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

( 2 ) OJ NO C 39 , 12 . 2 . 1979 . P . 38 .

( 3 ) SEE PAGE 2 OF THIS OFFICIAL JOURNAL .

COUNCIL REGULATION ( EEC ) NO 727/79

OF 9 APRIL 1979

ON THE IMPLEMENTATION IN THE SOLAR 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 ,

HAVING REGARD TO THE OPINION OF THE EUROPEAN PARLIAMENT ( 2 ),

WHEREAS AMONG ALTERNATIVE ENERGY SOURCES SOLAR ENERGY SHOWS WORTHWHILE EXPLOITATION POTENTIAL WHICH REQUIRES PROVEN TECHNOLOGIES TO BE AVAILABLE IN GOOD TIME ,

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 DEMONSTRATION PROJECTS TO EXPLOIT SOLAR ENERGY .

2 . SUCH SUPPORT SHALL BE GRANTED FOR PROJECTS FOR EXPLOITING SOLAR ENERGY , IN PARTICULAR :

- FOR INSTALLATIONS FOR THE HEATING OF WATER , SPACE HEATING AND AIR-CONDITIONING OF RESIDENTIAL AND INDUSTRIAL BUILDINGS AND PUBLIC PREMISES ,

- FOR INSTALLATIONS FOR THE PRODUCTION OF PROCESS HEAT , MECHANICAL OR ELECTRICAL ENERGY FOR PURPOSES OF INDUSTRIAL OR AGRICULTURAL PRODUCTION OR PROCESSING ,

- FOR BIOMASS PRODUCTION AND APPLICATION FOR ENERGY PURPOSES .

ARTICLE 2

SUPPORT MAY BE GRANTED FOR PROJECTS FOR THE EXPLOITATION OF SOLAR ENERGY CAPABLE OF PROMOTING , IN THE COMMUNITY , OTHER PROJECTS OF SIMILAR TYPE FOR WHICH FINANCE , WITHOUT THIS SUPPORT , IS NOT FORTHCOMING IN A SATISFACTORY MANNER IN VIEW OF THE RISKS AND/OR THE LARGE INVESTMENTS INVOLVED .

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 SOLAR ENERGY , IN PARAGRAPH 2 OF THE SOLE ARTICLE OF COUNCIL 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 ( 3 ).

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 OPERATION , THE INSTALLATION IS SUBSEQUENTLY EXPLOITED FOR INDUSTRIAL OR COMMERCIAL PURPOSES .

3 . THE REPAYABLE PART OF THE SUPPORT SHALL BE REPAID OVER A MAXIMUM PERIOD OF EIGHT YEARS , STARTING FROM THE SECOND YEAR OF EXPLOITATION OF THE INSTALLATIONS FOR INDUSTRIAL OR COMMERCIAL PURPOSES . 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 SOLAR 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 RELEVANT EXPERIENCE OBTAINED MAY ENCOURAGE INTRODUCTION OF THE TECHNIQUE , PROCESS OR PRODUCT IN THE COMMUNITY ; THE PROSPECTS OF WIDESPREAD APPLICATION OF THE TECHNIQUE , PROCESS OR PRODUCT AND THE BENEFITS THEREBY OBTAINABLE FOR THE ECONOMY AS A WHOLE ,

- 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 SOLAR 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