The New Law on Renewable Energy Resources

The Law on Utilization of Renewable Energy Resources for the Purpose of Generating Electrical Energy¹ ("Law") was adopted on 18 May 2005. This article provides as overview of the general provisions of the Law, as well as other supporting legislation regarding renewable energy resources. However, the legislation on biofuel will not be taken into account.²

Renewable energy resources ("RER") is not a brand-new topic, as the Electricity Market Law³ ("EML"), which was enacted in March 2001 and the Electricity Market License Regulation⁴ ("Regulation") demonstrate. According to the EML, the Energy Market Regulatory Authority ("EMRA") is authorized to take the necessary measures to encourage the utilization of RER. Financial incentives for RER are specified in the Regulation. Legal entities applying to obtain a license for generation of electricity based on RER are required to pay merely 1% of the total licensing fee and are exempted from annual license fees for the first eight years