ALTERNATIVE ENERGY DEVELOPMENT BOARD

NOTIFICATION

Islamabad. the 6th day of February 2018

S.R.O . In exercise of the powers conferred by Section 19 of the AlternativeEnergy Development Board Act, 2010, the Alternative Energy Development Board, finding itexpedient to lay down a framework for the safe, secure and quality-assured supply of solar andwind energy generation products and installation and servicing thereof for small industrial,commercial, agricultural and residential installations, is pleased to make the following regulations,namely'-

1. Title and Commencement. (1) These regulations may be called the AlternativeEnergyDevelopment Board (Certification) Regulations, 2018.

(2) These regulations shall come into force at once.

(3) These regulations shall apply for all products, projects and installations of solar and windpower generation facilities of installed capacity of up to one megawatt with or without net metering.

(4) Words and expressions defined in the Act and used in these regulations shall carry themeaning given in the Act.

2. Definitions. In these regulations, unless there is anything repugnant in the subject orcontext:

(a) "Act" means the Alternative Energy Development Board Act, 2010;

(b) "AEDB" or "the Board" means the Alternative Energy Development Board establishedunder the Act;

(c) "certificate" means a certificate issued under these regulations;

(d) "certified installer" means an installer holding a valid certificate;

(e) "installer" means a natural or juridical person who, inter alia, supplies or installs equipmentand facilities for solar or wind power generation for up to one megawatt capacity for smallindustrial, commercial or residential premises or provides other services related theretoincluding aftersales services to the customers.

(1) "customer agreement" an agreement in a form approved by AEDB to be entered into by andbetween the certified installer and the customers before undertaking any works or providingany services in respect of installations of solar or wind systems;

(g) "NEPRA" means National Electric Power Regulatory Authority established under section 3of NEPRAAct 1997 (XI, of I997). ..'~oTp:;·~

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(h) "secretary" means the secretary to the Board.

3. Receipt of Applications. (1) AEDB may, from time to time, invite applications forthe certification of vendors/installers/service providers by publishing the invitation in categories asstated in schedule 1.

(2) The vendors/installers/service providers qualifying as per the eligibility criteria against eachof the categories as stated in schedule 2 shall apply to AEDB for certification.

(3) Subsequent to inviting applications for the first time, the vendors/installers/service providersmay at their own apply at any time to AEDB for certification in any of the categories, theapplication(s)may be considered as per standard operating procedures prepared in relation to theseregulations.

(4) An application for certification shall comply with the requirements stated in schedule 3.

(5) An application with incomplete information or documents will be returned and may be re­filed by the applicant after removing the deficiency whereupon the date of filing shall be the datewhen the complete application is filed with AEDB.

(5) An application complete in all respects will be issued an application process number.

4. Processing of applications. (1) A team comprising three officers of AEDB nominatedby the Chief Executive Officer, referred to hereinafter as the processing team, shall meet onperiodicbasis to process the applications to make them ready for evaluation.

(2) The processing team may require the applicant to furnish such further information as may berequired to elucidate the application.

(3) Where the processing team is satisfied that the application is complete in all respects, that allelucidations as required have been furnished and that the application merits evaluation, it shallforward the application to the evaluation team formed under regulation 5.

5. Evaluation of applications. (1) A team comprising three officers of AEDB nominatedby the Chief Executive Officer, that may include two other members each nominated by the PowerDivision of Ministry of Energy and Ministry of Science and Technology, referred to hereinafter asthe evaluationteam, shall meet on periodic basis to evaluate the applications placed before it by theprocessing team.

(2) The evaluation team shall evaluate the applications on the basis of the criteria specified inschedule4 for each of the categories separately.

(3) Where an application meets the requisite score specified in schedule 4, the application shallbe placed before the Chief Executive Officer with recommendation for issuing the certificate. Theprocessing team shall communicate the recommendation to the applicant along with the request fordeposit of the certification fee specified in schedule 10 against each ofth~.~.::::> ...>

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(4) Where an application does not meet the requisite score specified in schedule 4, the applicantshall be informed accordingly along with the scorecard. The applicant shall be entitled to applyafresh for a certificate.

6. Certificate. (1) On receipt of the recommendation pursuant to regulation 5, andsubject to receipt of the certification fee, the Chief Executive Officer shall authorize the secretary tosign and issue the certificate.

(2) Each certificate shall be valid for one year from the date it is issued and may be renewed onannual basis.

(3) A certified installer shall be deemed to be screened for compliance with good practices forthe supply, installation or servicing of wind or solar projects and products of up to one megawattcapacity and shall also be entitled to the privileges stated in schedule 6.

7. Renewal of Certificate. (1) The application for renewal of certificate and its processingshall be governed,mutatis mutandis, by regulations 3, 4 and 5.

(2) Where an application does not meet the requisite score for renewal specified in schedule 5,the applicant shall be informed accordingly along with the scorecard with a notice to cure thedeficiency, if of a kind that can be cured, within thirty days failing which the certificate shall expire.

(3) Provided the application for renewal is filed thirty days before expiry of the certificate, thecertificate pending evaluation of the renewal application by AEDB shall remain valid until thecommunicationof the outcome of the evaluation process to the certified installer.

8. Ranking of Installers. AEDB may prepare and publish, and update from time to time, theranking of the certified installers based on the criteria laid down by AEDB from time to time.

9. Obligations of tbe Installers. Each certified installer shall:

(a) enter into a customer agreement before undertaking any installation works or provision ofrelated services to the customer. The standard format of the customer agreement is given atschedule 7. Compliance with warranties and other terms and conditions set out in thecustomer agreement shall be deemed to be an obligation imposed on such certified installerunder the customer agreement and these regulations; and

(b) take all appropriate safety measures prescribed by AEDB or any other competent authorityfrom time to time.

(c) undertake activities including but not limited as stated in schedule 8 that may be amended inconsultation with the stakeholders in public and private sector and approved by CEO.AEDB.

(d) deposit a bank guarantee as per format and amount given in schedule 9 valid for a period ofat least two years extendable for period specified by AEDB

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10. Revocation of Certificate. (1) If, during the validity period of the Certificate, anycomplaint is lodged to AEDB against a certified installer about breach of these regulations, thematter will be referred to NEPRA for further proceedings against the installer. Customers can also lodgea complaint regarding breach of these regulations by a certified installer directly to NEPRA.

(2) NEPRA may, as an independent arbiter, may initiate proceedings for revocation ofcertificate as issued by AEDB to certified installer against a complaint / application received byNEPRA either from AEDB or directly from any of its customers regarding breach of NEPRA's DOregulations or these regulations by a certified installer.

(3) NEPRA may add a caution notice on any database of the certified installers andcommunicate to AEDB that it has initiated proceedings against a certified installer that may lead tothe revocation of its certificate.

(4) NEPRA through writing will provide the installer an opportunity of hearing. NEPRA beingsatisfied that the installer fails to justify, breach of certification regulations is established, andcomplaint / application of customeris genuine,issue a notice to AEDB to revoke a certificate issuedto a certified installer. AEDB, upon receipt of noticefromNEPRA and with the approval of the CEOAEDB,may revoke its certificate and the name of the installer may be included in a black-list.

(5) In order to aid assessment of NEPRA regarding any reported breach, or performance of thecompany, NEPRA can considerengaginga third party auditor to carry out independent assessmentand submit its findings in shape of a report.

(6) On revocation of a certificate:

(a) the privileges set out in schedule 6 attendant to certification under these regulations shallcease forthwith and the name of certified installer whose certificate is revoked may beblack-listed.

(b) the bank guarantee submitted by the certified installer shall be encashed

(7) A certified installer whose certificate is revoked may apply for removal of his name fromthe black-list and for issue of the certificate afresh after expiry of two years following therevocationof the certificate.

11. Delegation of Powers. The Board may delegate any or all of its powers and functions underthese regulations to the Chief Executive Officer or any officer of the Board.

12. Fees. All fees received pursuant to these regulations shall be paid into the Fund constitutedunder section 13of the Act.

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Schedule 1:(Categories of VendorsllnstallerslService Providers for Certification pursuant to

regulations 3(1))

Sr. No. Category DescriptionVendors/Installers/Service Providers

1. ARE-VI On-grid / Off-grid and hybrid renewable energyinstallations of capacity up to 1000 kW

2. ARE-V2 On-grid / Off-grid and hybrid renewable energyinstallations of capacity up to 250 kW

3. ARE-V3 Off-grid and captive installations of renewable energyinstallations of capacity upto 50 kW

Consulting Firms4. ARE-CI Renewable energy resources and systems of capacity

up to 1000 kW for on-grid/hybrid applicationsRenewable energy planning and conservation for on-grid/hybrid and/or off-grid applications

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Schedule 2:(Eligibility criteria pursuant to regulations 3(2»)

ELIGmILITY CRITERIA FOR CERTIFICATION! PRE-QUALIFICATION OF VENDORS/SUPPLY/SERVICE COMPANIES

The vendors!service providers!firms! joint ventures (having capacity to deliver the completepackage of services including survey, design, supply of equipment! materials, installation &commissioning and post installation back up support viz-a-viz operation & maintenanceservices for complete system) with the following strength! background would be eligible forcertification against various categories as defined in schedule-l , which will be renewed everyyear based on satisfactory performance:

Eligibility Criteria for Certification against Category ARE-VI1. Must have an office in Pakistan and have! willing to establish at least one (1) sub-office/

dealership! after sales service center in the region of the DISCO where it intends to dobusiness;

11. Must be registered with PEC in appropriate category relevant to the value of the Works (C4or above) and with Specialization codes. Specialized codes as specified by PEC forcontractors in solar PV / wind systems include:

o EE-ll (General electrical works & solar system), oro ME-07 (General mechanical works & solar system)

iii. Must be registered with Income Tax and Sales Tax Departments (Attach NTN & STNRegistration Certificates supported by active NTN& STN);

iv. Must have local presence (in case of foreign firm). Proof of meaningful partnership with alocal PEC registered consulting firm (s) will be required in the shape of JV agreement;

v. Must be in solar business for at least last five years;VI. Must have experience of completing renewable energy systems (on-grid! hybrid and/or off­

grid) preferably installation of at least 20 renewable powered systems during last five (05)years with cumulative capacity of more than 3 MW(Attach following documents to justify

the experience claim):

(a) List of completed and on-going projects with location, components, size/scope, cost,period and share/ role (in case of Joint venture)

(b) List of Clients(c) Type of renewable power systems installed(d) Any additional document to support relevant experience

vii. Must possess inventory of renewable power equipment as per standards & specificationsapproved by NEPRA and AEDB;

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viii. Must have minimum average annual turnover of Rs. 10 million (Attach acceptabledocument like audited financial reports J bank statements I tax declaration! returns etc. forlast three years);

ix. Must provide affidavit confirming that (a) applicant vendor/service provider/firm/ jointventure have never been blacklisted by any government department. (if ever black listed,then provide the case history, current status of the firm regarding this decision) (b) all theinformation provided by the applicant firm! joint venture are correct (c) the firm willprovide compatible solar equipment as per approved standards & specifications and (d) thefirmwill deploy staff as per project requirement;

x. Must attach an unconditional bank guarantee in favour of AEDB amounting to Rs.1,000,000/-(Rupees One Million Only) as per format provided by AEDB;

Xl. The shortlisted applicant(s) will have to submit the fees for initial registration and annualrenewal as specified in schedule 10:

xii. Certification of a vendor/service provider/firm!joint venture shall be cancelled/ revoked byNEPRA on violation of NEPRA (Alternative and Renewable Energy) DistributedGeneration and Net Metering Regulations, 2015 OR violation of AEDB quality standards.defrauding/ cheating a customer! violation of the contract! agreement with the customer.The bank guarantee submitted to AEDB will be encashed forthwith and the vendor/serviceprovider/firm!joint venture shall remain black-listed for two years.

Eligibility Criteria for Certification against Category ARE- V2i. Must have an office in Pakistan and have/ willing to establish at least one (1) sub-office!

dealership/ after sales service center in the region of the DISCO where it intends to dobusiness;

11. Must be registered with PEC in appropriate category relevant to the value of the Works (C6and above) and with Specialization codes. Specialized codes as specified by PEC forcontractors in solar PV / wind systems include:

o EE-ll (General electrical works & solar system), oro ME-07 (General mechanical works & solar system)

ui, Must be registered with Income Tax and Sales Tax Departments (Attach NTN & STNRegistrationCertificates supported by activeNTN& STN);

IV. Must have local presence (in case of foreign firm). Proof of meaningful partnership with alocalPEC registered contractor (s) will be required in the shape of JV agreement;

v. Must be in solar business for last three years;VI. Must have experience of completing renewable energy systems (on-grid/hybrid and/or off­

grid) preferably installation of at least 10 renewable powered systems of cumulativecapacity I MW during last three (03) years (Attach following documents to justify theexperience claim):

(a) List of completed and on-going projects with location, components, size/scope, cost,period and share/ role (in case of Joint venture)

(b) List of Clients

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(c) Type of renewable power systems installed(d) Any additional document to support relevant experience

vii. Must possess inventory of renewable energy equipment as per standards & specificationsapproved by NEPRA and AEDB;

viii. Must have minimum average annual turnover of Rs. 3 million (Attach acceptable documentlike audited financial statements I bank statements I tax declaration! returns etc.);

ix. Must provide affidavit confirming that (a) applicant vendor/service provider/firm! jointventure have never been blacklisted by any government department. (if ever black listed,then provide the case history, current status of the firm regarding this decision) (b) all theinformation provided by the applicant firm! joint venture are correct (c) the firm willprovide compatible solar equipment as per approved standards & specifications and (d) thefirm will deploy staff as per project requirement;

x. Must attach an unconditional bank guarantee in favour of AEDB amounting to Rs.1,000,000/- (Rupees One Million Only) as per format provided by AEDB;

xi. The shortlisted applicant(s) will have to submit the fees for initial registration and annualrenewal as specified in schedule 10.

xii. Certification of a vendor/service provider/firm! joint venture shall be cancelled/ revoked byNEPRA on violation of NEPRA (Alternative and Renewable Energy) DistributedGeneration and Net Metering Regulations, 2015 OR violation of AEDB quality standards,defrauding! cheating a customer/ violation of the contract! agreement with the customer.The bank guarantee submitted to AEDB will be encashed forthwith and the vendor/serviceprovider/firm! joint venture shall remain black-listed for two years.

Eligibility Criteria for Certification against ARE- V31. Must have an office in Pakistan and have/ willing to establish at least one (1) sub-office/

dealership/ after sales service center in the region of the DISCO where it intends to dobusiness;

11. Must be registered with PEC in appropriate category relevant to the value of the Works (C6or above) and with Specialization codes. Specialized codes as specified by PEC forcontractors in solar PV / wind systems include:

o EE-II (General electrical works & solar system), oro ME-07 (General mechanical works & solar system)

v.vi.

Must be registered with Income Tax and Sales Tax Departments (Attach NTN & STNRegistration Certificates supported by active NTN& STN);Must have local presence (in case of foreign firm). Proof of meaningful partnership with alocal PEC registered contractor (s) will be required in the shape of JV agreement;Must possess adequate capabilities to start solar business in Pakistan;Must possess adequate and well trained manpower to undertake off-grid and captiverenewable energy projects (Attach CVs and experience certificates of the manpower tojustify the claim; _-_

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vii. Must possess inventory of solar equipment as per standards & specifications approved byNEPRA and AEDB;

viii. Must have adequate financial strength with paid up capital at least Rs. 300,000/- (Attachacceptable document like company registration documents with SECP, bank statements ofthe directors, tax declaration! returns etc.);

IX. Must provide affidavit confirming that (a) applicant vendor/service provider/firm! jointventure have never been blacklisted by any government department. (if ever black listed,then provide the case history, current status of the firm regarding this decision) (b) all theinformation provided by the applicant firm! joint venture are correct (c) the firm willprovide compatible solar equipment as per approved standards & specifications and (d) thefirmwill deploy staff as per project requirement;

x. Must attach an unconditional bank guarantee in favour of AEDB amounting to Rs.100,000/-(Rupees One Hundred Thousand Only) as per format provided by AEDB;

Xl. The shortlisted applicant(s) will have to submit the fees for initial registration and annualrenewal as specified in schedule 8 :

xii. Certification of a vendor/service provider/firm!joint venture shall be cancelled! revoked byNEPRA on violation of NEPRA (Alternative and Renewable Energy) DistributedGeneration and Net Metering Regulations, 2015 OR violation of AEDB quality standards,defrauding/ cheating a customer/ violation of the contract! agreement with the customer.The bank guarantee submitted to AEDBwill be encashed forthwith and the vendor/serviceprovider/firm!joint venture shall remain black-listed for two years.

Eligibility Criteria for Certification against ARE-ClI. Must have an office in Pakistan and have/ willing to establish at least one (1) sub-office /

service center in the region of the DISCOwhere it intends to do business;11. Must be registered with PEC as Consulting Firm with Specialization codes. Specialized

codes as specified by PEC for Consulting Firms for renewable energy systems include:

o 1210 (Renewable energy sources and Systems) oro 1220 (Energy Planning conservation and development);

iii. Must be registered with Income Tax and Sales Tax Departments (Attach NTN & STNRegistrationCertificates supported by active NTN& STN);

IV. Must have local presence (in case of foreign firm). Proof of meaningful partnership with alocal PEC registered consulting firm (5)will be required in the shape of JV agreement;

v. Must be in solar business for last three years;vi. Must have experience of completing renewable energy systems (on-grid or off-grid) as

consultant of at least 3 renewable powered systems during last three (03) years (Attachfollowing documents to justify the experience claim):

(a) List of completed and on-going projects with location, components, size/scope. cost.period and share/ role (in case of Joint venture)

(b) List of Clients

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(d) Any additional document to support relevant experience

vii. Must possess inventory of tools (software & hardware) and equipment used in renewableenergy applications;

viii. Must provide affidavit confirming that (a) applicant consulting firm!joint venture has neverbeen blacklisted by any government department. (if ever black listed, then provide the casehistory, current status of the firm regarding this decision) (b) all the information providedby the applicant consulting firm! joint venture are correct (c) the consulting firm willprovide compatible consulting service and (d) the firm will deploy staff as per projectrequirement;

IX. Must attach an unconditional bank guarantee in favour of AEDB amounting to Rs.100,000/-(Rupees One Hundred Thousand Only) as per format provided by AEDB;

x. The shortlisted applicant(s) will have to submit the fees for initial registration and annualrenewal as specified in schedule 10;

Xl. Certification of a consulting firm/ joint venture shall be cancelled/ revoked by NEPRA onviolation of NEPRA (Alternative and Renewable Energy) Distributed Generation and NetMetering Regulations, 2015 OR violation of AEDB quality standards, defrauding! cheatinga customer/ violation of the contract/agreement with the customer/client. The bankguarantee submitted to AEDB will be encashed forthwith and the consulting firm! jointventure shall remain black-listed for two years.

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Schedule 3:(Documents required pursuant to regulations 3(3) and 7(1»

Part I (Documents required for initial application pursuant to regulation 3(2»

1. Application form (available on AEDB's website)ii. Authority letter/ board resolution along with the copy of CNIC/passport of the applicantIll. Applicant's profileiv. Company's certificate of incorporation or registered partnership deed (as applicable)'v. Pakistan Engineering Council (PEC) registration certificate in appropriate categories

relevant for renewable energy and energy planning. Specialized codes as specified by PECfor contractors in solar PV / wind systems (renewable power) include:

o EE-II (General electrical works& solar system), oro ME-07 (General mechanical works& solar system)

Specialized codes as specified by PEC for consulting firms in solar PV / windsystems include:

o 1210 (Renewable energy sources and Systems) oro 1220(Energy Planning conservation and development)

1.Vl. NTN registration certificateVll. Sales tax registration certificateviii. In case of an international firm planning to undertake projects under a joint venture with

local companies, details of instruments/ agreements!documents in this regardix. List of employees along with CVs of solar/wind experts (engineers and professionals)

which shows sufficient relevant experiencex. Resume of national and international trainings and certifications obtained by the applicant

and! or its employees in solar PV I wind systems (on-grid, off-grid, hybrid etc.)Xl. List of industry standard software, tools, equipment and the like owned or used by the

installersxu. For Categories ARE-VI and ARE-V2, copies of audited financial reports / bank statements

duly verified by the issuing bank I tax declaration! returns for last three years and the periodof operations of the applicant; provided that, where up to date audited financial reports arenot available, then up to date management accounts duly certified by the chief executiveoffice in case of the company or by managing partner in case of the partnership firm or anyother similar designation, provided further that, where the applicant is not the company orpartnership firm, then the bank statement in the name of applicant's business duly verifiedby the issuing bank for the same period. For Categories ARE-V3 and ARE-Cl attachdocuments like company registration documents with SECP, bank statements of the

1AEDB will have a preference for the installers to be corporate entities to ensure public availability of theirrecords and their regulation ~~.

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directors duly verified by the issuing bank, tax declaration! returns etc. provided that, wherethe applicant is not the company or partnership firm, then the bank statement in the name ofapplicant's business duly verified by the issuing bank for the same period

xiii. Detail of projects (contractors to provide execute and installed projects; and consultants toprovide details of projects where consultancy services are rendered) in renewable energy(solar PV I wind) systems (on-grid, off-grid, hybrid) as per proforma at Annex-I

xiv. After sales services mechanisml methodology and detail of after sales service team, policyfor services I repairs I replacements for contracting firms only; Consultancy firms to submitthe documents showing their experience of services relating to supervision, monitoring andevaluation of the projects and installations in renewable energy

xv. Deposit challan non-refundable application processing fee in the name of AlternativeEnergy Fund

Part II (Documents required for application for renewal of certificate pursuant toregulation 7(1»

1.

ii.iii.

Renewal application form (available on AEDB's website)Authority letterl board resolution along with the copy ofCNIC/passport of the applicantUndertaking in respect of any change in company/ partnershipl JV composition ormanagement (as applicable)Renewal of Pakistan Engineering Council (PEC) registration certificateDetail of national and international trainings and certifications obtained during last twelvemonths by the applicant and! or its employees in solar PY I wind systems (on-grid, off-grid,hybrid etc.)For Categories ARE-Y1 and ARE-V2, copies of audited financial reports! bank statementsduly verified by the issuing bank / tax declaration! returns for last three years and the periodof operations of the applicant; provided that, where up to date audited financial reports arenot available, then up to date management accounts duly certified by the chief executiveoffice in case of the company or by managing partner in case of the partnership firm or anyother similar designation, provided further that, where the applicant is not the company orpartnership firm, then the bank statement in the name of applicant's business duly verifiedby the issuing bank for the same period. For Categories ARE-Y3 and ARE-Cl attachdocuments like audited financial reports for last one year, bank statements of the directorsduly verified by the issuing bank. tax declaration! returns etc. provided that, where theapplicant is not the company or partnership firm, then the bank statement in the name ofapplicant's business duly verified by the issuing bank for the same periodDetail of projects undertaken during last twelve months in renewable (solar PY I wind)systems (on-grid, off-grid, hybrid) as per proforma at Annex-IContractors shall provide list of after sales services / repairs / replacements provided duringlast twelve months; the consultants shall provide list of supervision, monitoring andevaluation of the projects and installations in renewable energyList of new offices! branches opened during last twelve months. __

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Schedule 4: (Initial eligibility criteria pursuant to regulation 5(2»

Sr. Criteria Weight

Enlistment as a firm with PEC in appropriate category relevant to thevalue of the works (at least C4 for ARE-VI and C6 for ARE-V2&3).Specialized codes as specified by PEC for contractors in solar PV /wind systems include:

0 EE-Il (General electrical works & solar system), or1. ME-07 (General mechanical works & solar system) 10

0Specialized codes as specified by PEC for consultants in solar PV !wind systems include:

0 1210 (Renewable energy sources and Systems) or0 1220 (Energy Planning conservation and development);

2. Experience of solar/wind project installations 203. Capabilities/experience of key personnel! staff on payroll 104. Audited financial reports/ bank statement 20

5.After sales services period, warranty period, methodology of services/ 20repairs! replacements and capabilities of after sales services team

6. Software, specialized equipment and technical capabilities of the firm 5

7. National and International certifications obtained as solar/wind 10installer (individual professionals or firm)

8.Number of solar!wind installations which have been connected to the 05grid

The passing marks for the eligible applicant will be 70. However, the qualifying applicantshall have to secure at least 60% marks in each of the above stated criteria from Sr.I-5.

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Schedule 5: (Eligibility for renewal of certificate pursuant to regulations 7(2»

Sr. Criteria Weight

I. Renewal of PEC registration 102. Capabilities/experience of key personnel/ staff on payroll 20

After sales services / repairs ! replacements provided during last3. twelve months by the contractors and for consultants supervision. 20

monitoring and evaluation services of the projects and installations4. Audited financial reports! bank statement 205. Software. specialized equipment and technical capabilities of the firm 10

6.Number of solar/wind installations which have been connected to the 05arid

7. Number of solar/wind installations other than grid connected 05

8.National and International certifications obtained as solar/wind 10installer.

The passing marks for the eligible applicant will be 70. However, the qualifying applicantshall have to secure at least 60% marks in each of the above stated criteria from Sr.1-5.

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Schedule 6: (Privileges be enjoyed by the Installer pursuant to regulation 6(3»

1. Only AEDB certified vendors/installers/service providers shall be eligible for providingservices net metering connections up to 250 kW. For net metering connections above250 kW and up to 1MW, consumer(s) will have choice to select either AEDB certifiedvendor(s)/instaUer(s)/service provider(s) or any other suitablevendor(s)/installer(s)/service provider(s)

2. Particulars and contact details of the certified installers shall be published on AEDB'swebsite and other print or social media with endorsement as AEDB's certified installers.

3. General public and public I private sector organizations shall be encouraged to takeservices from certified installers only.

4. A recommendation letter to the public sector organizations recommending theinstallation of wind or solar PV systems from the certified installers.

5. Customers are expected to have higher confidence in certified installers due to the keyterms of the customer agreement and certification by AEDB.

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Schedule 7: Customer Agreement (in pursuant to regulation 9(a))(to be signed between DG Installer and Customer)

I. This Agreement is made on Day -----------------Month -----------------------year--••••••-.---------- •••-- •••-between MIs .-.-----.-.---------------.---.-.--- having aregistered office at , registration Number--------woofregistration with AEDB as certified installer (hereinafter called "the DG Installer") andMr. / Ms. .Address: ______________ (hereinafter referred to as "the Customer").

Whereas:-

2.1 The Customer has agreed to purchase Wind / Photovoltaic Distributed Generating (DG) systemof -----------------KWp with -----------KW grid tie inverter amounting to PKR _

2.2 The DG Installer is involved in the business of designing, supply and installation of Wind / PVsystems including after sale support

2.3 The Customer is desirous of installing Wind / Photovoltaic Distributed Generation Facility(hereinafter referred to as "the DG Facility") at the address of

2.4 The DG Installer is registered with Alternative Energy Development Board (AEDB), listedunder the Directory of the Registered DG Installers with registration number -.------------.-- andis listed at AEDB's website at -.------------.

Whereby it is agreed as follows:

3.1 The agreement includes (enter Yes or NO at appropriate column)S# services Yes/No Remarks

I Supply and Installation DG Facility based Does not include provisioning andon net metering, complete in all respect. installation of bi-directional energy

meter

2 Consultancy services for technical design Technical matters onlyand supervision of the planned DG Facility

3 Services for documentation and itsprocessing with relevant institutions tillaward of Net Metering license/connection'

4 Maintenance services for DG Facility On annual or other terms basis

5 Services related to bi-directional meter May include provisioning and supportin installation

6 Any other related to net metering subject To be decided by installer andcustomer ind~pendently

-------- - - - - - -------------

3.2 The Customer hereby appoints the DG Installer to Supply and Install the DG Facility at theAddress as stated in Clause I as per requirements of NEPRA (Altemative and RenewableEnergy) Distributed Generation and Net Metering Regulations. 2015 (,Regulations') (SROS.R.O 812 ( I )12015 dated 151 September 2015) as amended time to time. The DG Installer shallstrictly comply with the specifications and requirements as stated in the Regulations andstandards for the components of the DG Facility as given by AEDB on its website. Compliancecertificate shall also be rendered by DG Facility as per Fifth Schedule attached.

3.3 The DG Installer shall be responsible to initiate and get processed application of net meteringconnection on behalf of the Customer from start till energization of the connection. DG Installershall ensure that the whole process for application for Net Metering connection must becompleted within 30 days of submission of application.

3.4 The Products and Components and services required for the DG Facility are as set out the quotewhich has been agreed between the two parties and are set out in the First Schedule attached.

3.4 Any changes ( after signing this agreement) to the brand of the products as set out in the FirstSchedule have to be mutually agreed. in writing and made a part of this agreement, by both theCustomer and the DG Installer. Copy of the same has also to be provided to IESCO for updateof its records.

3.5 The DG Installer hereby agrees to provide the Customer the DG Facility performanceexpectancy as set out in the Second Schedule, attached.

3.6 The Customer hereby agrees to pay the DG Installer for the products (including components)and installation charges as set out in the Third Schedule.

3.7 All payments by the Customer to the DG Installer shall be in the form of cheque. bank draft(cashier's order) or electronic transfer. No payment in CASH, shall be made by the Customer tothe DG Installer. All payments must be acknowledged by official receipts issued by the DGInstaller.

3.8 The Customer and DG Installer hereby agree to abide and comply with all rules. regulations.directives and any written requirement as set out by NEPRA / IESCO / AEDB I any otherrelevant authority.

3.9 All documents in respect of NEPRA and IESCO for the DG Facility shall be executed by theCustomer. However, DG Installer shall provide services in completing the documentation andprocessing for obtaining Net Metering Connection as per Regulations.

3.10 The Customer hereby agrees and covenants to allow the DG Installer, its employees andperson/persons authorized by the DG Installer to enter the address of the Customer for thepurpose of carrying out site survey prior to commencement of works, the supply and installationof the DG Facility and any other related services and maintenance.

3.11 The DG Installer agrees to provide a warranty as set out Fourth schedule. Minimum warrantiesrequired are as follows.

a. Warranty, PV Modules against manufacturing defects, 10Years.

17

b. PV Modules, standard performance warranty. 25 Yearsc. Workmanship including locally supplied parts (Except Frames) 5 Years.d. PV mounting Frames and associated parts, 25 Yearse. Grid tie inverters, including hybrid, 5 years

3.12 The DO Installer shall be responsible to the Customer on any warranty claims on componentsand equipment.

3.13 Both the Customer and the DO Installer hereby agree and covenant that they shall not, for theduration of this Agreement executed between them, terminate this Agreement without thewritten consent of the other party. Provided that written consent shall only be granted when theparty that intends to terminate the agreement has met all its obligations under this Agreement.The Customer may terminate the agreement if the DO Installer fails to deliver satisfactoryperformance as per agreed schedule. Similarly DO Installer may terminate this agreement ifpayment schedule is not met.

3.14 The duration of this agreement shall start from the date of signing this Agreement and willcontinue for the period mentioned in warranty clauses.

3.15 The Schedules attached to this Agreement shall form part and parcel of this Agreement and shallbe read as part of this Agreement.

3.16 Any date or period mentioned in this Agreement may with the written consent of the parties beextended failing which time shall be of the essence of this Agreement.

3.17 The provisions of this Agreement shall be binding upon the personal representatives of each ofthe parties being an individual.

3.18 Each party confirms that this Agreement sets out the entire agreement and understandingbetween the parties and that it supersedes all prior agreement, arrangement and understandingbetween them and that they are not entering into this Agreement or any arrangementcontemplated or in reliance upon any representation or warranty not expressly set out in thisAgreement.

3.19 No failure or delay by any party in exercise of any right, power or privilege under thisAgreement shall operate as a waiver of it nor shall any single or partial exercise by such party ofany right, power or privilege preclude any further exercise of it or the exercise of any other rightor privilege.

3.20 No party shall have the right to assign any of the rights, liabilities or benefits set out in thisAgreement without the prior written consent of the other party having been first obtained.

3.21 Each party shall bear its own costs, legal fees and other expenses. The stamp duty for thisAgreement, if any, shall be borne by the Customer.

3.22

provision of this Agreement be waived or discharged except by the written consent the other

party.

3.23 In the event of any conflict between the provisions of this Agreement and any other document,the provision of this Agreement shall prevail.

3.24 All notices required to be given under this Agreement shall be in writing and shall be given orsent to the party concerned by hand or by Registered Post at the address set out in thisAgreement or at such other address as the parties may so inform the other in writing.

3.25 This Agreement shall be deemed to be a contract made in Pakistan and shall be interpreted in allrespect in accordance with Laws of Pakistan.

IN WITNESS WHEREOF the parties hereto have hereunto set their hands the day and year first abovewritten.

SIGNED by , Designation ----------------------CNIC ------------------------------------ for and on behalf of Registration with AEDB No.:(as the DG Installer) in the presence of:-

Company Stamp

WitnessName, , Designation -----------------------------.CNIC---------------- ------------------ -----

SIGNEDby for and on behalf of _(as the Customer) in the presence oft-

Name Designation. ---------------------------------

CNIC ------------------------------Witness

19

FIRST SCHEDULE TO THE CUSTOMER AGREEEMENT

(Products and Components to be supplied by the DO Installer for the DO Facility):

S# Product description Brand S# of Equipment Remarks

1 PV Modules -2 Inverter3 DC cables4 AC cables5 PV frames6 Earthing7 AC breakers, fuse links8 DC breakers and fuse links9 AC surge protectors10 DC surge protectors11 Residual Current detector

(RCD)12 Bus bar13 Manual disconnect14 Any other

accessories/attachments

PI attach a separate page if required

20

SECOND SCHEDULE TO THE CUSTOMER AGREEEMENT

Quotation by DG installer (on company letter head and bearing company stamp) and bearing acceptancesignatures, name, date and CNIC Number of the customers

21 ..'

------

THIRD SCHEDULE TO THE CUSTOMER AGREEEMENT

Payment Schedule1. Upon signing of Agreement % ---------- Amount ----------2. Upon completion of installation, testing and commissioning % -------------- Amount ----

3. On receipt of license from NEPRA % ---- Amount------------4. Any other term % ----------Amount -------------------Total 100%

22

FOURTH SCHEDULE TO THE CUSTOMER AGREEEMENT(System and components warranties)

a. Warranty, PV Modules against manufacturingdefects, ------------- Yearsb. PVModules, standard performance warranty -------------------- Yearsc. Workmanship including locally supplied parts (Except Frames) ------- Yearsd. PV mounting Frames including fixing screw, nut/bolt and washers etc. --------- Years

a.e. Grid tie inverters, including hybrid (On-grid/Off-Grid as one unit), --------- yearsf. Guaranteed Annual Energy Yield at given site ----------------------KWhlYr.:

*In case the system does not yield promised yield, installer promises to rectify till guaranteed yield isdelivered

*This guarantee is subject to

a. No tempering by any un-authorized personb. Regular maintenance services hired from installer.c. Not valid under force majeure condition, natural or man-made disastersd. Yield could vary + / - 10%depending upon location

A-

23

FlITH SCHEDULE TO THE CUSTOMER AGREEEMENT

Certificate by Installer about compliance to standards as specified by AEDB and Regulations (SROS.R.O 812 ( I )/2015 dated 15t September 2015) and as amended time to time.

Certificate of Compliance with Mandatory requirementsWe,------------------------------------- (Name, address, contact info of installer) having been prequalifiedby AEDB vide reference number --------------------- have installed the system as per requirements ofRegulations issued vide SRO 892 (1)/ 2015 dated Ist September, 2015 and all other standards of thecomponents of the DO Facility as specified by AEDB on its website. We specifically certify thefollowing:-

1) Comliance to quality, safety and environmental standards and technical requirements (IS stated inGuidelines issued by AEDB

• The design of the DG facility and its sizing complies with minimum technicalrequirements and specifications as provided in the guidelines issued by AEDB

b.• The components of the DG Facility as supplied to customer complies with the quality,

safety and environment standards as specified by AEDBc.

• The warranties given to the customer for components of DG Facility complies with therequirements as specified by AEDB

d.• The installation of the DG Facility complies with the quality and safety requirements,

recommendations and precautions as give in the guidelines issued by AEDBe.

2) Compliance to Protection Requirements Para 9 of Regulations:

• The protection and control diagrams for the interconnection of the DG Facility has been designedin accordance with the provision of Grid and Distribution codes and approved by ----------(nameof DISCO) prior to commissioning of proposed interconnection facilities. Reference has beenderived from typical single line diagram specified at Schedule VIII of the net metering regulations.

• The distributed generator is provided with equipment including without limitation, electricallines/circuits. transformer. switch gear, safety and protective devices. Meters to be used forinterconnection shall be arranged in consultation with -------------------------(DISCO name)

• The protective functions are equipped with automatic means to prevent reconnection ofdistributed generation facility with the distribution facilities of Distribution Company.

• The distributed generator is equipped with a manual lockable disconnect switch that has a visualbreak to isolate the distributed generator facility from distribution facilities.

• The Grid connected generator complies with Underwriter laboratories UL1741 standards and

1547 2003, lEC 61215. Compliance proof or Manufacturers certificate to this effect is attached.

3) Compliance to Para 100/ Regulations: Prevention of imerference.

• The DG Facility is designed to free from interference generation. Proper shielding and earthing isprovided to avoid any such generation and suppression. The THD of the inverter used is -------------­--(Value) which is less than permitted 3%.

4) Compliance to Para II 0/Regulations Voltage and Frequellcy Range:

• The maximum variation in output voltages of the inverter used---------------(Value) which is lessthan permissible ±5%

• The maximum variation in output frequency of the inverter used------------(Value) which is lessthan permissible±1%

5) Technical details of the inverterThe serial number of the inverter installed is -----------------. Its capacity is of ------- KW and(Manufacturers, type and Make) -------------------------------------. The literature containing technicalspecifications of the inverter is attached

25

_. --- ----- ------

SCHEDULESActivities to be undertaken bv Certified Installers

(In pursuant to regulation 9(c»

Each certified installer shall:(a) Undertake 'solar PV systems with net metering' promotional activities for creating

public awareness, such as road shows, distributing flyers, participating in exhibitions,targeting industries/ educational institutions/ businesses, independently as well ascollectively for promotion of net metering all over Pakistan. If needed, alsoparticipate in the training workshops and seminars;

(b) Coordinate and work with DISCOs, NEPRA and AEDB to expand the net meteringconnections portfolio at all customers' levels all over country;

(c) Act as one stop shop and provide services to the customers to process theirapplications for net metering from start till the energization of net meteringconnections

(d) Ensure compliance with warranties and qualityl safety standards for equipment andinstallation, as specified by AEDB and NEPRA;

(e) Ensure compliance with the requirements as specified by NEPRA in its Regulationsfor net metering

(f) Provide after sale services for a period of at least one year to the customer foroperation and maintenance of the solar PV system! net metering connection installedat customer(s)' facility. Ensure follow-up with customers for smooth functioning ofthe installed solar system! net metering connection. Also coordinate with DISCOsfor resolution of complaints regardingmetering on priority;

(g) Ensure participation in quarterly review meetings at AEDB for sharing progress.highlighting any issues faced in processing net metering applications.

(h) Remain available for responding to the queries/observations/complaints, if any bythe customer.

26

SCHEDULE 9Format Of Guarantee (in pursuant to regulation 9(d))

To: The Alternative Energy Development Board2nd Floor, OPF Building G-S/2 Islamabad.

Date of the Guarantee: (Dates and figures should also be mentioned in words)Amount of the Guarantee': [PKRe (PakRupeese)l (hereinafterreferredto as the "Guaranteed Sum]Date of issuance:Validityup to: [Twenty Four (24) months from the date of issue of guarantee]

THIS GUARANTEE is executed at on this day of __ 2017 BY:

[Name of the issuing Bank] having our registered office at [and branch officeat 4 (hereinafter referred to as the "Guarantor", which expression shall mean andinclude its successors, administrators, assigns and legal representatives, whether jointly orseverally);on the request and on behalf of [Company Name] (hereinafter referred to as the["Certified Installer"], which expression shall mean and include [its/their1 successors,executors, administrators, permitted assigns, legal representatives, whether jointly or severally);in favour of the Alternative Energy Development Board ("AEDBtf) (hereinafter referred to asthe "Beneficiary", which expression shall mean and include its successors, administrators andlegal representatives, whether jointly or severally).

WHEREAS:

A. The Beneficiary invited private sector companies to get them registered as CertifiedInstallers pursuant to Alternative Energy Development Board (Certification)Regulations, 2017 (hereinafter referred to as the "Regulations");

B. Clause 9 of the Regulations bind the Certified Installers to perform and deliver certainobligations;

C. Upon the application of the Certified Installer, its name has been included in the list ofCertified Installers subject to submission of this Guarantee.

D. As required by the Beneficiary in terms of the Regulations, and in consideration thereof.the Guarantor, at the request and on behalf of the Certified Installer, hereby furnishesthis irrevocable, unconditional, without recourse, on demand bank guarantee(hereinafter referred to as the "Guarantee") in favour of the Beneficiary in order tosecure the performance of the Certified Installer's obligations under the Regulations(hereinafter referred to as the "Guaranteed Obligation").

3 The firms in category ARE-VI & V2 will be required to post a Guarantee ofPKR 1,000,000 (in favor of AEDB)whereas the firms in category ARE-V3 & C1will be required to post a Guarantee of PKR 100,000 (in favor ofAEDB) ~4 Insert if issuing branch is at an address other than the registered address. {,"(\,Cl"lt of ~

~ oJ c"'"D "\

27 itl( ~~i'~~)~t\:;~"~'.! .-.'~,://

. _./

E. The Regulations have appointed National Electric Power Regulatory Authority (the"Authority") as the arbiter to monitor performance of the Certified Installers againstthe Guaranteed Obligations and will inform the Beneficiary of all such events ofdefaults. delays, or failures in complying Guaranteed Obligations to take primitiveactions.

NOW THEREFORE, this Guarantee witness the as under:-

1. In the event that the Creative Electronics Pvt. Ltd [Certified Installer] defaults in. delays,or fails, to perform the Guaranteed Obligation, of which event the Authority shall be thesole arbiter, and the Beneficiary shall be the conveyor, the Guarantor shall. on theBeneficiary's first written demand, pay to the Beneficiary the entire sum of, or any partof, the Guaranteed Sum as specified in the Beneficiary'S written demand within three(3) days of the receipt of the written demand (the "Due Date"). Such first writtendemand of the Beneficiary shall only state that the Certified Installer has defaulted in, ordelayed, or failed, to perform the Guaranteed Obligation stated in the written demandunder and in accordance with the Regulations.

2. The Guarantor hereby binds itself unconditionally and irrevocably, and undertakes andguarantees to pay the Guaranteed Sum, as primary obligor and not merely as surety, onfirst written demand of the Beneficiary, without protest or demur and without reference,notice or recourse to the Certified Installer or any other person, and hereby expresslywaives all rights to deny its obligation to the Beneficiary irrespective of any dispute.difference or disagreement between the Certified Installer, Authority and theBeneficiary or contest by any other party or person.

3. At any time during the validity of this Guarantee, the Beneficiary may, in pursuant tothe decision of the Authority, demand payment of the entire Guaranteed Sum. or anypart thereof, from the Guarantor. The decision of the Authority as communicated by theBeneficiary that the Certified Installer has defaulted, delayed, or failed in performingthe Guaranteed Obligation shall be final and binding on the Guarantor, which shall notbe questioned by the Guarantor in any manner whatsoever.

4. This Guarantee shall remain in full force and be effective for a period up to [state thedate that is 24 months after the date of the Guarantee].

5. The Beneficiary may, if and when and in such manner as the Beneficiary in its solediscretion or as per the directions from the Authority deems appropriate, grant time orother indulgence to or accept or make any composition or arrangement with theCertified Installer and such acts shall not in any way whatsoever discharge theGuarantor from its obligations under this Guarantee.

6. The Guarantor's obligations as set out in this Guarantee shall not be modified orimpaired during validity period of this guarantee.

7. Demands under this Guarantee may be made from time to time in accordance with itsterms. Partial payments of the Guaranteed Sum shall not discharge this Guarantee andthis Guarantee shall remain in full force and effect in accordance with its terms for thedifference from time to time between the aggregate total of the P. . ayments made

. cot 01Pand the Guaranteed Sum. Q~Q,"'~:~:\.."~r::~~.\

28 I(:J f/ ~. 'J ',-, t"--'i1• t -» .'" ~ ~ .~ ':..oi ,.-.1 I', -"" -.....-.j --.~ r"': (,; c i -1

\~'j,~~,,'. ,:;,~/ .

8. No set-off, counter claim, reduction, or diminution of any obligation that the Guarantorhas or may have against the Beneficiary shall be available to it against the Beneficiaryin connection with any of its obligations to the Beneficiary under this Guarantee. TheGuarantor shall make all payments under this Guarantee in Pakistan Rupees without set­off or counterclaim and free and clear of any deductions or withholdings in immediatelyavailable, freely transferable, cleared funds for value on the Due Date to the Beneficiary,provided that if the Guarantor is required to make any deduction or withholding fromsuch payments under applicable law, it shall pay to the Beneficiary such additionalamount necessary to ensure that the Beneficiary receives an amount equal to the amountwhich it would have received had no such deduction or withholding been made.

9. The Guarantor hereby declares and confirms that under its constitution and applicablelaws and regulations, it has the necessary power and authority, and has obtained allnecessary authorizations, approvals and consents thereunder to enter into, execute,deliver and perform the obligations it has undertaken under this Guarantee, whichobligations are valid and legally binding on and enforceable against the Guarantor underthe Laws of Pakistan, and that the signatory(ies) to this Guarantee are the Guarantor'sduly authorized officers.

10. This Guarantee shall be governed by the laws of Pakistan.

For and on behalf of the Guarantor:

[To be signed by the authorized signatory of the Bank.

Dated and Stamped with the Bank's Stamp]

[Also to be witnessed by two adult male witnesses. specifying in each case, the full name,National Identity Card # if any, and address]

\ -. ""_-.

29

- - - -----------

SCHEDULE 10(Fee) (in pursuant to regulations 5(3) and 12)

For Categories ARE-VI: ARE-V3

Category Application Processing One Time Certification Fee Annual RenewalFee (non-refundable) Fee

ARE-Vi Rs.5,OOO/- Rs. 150,000/- Rs. 75,0001-ARE-V2 Rs.S,OOOI- Rs. 100,0001- Rs. 50,0001-ARE-V3 Rs.S,OOOI- Rs. 50,0001- Rs. 25,0001-

For Cateaorv ARE-ClCategory Application Processing One Time Certification Fee Annual Renewal

Fee (non-refundable) FeeARE-Ci Rs.5,0001- Rs. 20,0001- Rs. 10,0001-

30