The future of global energy belongs to renewable energy sources. Today, in many countries, the construction of photovoltaic power plants (PV plants) is considered one of the most profitable investment opportunities with a high return on investment.
The Government of the Republic of Moldova has proposed a number of legal and economic measures to support the development of the industry in our country. To this end, in 2013, Government Decision No. 102 was adopted, which reflects the main goals of the development of solar energy in Moldova. Among them are:
- Ensuring the uninterrupted supply of energy resources.
- Creating competitive markets and reaching regional and European levels.
- Environmental safety and climate change mitigation.
BULR Law Firm is a leading consulting firm in the Republic of Moldova, focused on providing high-quality comprehensive support to clients, including renewable energy projects.
Legal Consulting in PV Plant Construction
The construction of a photovoltaic power plant (PV plant) is carried out in two stages. The first stage includes pre-project preparation and planning, which include the following actions:
- Establishing a legal entity for obtaining permits and approvals.
- Purchasing land suitable for construction with grid access.
- Securing a permit to connect to the electrical grid.
- Obtaining a town planning conclusion ensuring zoning compliance.
- Developing and approving a detailed technical project for equipment and layout.
- Getting approval from the National Energy Regulatory Authority (ANRE).
- Finding a supplier of equipment such as PV panels and inverters.
The second stage of PV plant construction includes the following:
- Signing a purchase and sale agreement with the equipment supplier.
- Preparing the construction site and installing equipment.
- Completing necessary construction works like foundations, substation, and access road.
- Connecting the PV plant to the grid and finalize a power purchase agreement.
- Project financing
The first phase of the project will be funded by the project’s own resources. Upon completion of the first phase of construction, there is potential to expand the capacity to 10 MW. Additional financing can be provided by banks in Moldova with an interest rate of 7-8% per annum (in foreign currency) or by EXIM banks in countries that produce solar panels.
Payback period of the PV plant project:
- Payback period for selling electricity to the state – 6 years.
- Payback period for selling electricity on the exchange – less than 2 years.
BULR Law Firm offers legal support for the design and construction of PV plants under an EPCM (“turnkey”) contract.
An EPCM contract is a system for managing a project as a whole, including obtaining permits, coordinating with local and central authorities, managing design and construction, and commissioning the facility.
Experienced BULR specialists will help you give your project a good start.