S.L. 545.32 Art. 2Interpretation.

(1) Unless otherwise stated in these regulations, the definitions in the Public Finance Management Act shall apply.

(2) In these regulations, unless the context otherwise requires:

"annual threshold" means the cap in kWh for the payment of the awarded bid price per kWh for the period of st st time commencing on the 1 January and ending on the 31 December of each year;

"approved renewable energy installation" means a new renewable energy installation with a capacity from 40kWp up to less than 1000kWp and granted financial support pursuant to a competitive bidding process;

"awarded bid price per kWh" means the bid price per kWh offered by a successful bidder whose offer is selected pursuant to a competitive bidding process;

"bid price per kWh" means price per kWh offered by a bidder in a competitive bidding process;

"commissioned" means the first time a renewable energy installation is put into operation, following the establishment of operational readiness by the warranted electrical engineer certifying the installation;

"competitive bidding process" means a non-discriminatory bidding process that provides for the participation of a sufficient number of undertakings and where the support is granted on the basis of the bid submitted by the bidder. In addition, the volume related to the bidding process is a binding constraint leading to a situation where not all bidders can receive support; SOURCES OF ENERGY INSTALLATIONS (CAPACITY 545.32 FROM 40KW UP TO LESS THAN 1000KW)

"Contracting Authority" means the entity issuing and administering the competitive bidding process;

"DC" means direct current;

"distribution" means the transport of electricity on high voltage, medium voltage and low voltage distribution systems with a view to its delivery to consumers, but not including supply;

"distribution system" means all the interconnected technical facilities used for conveying electricity to final customers;

"distribution system operator" shall have the same meaning as under the Electricity Market Regulations;

"electricity from renewable energy sources" means electricity produced by plants using only renewable energy sources, as well as the share in terms of calorific value of energy produced from renewable energy sources in hybrid plants which also use conventional energy sources. It includes renewable electricity used for filling storage systems, but excludes electricity produced as a result of storage systems;

"eligible renewable energy installation" means a new renewable energy installation with a capacity from 40kW up to less than 1000kW applying to be granted financial support pursuant to a competitive bidding process;

"force means acts of God, strikes, lock-outs or majeure" other industrial disturbances, acts of the public enemy, wars, whether declared or not, blockades, insurrection, riots, epidemics, landslides, earthquakes, storms, direct lighting strikes, floods, washouts, civil disorder, explosions and other similar unforeseeable events, which by the exercise of due diligence cannot be overcome and which, in the view of the Contracting Authority prevent a successful bidder from adhering to obligations due to causes beyond his reasonable control;

"full load hours" means the equivalent number of hours in a calendar year during which the renewable energy installation produces at its full nominal or kW capacity;

"generation" means the production of electricity;

"guaranteed period" means the period of time indicated in the relevant competitive bidding process during which the awarded bid price per kWh for the electricity generated and sold to the distribution system operator from a qualifying renewable energy installation is guaranteed;

"kW" means kilo Watt and in the context of these regulations shall be taken to refer to the nominal capacity of the renewable energy installation, which in the case of a solar photovoltaic installation is equal to the total DC peak power at standard test conditions of the installation;

"kWh" means kilo Watt hour(s);

"metering equipment" means the electricity meters provided by the distribution system operator including smart meters, any voltage and current transformers and any other associated equipment and wiring required to measure the quantity of electricity supplied or exported;

"Minister" means the Minister responsible for energy;

"new renewable energy installation" means a renewable energy installation which has never been used for the generation of electricity in whole or in part and which is installed by a successful bidder after the conclusion of a competitive bidding process;

"performance bond" means the performance bond to be provided by a successful bidder to the Contracting Authority pursuant to regulation 10;

"premium" means the difference between the awarded bid price per kWh and the proxy for the market price per kWh and is payable only when the awarded bid price per kWh is higher than the proxy for the market price per kWh and the proxy for the market price per kWh is not negative;

"proxy for the market price" means the average of the estimated variable cost of meeting the demand forecast for a given year from locally generated conventional and imported electricity, with the demand assumption excluding that portion of the forecast demand which is not expected to be met by conventional and imported electricity;

"renewable energy sources" means renewable non-fossil energy sources, that is, wind, solar (solar thermal and solar photovoltaic), and geothermal energy, ambient energy, tide, wave and other ocean energy, hydropower, biomass, landfill gas, sewage treatment plant gas and biogas; SOURCES OF ENERGY INSTALLATIONS (CAPACITY 545.32 FROM 40KW UP TO LESS THAN 1000KW)

"smart meters" shall have the same meaning as in the

Electricity Supply Regulations;

"solar photovoltaic installation" means a solar photovoltaic system that generates electricity exclusively from solar radiation and consisting of all accessories including:

(a) an array or arrays of photovoltaic modules that collect and absorb sunlight for conversion into electricity;

(b) an inverter or inverters;

(c) associated balance of system components, including wiring, conduits, switchgear, protection equipment, ancillary equipment and any other part of the installation necessary for the production and conveyance of electricity up to the metering equipment supplied by the distribution system operator;

"successful bidder" means a bidder whose offer is selected pursuant to a competitive bidding process;

"supply" means the sale or retail, including resale, of electricity to customers;

"wind energy installation" means an installation that converts wind energy into electricity and shall include the tower on which the wind turbine is mounted, a rotor and the nacelle which houses the equipment, including the generator, that converts the mechanical energy in the spinning rotor into electricity and any other ancillary equipment necessary to connect to the grid.