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Council Regulation (EEC) No 729/79 of 9 April 1979 on the implementation in the geothermal energy sector of Council Regulation (EEC) No 1302/78 on the granting of financial support for projects to exploit alternative energy sources Official Journal L 093 , 12/04/1979 P. 0007 - 0008 Greek special edition: Chapter 12 Volume 2 P. 0007

**** ( 1 ) OJ NO L 158 , 16 . 6 . 1978 , P . 3 . ( 2 ) SEE PAGE 2 OF THIS OFFICIAL JOURNAL . COUNCIL REGULATION ( EEC ) NO 729/79 OF 9 APRIL 1979 ON THE IMPLEMENTATION IN THE GEOTHERMAL ENERGY SECTOR OF COUNCIL REGULATION ( EEC ) NO 1302/78 ON THE GRANTING OF FINANCIAL SUPPORT FOR PROJECTS TO EXPLOIT ALTERNATIVE ENERGY SOURCES THE COUNCIL OF THE EUROPEAN COMMUNITIES , HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 1302/78 OF 12 JUNE 1978 ON THE GRANTING OF FINANCIAL SUPPORT FOR PROJECTS TO EXPLOIT ALTERNATIVE ENERGY SOURCES ( 1 ), AND IN PARTICULAR ARTICLE 3 THEREOF , HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION , WHEREAS AMONG ALTERNATIVE ENERGY SOURCES GEOTHERMAL ENERGY ALREADY SHOWS WORTHWHILE EXPLOITATION POTENTIAL , HAS ADOPTED THIS REGULATION : ARTICLE 1 1 . IN ACCORDANCE WITH THE TERMS OF REGULATION ( EEC ) NO 1302/78 AND THE RULES LAID DOWN IN THIS REGULATION , THE COMMUNITY MAY PROVIDE FINANCIAL SUPPORT FOR PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY . 2 . SUCH SUPPORT SHALL BE GRANTED TO PROJECTS FOR EXPLOITING GEOTHERMAL FLUIDS FOR THE PURPOSES OF HEATING DOMESTIC , INDUSTRIAL OR OTHER PREMISES , GENERATING ELECTRICITY , OR INDUSTRIAL OR AGRICULTURAL APPLICATIONS OF HEAT . ARTICLE 2 SUPPORT MAY BE GRANTED FOR PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY COVERING : - THE EXPLORATORY STAGE , OR - THE EXPLORATORY STAGE AND THE FLUID-UTILIZATION STAGE . THE EXPLORATORY STAGE SHALL COVER THE SINKING OF BOREHOLES WITH A VIEW TO COMMERCIAL EXPLOITATION OF THE RESERVOIR . THE FLUID-UTILIZATION STAGE SHALL COVER THE OTHER WORK AND INVESTMENT REQUIRED TO ACHIEVE COMMERCIAL EXPLOITATION OF THE RESERVOIR . THE COMMERCIAL-EXPLOITATION STAGE SHALL BE DEFINED FOR EACH SPECIFIC PROJECT IN ACCORDANCE WITH ARTICLE 4 ( 3 ). ARTICLE 3 1 . SUPPORT SHALL BE GRANTED IN THE FORM OF FINANCIAL CONTRIBUTIONS REPAYABLE ON THE CONDITIONS LAID DOWN IN PARAGRAPH 2 BELOW UP TO THE CEILING LAID DOWN FOR GEOTHERMAL ENERGY IN PARAGRAPH 2 OF THE SOLE ARTICLE OF REGULATION ( EEC ) NO 726/79 OF 9 APRIL 1979 FIXING THE MAXIMUM AMOUNT OF AID TO BE MADE AVAILABLE PURSUANT TO COUNCIL REGULATION ( EEC ) NO 1302/78 ON THE GRANTING OF FINANCIAL SUPPORT FOR PROJECTS TO EXPLOIT ALTERNATIVE ENERGY SOURCES ( 2 ). 2 . SUPPORT MAY NOT IN GENERAL EXCEED 40 % OF THE TOTAL COST OF THE PROJECT . HALF OF THE SUPPORT SHALL BE REPAYABLE IN CASES WHERE , FOLLOWING THE FIRST YEAR OF COMMERCIAL OPERATION OF THE RESERVOIR , THE INSTALLATION IS EXPLOITED FOR THE PURPOSES LAID DOWN IN ARTICLE 1 ( 2 ) ON THE BASIS OF THE USE FOR DEMONSTRATION PURPOSES . 3 . THE REPAYABLE PART OF THE SUPPORT SHALL BE REPAID OVER A MAXIMUM PERIOD OF EIGHT YEARS , STARTING FROM THE SECOND YEAR OF COMMERCIAL EXPLOITATION OF THE RESERVOIR . ARRANGEMENTS FOR REPAYMENT SHALL DEPEND ON THE NATURE OF THE PROJECT AND SHALL BE LAID DOWN IN THE CONTRACTS TO BE CONCLUDED WITH THE RECIPIENTS . ARTICLE 4 1 . THE COMMISSION SHALL PUBLISH IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES INVITATIONS TO TENDER FOR PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY . 2 . EVERY PROJECT SUBMITTED SHALL BE EXAMINED BY THE COMMISSION ON THE BASIS OF THE FOLLOWING INFORMATION TO BE SUPPLIED BY THE APPLICANTS : - A DETAILED DESCRIPTION OF THE PROJECT AND THE TIMETABLE FOR ITS EXECUTION , - A DESCRIPTION OF THE PRELIMINARY WORK AND RESEARCH , - THE IMPORTANCE OF THE PROJECT FOR REDUCING ENERGY DEPENDENCE AND DIVERSIFICATION OF SUPPLY , - THE FINANCIAL SITUATION AND TECHNICAL CAPABILITIES OF THOSE RESPONSIBLE FOR THE PROJECT , - THE NATURE AND EXTENT OF THE TECHNICAL AND ECONOMIC RISKS INVOLVED IN THE PROJECT , - THE COST OF THE PROJECT , ITS POTENTIAL ECONOMIC VIABILITY AND THE PROPOSED ARRANGEMENTS FOR FINANCING IT , - THE EXTENT TO WHICH THE EXECUTION OF THE PROJECT MAY ENCOURAGE THE EXPLOITATION OF OTHER GEOTHERMAL RESERVOIRS IN THE COMMUNITY , - WHETHER AT AN EARLIER STAGE OF RESEARCH AND DEVELOPMENT THE PROJECT HAS BEEN GIVEN FINANCIAL SUPPORT BY THE COMMUNITY OR BY MEMBER STATES , - DETAILS OF ANY OTHER FINANCIAL SUPPORT FOR THE PROJECT TO BE PROVIDED FOR BY , OR EXPECTED FROM , MEMBER STATES OR THE COMMUNITY , - ANY OTHER INFORMATION WHICH JUSTIFIES THE COMMUNITY SUPPORT REQUESTED , - HOW IT IS PROPOSED TO PUBLICIZE THE RESULTS . 3 . IN ACCORDANCE WITH ARTICLE 6 ( 2 ) OF REGULATION ( EEC ) NO 1302/78 THE COMMISSION SHALL SET UP AN ADVISORY COMMITTEE ON THE MANAGEMENT OF PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY , COMPOSED OF REPRESENTATIVES DESIGNATED BY THE MEMBER STATES AND CHAIRED BY A COMMISSION REPRESENTATIVE . THIS COMMITTEE SHALL ASSIST THE COMMISSION IN THE EXAMINATION OF APPLICATIONS . THE PROJECTS TO RECEIVE FINANCIAL SUPPORT SHALL BE SELECTED IN ACCORDANCE WITH ARTICLE 6 ( 2 ) OF REGULATION ( EEC ) NO 1302/78 . ARTICLE 5 THIS REGULATION SHALL APPLY FOR FIVE YEARS . THE COUNCIL , ACTING ON A PROPOSAL FROM THE COMMISSION , SHALL DECIDE WHETHER IT SHOULD BE EXTENDED OR AMENDED . THE COMMISSION SHALL REPORT ANNUALLY TO THE EUROPEAN PARLIAMENT AND THE COUNCIL AND SHALL MAKE REFERENCE TO THE PROGRESS MADE IN THE PROJECTS WHICH HAVE OBTAINED FINANCIAL SUPPORT . ARTICLE 6 THIS REGULATION SHALL ENTER INTO FORCE ON THE DAY FOLLOWING ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES . IT SHALL APPLY FOLLOWING THE DECISION TAKEN BY THE COMMISSION , OR BY THE COUNCIL IN THE EVENT OF APPEAL , ON THE FIRST SERIES OF PROJECTS IN ACCORDANCE WITH ARTICLE 6 OF REGULATION ( EEC ) NO 1302/78 . THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES . DONE AT LUXEMBOURG , 9 APRIL 1979 . FOR THE COUNCIL THE PRESIDENT M . D ' ORNANO

****

( 1 ) OJ NO L 158 , 16 . 6 . 1978 , P . 3 .

( 2 ) SEE PAGE 2 OF THIS OFFICIAL JOURNAL .

COUNCIL REGULATION ( EEC ) NO 729/79

OF 9 APRIL 1979

ON THE IMPLEMENTATION IN THE GEOTHERMAL ENERGY SECTOR OF COUNCIL REGULATION ( EEC ) NO 1302/78 ON THE GRANTING OF FINANCIAL SUPPORT FOR PROJECTS TO EXPLOIT ALTERNATIVE ENERGY SOURCES

THE COUNCIL OF THE EUROPEAN

COMMUNITIES ,

HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY ,

HAVING REGARD TO COUNCIL REGULATION ( EEC ) NO 1302/78 OF 12 JUNE 1978 ON THE GRANTING OF FINANCIAL SUPPORT FOR PROJECTS TO EXPLOIT ALTERNATIVE ENERGY SOURCES ( 1 ), AND IN PARTICULAR ARTICLE 3 THEREOF ,

HAVING REGARD TO THE PROPOSAL FROM THE COMMISSION ,

WHEREAS AMONG ALTERNATIVE ENERGY SOURCES GEOTHERMAL ENERGY ALREADY SHOWS WORTHWHILE EXPLOITATION POTENTIAL ,

HAS ADOPTED THIS REGULATION :

ARTICLE 1

1 . IN ACCORDANCE WITH THE TERMS OF REGULATION ( EEC ) NO 1302/78 AND THE RULES LAID DOWN IN THIS REGULATION , THE COMMUNITY MAY PROVIDE FINANCIAL SUPPORT FOR PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY .

2 . SUCH SUPPORT SHALL BE GRANTED TO PROJECTS FOR EXPLOITING GEOTHERMAL FLUIDS FOR THE PURPOSES OF HEATING DOMESTIC , INDUSTRIAL OR OTHER PREMISES , GENERATING ELECTRICITY , OR INDUSTRIAL OR AGRICULTURAL APPLICATIONS OF HEAT .

ARTICLE 2

SUPPORT MAY BE GRANTED FOR PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY COVERING :

- THE EXPLORATORY STAGE , OR

- THE EXPLORATORY STAGE AND THE FLUID-UTILIZATION STAGE .

THE EXPLORATORY STAGE SHALL COVER THE SINKING OF BOREHOLES WITH A VIEW TO COMMERCIAL EXPLOITATION OF THE RESERVOIR . THE FLUID-UTILIZATION STAGE SHALL COVER THE OTHER WORK AND INVESTMENT REQUIRED TO ACHIEVE COMMERCIAL EXPLOITATION OF THE RESERVOIR . THE COMMERCIAL-EXPLOITATION STAGE SHALL BE DEFINED FOR EACH SPECIFIC PROJECT IN ACCORDANCE WITH ARTICLE 4 ( 3 ).

1 . SUPPORT SHALL BE GRANTED IN THE FORM OF FINANCIAL CONTRIBUTIONS REPAYABLE ON THE CONDITIONS LAID DOWN IN PARAGRAPH 2 BELOW UP TO THE CEILING LAID DOWN FOR GEOTHERMAL ENERGY IN PARAGRAPH 2 OF THE SOLE ARTICLE OF REGULATION ( EEC ) NO 726/79 OF 9 APRIL 1979 FIXING THE MAXIMUM AMOUNT OF AID TO BE MADE AVAILABLE PURSUANT TO COUNCIL REGULATION ( EEC ) NO 1302/78 ON THE GRANTING OF FINANCIAL SUPPORT FOR PROJECTS TO EXPLOIT ALTERNATIVE ENERGY SOURCES ( 2 ).

2 . SUPPORT MAY NOT IN GENERAL EXCEED 40 % OF THE TOTAL COST OF THE PROJECT .

HALF OF THE SUPPORT SHALL BE REPAYABLE IN CASES WHERE , FOLLOWING THE FIRST YEAR OF COMMERCIAL OPERATION OF THE RESERVOIR , THE INSTALLATION IS EXPLOITED FOR THE PURPOSES LAID DOWN IN ARTICLE 1 ( 2 ) ON THE BASIS OF THE USE FOR DEMONSTRATION PURPOSES .

3 . THE REPAYABLE PART OF THE SUPPORT SHALL BE REPAID OVER A MAXIMUM PERIOD OF EIGHT YEARS , STARTING FROM THE SECOND YEAR OF COMMERCIAL EXPLOITATION OF THE RESERVOIR . ARRANGEMENTS FOR REPAYMENT SHALL DEPEND ON THE NATURE OF THE PROJECT AND SHALL BE LAID DOWN IN THE CONTRACTS TO BE CONCLUDED WITH THE RECIPIENTS .

1 . THE COMMISSION SHALL PUBLISH IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES INVITATIONS TO TENDER FOR PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY .

2 . EVERY PROJECT SUBMITTED SHALL BE EXAMINED BY THE COMMISSION ON THE BASIS OF THE FOLLOWING INFORMATION TO BE SUPPLIED BY THE APPLICANTS :

- A DETAILED DESCRIPTION OF THE PROJECT AND THE TIMETABLE FOR ITS EXECUTION ,

- A DESCRIPTION OF THE PRELIMINARY WORK AND RESEARCH ,

- THE IMPORTANCE OF THE PROJECT FOR REDUCING ENERGY DEPENDENCE AND DIVERSIFICATION OF SUPPLY ,

- THE FINANCIAL SITUATION AND TECHNICAL CAPABILITIES OF THOSE RESPONSIBLE FOR THE PROJECT ,

- THE NATURE AND EXTENT OF THE TECHNICAL AND ECONOMIC RISKS INVOLVED IN THE PROJECT ,

- THE COST OF THE PROJECT , ITS POTENTIAL ECONOMIC VIABILITY AND THE PROPOSED ARRANGEMENTS FOR FINANCING IT ,

- THE EXTENT TO WHICH THE EXECUTION OF THE PROJECT MAY ENCOURAGE THE EXPLOITATION OF OTHER GEOTHERMAL RESERVOIRS IN THE COMMUNITY ,

- WHETHER AT AN EARLIER STAGE OF RESEARCH AND DEVELOPMENT THE PROJECT HAS BEEN GIVEN FINANCIAL SUPPORT BY THE COMMUNITY OR BY MEMBER STATES ,

- DETAILS OF ANY OTHER FINANCIAL SUPPORT FOR THE PROJECT TO BE PROVIDED FOR BY , OR EXPECTED FROM , MEMBER STATES OR THE COMMUNITY ,

- ANY OTHER INFORMATION WHICH JUSTIFIES THE COMMUNITY SUPPORT REQUESTED ,

- HOW IT IS PROPOSED TO PUBLICIZE THE RESULTS .

3 . IN ACCORDANCE WITH ARTICLE 6 ( 2 ) OF REGULATION ( EEC ) NO 1302/78 THE COMMISSION SHALL SET UP AN ADVISORY COMMITTEE ON THE MANAGEMENT OF PROJECTS FOR THE EXPLOITATION OF GEOTHERMAL ENERGY , COMPOSED OF REPRESENTATIVES DESIGNATED BY THE MEMBER STATES AND CHAIRED BY A COMMISSION REPRESENTATIVE . THIS COMMITTEE SHALL ASSIST THE COMMISSION IN THE EXAMINATION OF APPLICATIONS .

THE PROJECTS TO RECEIVE FINANCIAL SUPPORT SHALL BE SELECTED IN ACCORDANCE WITH ARTICLE 6 ( 2 ) OF REGULATION ( EEC ) NO 1302/78 .

ARTICLE 5

THIS REGULATION SHALL APPLY FOR FIVE YEARS .

THE COUNCIL , ACTING ON A PROPOSAL FROM THE COMMISSION , SHALL DECIDE WHETHER IT SHOULD BE EXTENDED OR AMENDED .

THE COMMISSION SHALL REPORT ANNUALLY TO THE EUROPEAN PARLIAMENT AND THE COUNCIL AND SHALL MAKE REFERENCE TO THE PROGRESS MADE IN THE PROJECTS WHICH HAVE OBTAINED FINANCIAL SUPPORT .

ARTICLE 6

THIS REGULATION SHALL ENTER INTO FORCE ON THE DAY FOLLOWING ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .

IT SHALL APPLY FOLLOWING THE DECISION TAKEN BY THE COMMISSION , OR BY THE COUNCIL IN THE EVENT OF APPEAL , ON THE FIRST SERIES OF PROJECTS IN ACCORDANCE WITH ARTICLE 6 OF REGULATION ( EEC ) NO 1302/78 .

THIS REGULATION SHALL BE BINDING IN ITS ENTIRETY AND DIRECTLY APPLICABLE IN ALL MEMBER STATES .

DONE AT LUXEMBOURG , 9 APRIL 1979 .

FOR THE COUNCIL

THE PRESIDENT

M . D ' ORNANO