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Renewable Energy Act,
2011 Act 832
ARRANGEMENT OF SECTIONS
Section
Preliminary provisions
1.Object
of the Act
2.Meaning
of renewable energy
3.Ministerial
responsibility
Responsibilities of institutions
4.Responsibilities
of Energy Commission
5.Responsibilities
of Public Utilities Regulatory
Commission
6.Public
utilities
7 . Collaboration of relevant
institutions
Licensing provisions
8. Requirement for licence
9 . Qualification for licence
10.Application
for licence
11.Grant
of licence
12.Conditions
of licence
13.Non-transferability
of licence
14.Duration
and renewal oflicence
15.Power
to modify licence
16.Suspension
or cancellation of a licence
17.Complaint
to the Minister
18.Settlement
of disputes by arbitration
Special requirements relating to
licences
19.Application
20.Production
and supply licence
21.Bulk
storage licence
22.Marketing
licence
23.Installation
and maintenance licence
24.Bulk
transportation licence
Requirements for electricity
generation
25.Feed-in-tariff
scheme
26.Renewable
energy purchase obligation
27.Feed-in-tariff
rates
28.Approval
of feed-in-tariff rates
29.Publication
of feed-in-tariff rates
30.Connection
to transmission and distribution
systems
Establishment and management of
the Renewable Energy Fund
31.Establishment
of Renewable Energy Fund
32.Object
of the Fund
33.Sources
of money for the Fund
34.Bank
account for the Fund .
35.Management
of the Fund
36.Internally
generated funds
37.Tax
exemption
38.Administrative
expenses of the Fund
39.Accounts
and audit
40.Annual
report and other reports
Control and management of
bio-fuel and wood foe!
41.Feedstock
production
42.Designation
and pricing of bio-fuel blend
43.Sale
of bio-fuel blend
44.Sustainability
of wood fuel production
45.
Miscellaneous provisions
45.Duty
of renewable energy producers
46.Integration
of renewable energy projects
into energy system
47.Other
offences and penalties
48.Modification
of existing enactments
49.Guidelines
and codes of practice
50.Regulations
51.Interpretation
52.Consequential
amendments
53.Transitional
provisions
ACT
OF
THE PARLIAMENT OF THE REPUBLIC
OF GHANA
ENTITLED
RENEWABLE ENERGY ACT, 2011
AN ACT to provide for the
development, management,
utilisation, sustainability and
adequate supply of renewable
energy for generation of heat
and power and for related
matters.
DATE OF ASSENT:
PASSED by Parliament and
assented to by the President:
Preliminary provisions
Object of the Act
1. (1)
The object of this Act is to
provide for the development,
management and utilisation of
renewable energy sources for the
production of heat and power in
an efficient and environmentally
sustainable manner.
2) For the purpose of subsection
(1), the object shall encompass
(a) the provision of
(i) a framework to support the
development and utilisation of
renewable energy sources; and
(ii) an enabling environment to
attract investment in renewable
energy sources
(b)
the promotion for the use of
renewable energy;
(c)
the diversification of supplies
to safeguard energy security;
(d)
improved access to electricity
through the use of renewable
energy sources;
(e)
the building of indigenous
capacity in technology for
renewable energy sources;
f)
public education on renewable
energy production and
utilisation; and
(g)
the regulation of the
·production and supply of
woodfuel and bio-fuel.
Meaning of renewable energy
2.
In this Act, "renewable energy"
means energy obtained from non-
depleting sources including
(a) wind;
(b)
solar;
(c)
hydro;
(d)
biomass;
(e)
bio-fuel;
(f)
landfill gas; (g) sewage
gas;
(h)
geothermal energy; (i)
ocean energy; and
(j)
any other energy source
designated in writing by the
Minister.
Ministerial responsibility
3.
The Minister is responsible for
providing policy direction for
the achievement of the object of
this Act.
Responsibilities of institutions
Responsibilities
of Energy Commission
4.
The Energy Commission shall
(a)
advise the Minister on renewable
energy matters;
(b)
create a platform for
collaboration between government
and the private sector and civil
society for the promotion of
renewable energy sources;
(c)
recommend and advise relevant
stakeholders on the educational
curriculum on efficient use of
renewable energy sources and
evolve programmes for its
mainstreaming on the educational
curriculum of educational
institutions;
(d)
recommend for exemption from
customs, levies and other
duties, equipment and machinery
necessary for the development,
production and utilisation of
renewable energy sources;
(e)
in consultation with the Public
Utilities Regulatory Commission
recommend financial incentives
necessary for the development,
production and utilisation of
renewable energy sources;
(f)
promote the local manufacture of
components to facilitate the
rapid growth of renewable energy
sources;
(g)
promote plans for training and
supporting local experts in the
field of renewable energy;
(h)
promote the benefits of
renewable energy to facilitate
its utilisation;
(i) in consultation with
relevant stakeholders set
targets for the development and
utilisation of renewable energy
sources; and
(;) implement the provisions of
this Act.
Responsibilities of Public
Utilities Regulatory
Commission
5.
The Public Utilities Regulatory
Commission shall for the purpose
of the implementation of this
Act, approve
(a)
rates chargeable for the
purchase of electricity from
renewable energy sources by
public utilities;
(b)
charges for grid connection; and
(c)
rates chargeable for wheeling of
electricity from renewable
energy sources.
Public utilities
6.
A public utility licensed under
the Energy Commission Act, 1997
(Act 541) to transmit or
distribute or sell electricity,
shall comply with the relevant
provisions of this Act and in
general, facilitate the
attainment of the object of
this Act.
Collaboration of relevant
institutions
7. (1) The relevant institutions
responsible for the development,
promotion, management and
utilisation of renewable energy
sources shall collaborate with
the Commission in the exercise
of its powers and performance
of its functions under this Act.
(2) For the purposes of
subsection (1), relevant
institutions include (a)
the Standards Authority;
(b)
the Forestry Commission;
(c)
the Lands Commission;
(d)
the Environmental Protection
Agency; (e) the Ministry
of Food and Agriculture;
(f)
Metropolitan, Municipal and
District Assemblies of Local
Government;
(g)
the National Petroleum
Authority;
(h)
the Public Utilities Regulatory
Commission; (i) the Water
Resources Commission;
(j)
the Ghana Cocoa Board;
(Ie)
the Ministry of Environment,
Science and Technology; (I)
the Ghana Revenue Authority;
and
(m)any other institution
designated by the Minister by
publication in the Gazette.
Licensing provisions
Requirement for licence
8.
(1) A person shall not engage in
a commercial activity in the
renewable energy industry
without a licence granted under
this Act.
(2) For the purposes of this
Act, the commercial activities
in the
renewable energy industry are
(a) production;
(b)
transportation; (c)
storage;
(d)
distribution, sale and
marketing; (e)
importation;
(f)
exportation and re-exportation;
and (g) installation and
maintenance.
(3) The Commission may by
legislative instrument limit or
expand the scope of activities
under subsection (2).
(4) A person who engages in a
commercial activity in the
renewable energy industry
without a licence issued by the
Commission as provided under
this Act, commits an offence and
is liable on summary conviction
to a fine not exceeding two
thousand penalty units or to a
term of imprisonment not
exceeding five years or to both.
(5) Where the offence is
committed by a body corporate,
that body corporate is liable on
summary conviction to a fine not
exceeding five thousand penalty
units.
Qualification for licence
9. A licence under this Act may
only be granted to (a) a
citizen,
(b)
a body corporate registered
under the Companies Act, 1963
(Act 179) or under any other law
of Ghana; or
(c)
a partnership registered under
the Incorporated Private
Partnerships Act, 1962 (Act
152).
Application for licence
10.
(1) An application for a licence
shall be made to the Commission
in the prescribed form
accompanied with the prescribed
fee and information required by
the Commission.
(2) The Board shall
(a)
acknowledge receipt of an
application within five working
days after receipt, and
(b)
inform the applicant in writing
of the decision of the Board
within sixty days after the five
days.
Grant of licence
11.
(1) Where an applicant meets the
conditions required by this Act
for a licence to engage in
commercial activity in the
renewable energy industry, the
Board shall grant the
application and issue the
applicant with the licence.
(2) Despite subsection (1), the
Board may for reasons founded on
(a) technical data;
(b)
national security;
(c)
public safety;
(d)
food security;
(e)
health; and
(f)
environmental safety
reject the application for a
licence to engage in commercial
activity in the renewable energy
industry.
Conditions of licence
12. (1) A licence granted by the
Commission is subject to the
conditions specified in the
licence.
(2) Without limiting subsection
(1), a licence granted under
this Act may include conditions
requiring the licensee to
provide the Commission with the
documents, accounts, estimates,
returns, environmental impact
assessment and management plans
or any other information that
the Board may require for the
purpose of performing its
functions under this Act in the
manner and at the times as may
be reasonably required.
Non-transferability oflicence
13.
A licence granted under this Act
is not transferable except with
the prior written approval of
the Board.
Duration and renewal of licence
14.
(1) A licence granted under this
Act is for the period specified
in the licence and may be
renewed.
(2) An application for the
renewal of a licence shall be
made to the Commission not later
than sixty days before the
licence expires.
(3) The procedure for the
renewal of a licence granted
under this Act shall be the same
as that applicable to the
granting of the original
licence.
(4) A licensee who fails to
renew the licence or that has
the application for the renewal
of the licence rejected by the
Board shall cease to provide the
services to which the licence
relates.
Power to modify licence
15.
(1) Subject to this Act and
Regulations made under it, the
Board may modify a licence
granted under this Act if the
modification is permissible
under the terms of the licence
or is required in the public
interest.
(2) A modification shall not be
made unless the Board has given
the licensee and the general
public at least sixty working
days notice
(a)
stating that the Board proposes
to make the modification; (b)
setting out the effect of
the modification; and
(c)
inviting representations or
objections regarding the
modification for consideration.
(3) The Board shall consider the
representations or objections
that are made to it before the
modification is made.
(4) The notice shall be given by
(a)
publication, in the manner that
the Board considers
appropriate; and
(b)
sending a personal copy of the
notice to the licensee
for the purposes of bringing the
matters to which the notice
relates to the attention of
persons likely to be affected by
it.
(5) The expense incurred or
damage caused as a result of a
modification to a licence shall
be considered as part of the
capital expenditure of the
licensee.
Suspension or cancellation of
licence
16.
(1) Where the Board is satisfied
that a licensee is not complying
with or has not complied with
any of the conditions of the
licence, the Board may suspend
or cancel the licence.
(2) A suspension or cancellation
shall not be made unless the
Board has given the licensee
(a)
written notice specifying in it,
the cause of dissatisfaction of
the Board requiring the
suspension or cancellation of
the licence,
(b)
the directions for the
rectification of the breach, and
(e)
the action proposed to be taken
by the Board in the event of non
compliance with the notice.
(3) The Board shall
(a)
not suspend or cancel a licence
without first giving the
licensee an opportunity of being
heard, and
(b)
where it considers it
appropriate, give a period that
the Board considers reasonable
for the compliance with the
directions of the Board.
(4) The Board shall consider the
extent to which a person is
likely to sustain loss or damage
as a result of the suspension or
cancellation of the licence in
determining whether it is
necessary to suspend or cancel
the licence.
(5) A licence which is not
utilised within one year after
the date of its grant may be
cancelled by the Board after
notice of not less than thirty
days has been served on the
licensee.
Complaint to the Minister
17.
(1) A person who is aggrieved by
(a)
a refusal to grant a licence or
the renewal of a licence under
this Act;
(b)
the modification, suspension or
cancellation of a licence under
this Act
may within thirty days of the
decision of the Board lodge a
complaint with the Minister.
(2) The Minister shall within
thirty days of receipt of the
complaint
(a)
investigate and take a decision
in respect of the complaints; or
(b)
set up an arbitration panel
under the Alternative Dispute
Resolution Act, 2010 (Act 798)
to settle the matter amicably
with the aggrieved person.
(3) Where the Minister and the
aggrieved person are unable to
reach an amicable settlement or
the Minister fails to take a
decision under paragraphs (a)
or (b) respectively
of subsection (2), the aggrieved
person may within a period of
fourteen days after the decision
pursue the matter in the High
Court.
Settlement of disputes by
arbitration
18. (1) The Board shall on its
own initiative or at the request
of a licensed person set up an
arbitration panel under the
Alternative Dispute Resolution
Act, 2010 (Act 798).
(2) The arbitration panel is to
arbitrate and settle any dispute
that arises between licensees
where the parties concerned
cannot reach an agreement.
Special requirements relating to
licences
Application
19. Without limiting the
provisions of section 12,
section 20 to 24
shall apply to licences for the
following activities: (a)
production;
(b)
transportation; (c)
storage;
(d)
distribution;
(e)
sale and marketing;
(f)
exportation and re-exportation;
and (g) installation and
maintenance.
Production and supply licence
20. Where the Board grants a
licence to an applicant to
produce and
supply a renewable energy
product, the licensee shall
(a)
manufacture and assemble that
renewable energy product; (b)
install, generate and supply
electrical energy; or
(c)
produce bio-fuel or woodfuel
in accordance with the
directives of the Commission.
Bulk storage licence
21.
(1) Where the Board grants a
licence to an applicant to store
renewable energy products in
commercial quantities, the
licensee shall install a
facility for the storage of the
renewable energy products.
(2) The suitability of a
facility shall be determined by
the Commission.
(3) The Commission shall
determine what constitutes
commercial quantities.
Marketing licence
22.
Where the Board grants a licence
to an applicant to market a
renewable energy product, the
licensee shall obtain from the
Commission, approval for the
export of each consignment of
woodfue1 and biofuel.
Installation and maintenance
licence
23. (1) Where the Board grants a
licence to an applicant to
provide for the installation and
maintenance services for a
renewable energy system, the
licensee shall engage in a
commercial activity that
correlates to the specific
renewable energy technology.
(2) For the purpose of this
section, a 'specific renewable
energy technology' includes
technologies for solar, wind,
mini hydro, biogas digester,
charcoal kilns and a bio-fuel
processing plant.
Bulk transportation licence
24. (1) Where the Board grants a
licence to an applicant to
transport renewable energy
products, the licensee shall
(a)
transport bio-fuel products, or
woodfuel, and
(b)
use a registered vehicle to
transport the bio-fuel product
or woodfuel product
in accordance with the
directives of the Commission.
(2) For the purpose of this
section, 'a registered vehicle'
is a vehicle that has been
registered with the Commission
to transport bio-fuel and
woodfuel products.
Requirements for electricity
generation
Feed-in-tariff scheme
25.
(1) There is established by this
Act a feed-in-tariff scheme for
the purpose of guaranteeing the
sale of electricity generated
from renewable energy sources.
(2) The feed-in-tariff scheme
consists of
(a)
the renewable energy purchase
obligation; (b) the
feed-in-tariff rate; and
(c)
a connection to transmission and
distribution systems.
Renewable energy purchase
obligation
26.
(1) An electricity distribution
utility or bulk customer shall
procure a specified percentage
of its total purchase of
electricity from renewable
energy sources.
(2) The Public Utilities
Regulatory Commission shall in
consultation with the Energy
Commission specify the
percentage level of electricity
to be purchased by the
electricity distribution utility
or bulk customer.
(3) The Public Utilities
Regulatory Commission shall take
into account the
(a)
technology being used to
generate electricity from
renewable energy sources;
(b)
assurance of the financial
integrity of public utilities;
and (c) net effect of the
cost of renewable energy on the
end user tariff,
in specifying the percentage
level of electricity.
(4) An electricity distribution
utility or a bulk customer
permitted by the Commission,
shall
(a)
purchase a specified percentage
of its total purchase of
electricity from renewable
energy sources; or
(b)
pay to the Commission a premium
as determined by the Commission.
(5) The premium payable shall be
paid by the Commission into the
bank account opened for the
purpose under section 34.
(6) Where an electricity
distribution utility or a bulk
customer fails to purchase a
specified percentage of its
total purchase of electricity
from renewable energy sources or
refuses to pay the premium
required under subsection (4)
(a)
the Commission may suspend the
permit obtained by the bulk
customer to purchase electricity
from a wholesale supplier; and
(b)
the bulk customer shall pay
(i)
the sum total of the
difference between the end user
tariff and the purchase price of
the renewable energy payable
calculated from the date the
amount was due and payable, and
(ii) a fine of five thousand
penalty units.
Feed-in-tariff rates
27. (1) An electricity
distribution utility shall not
(a)
negotiate a Power Purchase
Agreement with a generator of
electricity; and
(b)
buy power from a generator of
electricity
from a renewable energy source
without the written approval of
the Public Utilities Regulatory
Commission.
(2) The Public Utilities
Regulatory Commission shall
prepare and provide public
utilities with guidelines on the
level of rates that may be
charged by the public utility
for electricity generated from
renewable energy sources.
(3) The Public Utilities
Regulatory Commission shall take
into
account the
(a)
technology being used in the
renewable energy industry;
(b) location of the
generation facility;
(c)
operating norms for the specific
technology under consideration;
(d)
costs associated with
construction, commissioning,
operation and maintenance of the
plant;
(e)
the reasonable rate of return;
and
(f)
the balance between the interest
of the consumer and the
investor,
in preparing the guidelines.
(4) The feed-in-tariff rate
fixed for electricity from
renewable energy sources shall
be guaranteed for a period of
ten years and subsequently be
subject to review every two
years.
(5) The Public Utilities
Regulatory Commission shall, in
determining the mechanism for
the regulated electricity
market, factor into the tariff,
the price differential between
the purchase price of
electricity generated from
renewable energy sources and the
price of electricity purchased
from other sources.
(6) An electricity distribution
utility or a bulk customer which
contravenes subsection (1)
commits an offence and is liable
on summary conviction to a fIne
of ten thousand penalty units.
Approval of feed-in-tariff rates
28.
(1) A public utility shall not
demand a feed-in-tariff rate for
electricity generated from
renewable energy sources unless
the feed-in-tariff rate
chargeable has been approved by
the Public Utilities Regulatory
Commission.
(2) A public utility shall not
directly or indirectly demand or
receive a feed-in-tariff rate
higher than the feed-in-tariff
rate approved by the Public
Utilities Regulatory Commission
in relation to electricity
generated from renewable energy
sources.
(3) Despite section 26 (2), a
public utility may demand and
receive from a consumer a higher
feed-in-tariffrate agreed to by
both the public utility and the
consumer with the written
permission of the Public
Utilities Regulatory Commission.
(4) The power to approve a rate
under this section shall not
apply to the export of
electricity generated from
renewable energy sources.
(5) A public utility which
contravenes subsections (1) or
(2) commits an offence and is
liable on summary conviction to
a fine of ten thousand penalty
units.
Publication
offeed-in-tariffrates
29.
Feed-in-tariff rates approved by
the Public Utilities Regulatory
Commission for electricity
generated from renewable energy
sources shall be published by
the Public Utilities Regulatory
Commission in the Gazette
and in at least one national
daily newspaper.
Connection to transmission and
distribution systems
30. (1)
An operator ofa transmission or
distribution system shall
connect a generator of
electricity from a renewable
energy source within the
coverage area of the
transmission or distribution
system where a generator of
electricity from renewable
energy sources so requests.
(2) An operator of a
transmission or distribution
system shall (a) upgrade
the transmission or distribution
system at reasonable economic
expense to feed in the
electricity from the generator
of electricity from renewable
energy sources; and (bJ
upgrade the transmission and
distribution system as soon as
practicable if so requested by a
generator interested in feeding
in electricity.
(3) The cost associated with
connecting installations to the
metering point of the grid
shall be borne by the generator
of electricity from renewable
energy sources.
(4) An operator of a
transmission or distribution
system that commits an offence
under this section is liable on
summary conviction to a fine not
exceeding ten thousand penalty
units and the Commission may in
addition to the fine suspend the
licence of that operator.
(5) For the purposes of
subsection (1), the operator of
a transmission or distribution
system shall enter into a
connection agreement with a
generator of electricity from
renewable energy sources within
the coverage area of the
transmission or distribution
system.
Establishment and management of
the Renewable Energy Fund
Establishment of the Renewable
Energy Fund
31. There is established by this
Act the Renewable Energy Fund.
Object of the Fund
32. (1) The object of the Fund
is to provide financial
resources for the promotion,
development, sustainable
management and utilisation of
renewable energy sources.
(2) For the purposes of
achieving the object of the
Fund, moneys from the Fund shall
be applied primarily to the
provision of financial
incentives, feed-in-tariffs,
capital subsidies, production
based subsidies and equity
participation for
(a)
grid interactive renewable
electricty;
(b)
mini-grid and off-grid renewable
power systems for remote areas
and island;
(c)
renewable energy projects for
non-electricity purposes; and
(d) any other renewable
energy activity that the
Commission may determine.
(3) Moneys from the Fund may be
applied for (a) the
promotion of
(i)
scientific, technological and
innovative research into
renewable energy;
(ii) research into the
establishment of standards for
the utilisation of renewable
energy;
(iii) the production or
fabrication of equipment for the
development and utilisation of
renewable energy in the country;
(iv) programmes to adopt
international best practices;
and
(v) innovative approaches to the
development and utilisation of
renewable energy sources; and
(b)
the development of
(i) infrustructure for renewable
energy; and
(ii) capacity building for
renewable energy development.
(4) For the purposes of this
section, 'equity participation'
means the participation in the
ownership of an organisation or
venture through an investment
for renewable energy.
Sources of money for the Fund
33. The sources of money for the
Fund are (a) moneys
approved by Parliament,
(b)
the premium payable under
section 26 (4) (b),
(c)
donations, grants and gifts
received for renewable energy
activities,
(d)
money which is generated by the
Commission from the provision
of services for renewable energy
activities;
(e)
moneys approved by the Board
from the Energy Fund established
under the Energy Commission Act,
1997 (Act 541) for the promotion
of projects for the development,
management and utilisation of
renewable energy resources,
including solar energy,
(f)
the proportion of Government
levy from the export of biofuel
as approved by Parliament, and
(g)
any other moneys that are
provided by the Minister
responsible for Finance.
Bank account for the Fund
34.
(1) The moneys for the Fund
shall be paid into a bank
account for the purpose, opened
by the Commission with the
approval of the Controller and
Accountant-General.
(2) The bank account for the
Fund shall be kept separate from
the bank account for any other
Fund that relates to energy
resources.
(3) A person in possession of
money intended for the Fund
shall pay the money into a bank
account opened under subsection
(1) on the next working day
after receipt of the money.
Management
of the Fund
35.(1)
Moneys for the Fund shall be
vested in the Board.
(2) The Board of the Energy
Commission is responsible for
the management of the Fund
subject to the Financial
Administration Act, 2003 (Act
654).
(3) The Board shall
(a)
pursue policies to achieve the
object of the Fund;
(b)
collect or arrange to be
collected, moneys lawfully due
to the Fund, through procedures
determined by the Minister;
(c) ensure accountability of
the Fund by defining appropriate
procedures for the utilisation
of the Fund;
(d)
prepare and publish the criteria
for the disbursement of moneys
from the Fund with the approval
of the Minister; (e)
disburse moneys from the Fund;
(f)
receive and examine reports from
designated persons or
institutions in respect of
financial assistance granted
those persons or institutions;
and
(g)
perform any other function
assigned to it under this Act or
incidental to the achievement of
the object of the Fund.
Internally generated funds
36.
(1) Subject to the Ministries,
Departments and Agencies
(Retention of Funds) Act, 2007
(Act 735), the Fund is
authorised to retain all moneys
realised in the performance of
its functions.
(2) The preparation and
submission of estimates and the
reporting and accounting of
estimates are subject to the
Financial Administration Act,
2003 (Act 654).
(3) The provisions of Article
187 of the Constitution which
relate to the Auditor-General
shall apply to the moneys
retained under this Act.
(4) Despite any other provision
in any enactment to the
contrary, internally generated
funds
(a)
can only be utilised when the
activities on which the
expenditure will be incurred
have been programmed and
approved in the expenditure
budget of the Fund; and
(b)
shall not be used for the
payment of salaries, staff
benefits and other allowances
except where the allowances are
directly related to the
provision of services that will
lead to increased revenue.
Tax exemption
37. The Fund is exempt from
payment of tax.
Administrative expenses of the
Fund
38. The administrative expenses
of the Fund related to the
management of the Fund shall be
charged on the Fund.
Accounts and audit
39. (1) The Board shall keep
books of account and proper
records in relation to them in
the form determined and approved
by the AuditorGeneral.
(2) The Board shall submit the
account of the Fund to the
AuditorGeneral for audit within
three months after the end of
the financial year.
(3) The Auditor-General shall
conduct the audit of the account
exclusively for the Fund.
(4) The Auditor-General shall,
not later than three months
after the receipt of the
accounts, audit the accounts and
forward a copy of the audit
report to the Minister.
(5) The financial year of the
Commission shall be the same as
the financial year of the
Government.
Annual report and other reports
40. (1) The Board shall within
one month after the receipt of
the audit report, submit an
annual report to the Minister
covering the activities and
operations of the Fund for the
year to which the report
relates.
(2) The annual report shall
include the report of the
AuditorGeneral.
(3) The Minister shall within
one month after receipt of the
annual report submit the report
to Parliament with a statement
that the Minister considers
necessary.
(4) The Board shall also submit
to the Minister any other report
which the Minister may require
in writing.
Control and management of
bio-fuel and woodfuel
Feedstock production
41. A licensee that has been
granted a licence under this Act
to produce bio-fuel from
feedstock, shall obtain the
relevant permit from the
Ministry of Food and Agriculture
and the Environmental Protection
Agency.
Designation and pricing
ofbio-fuel blend
42. (I)
The Minister shall on the
commencement of this Act,
designate bio-fuel blend as a
petroleum product in accordance
with the National Petroleum
Authority Act, 2005 (Act 691).
(2) The National Petroleum
Authority shall be responsible
for the pricing of bio-fuel
blend in accordance with the
prescribed petroleum pricing
formula provided for under the
National Petroleum Authority
Act, 2005 (Act 691).
Sale of bio-fuel blend
43. (1)
The proportion of'bio-fuel in
bio-fuel blend offered for sale
to consumers at the point of
sale, shall be determined from
time to time by the National
Petroleum Authority in
consultation with the Energy
CommISSIOn.
(2) A person who sells bio-fuel
blend at the point of sale shall
display conspicuously the
proportion of the bio-fuel
contained in the biofuel blend.
Duty of renewable energy
producers
45. A person licensed under this
Act to produce renewable energy
shall (a) maintain the
equipment and property used in
the provision of the service in
a condition that would enable it
to effectively provide the
service;
(b)
comply with technical standards
and guidelines established by
the Commission; and
(c)
comply with the terms of the
respective environmental impact
assessment permit.
Integration of renewable energy
projects into energy system
46. (1) The Public Utilities
Regulatory Commission and the
Energy Commission shall in
developing Regulations and
guidelines for the provision of
electricity, take into account
the particular nature of the
electricity generated from
renewable energy sources to
ensure that relevant renewable
energy projects are integrated
into the power system.
(2) The National Petroleum
Authority shall in developing
guidelines for the provision of
petroleum products take into
account the particular nature of
the fuel produced from renewable
energy sources to ensure that
relevant renewable energy
projects are integrated into the
fuel supply system.
Other offences and penalties 47.
A person who fails to
(a)
obtain the relevant permit from
the Ministry of Food and
Agriculture after the grant of
the licence contrary to section
41;
(b)
display at the point of sale the
proportion of bio-fuel contained
in the bio-fuel blend contrary
to section 43;
(c)
maintain the equipment and
property used in the provision
of the service contrary to
paragraph (a) of section 45; or
(d)
comply with the technical
standards established by the
Commrssion
commits an offence and is liable
on summary conviction to a fine
of not more than five thousand
penalty units and in the case of
a continuing offence to a
further fine of not more than
fifty penalty units for each day
during which the offence
continues after written notice
has been served on the offender.
Modification of existing
enactments
48. The provisions of the Energy
Commission Act or any other
relevant enactment shall have
effect subject to the
modifications necessary to give
effect to this Act and to the
extent that the provisions of an
enactment are inconsistent with
this Act, the provisions of this
Act shall prevail.
Guidelines and codes of practice
49. (1) The Commission may issue
guidelines for the
(a)
development, efficient
management and utilisation of
renewable energy sources;
(b)
connection of electricity
generated from renewable energy
sources to transmission or
distribution systems; and
(c)
technical standards for the use
of renewable energy sources.
(2) The Commission shall publish
guidelines in the Gazette
or in at least one national
daily newspaper.
(3) Where the Commission amends
or revokes a guideline, it shall
publish the amendment or
revocation in the Gazette
or in at least one national
daily newspaper.
(4) The Board may impose the
following sanctions for failure
to apply the guidelines:
(a)
imposition of a fme not more
than one thousand penalty units,
(b)
suspension or revocation of a
licence, and
(c)
any other administrative
sanction determined by the
Board.
(5) In any proceedings, where
the Court is satisfied that a
guideline is relevant to the
determination of a matter
(a)
the guideline shall be
admissible in evidence, and
(b)
proof as to whether or not a
person contravened a guideline
may be relied on by any party to
the proceedings to establish or
negate the matter.
(6) The Board may issue a code
of practice for the purpose of
giving effect to the provisions
of this Act.
Regulations
50.
The Minister may on the
recommendation of the Board, by
legis-
lative instrument make
Regulations
(a)
to prescribe fees and charges;
(b) for the conditions of
licences;
(c)
to prescribe standards for
construction, operation and
maintenance of facilities and
installations in respect of
bio-fuel and electricity from
renewable energy sources;
(d)
to prescribe standards of
performance for the development,
management and utilisation of
renewable energy resources;
(e) to prescribe technical
standards for the use of
renewable energy sources;
(f)
for the control and management
of (i) bio-fuel, and
(ii) woodfuel;
(g)
to establish a scheme for
creating, trading and
extinguishing of renewable
energy certificates;
(h)
to review the
(i)
percentage level of the
proportion of bio-fuel referred
to in section 43 (2); and
(ii) producer prices for
bio-fuel;
(i)
to provide for fmancial and
other incentives necessary for
the development, production and
utilisation of renewable energy
sources; and
(;) to provide for any other
matter necessary for the
effective implementation of the
provisions of this Act.
Interpretation
51.
In this Bill unless the context
otherwise requires,
"animal waste" means livestock,
manure or any other material
like bedding, milk house waste,
soil, hair, feathers or debris
normally included in animal
waste handling operations;
"Auditor-General" includes an
auditor appointed by the
Auditor-General;
"bio-degradable" means material
that has the
(a)
ability to break down safely and
relatively quickly by biological
means, into the raw materials of
nature; or
(b) proven
capability to decompose into
non-toxic soil, water, carbon
dioxide or methane;
"bio-fuel" means non fossil fuel
produced from crops and plants;
"bio-fuel blend" means the
mixture of a proportion
ofbio-fuel and petroleum-based
fuel;
"bio-fuel production" means the
process and method employed to
transform energy crops and
plants into bio-fuel;
"biogas" means gas that
comprises primarily of methane
and carbon dioxide produced by
the biological breakdown of
organic matter in the absence of
oxygen and produced by anaerobic
digestion or fermentation of
bio-degradable materials like
biomass manure sewage, municipal
waste, green waste and energy
crops;
"biogas digester" means an
equipment that has the capacity
to degrade organic matter to
produce biogas;
"biomass" means organic matter
like agricultural crops and
residue, wood and wood waste,
animal waste, aquatic plants and
organic components of municipal
and industrial waste; "Board"
means the governing body of the
Energy CommisSIOn;
"bulk customer" means a customer
that purchases or receives
electricity in the amount or
level specified by the Board;
"Commission" means the Energy
Commission established under the
Energy Commission Act, 1997
(Act, 541); "distribution
system" means the portion of the
equipment used to deliver
electricity between the
distribution utility and the
bulk customer or consumer;
"distribution utility" means a
person licensed to distribute
and sell electricity without
discrimination to consumers in
an area or zone designated by
the Board;
"energy crop" includes a plant
(a)
that can be directly exploited
for its energy content, (b)
that is grown for the sole
purpose of energy production
but not for food production, or
(c)
that is grown specifically for
its fuel value;
"energy security" means the
availability, adequacy,
reliability and environmental
sustainability of energy supply;
"energy sources" includes coal,
wind, oil, gas or wood consumed
in the generation of power;
"end-user-tariff" means the rate
per unit of electricity paid by
consumers of the distribution
utility;
"feed in tariff" means a fixed
guaranteed price at which power
producers are required to sell
renewable energy into the
electric power system;
"feed in-tariff scheme" means a
policy that guarantees grid
access to renewable energy
producers and sets the
feed-in-tariffs; "feedstock"
means a material that can be
used to produce biofuel;
"generator of electricity" means
the person that generates
electricity from renewable
energy sources and supplies it
to the general public;
"geothermal energy" means energy
extracted from heat available
in the earth;
"grid connection" means the
physical linkage between a
renewable energy system and the
utility grid;
"grid interactive renewable
electricity" means a system
which has the capacity to feed
electricity from renewable
energy source into the utility
grid;
"hydro" means a water based
energy system which produces
electricity with generating
capacity not exceeding one
hundred megawatts;
"industrial hazardous waste"
means discarded solid or liquid
waste from industrial activity
that
(a)
contains any solvent, pesticide
or paint stripper and one or
more of 39 carcinogenic,
mutagenic or teratogenic
compounds at levels that exceed
established limits;
(b)
can catch fire easily like
gasoline, paints and solvents;
(c)
is reactive or unstable enough
to explode or release toxic
fumes including acids, bases,
ammonia and chlorine bleach, or
(d)
is capable of corroding metal
containers like tanks, drums and
barrels, industrial cleaning
agents and oven and drain
cleaners;
"industrial waste" meanswaste
produced as a result of the
industrial activity in a
factory, mill or mine but that
is neither hazardous nor toxic
as waste fiber produced by
agriculture and logging;
"landfill gas" means the gas
produced in landfills due to the
anaerobic digestion by microbes
on any organic matter which can
be collected and flared off or
used to generate electricity;
"licensed facility" means a part
of or the whole portion of a
building, structure, equipment
or plant that is licensed for
the purpose of activities in the
renewable energy industry; "mini
grid renewable power system"
means a network of electricity
supply from renewable energy
technologies which is not
connected to the grid;
Minister" means the Minister
responsible for Energy;
"municipal area" includes a
metropolis, municipality or
district;
"municipal waste" includes waste
that arises from domestic
activity and is predominantly
household, commercial waste
collected within a municipal
area in a liquid, solid or semi
solid form but excludes
industrial hazardous or toxic
waste;
"non-depleting resources" means
resources that replenish
themselves or reproduce easily;
"ocean energy" means energy
created by the power of ocean
currents, waves and tides with
the use of technology;
"off grid renewable power
system" means electricity supply
from renewable energy
technologies which is not
connected to the grid;
"premium" means the amount
payable by the bulk customer
instead of the purchase of
electricity required under
subsection (4) (a) of
section 26;
"power system" means the
interconnected system of
generation units, transmission
and distribution system operated
as an integrated arrangement for
the supply of electricity;
"Power Purchase Agreement" means
an agreement that sets out the
rights and liabilities between
the generator of electricity
and the distribution utility or
bulk customer; "production based
subsidy" means financial
assistance given
for the generation of
electricity;
"Public Utilities Regulatory
Commission" means the Public
Utilities Regulatory Commission
established under the Public
Utilities Regulatory Commission,
Act 1997 (Act 538);
"public utility" means a person
licensed under the Energy
Commission Act, 1997 (Act 541)
to provide transmission and
interconnection services for
electricity without
discrimination throughout the
country or a person licensed
under that Act to distribute and
sell electricity without
discrimination to consumers in
an area or zone designated by
the Board of the Commission.
"renewable energy certificates"
means a tradable environmental
commodity that represents proof
that electricity was generated
from an acceptable source and
which can be sold, traded or
bartered by the owner of the
certificate claiming to have
purchased renewable energy;
"renewable energy product" means
goods and services produced
from renewable energy;
"renewable energy resources"
includes natural resources such
as sunlight, wind, rain, tides
and geothermal plant, which are
renewable and naturally
replenished;
"renewable energy sources" means
renewable non-fossil energy
sources like wind, solar,
geothermal, wave, tidal,
hydropower, biomass, landfill
gas;
"renewable energy system" means
equipment that transforms
renewable energy sources into
electrical or heat energy;
"sewage gas" means biogas
produced by the digestion and
incineration of sewage sludge
which can be used to generate
energy;
"transmission system" means an
interconnected group of
electric transmission lines and
associated equipment for moving
or transferring electrical
energy in bulk between points of
supply and points at which it is
transformed for delivery over
the distribution system lines to
consumers or is delivered to
other electric systems;
"wheeling" means the use of the
facilities of one transmission
system to transmit power and
energy from one power system to
another;
"wholesale supplier" means a
person licensed under the Energy
Commission Act to install and
operate a facility to procure or
produce electricity for sale to
bulk customers or to a
distribution utility for
distribution and sale to
customers; and
"woodfuel" includes firewood and
charcoal.
Consequential amendments
52. (1) The National Petroleum
Authority Act, 2005 (Act 691) is
amended in subsection (2) of
section 2
(a)
by the insertion after paragraph
(m) of the new paragraph
"(rna) establish producer prices
for bio-fuel and review these
prices periodically"; and
(b)
in section 81 by the insertion
of the definition of "bio-fuel"
means non fossil fuel produced
from crops and plants;"
after "Basel Convention".
Transitional provisions
53. Until such time that a
Renewable Energy Authority is
established, the Renewable
Energy Directorate under the
Ministry of Energy shall (a)
oversee the implementation
of renewable energy activities
in the country;
(b)
execute renewable energy
projects initiated by the State
or in which the State has an
interest; and
(c)
manage the assets in the
renewable energy sector on
behalf of the State
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