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Consolidated Article 10c(6) of Directive 2003/87/EC application of Estonia

Amendments in the consolidated .xls file of the application

1. In the sheet “A. Eligibility of Member State” the condition “b) in 2007, the national electricity network was only directly of indirectly connected to the network operated by UCTE through a single line with a capacity of less than 400 MW” has been added;

2. In the sheet “B.2. Total quantity” the total quantity calculation has been done using GWh instead of TJ.

3. In the sheets “B.1.b Operators”, “B.1.c.Installations”, “B.3.1.Allocation based on VE” and “C.1.Investments” the company group KK has been corrected in the whole application.

4. In the sheet “B.1.c.Installations” the data regarding the emissions of EE-001 – Balti Elektrijaam, EE-002 – Eesti Elektrijaam, EE-005 – VKG Energia OÜ Põhja jaam EE-006 – VKG Energia OÜ Lõuna jaam, EE-008 - Sillamäe SEJ has been changed due to better available data.

The updated .xls file is added as annex 11.

A. Evidence that at least one of the conditions laid down in Article 10c(1) of Directive 2003/87/EC is met

The eligibility of Estonia is shown on the following worksheet:

A. Eligibility of Member State

Estonia meets the conditions of Article 10c(1) letter b and Article 10c(1) letter c. The statistical source for the Article 10c(1) letter c is following:

http://pub.stat.ee/px-web.2001/Dialog/varval.asp?ma=FE032&ti=CAPACITY+AND+PRODUCTION+OF+POWER+PLANTS&path=../I_Databas/Economy/07Energy/02Energy_consumption_and_production/01Annual_statistics/&lang=1

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B. Eligibility of installations considered to receive temporary free allocation of emission allowances, total

quantity of temporary free allocation of emission allowances and amounts of free emission allowances

allocated to theses installations

B.1. List of installations deemed to be eligible for free temporary free allocation under Article 10c of Directive 2003/87/EC

Information regarding company groups, operators and installations is provided to the following worksheets:

B.1.a. Company groups

B.1.b. Operators

B.1.c. Installations

List of the installations in the application is following:

Installation number in article 10c application

Installation name Installation Identifier

EE-001 Balti Elektrijaam 1

EE-002 Eesti Elektrijaam 2

EE-003 Eesti Energia AS Iru Elektrijaam 3

EE-004 Ahtme Elektrijaam 4

EE-005 OÜ VKG Energia Põhja SEJ 5

EE-006 OÜ VKG Energia Lõuna SEJ 8

EE-007 Kiviõli Keemiatööstuse OÜ 12

EE-008 AS Sillamäe SEJ 13

EE-009 Anne koostootmisjaam 54

EE-010 Pärnu Elektrijaam 53

EE-011 Põlva keskkatlamaja 56

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Clarifications regarding the list of installations

1. During the period 2008-2012 the emissions from EE-005 and EE-006 are shown as two different installations. Starting from 2013 the emissions of EE-005 and EE-006 are shown as one installation.

2. Installation EE-004 – Ahtme Elektrijaam produces both electricity and heat. The Ahtme CHP has two electrical blocks with total electrical capacity of 30 MW. Ahtme Elektrijaam was not shown as electricity producer in the NIMs list due to a mistake in the NIMs submitted by VKG Soojus OÜ. The fact that EE-004 - Ahtme Elektrijaam is an electricity producer is also visible in the EE-004 NIMs sheet E_EnergyFlows, in the first table. Also based on the methodology report shows clearly that EE-004 - Ahtme Elektrijaam is a electricity producer.

Please find added as annex 1 the permit decision by the Energy Market Inspectorate, by which EE-004 – Ahtme Elektrijaam, owned by AS Kohtla-Järve Soojus, has an electrical capacity and the right to produce electricity (Ahtme Elektrijaamas kasutatakse elektri ja soojuse

koosttootmiseks 20 MW elektrilise võimsuse vasturõhureziimis töötavat turbiini ja 10 MW

elektrilise võimsusega termofiksatsiooniturbiini.) (please consider the annex as confidential and it will no be published). AS Kohtla-Järve Soojus was renamed to VKG Soojus AS 21.06.2011. Please find the proof regarding the renaming added as annex 2 (please consider the annex as confidential and it will not be published).

3. OÜ Tallinna Elektrijaam – KL-0049 – did not submit an application for free allowances under article 10c.

Emissions attributable to electricity production in the case of eligible installations producing electricity and heat

Confirmation regarding the calculation methods used in the sheet “Installations”:

1. EE-001, EE-002, EE-003 EE-004, EE-005 and EE-006 have confirmed that the calculation of emissions attributable to electricity production in case of eligible installations producing electricity and heat has been carried out in accordance with Commission Decision determining transitional Union-wide rules for harmonized free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/EC.

2. EE-007 and EE-008 have confirmed that the calculation of emissions attributable to the production of electricity has been carried out in accordance with Annex IIA of the Allocation Decision.

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B.2. Total quantity of free allocation

Information regarding total quantity of free allocation is provided in the worksheet “B.2. Total quantity”.

For the calculation of the total quantity the statistics of Eurostat were used (http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/data/database, table nrg 105a). Estonia had during the period 2005.2007 instead of the net electricity imports net electricity exports. Based on European Commission consulations the value for Mnet is shown as 0.

unit: Gwh Code 2005 2006 2007 Average

FEC Final energy consumption (in terms of electricity)

Stat:101700 6040 6490 6795 6441,67 Gwh

Mnet Net electricity imports Stat:100600 0 0 0 0,00 Gwh

TGEP Total gross electricity production

Stat:107000 10205 9732 12190 10709,00 Gwh

TDL Transmission and distribution losses

Stat:101400 1103 1077 1354 1178,00 Gwh

Ceg Electricity consumption of the electricity sector

Stat:101301 1091 1003 1236 1110,00 Gwh

B.3. Installation based temporary free allocation of emission allowances

B.3.1. Temporary free allocation of emission allowances on the basis of verified emissions 2005 to 2007

Relevant data to determine the temporary free allocation of emission allowances on the basis of verified emissions 2005 to 2007, is assigned to the rows in the worksheet “B.3.1. Allocation based on VE”.

B.3.2. Temporary free allocation of emission allowances on the basis of benchmarks

Relevant data to determine the temporary free allocation of emission allowances to each eligible installation on the basis of ex-ante efficiency benchmark, is assigned to the worksheet “B.3.2. Allocation based on BM”.

The following installations are considered as installations, which will be allocated based on the benhmark:

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1. Installation EE-009 - Anne katlamaja koostootmisjaam. In 2010 Anne CHP produced 205840 Mwh gross electricity. Load factor based on annual figures is 205840/24,8 MW is 8300 hours.

The analysis of 23.05.2011, which evaluates the need for a boiler house, is added as annex 3 (the documents are considered confidential and will not be published). Most important part of the presentation is at page 15, which is the summary and compares the situations. The analysis was the first real step in planning the new boiler house. The investment is still in preparatory status. Based on the anlysis the board Fortum Tartu approved investment plan of EE-009 for the year 2012, which includes the preparatory and preliminary planning costs of the new boiler house. The investment plan of the year 2012 of Anne Soojus AS is added as annex 4 (the documents are considered confidential and will not be published).

2. Installation EE-010 - Pärnu KTJ. In 2010 Pärnu CHP produced 178 926 MWh gross electricity. Load factor, based on annual figures is 178 926/23,6 MW is 7582 hours. The following evidence is provided regarding EE-010 (the documents are considered confidential and will not be published):

• Annex 5 - the agreement of services of necessary engineering, procurement and construction management services for the implementation of the CHP project shows clearly that the investment process for EE-010 - Pärnu KTJ was physically initiated before 31.12.2008.

• Annex 6 - the construction permit shows that preparatory works on the EE-010 - Pärnu KTJ construction site were started before 31.12.2008.

• Annex 7 - turbine-generator contract (Siemens Industrial Turbomachinery, Contract nr. 001-08, 30.07.08).

• Annex 8 - main boiler contract (Andritz Oy, Contract nr. 003-08, 15.09.08).

• Annex 9 - fuel handling system contract (BMH Technology, Contract nr. 005-08, 19.12.08).

3. Installation EE-011 - Põlva KTJ. The installation EE-011 is using Jenbacher 320 technology. Põlva Soojus AS is leasing the device from the Põlva Town Government, who received the device as a gift from the Kingdom of Denmark. The contract between Põlva Town Government and Kingdom of Denmark is added as annex 10. In 2010 Põlva CHP produced 7216 MWh gross electricity. Load factor, based on annual figures is 7216/0,922 MW is 7826 hours.

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C. Investments listed in the national plan, eligibility of investments in the national plan, balance between market

value of free emission allowances and value of investments, non-transferable allowances

C.1. Investments listed in the national plan

Relevant data regarding investments is assigned to the worksheet “C.1. Investments”. The national plan includes funding of investments for the modernisation of electricity generation installations through free allocation of greenhouse gas emission allowances to electricity generation installations in accordance with Article 10c of the ETS Directive. These investments have an obvious environmental benefit of reducing greenhouse gas emissions, which is the overall objective of the Community-wide Emission Trading Scheme (hereafter referred to as the "ETS"). At the same time, the investments enhance the efficiency of generation infrastructures.

A secondary objective which is automatically fulfilled is the enhancement of security of supply of electricity in Estonia. In also funding projects for other sources of energy and with additional generation capacities, the investments add to the diversification of sources of supply and strengthen competition in the generation of electricity in Estonia.

OVERALL CONTEXT OF THE NATIONAL INVESTMENT PLAN

Due to historic developments, Estonia’s power production is currently dominated by oil shale based energy production - ca. 90% of domestically generated electricity comes from oil shale.

However, Estonia is preparing for a major structural change in its power production policy: the current oil-shale based energy production will move towards a very open, more diversified, safe and environmentally sound energy production portfolio. In order to achieve these goals, Estonia has developed a National Electricity Sector Development Plan until 2018, which was approved by the Government of Estonia in 2009 and, which foresees the following steps:

• Closure of old oil-shale based power production;

• Partial introduction of desulphurisation and denitrofication equipment to the limited amount of existing oil-shale power plants;

• Increase of renewable and combined heat and power production;

• Increase of international competition by liberalising the power market and by installing additional interconnections to the neighbouring Member States;

• Introduction of modern natural gas and oil shale based power production facilities with lower emissions.

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These steps aim at guaranteeing that the Estonian power market will deliver to its customers secure and stable energy supply at reasonable prices and with limited environmental impact and would avoid potential abuse of the market power by players located outside the EU. Due to the fact that the Estonian energy market is currently very strongly interconnected with Russian power grids, there are specific market conditions, which have an adverse impact on the energy markets and investment decisions in the whole region.

Without the funding of the modernisation of electricity generation infrastructure by the allocation of free allowances, the Estonian energy market would be dominated by Russian energy suppliers, who do not need to purchase emission allowances in accordance with the EU framework, because the investment risks for building new natural gas and oil shale based power plants are very high. Unfair competition from generators from third countries who do not participate in the EU-s ETS would undermine investment conditions also for renewable producers and would require higher subsidies to meet the 2020 goals. The impact of such adverse market conditions can already be observed in Lithuania, where the closure of a nuclear plant has brought about a strong dependence on Russian energy supplies.

In order to fulfil the objectives foreseen in the National Electricity Sector Development Plan, Estonia is therefore promoting measures, which would encourage new investments in the energy sector and would diminish the threat of dependence in sole suppliers from outside the EU. At the same time, diversification and efficiency-enhancement of energy infrastructures contribute to a reduction of greenhouse gas emissions and more environmentally friendly energy production in Estonia.

Beneficiaries of free emission allowances must commit to undertake investments for the modernisation of the Estonian electricity generation system included in the investment plan, whose amount must be equivalent to or higher than the market value of the free emission allowances received.

Pursuant to Ambient Air Protection Act paragraph 1195 point 7, those investments must comply with the following principles:

• the investment shall directly or indirectly and cost-efficiently reduce greenhouse gas emissions;

• the investment conforms to the National Development Plan of the Energy Sector until 2020, approved by a resolution of the Riigikogu (Parliament of Estonia) passed on 15 June 2009;

• the investment complies with the relevant EU legislation. The investment must not strengthen the dominant position of the operator in the market nor cause an unjustified distortion of the competition;

• the investment is an addition to investments, which the Republic of Estonia has to perform in order to achieve other objectives or fulfil legal requirements arising from EU legislation. The investment must not increase the total volume of electrical energy production of the installation in the period from 2013–2019;

• the investment shall diversify the energy and supply sources for electrical energy production and shall reduce the greenhouse gas emissions from energy production;

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• the investment shall remain economically sustainable also after 2019, except for investments in testing new technologies;

• the market value of the free emission allowances applied for is equivalent to or lower than the cost of the investment to be performed according to the application.

The Estonian National Development Plan of the Energy Sector strengthens diversification and competition in the Estonian electricity market

At the outset, it is of importance to point out the different measures taken by the Estonian government with a view to strengthening diversification and competition of the energy mix.

Strengthening of competition. According to the Estonian National Development Plan of the Energy Sector, 2008-2020 prepared by the Ministry of Economics and Communications and approved by the Estonian Parliament in 2009, the aim of the Republic of Estonia is to ensure that by 2018 the market share of any electricity seller once import restrictions have been fully removed will not exceed 40%, taking into account that it was 95% for Eesti Energia in 2007.

The closure of old oil shale based capacities will limit the market power of the current incumbent Eesti Energia. The share of their capacities from the total capacity market of the liberalized Estonian power market is expected to decrease from current 60% to 34,6% by 2020 and potentially further to 24,3% by 2025 (having in mind the old turbines of already refurbished CFB-based oil-shale units).

To ensure stronger competition and transparent and reasonable prices for the consumers in the long run, Estonia has put emphasis on market liberalization and building new interconnectors. In April 2010, 35% of electricity market was opened (large consumers with annual consumption over 2 GWh were obliged to buy electricity from market) and power exchange operated by Europe’s biggest spot market operator Nordpool Spot was launched. Launching of the power exchange has been a true success, as the volumes traded have grown very rapidly and now ca 38% of domestic electricity consumption is traded on spot market. Attractiveness of the Estonian power exchange is testified by the fact that Latvian and Lithuanian market participants have brought significant volumes to the power exchange as well. The further introduction of power exchange in Latvia and Lithuania in 2012 will make the market operations even more transparent. After 100% opening of the Estonian power market in 2013 (as agreed in the Accession Treaty) the power market in Estonia has many players from outside of Estonia. By these means Estonia will have unprecedented level of market opening among the EU Member States, having in mind the potential of the different players. Taking into account, that the average power consumption in Estonia is currently around 1000 MW, at least 4 market players (Eesti Energia, Russian, Finnish and Baltic incumbents) have the potential to supply this volume to the Estonian market from their existing power plants. This means extremely high competition level compared to other Member States.

In addition to these measures, Estonia has also made significant progress with the implementation of goals set forth in National Energy Development Plan for promoting renewable energy and moving towards more balanced energy mix. By supporting new renewable power and cogeneration plant projects, the share of renewable electricity in total final consumption of electricity has risen from below 1% in 2005 to 2,1% in 2008, 6,2% in 2009 and exceeded 10% in 2010 (estimate). New renewable based power plants have mainly been introduced by new market entrants (mainly Norwegian and Finnish companies). In just 3 years, after introduction of feed-in tariffs, there has been significant growth in new wind (by 150 MW) and biomass based CHP capacities (by 75 MW). Therefore, Estonia is also

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progressing fast and is on very good track to reach 25% of renewable energy sources in total final consumption by 2020.

Strengthening of diversification. Target of Estonian National Energy Sector Development Plan until 2020 is to balance the electricity production portfolio mainly between renewable energies, CHP-s and oil-shale based power plants, to increase the competition from outside of Estonia and to guarantee the power supplies with reserve capacities.

The National Electricity Sector Development Plan until 2018 (approved by the Government in 2009) foresees by that time the introduction of 600 MW of new oil-shale based power production and shutting down up to 1280 MW of old oil-shale capacities, increase in capacities of on-shore wind parks to 400 MW and off-shore wind parks conditionally up to 500 MW, increase of capacity of the combined heat and power plants (CHP-s) to 260 MW, introduction of disturbance reserve capacities to 600 MW and peaking reserve capacities to 300 MW. The National Energy Sector Development Plan also supports these projects until 2020, approved by the Parliament in 2009.

Estonia has also introduced a requirement for the network companies, that they should install smart meters to all business customers by 2013 and to all customers by 2017. This is earlier than is planned by the European Union (target date currently is planned to be in 2020). These investments are planned to be financed via network tariffs.

The investment plan has to be seen in the overall context of these different measures. It is only one amongst a set of measures but yet another measure to allow for a strengthening of the diversification and competition in the Estonian electricity market.

The investment plan will further contribute to strengthening diversification and competition in the Estonian electricity market

As explained above, the notified scheme relies upon the balance between the market value of free emission allowances and the amount of investments. Beneficiaries of free emission allowances must undertake investments, as a counterpart of the free emission allowances they receive. Those investments will be designed and selected, according on their capacity to contribute to the modernisation of the Estonian electricity generation system in accordance with the National Energy Development Plan.

Estonian national plan investments compatibility to the EU Guidance document

All the investments in the Estonian national plan follow the principles of the Estonian legislation related to article 10c and they help to achieve the goals of the National Electricity Sector Development Plan.

All of the investments in the national plan help cost effectively decrease greenhouse gas emissions. To archive the reduction the installations are renovated, retrofitted with new parts and also completely new installations are going to be built. The new oil shale units for example will decrease the amount of the CO2 emitted considerably in minimum 400 000 tonnes of CO2 per year. If the possibility of bio fuels is used this will increase the yearly reduction even further. Many investments reduce also the SOx and NOx emissions of the installations.

All of the investments are helping to decrease the share of one fossil fuel in the Estonian energy mix. The units of Eesti Energia are planned to be used with oil shale and bio fuel both to reduce the CO2 emissions even further. Many investments in the national plan are investments for using more natural gas in Estonian electricity production.

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The investments in the Estonian national plan are compatible with each other and other relevant Union legislation. They do not reinforce dominant positions nor unduly distort competition and trade in the internal market. The notified scheme rewards undertakings going beyond existing standards and achieves a net environmental benefit. Indeed, in order to capitalise the potential aid from the free allocation of emission allowances, undertakings have to reduce emissions further than their target levels existing under other EU law obligations.

Estonia would like to emphasize that the investments to be undertaken under the notified scheme are independent from those, which stem from other objectives and legal requirements under EU Law. The investments under the notified scheme are therefore additional investments within the meaning of Principle 4 of the Commission's Guidance Document.

It is worth mentioning that Estonia is on track to meet its mandatory target of 25% share of energy from renewable sources in gross final energy consumption by 2020, under Directive 2009/28/EC of 23 April 2009 on the promotion of the use of energy from renewable sources.

The aid scheme will thus not only enable Estonia to achieve these targets but also to go beyond them. Under the Accession Treaty as a basis of Estonian EU membership from 1st May 2004, the Estonian State took the obligation to modernize and improve significantly its power generation sector and reduces environmental impact. At the same time, the Estonian State was granted a derogation period up to 2016 to bring certain power plants explicitly named in the Accession Treaty into compliance with European Union Environmental regulations (particulates, sulphur and nitrogen compounds) for large combustion plants.

One of the previously mentioned explicitly named power plants in the Accession Treaty were oil shale based Narva Power Plants. Estonia committed to retrofit four boilers at Narva Power Plants to meet European Environmental LCP Directive (LCPD) by the 31st of December 2004 and another four by 31st of December 2010. Narva Power, the owner of oil shale fired power stations in Narva equipped one energy unit in both Eesti and Balti power plants with two boilers based on circulating fluidised bed technology by 31st of December 2004. All four retrofitted boilers met fully the demands set forth in Large Combustion Plant Directive (LCPD) and also will meet the Industrial Emissions Directive (IED) demands valid from 2013. Although Estonia committed to modernize another four boilers to meet EU directives before the end of 2010, the modernization project has slightly delayed because of technical reasons (due to the oil shale and other solid fuels properties differences it is not possible to use directly common coal technologies). Along this process, however, eight boilers (twice as much as Estonia committed in the Accession Treaty) are now being equipped with desulphurization (DeSOx) systems by 2011.

The investments are not required to match increasing electricity supply and demand.

The investments in the Estonian national plan help do diversify the energy mix and reduce the current CO2 emissions and carbon intensity.

All investments in the national plan are proposed by known operators on the Estonian market and based on the assessment of the operators the investments should be economically viable after the year 2019, in absence of the free allocation of emission allowances under Article 10c of Directive 2003/87/EC.

Short descriptions of the investments

EE-$-0001 -1st unit of the new oil-shale and biomass power plant. The plant will be built next to an existing Eesti Power Plant at north-eastern corner of Estonia close to town of Narva. New power plant will play an important role in providing the security of supply of Estonia as the majority of existing oil-shale capacities are close to end of their lifecycle and

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will be closed during the years 2016-2023. The unit will use oil-shale as primary fuel and up to 50% of biomass as secondary fuel and will have net output of 274 MW. State of the art circulating fluidized bed technology (CFB) is being used in power plant which can be characterised as environmental friendly and efficient way of utilizing low calorific fuels such as oil-shale and biomass. With its capability to burn up to 50% of biomass and high efficiency the new unit is capable of reducing the CO2 emissions compared to the old units for more than 50%. The investment decision for building first unit was made in June 2011 and it shall be commissioned by 2016. The actual value of the investments is 606 900 000€. The value of the investment linked to the current application is 303 099 039 €.

The total decommissioning of Eesti Energia will be of 948MW capacity. Decommissioning of Eesti Energia will be done in two parts. First part is related to the blocks of installation EE-001 Balti Elektrijaam where in total 462 MW will be decommissioned by 2016. Second part is related to the blocks of installation EE-002 Eesti Elektrijaam where in total 486 MW will be decommissioned. The second part of decommissioning is done based on the IED article 33.

EE-$-0002 -2nd unit of the new oil-shale and biomass power plant – The second unit of the new oil-shale and biomass power plant will be identical to first unit and will be built right next to it. The investment decision will be made by mid-2012 and the commissioning of the unit is planned by 2018. The new power plant with its to units will play an important role in ensuring the security of supply of Estonia as the majority of existing oil-shale capacities are close to end of their lifecycle and will be closed during the years 2016-2023. The second unit uses oil-shale as primary fuel and is capable of using 50% of biomass as secondary fuel. In combination with high efficient circulating fluidized bed technology and high proportion of biomass in fuel mix the unit will deliver significant reduction of CO2 emissions compared to old existing oil-shale power plants. Because of some mutual systems and common design work with the first unit the investment cost for the second unit is remarkably lower than, therefore applying fewer allocations than for the first unit. The value of the investment is 470 000 000€.

EE-$-0001 and EE-$-0002 will diversify the usage of fuels with their capability to co-fire up to 50% biomass with oil shale. Furthermore, the new power plant in Eesti Energia Narva power plants have 20% higher overall efficiency compared to the existing power generation units due to utilization of state of the art technology. Existing oil shale power plant emit CO2 averagely 1,15 t/MWh whereas the new power plant emits 0,9 t/MWh. If 50% of biomass is being used along with oil-shale the new power plant will have special emission of CO2 as low as 0,45 t/MWh. It is estimated that the reduction of CO2 emissions from higher efficiency is 425 000 tons for one unit if compared to existing average special emission of oil shale power plants. Furthermore, if 50% of biomass is utilized along with oil-shale the overall reduction will increase by further 805 000 tons to the level of 1,23 million tons per one unit.

Moreover, due to the modern combustion technology and higher efficiency in new power plant, also the other relevant emissions will decrease drastically. The sulphur compounds will be emitted more than 300 times less (the existing oil shale power plants have average SOx special emission 1,8kg/MWhel whereas the new power plant will have 0,027 kg/MWhel). The estimated reduction of sulphur compounds will be 15 000 tons. Also the nitrogenous compounds will decrease from existing average level of 1,35 kg/MWhel to 0,4 kg/MWhel. The estimated the reduction of nitrogenous compounds will be more than 1800 tons.

EE-$-0003 - New 105 MW natural gas boiler house and building costs of the necessary connections. The new boiler house would improve the usage of heat created with the electricity production. The technology of two boiler houses of Anne Soojus AS is out-dated

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and the replacement of two boiler houses would save 9000 MWh of primary energy. The boiler house has energy conversion efficiency over 94%. The savings in the primary energy reduce the needed amounts of fuel and the related CO2 and NOx emissions. EE-$-0003 (Anne Soojus AS) is located Ringtee 8, Tartu, Estonia. The investment will add no new electricity production capacity. After the investment the technology used is water tube boilers 105MW (3x35MW) and natural gas. The old boiler house has installed capacity of 200MW, out of which 128MW +13MW are currently still in use. The old boiler house was using heating gas oil. the The new construction enables savings of primary energy in EE-009 - Anne katlamaja koostootmisjaam, which is supposed to work on base load. As a result of the investment the electricity base load in CHP will increase due to the more flexible operations of the boiler house, the heat condensation in the electricity plant will be reduced by 6000 MWh and the currently condensed heat will be used to heat additional households. The 3000 MWh saving of primary energy will be achieved because the investment will increase the fuel efficiency compared to older boiler houses.

EE-$-0004 – New natural gas boiler. The old boiler will be replaced with new natural gas boiler to increase the efficiency and environmental friendliness.

EE-$-0005 – Investments to modernise the electricity production. To increase the efficiency of electricity production the turbines will be replaced. Also the steam heating will be replaced with water heating, the transformations will be replaced, CO detectors will be installed and further changes.

EE-$-0006 – Investments for modernisation of the installation – boiler nr. 2. During the investment the boiler TII-35 (boiler nr. 2) will be transferred to bubbling fluidised bed technology. Through this change the need for fossil fuels will be reduced and as a result of the modernisation the main fuel will be renewable bio fuel, which will bring considerable reduction in CO2 emissions. In course of the investment the fuel system of the installation will be renovated to fit renewable fuels. The fuel handling systems will be also retrofitted to be suitable for bio fuels.

EE-$-0007 – Investments for modernisation of the installation – boiler nr. 1. During the investment the boiler TII-35 (boiler nr. 2) will be transferred to bubbling fluidised bed technology. Through this change the need for fossil fuels will be reduced and as a result of the modernisation the main fuel will be renewable bio fuel, which will bring considerable reduction in CO2 emissions.

EE-$-0008 – Modernisation of the electricity system – During the investment a new 110 kV connection will be created for the installation, the electricity grid and the electricity counting system will be renovated.

EE-$-0009 – Construction of a bio fuel / natural gas boiler. The new boiler will have better electricity conversion efficiency and lower CO2 emissions. The usage of bio fuels will enable further reduction of CO2 emissions and reduction in usage of primary energy.

EE-$-0010 – Installation of smoke condenser. With the help of smoke condenser the usage of primary energy will be reduced for the production of electricity and heat, which also reduced the CO2 emissions. The smoke condenser gives 13 MW of primary energy that can be used for distant heating.

EE-$-0011 – Renovation of the natural gas CHP engine in the installation using Jenbacher technology. The renovation will increase the efficiency of the CHP as the automatics and command system will be renewed.

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EE-$-0012 – New high pressure cogeneration block. Location of the investment is in the Northern Power Plant of VKG Energia OÜ, located in the outskirts of the town of Kohtla-Järve. Existing technology is based on 30 bar 400 Celsius steam boilers and turbines. , while EE-$-0012 will have 100 bar, 520 oC. The fuel before and after investment is the same: product gases from oil shale processing. The idea is that the back-pressure of the new unit (steam boiler + new back-pressure turbine) will serve as the inlet pressure for existing turbines. Due to the higher initial (live) steam parameters the technology offers high electrical efficiency gains. Thus the potential of existing technology will be utilised in full with simultaneous increase of efficiency and indirect decrease of emissions through higher degree of utilisation of oil shale processing by-product gases. Steam flow of the new block is expected to be 180 tons per hour with an electrical capacity of 9,5. A diversification of energy sources also takes place.

EE-$-0013 – New 27 MW cogeneration-condensing steam turbine with two automatic extractions. Location of the investment is in the Northern Power Plant of VKG Energia OÜ, located in the outskirts of the town of Kohtla-Järve. In years 2009-2011 new cogeneration turbine was installed. The turbine started commercial operation in June 2011. The fuel before and after investment is the same: product gases from oil shale processing. The electricity generation efficiency of the new steam turbine PT-27/29 (Kaluga Turbine Works) is higher by 30%, compared to the efficiency of old and outdated steam turbines in Northern Power Plant of VKG Energia OÜ. Part of the old turbines will be decommissioned in the near future. Respectively, specific consumption of fuel and emissions from electricity generation will also be reduced by 30% compared to the old and outdated steam turbines in Northern Power Plant of VKG Energia OÜ. This provides increase of electricity generation with simultaneous indirect decrease of emissions through higher degree of utilisation of oil shale processing by-product gases. A diversification of energy sources also takes place. VKG Energia OÜ is planning in total to decommission 24MW.

C. 2. Mechanism to ensure the balance between the value of investments and the value of free emission allowances

2.1. Please provide a description of the overall approach, the legal base and the operational details of the mechanism.

The enforcement and monitoring mechanism is notably designed to address the situations that are described in paragraph. 39 et seq of the Commission's Guidance document, which Member States may address by way of a transfer mechanism. The mechanism contained in the Implementing Regulation first addresses the situation in which a company does not implement the investment for which it could use free allowances (paragraph. 42 of the Guidance Document). In this case, the Implementing Regulation foresees that allowances are only handed out against proof that the investment is actually undertaken. Secondly, the enforcement and monitoring mechanism addresses the situation of allowances in excess of the value of the investment (paragraph 42, second alternative of the Commission's Guidance Document).

Estonia intends to apply a split between allocation and issuance. The issuance of allowances for each year will be done by 28 February. The operator has to submit the annual report of the

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investment by 15.01 of each year. Within 30 days after the approval of the reports the Ministry of Environment will allow the transfer the amount of free allowances the operator is entitled to based on their investments carried out, not exceeding the yearly maximum amount the operator is entitled to based on the investment plan.

Estonia confirms that the installation may be issued fewer allowances but the corresponding number of allowances not issued has to be reconverted into allowances to be auctioned by the Member State (see also answer to Question 16 above).

The allocation is based on the list of investment projects that fulfil the criteria set out in the Ambient Act (based on the Directive). One of the criteria is that the market value of the free emission allowances applied for is equivalent to or lower than the cost of the investment to be performed according to the application. The fulfilment of this criterion is ensured by the provisions of the Implementing Regulation, which regulates the transfer of the free allocation to the companies. This transfer can take place based on actual investments, i.e. after the investments have been made, reported in the annual or final reports (§8), verified by an independent auditor (§ 9) and approved by the Ministry of Environment (§ 10) or in case there is a need to postpone the investments by more than one year, the operator entitled to receive the free allocation needs to make a refundable deposit as a guarantee, in the sum equivalent to the free allocation in question and then is eligible to receive the allowances (§ 13). Within 30 days after the approval of the reports the Ministry of Environment will transfer the amount of free allowances the operator is entitled to based on their investments carried out, not exceeding the yearly maximum amount the operator is entitled to based on the investment plan (§ 11).

The Implementing Regulation also allows for a transfer over time. The recipient of the free allocation can ask for postponement of the fulfilment of the investment obligation in motivated cases having a valid program on how to carry out the investments. In case there is a need for postponement of the investment by up to one year, the free allowances will be issued after the investment has been made with one-year delay based on motivated application and the usual procedure (§ 12). In case there is a need to postpone the investments by more than one year, the operator entitled to receive the free allocation needs to make a refundable deposit as a guarantee, in the sum equivalent to the free allocation in question and then is eligible to receive the allowances (§ 13).

In any event, an operator who fails to comply with the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall transfer the value of the free allowances set in the investment plan to the State for each free emission allowance allocated. The current text in paragraph 15 of the Implementing Regulation will be amended accordingly.

A installation will be transferred free allowances only if the installation is able to prove in their annual reporting that they have conducted corresponding amount of investments or when they have made a payment in to the security account.

2.2. Please explain how the mechanism ensures that the value of emission allowances allocated for free in the framework of Article 10c of Directive 2003/87/EC is mirrored by the investments identified in the national plan and that the investments are

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undertaken in order to match the amount of investments with the value of free emission allowances. Please refer to point 2.1. The balance in ensured through the mechanism described in the point 2.1 and further transfer of funds will not be needed.

2.3. Please indicate the legal provisions ensuring that information on the net financial flows under the mechanism will be made available through the reports to be submitted to the Commission pursuant to Article 10c(1) of Directive 2003/87/EC including a copy of the text Please refer to point 2.1. The balance in ensured through the mechanism described in the point 2.1 and further transfer of funds will not be needed.

2.4. Please give a fictive example of how the information on the net financial flows under the mechanism will be made available through the reports to be submitted to the Commission pursuant to Article 10c(1) of Directive 2003/87/EC Please refer to point 2.1. The balance in ensured through the mechanism described in the point 2.1 and further transfer of funds will not be needed.

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C.3. Balance between market value of free emission allowances and value of investments

An allowances that is allocated during the years 2013-2014 based on the article 10c application will be valued at 14,5€/allowances. An allowances that is allocated during the years 2015-2020 based on the article 10c application will be valued at 20 €/allowances. Balance between market value of free emission allowances and value of investments is in the worksheet “C.3. Balance”.

AS Narva Elektrijaamad and Põlva Soojus AS will be issued allowances based on the value of the investment linked to the current application. The indicative allocation of AS Narva Elektrijaamad and Põlva Soojus AS is as follows:

Allowances Total 2013 2014 2015 2016 2017 2018 2019 2020

AS Narva Elektrijaamad

17 707 948 4 998 874 4 284 748 3 570 624 2 856 499 1 997 203 0 0 0

Põlva Soojus AS

9 052 2 354 2 017 1 681 1 345 1 009 646 0 0

In case the value of the investments of other installations goes below the value of free allowances to be received (the cost of the investment is reduced or investment is cancelled), the same approuch will be used for other installations.

C.4. Non-transferable allowances (only to be filled when applicable)

Non-transferable allowances will not be used in Estonia.

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D. Monitoring and enforcement provisions with respect to the intended investments pursuant to the national plan

D.1. Legal base of effective monitoring and enforcement provisions in Member State

D.1.1. Please provide a detailed description of the monitoring mechanism Ministry of Environment is responsible for the monitoring and enforcement of the national plan. The beneficiaries have to report every year to the Ministry of Environment. The Ministry of Environment has the right to check various documents related to the beneficiary’s investment, has the right to receive quick feedback from the beneficiary, to gain access to the area where the investment is conducted. External auditors have to verify the process of each investment on yearly basis. The auditors have to issue an official document regarding the nature of the investment and the exact amount spent each year. After completing the part of the project that corresponds to the amount of the free allowances the operator has to submit a final report. During the monitoring the indicators listed in the national legislation are taken into account.

D.1.2. Please provide a detailed description of how to enforce investments The free allowances has to transfer to the State the value of every free allowance unit if the terms of use of the free allowances units have not been followed. The current text of the Ambient Air Protection Act paragraph 1195 point 13 will be amended accordingly. Based on paragraph 1195 point 11 of the Ambient Air Protection Act, the Minister of the Environment has established the terms of use of the free allowances as well as the monitoring and enforcement mechanism by way of the Implementing Regulation. The enforcement and monitoring mechanism is notably designed to address the situations that are described in paragraph 39 and the following paragraphs of the Commission's Guidance document. The mechanism contained in the Implementing Regulation first addresses the situation in which a company does not implement the investment for which it could use free allowances (paragraph. 42 of the Guidance Document). In this case, the Implementing Regulation foresees that allowances are only handed out against proof that the investment is actually undertaken. Secondly, the enforcement and monitoring mechanism addresses the situation of allowances in excess of the value of the investment (paragraph 42, second alternative of the Commission's Guidance Document). According to the Estonian law allocations in excess of the value of investment are avoided. The allocation is based on the list of investment projects that fulfil the criteria set in the in the Ambient Air Protection Act (based on the Directive). One of the criteria is that the market value of the free emission allowance applied for is equivalent to or lower than the cost of the investment to be performed according to the application. The fulfilment of this criterion is ensured by the provisions in the Regulation of the Minister of Environment, which regulates the transfer of the free allocation to the

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companies. This transfer can take place based on actual investments, i.e. after the investments have been made, reported in the annual or final reports (paragraph 8), verified by an independent auditor (paragraph 9) and approved by the Ministry of Environment (paragraph 10). Within 30 days after the approval of the reports the Ministry of Environment will transfer the amount of free allowances based on the investments carried out to the operators account, but not exceeding the yearly maximum amount of allowances of the operator (paragraph 11). The Implementing Regulation also allows for a transfer over time. The recipient of the free allocation can ask for postponement of the fulfilment of the investment obligation in motivated cases having a valid program on how to carry out the investments. In case there is a need for postponement of the investment by up to one year, the free allowances will be allocated after the investment has been made with one-year delay based on motivated application and the usual procedure (paragraph 12). In case there is a need to postpone the investments by more than one year, the operator entitled to receive the free allocation needs to make a refundable deposit as a guarantee, in the sum equivalent to the free allocation in question and then is eligible to receive the allowances (paragraph 13). In any event, an operator who fails to comply with the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall transfer the value of allowances corresponding to the failure to comply to the state . The current text of paragraph 15 of the Implementing Regulation will be amended accordingly. In addition, the Ambient Air Protection Act provides that allowances may not be granted or not granted over amount that could lead to the strengthening of a dominant position or a distortion of competition. This situation corresponds to the situation described in para.44 of the Commission's Guidance Document) and is dealt with directly by the government when deciding on the amount of allowances to be allocated to a given investment. As further detailed below, in the case of the investment proposed by the national incumbent, Eesti Energia, for example, this means that the investment undertaken by that company receives less free allowances and thus a lower aid intensity than the value of investment (i.e. investment costs incurred) would actually justify.

Amendments to the current Implementing Regulation

The §11 of the Implementing Regulation will be amended to include the split of allocation and issuance. The wording in §11 “the allocation will be made in 30 day’s” will be amended to “allocation will be made by 28 February of each year. Point 5 will be added to §11, which states that allowances that are not issued will be reconverted to allowances to be auctioned.

The § 15 of the Implementing Regulation will be amended. The current text states that if an operator who fails to comply with the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall transfer back to the account of the state in the emissions trading register for each free emission allowance allocated. The text will be amended so that the operator who fails to comply with the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall transfer the value of the received allowances back to the state. The allowances that are transferred back are allocated to the auction amount.

To § 16 of the Implementing Regulation a clarification will be added regarding the financial penalties. The financial penalty will be calculated based on the value of the allowances that the beneficiary has to transfer to the state.

To §19 of the Implementing Regulation details regaring submission and publishing of annual reports will be added.

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D.1.3. Please provide a reference to the legal provisions, such as laws, regulations etc as well as relevant administrative provisions setting up the monitoring mechanism Monitoring mechanism was set in place with the regulation, which is set up based on Ambient Air Protection Act (paragraph 1195 point 11), by which the monitoring is conducted by the Ministry of Environment (paragraph 17) and the competences of the monitoring institution (paragraph 18).

Based on the §9 of the Implementing Regulation of 18.08.2011 the recipient of free allowances shall organise auditing of the Report and the Final Report by an independent auditor. The independent auditor shall issue an audit report with regard to the audit, certifying the type of investment and the exact sum invested in the audit period. The recipient shall submit the audit report to the Ministry of the Environment with the Report or Final Report. The recipient shall provide any and all means of assistance for the independent auditor upon the conducting of the audit, including providing access to the relevant data and documents for examination of the correctness of the data presented in the Report and Final Report and permitting the auditor to be on premises and territory related to the allocation and use of free emission credits. The external auditor has to prove that it is independent from the installation.

In the case that the operator of an eligible installation has transferred funds to the Security account and/or has been issued allowances, the interest would be applied if the installation has received part of the allocation, has cancelled the investment and is not willing to transfer the value of the received allowances.

§8 of the Implementing Regulation of 18.08.2011 - the recipient of free allowances shall submit an investment report (hereinafter the Report) to the Ministry of the Environment by 15 January every year regarding the investments executed during the previous calendar year. The first Report shall be submitted by 15 January 2014 at the latest. Ministry of the Environment ensures that the annual national report will be submitted to the Commission. The Ministry of Environment will submit all the information required by the European Commission.

D.1.4. Please identify the national authorities competent to implement the monitoring mechanism The Ministry of Environment is in charge of monitoring and enforcing the provisions of the Article 10c of the Directive.

D.2. Important elements of effective monitoring and enforcement to be addressed in the legal provisions under D.1.3.

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D.2.1. Please identify the provisions to define compliance indicators (examples see Annex VIII of the Commission Communication "Guidance document on the optional application of Article 10c of Directive 2003/87/EC") The compliance indicators were defined in paragraph 18 point 2 of the regulation, which is set up based on Ambient Air Protection Act (paragraph 1195 point 11).

D.2.2. Please identify relevant provisions on field supervision The on field supervision is defined in paragraph 18 point 1 of the regulation, which is set up based on Ambient Air Protection Act (paragraph 1195 point 11). Based on the §18 (1) of the Implementing Regulation of 18.08.2011 the supervisory authority that exercises supervision over the activities of the recipient shall have the right to be on the premises and territory of the recipient or other persons participating in the investment that have been created with the aid of the allocated free emission credits or related to the use of the allocated free emission credits for the purposes of exercising supervision and conducting on-site inspections. And examine the site(s) created with the aid of the allocated free emission credits. The supervisory authority conducting on the spot checks is Environmental Inspectorate.

D.2.3. Please identify relevant provisions concerning on-the-spot checks The paragraph 17 of the regulation, which is set up based on Ambient Air Protection Act (paragraph 1195 point 11), states that competent authority responsible for the monitoring has the right to conduct on the spot checks. Based on the §18 (1) of the Implementing Regulation of 18.08.2011 the supervisory authority that exercises supervision over the activities of the recipient shall have the right to be on the premises and territory of the recipient or other persons participating in the investment that have been created with the aid of the allocated free emission credits or related to the use of the allocated free emission credits for the purposes of exercising supervision and conducting on-site inspections. And examine the site(s) created with the aid of the allocated free emission credits. The supervisory authority conducting on the spot checks is Environmental Inspectorate.

D.2.4. Please identify relevant provisions requiring annual independent verification by external auditors for each investment including the issuance of an official document certifying the nature of each investment and the exact amount spent each year. Based on the §9 of the Implementing Regulation of 18.08.2011 the recipient of free allowances shall organise auditing of the Report and the Final Report by an independent auditor. The independent auditor shall issue an audit report with regard to the audit, certifying the type of investment and the exact sum invested in the audit period. The recipient shall submit the audit report to the Ministry of the Environment with the Report or Final Report.

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D.2.5. Please identify relevant provisions requiring third-party quantitative and qualitative assessment of investments to comply with the EU ETS Directive and the Guidance document. The paragraph 18 of the regulation, which is set up based on Ambient Air Protection Act (paragraph 1195 point 11), states that the indicators have to be taken into account when conducting monitoring.

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D.2.6. Please identify relevant provisions requiring copies of external auditor certification documents accompanied by an official translation into English to be annexed to the annual reports to be submitted by Member States to the Commission pursuant to Article 10c(1) of the EU ETS Directive. The Ministry of the Environment will advise the installations to acquire the certification documents in Estonian and English.

D.2.7. Please explain how the submission of the annual reports on investments pursuant to Article 10c(1) of the EU ETS Directive is ensured. The corresponding amount of free allowances will only be transferred to the installations account when a verifier annual report has been received and checked by the Ministry of Environment. Based on the Ambient Air Protection Act (paragraph 1195 point 13) the Ministry of Environment has the right not to issue allowances, when the national investment plan is not followed.

D.2.8. Please identify relevant provisions requiring publication of operators' reports pursuant to Article 10c(4) of the EU ETS Directive. Based on the provisions the national reports will be published. Confidential information related to the investments will not be published.

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D.3. Penalties and corrective measures in case of non-compliance with obligation to invest to recover value of free allowances not invested

D.3.1. Please provide a detailed description of measures in case of companies not complying with the obligation to invest Any beneficiary of free emission allowances who will fail to comply with the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan, shall transfer the value of allowances corresponding to the failure to comply to the state account, in respect to which the above-mentioned terms and conditions and procedure have not been followed, the number of the emission allowance units which is proportional to its non-compliance with the investment plan and to pay interest on the market value of the allowances returned. The current text of Pursuant Ambient Air Protection Act paragraph 1195 point 13 will be amended accordingly. The interest rate shall be the 6-month Euribor rate to which five per cent per year shall be added. The interest calculation will be based on a period of 360 days.

D.3.2. Please provide a detailed description of penalties and measures established with a view to recovering the balance between the value of free allowances and the investments identified in the national plan. Please refer to the point D.3.1.

D.3.2. Please identify relevant provisions concerning the obligation to repay free emission allowances up to the amount of the observed lack of investments Please refer to the point D.3.1.

D.3.2. Please identify relevant provisions requiring automatic forfeiture of allowances from companies not complying with their obligations accruing from the national plan and the Guidance document on the optional application of Article 10c of Directive 2003/87/EC (OJ C99 of 31.3.2011, p9) Please refer to the point D.3.1.

D.3.3. Please identify relevant provisions on dissuasive financial penalties of a punitive nature. Please refer to the point D.3.1.

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E. Transparency and public consultation

E.1. Has the application been published before submitting it to the Commission? If so, when, where and how has it been published? If not, why not? The Estonian Ministry of the Environment has taken the position to publish the article 10c application only after the European Commission confirms that the application is complete and the review period of 6 months has started. No confidential financial information will be published.

Call for proposals

The possible beneficiaries were notified through a call for proposals on 4 July 2011. This call for proposals was open to all Estonian electricity installations that are eligible to receive free emission allowances, i.e. electricity installations or cogenerators in operation before 31 December 2008 or for which investments has physically started before this date. The deadline for final submission of proposals was 25 August 2011.

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Annex I - Ambient Air Protection Act paragraph 1195

§ 1195. Elektri tootmise eest tasuta lubatud heitkoguse ühikute eraldamine

(1) Elektri tootmise eest perioodil 2013–2019 tasuta eraldatavate lubatud heitkoguse ühikute eest tehtavate investeeringute riikliku kava (edaspidi investeeringute kava) koostamist, kavasse arvatud investeeringute jaoks tasuta eraldatud lubatud heitkoguse ühikute kasutamist ja järelevalvet kasutamise üle korraldab Keskkonnaministeerium.

(2) Investeeringute kavasse arvamist võib taotleda kasvuhoonegaaside lubatud heitkoguse ühikutega kauplemise süsteemi kuuluv käitis, mis on olnud tegev või asjakohast investeerimist alustanud enne 2008. aasta 31. detsembrit ning mille käitaja on:

1) elektriettevõtja, kes toodab elektrienergiat või

2) koostootja, kes toodab elektrienergiat tõhusa koostootmise režiimil.

(3) Käitajale 2013. aastal investeeringute kava alusel tasuta eraldatavad lubatud heitkoguse ühikud võivad moodustada maksimaalselt 70 protsenti aastatel 2005–2007 selle käitise elektritootmise käigus elektri riigisisese lõpptarbimise katmisel tekkinud tõendatud keskmisest kasvuhoonegaaside heitkogusest. Kui käitis alustas tööd pärast 2007. aastat, eraldatakse 2013. aastal investeeringute kava alusel maksimaalselt 70 protsenti tasuta eraldatavaid lubatud heitkoguse ühikuid eelneva tõhususe võrdlusaluse põhjal. Pärast 2013. aastat väheneb tasuta eraldatavate lubatud heitkoguse ühikute määr kümme protsendipunkti aastas.

(4) Keskkonnaminister kehtestab määrusega käesoleva paragrahvi lõikes 3 nimetatud eelneva tõhususe võrdlusaluse.

(5) Keskkonnaminister kuulutab välja investeeringute kavasse investeeringute arvamise taotluste esitamise tähtaja, mis koos investeeringute kavasse arvamise taotluse vormiga avaldatakse Keskkonnaministeeriumi veebilehel.

(6) Keskkonnaminister võib kehtestada investeeringute kavasse arvamise taotlemise tingimused ja korra määrusega.

(7) Taotluse alusel investeeringute kavasse arvatav investeering peab:

1) vähendama kulutõhusalt otseselt või kaudselt kasvuhoonegaaside heitkoguseid;

2) olema kooskõlas energiamajanduse riikliku arengukavaga aastani 2020, mille Riigikogu kinnitas otsusega 2009. aasta 15. juunil;

3) olema kooskõlas kõigi asjaomaste Euroopa Liidu õigusaktidega ega tohi tugevdada käitaja turgu valitsevat seisundit ega põhjustada põhjendamatut konkurentsimoonutust;

4) täiendama investeeringuid, mida Eesti Vabariigil tuleb teha selleks, et täita muid Euroopa Liidu õigusest tulenevaid eesmärke või õiguslikke nõudeid. Investeering ei tohi suurendada aastatel 2013–2019 käitise elektritootmise kogumahtu;

5) mitmekesistama elektritootmise energia- ja tarneallikaid ning vähendama energiatootmisega seotud kasvuhoonegaaside heitkogust;

6) tagama investeeringu tulemuse jätkusuutlikkuse ka pärast 2019. aastat, välja arvatud juhul, kui tegemist on investeeringuga testimisel olevatesse uutesse tehnoloogiatesse;

7) olema taotletavate tasuta lubatud heitkoguse ühikute turuväärtusega samaväärne või väiksem taotluse kohaselt ellu viidava investeeringu maksumusest.

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(8) Kui taotluses toodud investeering ei vasta käesoleva paragrahvi lõikes 7 nimetatud nõuetele, peab taotleja mittevastavust taotluses üksikasjalikult põhjendama.

(9) Keskkonnaministeerium esitab investeeringute kava Euroopa Komisjonile heakskiitmiseks.

(10) Vabariigi Valitsus kinnitab Euroopa Komisjoni heakskiidetud investeeringute kava korraldusega.

(11) Investeeringute kava alusel tasuta eraldatavate lubatud heitkoguse ühikute kasutamise tingimused ja korra kehtestab keskkonnaminister määrusega.

(12) Investeeringute kava alusel tasuta eraldatavate lubatud heitkoguse ühikute kasutamise tingimuste ja korraga sätestatakse lubatud heitkoguse ühikute:

1) saaja kohustused;

2) eraldamise tingimused ja kord;

3) kasutamise aruandluse ja aruannete auditeerimise kord;

4) saaja üle järelevalve teostamise kord.

(13) Käitaja peab iga tasuta eraldatud lubatud heitkoguse ühiku kohta, mille kasutamise tingimusi ja korda ei ole täidetud, kandma investeeringute kava täitmata jätmisega proportsionaalse arvu lubatud heitkoguse ühikuid kasvuhoonegaaside heitkoguste ühikutega kauplemise registris riigi kontole ja maksma tagastatavate ühikute turuväärtuselt intressi. Intressimäär on kuue kuu Euribor, millele lisandub viis protsenti aastas. Intressiarvestuse baasiks on 360-päevane periood.”;

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Annex II - Ambient Air Protection Act paragraph English translation1195 unofficial English translation

§ 1195. Free emission allowances allocated for electrical energy production

(1) Preparation of the national investment plan for the allocation of free emission allowances for electrical energy production in the period from 2013–2019 (hereinafter: investment plan), use of the free emission allowances for investments included in the plan, and supervision over their use shall be organised by the Ministry of the Environment.

(2) Inclusion in the investment plan can be applied for an installation which is included in the system of trading with greenhouse gas emission allowances and had started the investment concerned or its operation before 31 December 2008 and is operated by:

1) an electricity undertaking which produces electrical energy, or

2) cogenerator which generates power in an efficient cogeneration regime.

(3) The free emission allowances to be allocated to the operator in 2013 on the basis of the investment plan shall account for no more than 70 per cent of the certified average greenhouse gases emissions generated by the installation with electrical energy production in 2005–2007 to cover domestic electricity consumption by end users. If the installation started operation after 2007, the allocation on the basis of the investment plan in 2013 shall not exceed 70 per cent of free emission allowances to be allocated on the basis of an ex-ante efficiency benchmark. After 2013 the proportion of free emission allowances to be allocated shall decrease by ten percentage points annually.

(4) The ex-ante efficiency benchmark mentioned in subsection (3) above shall be established by a regulation of the Minister of the Environment.

(5) The Minister of the Environment shall set a deadline for the submission of applications for inclusion of investments in the investment plan, which shall be published on the web site of the Minister of the Environment together with the form of the application for inclusion of investments in the investment plan.

(6) The terms and conditions and the procedure for the inclusion of an investment in the investment plan may be established by a regulation of the Minister of the Environment.

(7) An investment to be performed on the basis of an application for inclusion in the investment plan shall conform to the following principles:

1) the investment shall directly or indirectly and cost-efficiently reduce greenhouse gas emissions;

2) the investment conforms to the National Development Plan of the Energy Sector until 2020, approved by a resolution of the Riigikogu passed on 15 June 2009;

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3) the investment complies with the relevant EU legislation. The investment must not strengthen the dominant position of the operator in the market or cause an unjustified distortion of the competition;

4) the investment is an addition to investments which the Republic of Estonia has to perform in order to achieve other objectives or fulfil legal requirements arising from EU legislation. The investment must not increase the total volume of electrical energy production of the installation in the period from 2013–2019;

5) the investment shall diversify the energy and supply sources for electrical energy production and shall reduce the greenhouse gas emissions from energy production;

6) the investment shall remain economically sustainable also after 2019, except for investments in testing new technologies;

7) the market value of the free emission allowance applied for is equivalent to or lower than the cost of the investment to be performed according to the application;

(8) if the investment mentioned in the application does not conform to the principles mentioned in subsection (7), the applicant shall have to provide a detailed justification for the non-conformity in the application;

(9) the Ministry of the Environment shall present the investment plan to the European Commission for approval;

(10) the Government of the Republic shall approve with its order the investment plan approved by the European Commission;

(11) the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall be established by a regulation of the Minister of the Environment;

(12) the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall provide the following with respect to the emission allowances;

1) obligations of the beneficiary;

2) terms and conditions and the procedure for their allocation;

3) procedure for reporting and for auditing the reports;

4) procedure for performing supervision over the beneficiary;

(13) An operator who fails to comply with the terms and conditions and the procedure for the use of the free emission allowances allocated on the basis of the investment plan shall transfer back to the account of the state in the greenhouse gas trading register for each free emission allowance allocated, in respect to which the above-mentioned terms and conditions and procedure have not been followed, a number of the emission allowances which is proportional to its non-compliance with the investment plan and to pay interest on the market value of the

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allowances returned. The interest rate shall be the 6 month Euribor rate to which five per cent per year shall be added. The interest calculation is based on a period of 360 days.“;

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Annex III - Regulation based on Ambient Air Protection Act paragraph 119 5 point 4

KESKKONNAMINISTRI

MÄÄRUS

Tallinn 2011 nr

Perioodil 2013–2019 elektri tootmise eest eraldatavate tasuta lubatud heitkoguse ühikute eelneva tõhususe võrdlusalus

Määrus kehtestatakse “Välisõhu kaitse seaduse” § 1195 lõike 4 alusel.

§ 1. Eelneva tõhususe võrdlusalus

(1) Käitisele, kes vastab “Välisõhu kaitse seaduse” § 1195 lõikes 2 toodud tingimustele ja kes

alustas tegevust pärast 2007. aastat, arvutatakse “Välisõhu kaitse seaduse” § 1195 lõikes 1

nimetatud investeeringute kava koostamisel elektri tootmise eest perioodil 2013-2019 tasuta eraldatavate lubatud heitkoguse ühikute kogus elektri tootmise andmete korrutamisel eelneva tõhususe võrdlusalusega.

(2) Eelneva tõhususe võrdlusalus on 0,6408 tonni süsinikdioksiidi toodetud elektrienergia megavatt-tunni kohta.

§ 2. Elektri tootmise andmete arvutamine

(1) Käesoleva määruse § 1 lõikes 1 nimetatud elektri tootmise andmed arvutatakse käitise elektri tootmiseks kasutatava installeeritud võimsuse korrutamisel käitise koormusteguriga tundides aasta kohta. (2) Kui käitisel on rohkem kui üks elektrit tootev käitiseosa, arvutatakse elektri tootmiseks kasutatav installeeritud võimsus ja koormusteguri väärtus tundides aasta kohta iga käitiseosa kohta eraldi. Keit Pentus Minister Rita Annus Kantsler

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Annex IV - Regulation based on Ambient Air Protection Act paragraph 119 5 point 11

KESKKONNAMINISTRI

MÄÄRUS

Tallinn 2011 nr

Elektri tootmise eest perioodil 2013–2019 tasuta eraldatavate

lubatud heitkoguse ühikute kasutamise tingimused ja kord

Määrus kehtestatakse “Välisõhu kaitse seaduse” § 1195 lõike 11 alusel.

§ 1. Määruse reguleerimisala

Määrusega reguleeritakse tasuta lubatud heitkoguse ühikute:

1) saaja kohustused;

2) eraldamise tingimused ja kord;

3) kasutamise aruandluse ja aruannete auditeerimise kord;

4) saaja üle järelvalve teostamise kord.

§ 2. Kasutatavad mõisted

Käesoleva määruse tähenduses:

1) investeeringute kava on elektri tootmise eest perioodil 2013–2019 tasuta eraldatavate lubatud heitkoguse ühikute eest tehtavate investeeringute riiklik kava;

2) investeering on tasuta lubatud heitkoguse ühikute eraldamiseks esitatavas taotluses toodud investeering;

3) tasuta lubatud heitkoguse ühik on pärast investeeringu aruande kinnitamist Keskkonnaministeeriumi poolt tasuta eraldatav lubatud heitkoguse ühik;

4) taotleja on “Välisõhu kaitse seaduse” § 1195 lõikes 2 toodud tingimustele vastav isik;

5) taotlus on investeeringute kavasse investeeringu arvamise taotlus;

6) saaja on elektri tootmise eest eraldatavate tasuta lubatud heitkoguse ühikute saaja.

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§ 3. Tasuta lubatud heitkoguse ühikute eraldamine

Perioodil 2013-2019 eraldatakse tasuta elektri tootmise eest lubatud heitkoguse ühikuid Vabariigi Valitsuse poolt kinnitatud investeeringute kavas (edaspidi kinnitatud

investeeringute kava) toodud investeeringute elluviimiseks.

§ 4. Riigiabi andmise reeglite kohaldamine

Tasuta lubatud heitkoguse ühikute eraldamine on riigiabi Euroopa Liidu toimimise lepingu artikkel 107 lõige 1 mõistes, mille andmisel järgitakse vastavas Euroopa Komisjoni riigiabi otsuses ja „Konkurentsiseaduse” 6. peatükis sätestatut.

§ 5. Investeeringu abikõlblikkuse periood

Investeeringu abikõlblikkuse periood on 25. juuni 2009 kuni 31. detsember 2019.

§ 6. Taotluse hindamine investeeringute kavasse arvamiseks

(1) Taotlus investeeringu arvamiseks investeeringute kavasse esitatakse Keskkonnaministeeriumile keskkonnaministri määratud tähtajaks.

(2) Keskkonnaministeerium hindab taotluses esitatud investeeringu vastavust “Välisõhu kaitse seaduse” § 119

5 lõigetes 7 ja 8 loetletud tingimustele. Kui Keskkonnaministeerium avastab

taotluse tingimustele vastavuse kontrollimisel taotluses puudusi, teatab ta sellest taotlejale ja määrab puuduste kõrvaldamiseks tähtaja.

(3) Kui taotluses esitatud investeering vastab käesoleva paragrahvi lõikes 2 viidatud tingimustele, siis arvab Keskkonnaministeerium investeeringu investeeringute kavasse.

(4) Kui taotluses esitatud investeering ei vasta käesoleva paragrahvi lõikes 2 viidatud tingimustele ja taotleja ei ole tähtaegselt taotluse puudusi kõrvaldanud, teeb Keskkonnaministeerium taotluse osalise või täieliku mitterahuldamise otsuse.

§ 7. Investeeringute kava alusel investeeringute ellu viimine

Investeeringuid viiakse ellu vastavalt kinnitatud investeeringute kavas toodud ajakavale ja maksumusele. Saaja peab katma ka need investeeringu elluviimisega seotud kulud, mis ületavad saajale vastavalt Vabariigi Valitsuse poolt kinnitatud investeeringute kavale eraldatud tasuta lubatud heitkoguse ühikute väärtust.

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§ 8. Investeeringu aruanne ja investeeringu lõpparuanne

(1) Saaja esitab iga aasta 15. jaanuariks Keskkonnaministeeriumile investeeringu aruande (edaspidi aruanne) eelmisel kalendriaastal tehtud investeeringu kohta. Esimene aruanne esitatakse hiljemalt 15. jaanuariks 2014.

(2) Pärast investeeringute kavas toodud investeeringu elluviimist peab saaja esitama Keskkonnaministeeriumile investeeringu lõpparuande (edaspidi lõpparuanne). Lõpparuanne koostatakse kinnitatud investeeringute kavas märgitud investeeringu abikõlblikkuse perioodi kohta tervikuna. Lõpparuande esitamise tähtaeg on kolm kuud pärast tasuta lubatud heitkoguse ühikute eraldamisega seotud investeeringu elluviimist.

(3) Aruanne ja lõpparuanne peab sisaldama järgnevat:

1) andmed saaja ja investeeringu kohta;

2) investeeringu kirjeldus;

3) elluviidud tegevused ja ajakava vastavus kinnitatud investeeringute kavale;

4) andmed investeeringu elluviimiseks sõlmitud lepingute kohta;

5) investeeringuga kaasnenud kulude ülevaade;

6) juhul kui on esinenud kõrvalekaldumisi kinnitatud investeeringute kavast, siis kõrvalekaldumise põhjendus ning meetmed investeeringu vastavusse viimiseks investeeringute kavaga;

7) järelvalve käigus tehtud tähelepanekute ja soovitustega seoses kasutusele võetud meetmed;

8) aruande või lõpparuande koostaja ja saaja esindaja allkirjastatud kinnitus andmete õigsuse kohta.

(4) Aruande vorm on toodud käesoleva määruse lisas 1.

(5) Lõpparuande vorm on toodud käesoleva määruse lisas 2.

§ 9. Aruande ja lõpparuande auditeerimine

(1) Saaja peab korraldama aruande ja lõpparuande auditeerimise sõltumatu audiitori poolt. Sõltumatu audiitor väljastab auditeerimise kohta auditeerimisaruande, milles kinnitatakse investeeringu liik ja auditeeritaval perioodil investeeritud täpne summa. Saaja esitab auditeerimisaruande Keskkonnaministeeriumile koos aruande või lõpparuandega.

(2) Saaja peab osutama sõltumatule audiitorile auditi läbiviimisel igakülgset abi, sealhulgas võimaldama aruandes ja lõpuaruandes esitatud andmete õigsuse kontrollimiseks juurdepääsu

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asjasse puutuvatele andmetele ja dokumentidele ning lubama viibida tasuta lubatud heitkoguse ühikute eraldamise ja kasutamisega seotud ruumides ja territooriumil.

§ 10. Aruande ja lõpparuande kinnitamine

(1) Keskkonnaministeerium kontrollib aruande ja lõpparuande vormikohasust ning esitatud andmete õigsust. Kui aruandes või lõpparuandes on puudusi või on vaja esitada täiendavat informatsiooni, teavitab Keskkonnaministeerium sellest saajat ning määrab tähtaja puuduste kõrvaldamiseks ja täiendava informatsiooni esitamiseks.

(2) Kui aruanne ja lõpparuanne on nõuetekohane ja selles esitatud andmed on õiged ja täielikud, kinnitab Keskkonnaministeerium aruande või lõpparuande 30 kalendripäeva jooksul ning teavitab sellest saajat e-posti teel.

§ 11. Tasuta lubatud heitkoguse ühikute eraldamine saajale

(1) Keskkonnaministeerium eraldab igal aastal tasuta lubatud heitkoguse ühikud saajale 30 kalendripäeva jooksul pärast aruande või lõpparuande kinnitamist. Kui vastavalt kinnitatud investeeringute kavale on saajal õigus saada tasuta lubatud heitkoguse ühikuid lõpparuande esitamisele järgnevatel kalendriaastatel, eraldatakse need lõpparuande alusel hiljemalt iga aasta 30. aprilliks.

(2) Tasuta lubatud heitkoguse ühikute maksimaalne eraldatav aastane kogus perioodil 2013-2019 on sätestatud “Välisõhu kaitse seaduse” § 119

5 lõikes 3. Saajale eraldatakse tasuta

lubatud heitkoguse ühikuid elluviidud investeeringule või käesoleva määruse § 13 lõike 5 kohaselt makstud tagatissummale vastavas mahus, ületamata seejuures kinnitatud investeeringute kavas sellele saajale määratud aastast tasuta lubatud heitkoguse ühikute kogust.

(3) Keskkonnaministeerium võib jätta tasuta lubatud heitkoguse ühikud eraldamata kui:

1) saaja ei ole täitnud käesoleva määrusega kehtestatud aruandluse nõudeid;

2) Keskkonnaministeerium on järelvalve teostamise käigus avastanud puudusi ja määranud tähtaja puuduste kõrvaldamiseks ning saaja ei ole puudusi määratud tähtaja jooksul kõrvaldanud.

(4) Keskkonnaministeerium teavitab saajat viivitamata kirjalikult tasuta lubatud heitkoguse ühikute eraldamata jätmisest.

§ 12. Kinnitatud investeeringute kavas oleva investeerimiskohustuse edasilükkamine ühe kalendriaasta võrra

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(1) Saaja võib Keskkonnaministeeriumile esitada avalduse investeerimiskohustuse edasilükkamiseks ühe kalendriaasta võrra, kuid mitte ületades abikõlblikkuse perioodi. Järgmisel kalendriaastal peab saaja tegema investeeringu vähemalt edasilükatud investeerimiskohustuse maksumuses. Avalduses esitatakse kinnitatud investeeringute kavast kõrvalekaldumise põhjendus ja meetmed investeeringu vastavusse viimiseks investeeringute kavaga.

(2) Keskkonnaministeerium teavitab saajat kirjalikult käesoleva paragrahvi lõikes 1 nimetatud avalduse rahuldamisest või rahuldamata jätmisest. Keskkonnaministeerium peab avalduse rahuldamata jätmist põhjendama.

(3) Kui avaldus vastab käesoleva paragrahvi lõikes 1 sätestatud nõuetele, rahuldab Keskkonnaministeerium selle ning eraldab saajale tasuta lubatud heitkoguse ühikud käesoleva määruse §-s 11 toodud korras. Kui avalduses esinevad puudused, määrab Keskkonnaministeerium avalduse esitajale tähtaja puuduste kõrvaldamiseks, selgitades, et tähtpäevaks puuduste kõrvaldamata jätmisel jäetakse avaldus rahuldamata.

(4) Keskkonnaministeerium ei rahulda avaldust, kui:

1) avaldus ei vasta käesoleva paragrahvi lõikes 1 esitatud nõuetele ja avalduse esitaja on jätnud puudused määratud tähtajaks kõrvaldamata;

2) avalduses on esitatud tegelikkusele mittevastavaid andmeid.

§ 13. Kinnitatud investeeringute kavas oleva investeerimiskohustuse edasilükkamine rohkem kui ühe kalendriaasta võrra

(1) Saaja võib Keskkonnaministeeriumile esitada avalduse investeerimiskohustuse edasilükkamiseks rohkem kui ühe kalendriaasta võrra, kuid mitte ületades abikõlblikkuse perioodi. Avalduses esitatakse investeerimiskohustuse edasilükkamise põhjendus, vajadusel kinnitatud investeeringute kavast kõrvalekaldumise põhjendus ja meetmed investeeringu vastavusse viimiseks investeeringute kavaga.

(2) Keskkonnaministeerium teavitab saajat kirjalikult käesoleva paragrahvi lõikes 1 nimetatud avalduse rahuldamisest või rahuldamata jätmisest. Keskkonnaministeerium peab avalduse rahuldamata jätmist põhjendama.

(3) Kui avaldus vastab käesoleva paragrahvi lõikes 1 sätestatud nõuetele, rahuldab Keskkonnaministeerium selle ning eraldab saajale tasuta lubatud heitkoguse ühikud käesoleva määruse §-s 11 toodud korras. Kui avalduses esinevad puudused, määrab Keskkonnaministeerium avalduse esitajale tähtaja puuduste kõrvaldamiseks, selgitades, et tähtpäevaks puuduste kõrvaldamata jätmisel jäetakse avaldus rahuldamata.

(4) Keskkonnaministeerium ei rahulda avaldust, kui:

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1) avaldus ei vasta käesoleva paragrahvi lõikes 1 esitatud nõuetele ja avalduse esitaja on jätnud puudused määratud tähtajaks kõrvaldamata;

2) avalduses on esitatud tegelikkusele mittevastavaid andmeid.

(5) Kui Keskkonnaministeerium rahuldab avalduse, määrab ta tagatise konto, kuhu saaja peab tegema ülekande edasilükatud investeerimiskohustuse maksumuses (edaspidi tagatissumma). Saaja teeb ülekande 30 kalendripäeva jooksul pärast teavituse kättesaamist.

(6) Käesoleva paragrahvi lõikes 5 nimetatud tagatissumma maksmise korral eraldab Keskkonnaministeerium saajale tasuta lubatud heitkoguse ühikud käesoleva määruse §-s 11 toodud korras.

(7) Edasi lükatud investeerimiskohustuse täitmist kajastatakse käesoleva määruse §-s 8 nimetatud aruannetes. Kui Keskkonnaministeerium kinnitab vastava aruande, tagastab Keskkonnaministeerium 30 kalendripäeva jooksul saajale elluviidud investeeringule vastava osa käesoleva paragrahvi lõikes 5 nimetatud tagatissummast.

(8) Kui saaja ei täida edasi lükatud investeerimiskohustust käesoleva paragrahvi lõike 1 alusel esitatud avalduses toodud tähtpäevaks, rakendatakse käesoleva määruse §-des 15 ja 16 toodud korda. Pärast tasuta lubatud heitkoguse ühikute tagastamist ja intressi tasumist tagastab Keskkonnaministeerium 30 kalendripäeva jooksul saajale käesoleva paragrahvi lõikes 5 nimetatud tagatissumma.

§ 14. Teavitamiskohustus

Saaja peab kirjalikult teavitama Keskkonnaministeeriumi viivitamata:

1) investeeringu tegemise käigus ilmnenud investeeringu elluviimist takistavatest asjaoludest, samuti investeeringuga seotud kohtumenetlusest või selle võimalikkusest ja saaja riigihanke vaidlustamisest;

2) kui investeeringu maksumus osutub väiksemaks kinnitatud investeeringute kavas toodust.

§ 15. Tasuta lubatud heitkoguse ühikute tagastamine

(1) Saaja peab iga tasuta lubatud heitkoguse ühiku kohta, mille kasutamise tingimusi ja korda ei ole täidetud, kandma kinnitatud investeeringute kava täitmata jätmisega proportsionaalse arvu lubatud heitkoguse ühikuid kasvuhoonegaaside heitkoguste ühikutega kauplemise registris riigi kontole. Saaja peab tagastama lubatud heitkoguse ühikud 90 kalendripäeva jooksul vastava ettekirjutuse saamisest.

(2) Keskkonnaministeerium võib põhjendatult peatada tasuta lubatud heitkoguse ühikute eraldamise saajale tema tagastamisega seotud investeeringu või saaja kõikide investeeringute osas kuni käesoleva paragrahvi lõikes 1 nimetatud kohustuse täitmiseni.

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§ 16. Intressid ja viivis

(1) Käesoleva määruse § 15 lõikes 1 toodud tasuta lubatud heitkoguse ühikute tagastamise korral peab saaja maksma intressi. Intressimäär on kuue kuu Euribor, millele lisandub viis protsenti aastas. Intressiarvestuse baasiks on 360-päevane periood.

(2) Intressi arvestatakse kinnitatud investeeringute kavas toodud tasuta lubatud heitkoguse ühikute väärtuse pealt.

(3) Intressi arvestatakse tagasinõudmise otsuse kehtima hakkamise päevast arvates, võttes aluseks otsuse tegemise kalendrikuule eelnenud kuu viimasel tööpäeval kehtinud intressimäära. Kui tasuta lubatud heitkoguse ühikute taotlemisel või kasutamisel on toime pandud kuritegu, arvestatakse intressi tasuta lubatud heitkoguse ühikute eraldamise päevast arvates, võttes aluseks sellel päeval kehtinud intressimäära.

(4) Intressi arvestatakse kuni tasuta lubatud heitkoguse ühikute tagastamiseni, kuid mitte kauem kui tasuta eraldatavate lubatud heitkoguse ühikute tagastamise tähtpäevani, ajatamise korral lõpliku tagastamise tähtpäevani.

(5) Intressiarvestus peatub saaja pankroti väljakuulutamisel.

(6) Kui tagasinõudmise otsuses ettenähtud tähtpäevaks tasuta lubatud heitkoguse ühikuid ei tagastata, peab saaja maksma tagastamisele kuuluva tasuta lubatud heitkoguse ühikute koguse eelneva kvartali keskmiselt turuväärtuselt viivist 0,1 protsenti iga tasuta lubatud heitkoguse ühikute tagastamisega viivitatud kalendripäeva eest.

(7) Tasuta lubatud heitkoguse ühikute tagastamisel tehtavad maksed loetakse sooritatuks järgmises järjekorras: esimeses järjekorras loetakse tasutuks viivis, teises järjekorras intressid vastavalt nende ajalisele tekkele, alustades varaseimast, ning viimases järjekorras tagastatav tasuta lubatud heitkoguse ühikute kogus või selle osad.

§ 17. Järelevalve teostaja

Saaja tegevuse üle teostab järelevalvet Keskkonnaministeerium.

§ 18. Järelevalve teostaja pädevus

(1) Saaja tegevuse üle järelevalvet teostajal on õigus:

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1) kontrollida tasuta eraldatavate lubatud heitkoguse ühikute kasutamisega seotud andmeid, dokumente ja muid materjale ning pääseda ligi investeeringu tegemisega seotud andmetele ja dokumentidele kolme tööpäeva jooksul nõudmisest arvates;

2) saada järelvalve kiireks läbiviimiseks saajalt või tema esindajalt kirjalikke või suulisi seletusi ning igakülgset muud abi;

3) viibida järelevalve teostamiseks saaja ja teiste investeeringus osalevate isikute ruumides ja territooriumil, mis on rajatud tasuta eraldatavate lubatud heitkoguse ühikute abil või mis on seotud tasuta eraldatavate lubatud heitkoguse ühikute kasutamisega, ning teostada paikvaatlust;

4) tutvuda tasuta eraldatavate lubatud heitkoguse ühikute abil loodud objektiga;

5) teha ettekirjutus tasuta eraldatavate lubatud heitkoguse ühikute kasutamisega kaasneva rikkumise lõpetamiseks, edasiste rikkumiste ärahoidmiseks ja rikkumise tagajärgede kõrvaldamiseks;

6) ettekirjutuse täitmata jätmise või ebakohase täitmise korral kohaldada sanktsioone “Välisõhu kaitse seaduses” ja käesolevas määruses sätestatud korras.

(2) Järelvalve käigus võetakse arvesse investeeringu vastamist järgnevatele näitajatele:

1) investeeringu tulemusena käitises rakendatud tehnoloogia heitetegur võrreldes enne uute osade paigaldamist või käitise moderniseerimist kasutatud tehnoloogia heiteteguriga;

2) elektritootmisest pärit kasvuhoonegaaside koguheite prognoositud ja saavutatud vähenemine investeeringute tulemusena (võrreldes senise olukorra jätkumisega);

3) elektritootmises peamiselt kasutatava fossiilkütuse osakaalu prognoositud ja saavutatud vähenemine investeeringute tulemusena;

4) taastuvenergiaga tootmiseks installeeritud võimsus (megavatti), mis võetakse prognooside kohaselt kasutusse investeeringu tulemusena;

5) tasuta lubatud heitkoguse ühikute osakaal investeeringu kogu maksumuses;

6) muudest allikatest saadavate vahendite osakaal kogu investeeringus;

7) investeeringuga prognoositud finantstulemus.

Keit Pentus Minister Rita Annus

Kantsler

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Keskkonnaministri a määruse nr

“Elektri tootmise eest perioodil 2013–2019 eraldatavate

tasuta lubatud heitkoguse ühikute kasutamise tingimused ja kord”

LISA 1

Investeeringu aruanne

Andmed on esitatud seisuga 1. jaanuar …. / 31. detsember ….. 2014. aastal esitatav aruanne käsitleb 25. juunist 2009 kuni 31. detsembrini 2013 tehtud investeeringuid.

1. Üldandmed

1.1 Saaja üldandmed

Saaja üldandmed

Ettevõtte nimi:

Aadress:

Kontaktisik:

Telefoni nr:

E-mail:

1.2 Investeeringu üldandmed

Investeeringu nimi ja number:

Asukoht: Nimetada investeeringu läbiviimise piirkond (linnapiirkond,

maapiirkond või geograafiliselt piiritlemata ala).

Investeeringu alguskuupäev:

Investeeringu lõppkuupäev:

Muudetud lõppkuupäev: Märkige juhul kui asjakohane.

Investeeringu kogumaksumus:

Tasuta lubatud heitkoguse ühikute määr :

Muudetud kogumaksumus: Märkige juhul kui asjakohane.

Muudetud tasuta lubatud heitkoguse ühikute määr:

Märkige juhul kui asjakohane.

Maksimaalne tasuta lubatud heitkoguse ühikute kogus investeeringu eest aastal x

Eeldatav investeeringu tööde/teenuste lepingu lõppkuupäev:

Märkige investeeringu raames teostatavate tegevuste

eeldatav lõppkuupäev.

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lepingu lõppkuupäev:

2. Investeeringu kirjeldus (maksimaalselt 500 tähemärki koos tühikutega)

3. Elluviidud tegevuste lühikirjeldus ja ajakavale vastavus

3.1 Käesolevale aruandele eelnenud investeeringuga seotud tegevuste kokkuvõte (peamiste

investeeringuga seotud tegevuste loetelu (sh investeeringuga seotud tööde/teenuste lepingute sõlmimise

kuupäevad ja kestvused, tegevuste alguskuupäev, tegevuste peamised etapid). Samuti anda põhjalik ülevaade

teostatud ja planeeritud hangetest (sh. hangetega seotud kuupäevad, laekunud pakkumuste arv, kvalifitseerunud

pakkumuste arv, tühistatud hanked, jne. Andke koostatava aruande perioodist detailsem ülevaade.)

Tuginedes aruandlusele kirjeldage kronoloogiliselt investeeringu käigus läbi viidud peamisi tegevusi (tegevuste

algus- ja lõppkuupäev või periood, tegevuste peamised etapid, olulisemad investeeringu tegevusi puudutavad

tööde üleandmise-vastuvõtmise kuupäev jm).

Tegevuste kirjeldus on kumulatiivse iseloomuga, st investeeringu elluviimisest antakse ülevaade algusest kuni

aruande kuupäevani, 31. detsembrini.

3.2 Nimekiri ja tähtajad tegevustest, mis on vaja veel teha investeeringu lõpuniviimiseks.

4. Lepingud

4.1 Allkirjastatud lepingud

Hanketeate avaldamine Lepingu liik, number ja sisu kirjeldus

Hankemenetluse

liik / lepingu tüüp kuupäev viide

Lepingu summa (lepingu eeldatud maksumus)

Lepingu allkirjastamise kuupäev ja hanke võitja nimi

Tööde läbiviimise aeg vastavalt sõlmitud lepingule

Nimetage lepingu liik (tööde leping,

teenusleping vms), lisage, juhul kui

asjakohane, lepingu järjekorranumber (nt

tööde leping nr 1, tööde leping nr 2,

teenusleping nr 1) ning lepingu raames

teostavate tööde/tegevuste lühikirjeldus.

Märkige hanke

läbiviimise ulatus (nt

piiratud,

rahvusvaheline jne) ja

lepingu tüüp (nt nn

kollane FIDIC).

Hanketeate avaldamise aeg.

Märkige nii

riigihangete registri

kui ka Euroopa Liidu

Teataja viide).

Märkige lepingu maksumus ja

lisada sulgudesse summa,

mida hanke ettevalmistamisel

maksumuseks eeldati.

Lepingu

allkirjastamise

kuupäev ja

võitjafirma.

4.2 Ettevalmistatavad lepingud

Hanketeate avaldamise kuupäev

avaldamata avaldatud Lepingu liik, number ja sisu kirjeldus Hanke ettevalmistuse seis

Hankemenetluse

liik / lepingu tüüp eeldatav avaldamise kuupäev

avaldamise kuupäev ja viide

Laekunud pakkumuste arv / kvalifitseerunud pakkumuste arv

Hanke eeldatav maksumus

Eeldatav lepingu sõlmimise kuupäev ja tööde läbiviimise periood.

Nimetage lepingu liik (tööde leping,

teenusleping vms), lisage, juhul kui

asjakohane, lepingu järjekorranumber

(nt tööde leping nr 1, tööde leping nr 2,

teenusleping nr 1) ning lepingu raames

teostavate tööde/tegevuste lühikirjeldus.

Millises faasis on

hanke

ettevalmistamine,

näiteks mitu kuud veel

kulub, kas

dokumendid on

saadetud kuhugi

kooskõlastamiseks.

Märkige hanke

läbiviimise ulatus (nt

piiratud,

rahvusvaheline jne) ja

lepingu tüüp (nt nn

kollane FIDIC).

Eeldatav hanketeate avaldamise aeg.

Hanketeate

avaldamise aeg koos

viitega

avaldamiskohale

(märkige nii

riigihangete registri

kui ka Euroopa Liidu

Teataja viide).

Pakkumuste

koguarv ja

kvalifitseerunud

pakkumuste arv.

Millal eeldatavasti

leping sõlmitakse ning

millal plaanitakse

tööd läbi viia.

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5. Investeeringuga kaasnenud kulutused

1.1.Ülevaade investeeringuga kaasnenud kulutustest

Kulutuse liik ja kirjeldus Summa

Kuupäev

6. Esinenud ja/või võimalikud kõrvalekaldumised kinnitatud investeeringute kavast

6.1 Viivitused investeeringu elluviimisel Viidake (võimalikele tulevikulistele) elluviimisel esinenud viivitustele ja esitage nende kohta asjakohane

põhjendus.

………………………………………………………………………………………………...……………………………………………………………………………………...........................

6.2 Tehnilised probleemid

………………………………………………………………………….………………………….......…………………………………………………………………………….……………

6.3 Finantsprobleemid

…………………………………………………………………………………….…………………...…………………………………………………………………………………….……

6.4 Juriidilised probleemid

………………………………………………………………………………………….……………...……………………………………………………………………………………….…

7. Järelvalve käigus tehtud tähelepanekud ja soovitused Kirjeldage kõiki Keskkonnaministeeriumi ja auditite või muude kontrollide käigus tehtud ametlikke

tähelepanekuid ja soovitusi, viidake sealjuures allikale ja kirjeldage kokkuvõtlikult kasutusele võetud meetmeid

vastavalt esitatud tähelepanekutele ja soovitustele.

……………………………………………………………………………………………..………………………………………………………………………………………………..…………………………………………………………………………………………………..……….

8. Allkirjastatud kinnitus andmete õigsuse kohta

Kuupäev

Käesolevaga kinnitame, et esitatud andmed on õiged ja täielikud.

………………………………….

Estonia

………………………………….

………………………………….

…………………………………. Saaja allkirjaline kinnitus koos allkirjastaja nime, positsiooni ja organisatsiooni nimetusega.

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Keskkonnaministri a määruse nr

“Elektri tootmise eest perioodil 2013–2019 eraldatavate

tasuta lubatud heitkoguse ühikute kasutamise tingimused ja kord”

LISA 2

Investeeringu lõpparuanne

Andmed on esitatud seisuga (kuupäev/aasta) …. / (kuupäev/aasta) …..

1. Üldandmed

1.1 Saaja üldandmed

Saaja üldandmed

Ettevõtte nimi:

Aadress:

Kontaktisik:

Telefoni nr:

E-mail:

1.2 Investeeringu üldandmed

Investeeringu nimi ja number:

Asukoht: Nimetada investeeringu läbiviimise piirkond (linnapiirkond,

maapiirkond või geograafiliselt piiritlemata ala).

Investeeringu alguskuupäev:

Investeeringu lõppkuupäev:

Muudetud lõppkuupäev: Märkige juhul kui asjakohane.

Investeeringu kogumaksumus:

Tasuta lubatud heitkoguse ühikute määr :

Muudetud kogumaksumus: Märkige juhul kui asjakohane.

Muudetud tasuta lubatud heitkoguse ühikute määr:

Märkige juhul kui asjakohane.

Investeeringu maksimaalne tasuta lubatud heitkoguse ühikute kogus

Eeldatav investeeringu tööde/teenuste lepingu lõppkuupäev:

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2. Investeeringu lõpptulemuse kirjeldus (maksimaalselt 500 tähemärki koos tühikutega)

3. Elluviidud tegevuste kokkuvõte ja ajakavale vastavus

(peamiste investeeringuga seotud tegevuste loetelu (sh investeeringuga seotud tööde/teenuste lepingute

sõlmimise kuupäevad ja kestvused, tegevuste alguskuupäev, tegevuste peamised etapid). Samuti anda põhjalik

ülevaade teostatud ja planeeritud hangetest (sh. hangetega seotud kuupäevad, laekunud pakkumuste arv,

kvalifitseerunud pakkumuste arv, tühistatud hanked, jne. Andke koostatava aruande perioodist detailsem

ülevaade.)

Tuginedes aruandlusele kirjeldage kronoloogiliselt investeeringu käigus läbi viidud peamisi tegevusi (tegevuste

algus- ja lõppkuupäev või periood, tegevuste peamised etapid, olulisemad investeeringu tegevusi puudutavad

tööde üleandmise-vastuvõtmise kuupäev jm).

Tegevuste kirjeldus on kumulatiivse iseloomuga, st investeeringu elluviimisest antakse ülevaade algusest kuni

lõpparuandeni.

4. Allkirjastatud lepingud

Hanketeate avaldamine Lepingu liik, number ja sisu kirjeldus

Hankemenetluse

liik / lepingu tüüp kuupäev viide

Lepingu summa (lepingu eeldatud maksumus)

Lepingu allkirjastamise kuupäev ja hanke võitja nimi

Tööde läbiviimise aeg vastavalt sõlmitud lepingule

Nimetage lepingu liik (tööde

leping, teenusleping vms), lisage,

juhul kui asjakohane, lepingu

järjekorranumber ning lepingu

raames teostavate

tööde/tegevuste lühikirjeldus.

Märkige hanke

läbiviimise

ulatus (nt

piiratud,

rahvusvaheline

jne) ja lepingu

tüüp (nt nn

kollane FIDIC).

Hanketeate avaldamise aeg.

Märkige nii

riigihangete

registri kui ka

Euroopa

Liidu

Teatajaviide.

Märkige lepingu

maksumus ja

lisada sulgudesse

summa, mida

hanke

ettevalmistamisel

maksumuseks

eeldati.

Lepingu

allkirjastamise

kuupäev ja

võitjafirma.

5. Investeeringuga kaasnenud kulutused

1.2.Ülevaade investeeringuga kaasnenud kulutustest

Kulutuse liik ja kirjeldus Summa Kuupäev

6. Esinenud kõrvalekaldumised kinnitatud investeeringute kavast

6.1. Viivitused investeeringu elluviimises

Estonia

Viidake elluviimisel esinenud viivitustele ja esitage nende kohta asjakohane põhjendus.

………………………………………………………………………………………………...……………………………………………………………………………………...........................

6.2. Tehnilised probleemid

………………………………………………………………………………………………...……………………………………………………………………………………...........................

6.3. Finantsprobleemid

………………………………………………………………………………………………...……………………………………………………………………………………...........................

6.4. Juriidilised probleemid

………………………………………………………………………………………………...……………………………………………………………………………………...........................

7. Järelvalve käigus tehtud tähelepanekud ja soovitused Kirjeldage kõiki Keskkonnaministeeriumi ja auditite või muude kontrollide käigus tehtud ametlikke

tähelepanekuid ja soovitusi, viidake sealjuures allikale ja kirjeldage kokkuvõtlikult kasutusele võetud meetmeid

vastavalt esitatud tähelepanekutele ja soovitustele.

8. Allkirjastatud kinnitus andmete õigsuse kohta

Kuupäev

Käesolevaga kinnitame, et esitatud andmed on õiged ja täielikud.

………………………………….

………………………………….

………………………………….

………………………………….

Saaja allkirjaline kinnitus koos allkirjastaja nime, positsiooni ja organisatsiooni nimetusega.

kinnitus koos allkirjastaja nime, positsiooni ja organisatsiooni nimetusega.

Estonia

Annex V - Regulation based on Ambient Air Protection Act paragraph 119 5 point 11 – unofficial english translation

Issuing authority: Minister of the Environment

Type of legislation: Regulation

Type of text: Original text, single text

Date of entry into force of wording: 25.08.2011

End of term of force:

Publication citation: RT I, 22.08.2011, 1

Terms and conditions of and procedure for using free allocated emission credits for producing electricity for 2013-2019

Adopted on 18.08.2011 no. 53

This Regulation shall be established on the basis of subsection 1195 (11) of the Ambient Air Protection Act.

§ 1. Scope of application of Regulation

This Regulation regulates the following with regard to free emission credits:

1) obligations of the recipient;

2) terms and conditions of and procedure for allocation;

3) procedure for reporting on use and auditing reports; and

4) procedure for exercising supervision over the recipient.

§ 2. Definitions

For the purposes of this Regulation:

1) plan of investments – state plan for investments for free allocated emission credits for producing electricity for the period 2013-2019;

2) investment – investment provided in the application to be submitted for allocation of free emission credits;

3) free emission credits – free emission credits allocated by the Ministry of the Environment after approval of the investment report;

4) applicant – a person conforming to the conditions provided in subsection 1195 (2) of the Ambient Air Protection Act;

5) application – application for entry of an investment in the plan of investments; and

6) recipient – recipient of free allocated emission credits for producing electricity.

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§ 3. Allocation of free emission credits

In the period 2013-2019, free emission credits for producing electricity shall be allocated for the execution of investments in the plan of investments approved by the Government of the Republic (hereinafter the Approved Plan of Investments).

§ 4. Application of rules for providing state aid

Allocation of free emission credits constitutes state aid for the purposes of Article 107(1) of the Treaty on the Functioning of the European Union and the provisions of the respective state aid decision of the European Commission and Chapter 6 of the Competition Act shall be adhered to upon allocation thereof.

§ 5. Period of eligibility of investment

The period of eligibility of the investment shall be 25 June 2009 to 31 December 2019.

§ 6. Assessment of application for entry in plan of investments

(1) The application for entry of an investment in the plan of investments shall be submitted to the Ministry of the Environment by the term determined by the Minister of the Environment.

(2) The Ministry of the Environment shall assess the conformity of the investment provided in the application to the conditions specified in subsections 1195 (7) and (8) of the Ambient Air Protection Act. In the event that the Ministry of the Environment discovers deficiencies in the application upon inspection of the application with regard to conformity to the conditions, it shall notify the applicant thereof and determine a term for elimination of any deficiencies.

(3) In the event that the investment provided in the application conforms to the conditions referred to in subsection (2) of this section, the Ministry of the Environment shall enter the investment in the plan of investments.

(4) In the event that the investment provided in the application does not conform to the conditions referred to in subsection (2) of this section and the applicant has not eliminated the deficiencies of the application in a timely manner, the Ministry of the Environment shall make a decision on partial or full non-satisfaction of the application.

§ 7. Execution of investments based on plan of investments

Investments shall be executed pursuant to the schedule and cost provided in the Approved Plan of Investments. The recipient shall also cover the costs related to execution of an investment that exceed the value of the free emission credits allocated to the recipient pursuant to the plan of investments approved by the Government of the Republic.

§ 8. Investment report and final report of investment

(1) The recipient shall submit an investment report (hereinafter the Report) to the Ministry of the Environment by 15 January every year regarding the investments executed during the previous calendar year. The first Report shall be submitted by 15 January 2014 at the latest.

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(2) After execution of the investment provided in the plan of investments, the recipient shall submit a final report of the investment (hereinafter the Final Report) to the Ministry of the Environment. The Final Report shall be composed for the entire period of eligibility indicated in the plan of investments. The submission period of the Final Report shall be three months after execution of the investment related to allocation of free emission credits.

(3) An investment report and Final Report shall contain the following information:

1) information regarding the recipient and the investment;

2) description of the investment;

3) performed activities and conformity of the schedule to the Approved Plan of Investments;

4) information regarding agreements entered into for execution of the investment;

5) an overview of the costs incurred with respect to the investment;

6) reasons for deviation and measures for bringing the investment into conformity with the plan of investments in the event that any deviations from the Approved Plan of Investments have occurred;

7) measures put into practice with regard to findings and recommendations communicated in the course of supervision; and

8) signed certification of the person composing the report or the Final Report and the representative of the recipient regarding correctness of the data.

(4) The format of the Report is set out in Annex 1 to the Regulation.

(5) The format of the Final Report is set out in Annex 2 to the Regulation.

§ 9. Audit of Report and Final Report

(1) The recipient shall organise auditing of the Report and the Final Report by an independent auditor. The independent auditor shall issue an audit report with regard to the audit, certifying the type of investment and the exact sum invested in the audit period. The recipient shall submit the audit report to the Ministry of the Environment with the Report or Final Report.

(2) The recipient shall provide any and all means of assistance for the independent auditor upon the conducting of the audit, including providing access to the relevant data and documents for examination of the correctness of the data presented in the Report and Final Report and permitting the auditor to be on premises and territory related to the allocation and use of free emission credits.

§ 10. Approval of Report and Final Report

(1) The Ministry of the Environment shall examine the correctness of the submitted data and that the Report and Final Report conform to the required format. In the event that deficiencies are discovered in the Report or the Final Report or submission of additional information is required, the Ministry of the Environment shall notify the recipient thereof and determine a term for elimination of the deficiencies and submission of additional information.

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(2) In the event that the Report or Final Report conforms to the requirements and the information submitted therein is correct and complete, the Ministry of the Environment shall approve the Report or Final Report within 30 calendar days and notify the recipient thereof by e-mail.

§ 11. Allocation of free emission credits to recipient

(1) The Ministry of the Environment shall allocate the free emission credits to the recipient annually within 30 calendar days of approval of the Report or Final Report. In the event that the recipient has the right to receive free emission credits for the calendar years following the submission of the Final Report pursuant to the Approved Plan of Investments, the free emission credits shall be allocated by 30 April every year at the latest on the basis of the Final Report.

(2) The maximum annual amount of free emission credits for the period of 2013-2019 is provided in subsection 1195 (3) of the Ambient Air Protection Act. Free emission credits shall be allocated to the recipient pursuant to the volume of the executed investment or the security amount paid pursuant to subsection 13 (5) of this Regulation without exceeding the annual amount of free emission credits provided in the Approved Plan of Investments for the respective recipient.

(3) The Ministry of the Environment may choose to not allocate the free emission credits if:

1) the recipient has not adhered to the reporting requirements established with this Regulation; or

2) the Ministry of the Environment has discovered deficiencies in the course of exercising supervision, determined a term for elimination of the deficiencies and the recipient has failed to eliminate the deficiencies by the determined term.

(4) The Ministry of the Environment shall immediately notify the recipient of non-allocation of free emission credits in writing.

§ 12. Postponement of investment obligation in Approved Plan of Investments by one calendar year

(1) The recipient may submit an application to the Ministry of the Environment for the postponement of the investment obligation by one calendar year while not exceeding the period of eligibility. The recipient shall execute the investment at least in the amount of the postponed investment obligation in the following calendar year. The application shall provide the reasons for deviation from the Approved Plan of Investments and measures for bringing the investment into conformity with the plan of investments.

(2) The Ministry of the Environment shall notify the recipient in writing of satisfaction or non-satisfaction of the application specified in subsection (1) of this section. The Ministry of the Environment shall provide reasons for non-satisfaction of an application.

(3) In the event that the application conforms to the requirements provided in subsection (1) of this section, the Ministry of the Environment shall satisfy the application and allocate the free emission credits to the recipient pursuant to the procedure provided for in § 11 of this Regulation. In the event that deficiencies are discovered in the application, the Ministry of the Environment shall determine a term for elimination of

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the deficiencies for the applicant and provide explanations that the application shall not be satisfied unless the deficiencies are eliminated within the determined term.

(4) The Ministry of the Environment shall not satisfy an application if:

1) the application does not conform to the requirements specified in subsection (1) of this section and the applicant has failed to eliminate the deficiencies by the determined term; or

2) inaccurate information has been submitted in the application.

§ 13. Postponement of investment obligation in Approved Plan of Investments by more than one calendar year

(1) The recipient may submit an application to the Ministry of the Environment for the postponement of the investment obligation by more than one calendar year while not exceeding the period of eligibility. The application shall provide justification for the postponement of the investment obligation and the reasons for deviation from the Approved Plan of Investments and measures for bringing the investment into conformity with the plan of investments if necessary.

(2) The Ministry of the Environment shall notify the recipient in writing of satisfaction or non-satisfaction of the application specified in subsection (1) of this section. The Ministry of the Environment shall provide reasons for non-satisfaction of an application.

(3) In the event that the application conforms to the requirements provided in subsection (1) of this section, the Ministry of the Environment shall satisfy the application and allocate the free emission credits to the recipient pursuant to the procedure provided for in § 11 of this Regulation. In the event that deficiencies are discovered in the application, the Ministry of the Environment shall determine a term for elimination of the deficiencies for the applicant and provide explanations that the application shall not be satisfied unless the deficiencies are eliminated by the determined term.

(4) The Ministry of the Environment shall not satisfy an application if:

1) the application does not conform to the requirements specified in subsection (1) of this section and the applicant has failed to eliminate the deficiencies by the determined term; or

2) inaccurate information has been submitted in the application.

(5) In the event that the Ministry of the Environment satisfies the application, a security account shall be determined by the latter to which the recipient shall execute a transfer corresponding to the cost of the postponed investment obligation (hereinafter the Security Amount). The recipient shall execute the transaction within 30 calendar days of receipt of notification.

(6) Upon payment of the Security Amount specified in subsection (5) of this section, the Ministry of the Environment shall allocate the free emission credits to the recipient pursuant to the procedure provided for in § 11 of this Regulation.

(7) Execution of the postponed investment obligation shall be reflected in the reports specified in § 8 of this Regulation. In the event that the Ministry of the Environment approves the

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respective Report, the Ministry of the Environment shall refund the part corresponding to the executed investment to the recipient from the Security Amount specified in subsection (5) of this section within 30 calendar days.

(8) In the event that the recipient fails to execute a postponed investment obligation by the term provided in the application submitted on the basis of subsection (1) of this section, the procedure provided for in §§ 15 and 16 of this Regulation shall be implemented. The Ministry of the Environment shall refund the Security Amount specified in subsection (5) of this section to the recipient within 30 calendar days of the returning of the free emission credits and payment of interest.

§ 14. Notification obligation

The recipient shall immediately notify the Ministry of the Environment in writing of:

1) any circumstances hindering execution of the investment that emerge in the course of execution of the investment as well as judicial proceedings related to the investment or the possibility thereof and the contesting of the public procurement of the recipient; or

2) the fact that the cost of the investment proves to be smaller than the cost provided in the Approved Plan of Investments.

§ 15. Return of free emission credits

(1) The recipient shall transfer an amount of emission credits proportional to the failure to adhere to the Approved Plan of Investments to the state account in the greenhouse gas emission allowance trading register for every emission credit for which the terms and conditions and procedure for use have not been adhered to. The recipient shall return the emission credits within 90 calendar days of receiving a respective precept.

(2) The Ministry of the Environment may, with good reason, postpone allocation of free emission credits to the recipient for the part related to the investment related to the return of the recipient or for all of the investments of the recipient until the performance of the obligation specified in subsection (1) of this section.

§ 16. Interest and interest on arrears

(1) The recipient shall pay interest upon returning the free emission credits provided in subsection 15 (1) of this Regulation. The interest rate shall be 6 months’ Euribor plus 5% per annum. A period of 360 days shall serve as the basis for calculating interest.

(2) The interest shall be calculated from the value of the free emission credits provided in the Approved Plan of Investments.

(3) The interest shall be calculated as of the date of entry into force of the decision on recovery by using the interest rate valid on the last working day of the calendar month preceding the decision as a basis. In the event that a criminal offence has been committed upon applying for or using free emission credits, the interest shall be calculated as of the date of allocation of the free emission credits by using the interest rate valid on the respective date as a basis.

(4) The interest shall be calculated until the return of the free emission credits, but not longer than the term of return of the free emission credits or until the term of complete return in the event of deferral of execution.

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(5) The interest calculation shall be postponed upon a declaration of the bankruptcy of the recipient.

(6) In the event that the free emission credits are not returned by the term provided in the decision on recovery, the recipient shall pay interest on arrears of 0.1% of the average marked value of the previous quarter of the amount of free emission credits to be returned for every calendar day of delay with regard to returning the free emission credits.

(7) The payments related to returning free emission credits shall be deemed to have been made in the following order: interest on arrears shall be deemed to have been paid in the first order, followed by interest pursuant to the temporal creation thereof and starting from the earliest, and lastly the amount or parts of the free emission credit to be returned.

§ 17. Supervisory authority

The Ministry of the Environment shall exercise supervision over the activities of the recipient.

§ 18. Competence of supervisory authority

(1) The supervisory authority that exercises supervision over the activities of the recipient shall have the right to:

1) inspect the data, documents and other materials related to the use of allocated free emission credits and access the data and documents related to execution of the investment within three working days of the respective request;

2) receive written or oral explanations and any and all other assistance from the recipient or the representative of the recipient in order to exercise supervision expediently;

3) be on the premises and territory of the recipient or other persons participating in the investment that have been created with the aid of the allocated free emission credits or related to the use of the allocated free emission credits for the purposes of exercising supervision and conducting on-site inspections;

4) examine the site(s) created with the aid of the allocated free emission credits;

5) issue a precept for termination of a violation related to the use of allocated free emission credits, prevention of further violations or elimination of the consequences of a violation; and

6) impose sanctions pursuant to the procedure provided for in the Ambient Air Protection Act and this Regulation upon failure to observe a precept or unsatisfactory observation thereof.

(2) In the course of supervision, the conformity of the investment to the following indicators shall be considered:

1) the emission factor of the technology implemented in the installation with the help of the investment compared to the emission factor of the technology before installation of new parts or modernisation of the installation;

2) the estimated and actual decrease in total emissions of greenhouse gases generated in the production of electricity with the help of the investments (as compared to continuation of the former situation);

3) the estimated and actual decrease in the proportion of fossil fuels mainly used in the production of electricity with the help of the investments;

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4) the installed capacity (megawatts) for production of renewable energy to be put into practice with the help of the investments, according to estimates;

5) the proportion of the free emission credits in the total value of the investment;

6) the proportion of financing received from other sources in the total value of the investment; and

7) the financial result estimated to be achieved with the investment.

Keit Pentus

Minister

Rita Annus

Secretary General

Annex 1. Investment Report

Annex 2. Investment Final Report