93, 30/98)

19 Nature conservation act 34 (NCA) Anyone intervening with nature or habitats of plant or animal populations must use manners, methods and technical aids contributing to maintaining favorable condition of the species. The minister in charge of nature protection in agreement with the minister in charge of plant or animal species or habitats of their populations can define the least disturbing manner and conditions of intervening with nature as well as set a time limit for interventions into the habitats of animal populations at the time of their critical life periods. Natural values include all natural heritage in the area of the Republic of Slovenia. Natural values include beside rare, valuable or prominent natural phenomena also other valuable phenomena, contents or parts of nature, a natural area or a part of a natural area, an ecosystem, landscape or designed nature. Natural values are mostly geological phenomena, mineral, fossils and their sites, surface and underground karst phenomena, caves, gorges and ravines and other geomorphologic phenomena, glaciers and forms of glacier activity, water sources, waterfalls, rapids, lakes, marshes, streams and rivers with banks, sea coast, animal and plant species, their exceptional specimens and their habitats, ecosystems, landscape and designed nature. A special area of conservation (area Natura 2000) is ecologically important area which in the EU aims at preserving or reaching a favorable condition of birds and other animal and plant species, their habitats and types of habitats. Special conservation areas are a part of the European ecological network Natura The article 44 of NCA defines that the general use of natural resources or natural public good which is at the same time a natural value can only be performed in a manner which does not endanger the existence of the natural value and does not prevent its protection. Conservational and developmental guidelines as well as conservational regimes of natural values are an integral part of permits or concessions for special use. The permit for special use or a concession act which is not in accordance with the preceding paragraph is invalid Freshwater fishery act 35 (FFA) The FFA among other governs the area of natural resources, namely waters. Its article 19 defines that each intervention into a fishery area needs to be planned and implemented in a manner that to the greatest extent possible ensures protection of fish, the variety of species, age structure and number. The construction of facilities on water areas in accordance with regulations on building can be implemented upon preliminary acquisition of an agreement issued by the Fisheries Research Institute of Slovenia (the Institute). For the purpose of migration of fish through facilities build on waters, the investor must provide a fish passage. The functionality of the passage is ensured by the owner or the tenant of the facility. The Institute in cooperation with the implementer of fishery management issues an opinion on the influence of the intervention on the condition of fish within the procedure of water right granting in accordance with the regulations on waters. 34 Nature conservation act (OG of RS 56/99, 31/00 - correction) 35 Freshwater fishery act (OG of RS, št. 61/06)

20 Spatial planning act 36 Spatial management is governed by spatial plans. The spatial plans define guidelines on land use, the types of possible land use and the conditions and criteria for their implementation. There are state, municipal and inter-municipal spatial plans. The spatial plans governed by the Spatial planning act, except for state strategic spatial plan, are adopted upon comprehensive evaluation of the influence on the environment in accordance with the definitions of this act and the environment protection act and with no requirement of the revision of the environmental report. Municipal spatial plan, with consideration of the state spatial acts guideline, the developmental needs of the municipality and protection requirements, defines the goals and the starting points of the development of the municipality, defines the local spatial plans and the terms of integrating facilities into space. Municipal spatial plan includes strategic and implementing parts. The implementing part of the municipal spatial plan of individual units of spatial planning defines: 1. Areas of intended use of space; 2. Conditions of implementation; 3. Areas for which a detailed municipal spatial plan is prepared. The municipal spatial plan serves as the basis for preparing the project for acquisition of the building permit in accordance with building regulations (article 39) Construction act 37 (ZGO-1) The act defines the conditions for building any type of construction, defines the essential requirements and their fulfillment in regard to the characteristics of the construction. Building permit is a decision with which the competent authority allows building and defines actual conditions to be considered during building. Once a construction is built, a permit of use needs to be obtained, with which the same authority that issued the building permit, now allows the start of use of the construction on the basis of technical inspection. Constructions are classified according to the complexity of construction and maintenance into complex, less complex, non-complex and simple. A governmental regulation 38 specifically defines the types of construction with regard to their complexity. The largest size of simple construction is defined as well as the method of its building and use and other conditions that need to be met for a construction to be classified as simple, as well as regular maintenance and investment maintenance activities, unless stated otherwise by the law. 36 Spatial planning act (OG of RS, 33/2007, 70/2008 and 108/2009) 37 Construction Act (OG of RS, no. 110/2002, 97/2003) 38 Regulation on classification of construction with regard to their complexity (OG of RS, no. 37/08 in 99/08)

21 Rules on design documentation 39 The rules define detailed contents of design documentation for complex and less complex constructions, the building method and the types of plans that are part of the documentation and are used for individual types of buildings and facilities in regard to their use, form and contents of the revision report as well as the contents of the report on the indented building activity Act on physical assets of the state, regions and municipalities 40 Since a large number of watercourses is situated in the water region owned by the Republic of Slovenia, construction of facilities requires the acquisition of property right, such as servitude right or right to built and consideration of Law of Property Code, the Act of physical assets of the state, regions and municipalities and the decree 41 passed on its basis Energy act The law defines the principles of energy policies, rules for the activities on the energy market, the manners and forms of implementing economic public services in the field of energy, the principles of reliable provision and efficient use of energy and conditions for operation of facilities, conditions for performing services in the field of energy, granting of licenses and energy permits and the authorities in charge of administrative tasks governed by this law. Regulation on issuing of the Declarations for the production units and of the Guaranties of Origin 42 The regulation defines the conditions and procedure for obtaining declaration for production units that generate electricity from renewable sources and in co-production with high efficiency, the contents and the manner of managing the register of declarations for production units, monitoring of production units with declaration, issuing of guaranties of origin of electricity generated from renewable sources or in co-production with high efficiency, management of register of guaranties of origin, transaction of guaranties of origin, data transfer for the issuing of the guaranties of origin, in accordance with definition of the first, second and third parts of the Article 5 of the Directive 2001/77/ES of the European Parliament and Council from September 27, 2001 on promotion of production of electricity from renewable sources in domestic trade in electricity (OG of RS, No. 283 date 27/10/2001, page 50; and the first, second, third and fifth parts of the Article 5 of the Directive 2004/8/ES of the European Parliament and Council from 11th February 2004 on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC (OG of RS, No. 52 dated 21/2/2004, page 33;). The declarations are issued for production units that use renewable sources as their intake energy and hydroplants are thus included under such type of production units. 39 Rules on design documentation (OG of RS, no. 55/08) 40 Act on physical assets of the state, regions and municipalities (OG of RS, no. 14/07) 41 Decree on physical assets of the state, regions and municipalities (OG of RS, no. 84/07) 42 Regulation on issuing of the Declarations for the production units and of the Guaranties of Origin (OG of RS, no. 8/09)