Azerbaijani Cabinet of Ministers has adopted a resolution on approval of the "Rules for application of the mechanism of active consumer support" and setting the limit of power capacity of electricity produced by active consumers at the expense of renewable energy sources.
The aim is to apply the mechanism of active consumer support to transfer surplus electricity produced from renewable energy sources.
These regulations apply to active consumers who generate electricity from renewable energy sources in order to fully or partially meet their electricity consumption. The capacity limit of the construction facility of an active consumer is determined based on the requirements stipulated in technical conditions.
Taxation of active consumers, their exemption from taxation and application of tax benefits to them are regulated in accordance with the Tax Code. The relations between the active consumer and the energy supplying company not covered by these Rules are regulated by the "Electricity Use Rules" approved by the Decree of the Cabinet of Ministers of Azerbaijan No. 18 of February 2, 2005.
An active consumer is a legal entity or individual who, in addition to consuming electricity, produces electricity up to 150 kW (including 150 kW) at the expense of renewable energy sources.
According to these regulations, the stages of the support mechanism for an active consumer are:
- design, construction and installation of the active consumer's power plant;
- connection of the construction project to the electricity supply network;
- transmission of the generated electricity to the electricity grid to compensate for excess consumption;
- purchase of electricity from the electricity supply network at the retail tariff corresponding to the consumer group to which it belongs, if the active consumer's consumption exceeds electricity production;
- conclusion of an electricity purchase agreement between the active consumer and the energy supply company in connection with the transmission and receipt of electricity;
- payment of the cost of residual electricity resulting from compensation to the active consumer at the relevant wholesale tariff for the current reporting period.
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