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Authorizes The Government To Pass The Legal Framework Of Access And Pursue The Activities Of Production Of Electrical Energy From The Energy Of The Waves

Original Language Title: Autoriza o Governo a aprovar o regime jurídico de acesso e exercício das actividades de produção de energia eléctrica a partir da energia das ondas

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PROPOSED LAW NO. 131 /X

Exhibition of Motives

The transposition into the domestic law of Directive No 2001 /77/CE of Parliament

European and of the Council of September 27, 2001 on the promotion of electricity

produced from renewable energy sources (FER) in the domestic market of

electricity, came to enshrine the recognition of the priority assigned by the Union

European and the member states to the promotion of the increase in the contribution of this type of

primary sources for the production of electrical energy.

Effectively, the increase in use of FER constitutes a relevant contribution not only

for security of supply as also to cope with climate change,

through the reduction of greenhouse gas emissions, constituting an element

important of the necessary measures to comply with the Kyoto Protocol.

The National Strategy for the Sea, adopted by the Resolution of the Council of Ministers n.

163/2006, of December 12, as well as the National Development Strategy

Sustainable, recently approved by the Council of Ministers, evidence of the potential

of resources of the sea and the reflection of their harnessing in economic development and

welfare of societies, and the relevance of renewable energy to the trajectory of

sustained growth of the Country.

For its part, also the National Strategy for Energy, adopted by the Resolution of the

Council of Ministers n. 169/2005 of October 24 established as one of the lines

of strategic guidance, the strengthening of the harnessing of renewable energy sources.

With a view to the harnessing of renewable energy, and with the purpose of

encouraging research and technological development necessary for the creation of

equipment applicable in the production of electricity from the energy of the waves

maritime, the Government, by Joint Dispatch n. 324/2006, of March 24, created a

working group that has been entrusted with proposing the necessary legislative measures to

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promote the use of renewable energy, specifically of sea waves.

The development of the use of waves as a source of electrical energy,

is thus a relevant contribution to sustained economic growth and to the

security in the energy supply, considering the justified Government the need

of approval of a legal regime for the management, access and exercise of the activity of

production of electrical energy from that energy source.

Such a scheme involves the use of goods from the maritime public domain in a zone of

delimited intervention and, well thus, the definition of the access and exercise requirements of the

production activity of electrical energy through the energy of the waves.

In the face of the exposed, considering the relevance of the production of electric energy from

of the FER, it becomes necessary to provide the managing entity with the bounded intervention zone of

a set of powers to enable the objectives proposed by the Government to be achieved.

It is therefore justified to adopt a set of exceptional measures, when

considered to be indispensable for the production of electricity from the energy of the waves,

how to be the establishment of specific rules to make speedy and effective the process

of constitution of servitude and of carrying out necessary expropriations to the

establishment of the infrastructure and facilities integral to the exercise of the activity in

cause.

In parallel, it understands the Government to be necessary to make adaptations to the regime against-

general current ordinance ensuring that they guarantee safety conditions in the use of

structures or equipment intended for harnessing the energy of the waves,

seeking to prevent and prevent the occurrence of situations which, for reasons of default

of the legally established safety requirements, result in significant damage.

It is thus shown to be indispensable, in light of the principle of accountability that should be guided

the production of electrical energy from the renewable energy sources, increase up to the

amount of € 200,000.00 the maximum value of the fines applicable in proceedings of against-

ordering by use of structures or equipment that does not meet the requirements

of security, including compulsory civil liability insurance, as the

maximum value of the fines applicable to legal persons listed in Article 17 of the

General Regime of the Counterings-Ordinations appears inappropriate, specifically by being

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irrisory in the face of the consequences that might arise from the practice of the illicit against-

ordinance in question.

Ora, considering that the regime of the goods of the public domain, interventions in soils

on grounds of public interest, the expropriations, as well as the general regime of the iliocytes

of mere social ordinance, they fall, broadly, in the points v), l) and d) of paragraph 1 of the

Article 165 of the Constitution, the projected normative intervention lacks to be authorized

by the Assembly of the Republic.

Thus:

Under the terms of the paragraph d) of Article 197 (1) of the Constitution, the Government presents to the

Assembly of the Republic the following proposal for a law:

Article 1.

Subject

The Government is granted permission to establish the legal regime for the use of the

goods from the maritime public domain, including the use of territorial waters, for the

production of electric energy from the energy of the waves of the sea in a bounded area

to the effect.

Article 2.

Sense and extension

1-A The authorization referred to in the previous article is granted in the sense of creating a regime

of the use of goods from the maritime public domain, as well as the use of the

territorial waters, for the production of electrical energy from the waves of the sea,

setting out the access and exercise requirements of this activity in a bounded zone.

2-The legal regime that the Government becomes authorized to establish by decree-law,

in the terms provided for in the previous article, it defines:

a) Conditions for the use of goods from the maritime public domain for the production of

electrical energy from the waves of the sea;

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b) Conditions of use of goods from the water public domain for use

of energy from the waves whose procedure of assignment of use if

has started with the Port Institute and Maritime Transport, I.P., in the

terms of the Decree-Law No. 468/71, of November 5, and of the Decree-Law n.

254/99, from July 7, to December 31, 2006;

c) The access and exercise regime of electric energy production activity a

from the energy of the waves in bounded zone to the effect, with the possibility

of predicting changes to their size;

d) The system for granting an exploitation of the area intended for the exercise of the activity

of production of electrical energy from the energy of the waves;

e) Establish specific rules to make speedy and effective the process of

constitution of servitude and realisation of expropriations required by

establishment of the infrastructure and facilities required for the exercise of the

production activity of electrical energy from the energy of the waves in the area

delimited;

f) Increase up to the amount of € 200,000.00 the maximum value of the applicable fines

to legal persons in counterordinance processes by use of

structures or equipment that do not meet the safety requirements,

including compulsory civil liability insurance, as well as in situations

of failure to comply with the requirements for connection to substations and to the electrical grid of

public service;

g) The expiry, without the right to any compensation or compensation, of the securities

of occupation of the maritime public domain held by the promoters of the

projects to harnessing the energy of the waves for energy production

electric that are in progress, if the adaptation of the

such securities within a maximum of six months from the date of acceptance of the

project in the bounded zone for the production of electrical energy from the

energy from the waves of the sea.

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Article 3.

Duration

The present legislative authorization has the duration of 90 days.

Seen and approved in Council of Ministers of January 25, 2007

The Prime Minister

The Minister of the Presidency

The Minister of Parliamentary Affairs

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The transposition into the domestic law of Directive No 2001 /77/CE of Parliament

European and of the Council of September 27, 2001 on the promotion of electricity

produced from renewable energy sources in the domestic electricity market,

came to enshrine the recognition of the priority assigned by the European Union and the

Member states to the promotion of increased contribution of this type of primary sources

for the production of electrical energy.

The need to adopt maritime transport policies of the coastal regions, of

renewable energy, fisheries and marine environment, among others, in an integrated manner,

interconnected, multidisciplinary and sustained, which take into account the importance

that the oceans and seas represent for societies, substantiated in the potential

of resources that can provide and that contribute to the well-being and to the

social and economic development, was instrumental in the drafting of the Strategy

National for the Sea, approved by the Resolution of the Council of Ministers No. 163/2006, of

December 12, and the "Green Paper" of the European Commission, which presents the

objectives and lines of action of the future European Maritime Policy.

The increased use of renewable energy sources is a relevant

contribute not only to the security of supply but also to cope with the

climate change, through the reduction of greenhouse gas emissions,

constituting an important element of the measures necessary to comply with the

Protocol of Kyoto.

The resolution of the Council of Ministers approving the National Strategy of

Sustainable Development takes on as disigning " resume a trajectory of

sustained growth that makes Portugal, on the horizon of 2015, in one of the most

competitive and attractive of the European Union, in a high level framework of

economic, social and environmental development and social responsibility ", assuming

one of its special objectives relevance in the scope of renewable energy.

In these terms, the Government has published the Joint Despacho No 324/2006 of March 24,

with a view to promoting the development of the energy use of the waves

maritime, the potential of which is estimated to reach 5 GW, by power to come to constitute a relevant

contribute not only to the security of supply but also to the creation of a

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cluster with high potential and involvement of national competence centres, with

know technical-scientific and internationally competitive.

The exploitation, in public service regime, of the places where it comes to be promoted o

development of the harnessing of the sea waves lacks title issued by the

Portuguese State, so it matters to subject the occupation, use and exploitation of the sites

selected for production of electric energy from the waves of the sea to the scheme

legal vicente.

Thus, meeting the need to nurture the installation in Portugal of a source

renewable still at an early stage of development, it also matters to expedite the

licensing procedures. With this aim, a Pilot Zone has been selected where

if it intends to foster technological development and the installation, in regime of

demonstration of concept, precommercial or commercial, of harnessing equipment

of energy from the waves, attracting to the country promoter companies and technology producers.

In the same way, it has sought to lay the groundwork for a tariff that is aimed at promoting the

development and the use of wave energy for energy production purposes

electrical.

The Regulatory Entity for Energy Services, the Insurance Institute, has been heard

from Portugal and the Maritime Public Domain Commission.

Thus:

In the use of the legislative authorization granted by the Law No. [.], de [.], and in accordance with the terms of the

b) of Article 198 (1) of the Constitution, the Government decrees the following:

Chapter I

General provisions

Article 1.

Subject

The present decree-law establishes the legal regime for the use of the goods of the field

maritime public, including the use of territorial waters, for the production of energy

electrical from the energy of the waves of the sea in the Pilot Zone bounded in Annex I to the

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present decree-law and that of it is an integral part, as well as the management regime, access

and exercise of the mentioned activity.

Article 2.

Scope of application

The provisions of the present decree-law apply to the infrastructures located within the

Pilot Zone, as well as the electrical infrastructure required for networking

public electrical.

Article 3.

Definitions

For the purposes of this decree-law, it is understood to be:

a) "Exploiting the energy of the waves", the transformation of wave energy

other forms of energy, in such a way that they can be taken advantage of in the

human activities;

b) " Cluster industrial ", set of activities of companies with competences

specific technological that provide equipment, components or services

for the manufacture and operation of equipment for the production of energy

electric from the energy of the waves;

c) "Energy of the waves", energy carried by the waves of the ocean;

d) "License of establishment", title issued by the Gestora Entity that grants

to the promoter the right to install the necessary infrastructures to produce

electrical energy;

e) "License of exploitation", title issued by the Managing Entity that grants to the

promoter the right of delivery of the electric power produced to the electrical grid

public;

f) "Power Park of the waves", set of equipment intended for the

exercise of activities related to the harnessing of wave energy

in pre-commercial or commercial arrangements;

g) "Installed Power", power of an installation, measured in MW,

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corresponding to the arithmetical sum of the power of the production equipment of

a particular installation;

h) "Project", set of documents that technically describe a set

of facilities and the way in which these are deployed at sea;

i) "Prosecutor", private legal person who proposes to build and explore in the Zone

Pilot an installation of harnessing the energy of the waves for production of

electrical energy;

j) "Prototype", experimental device for the demonstration of a concept for

production of electric energy based on the energy of the waves.

Article 4.

Pilot Zone

1-A Pilot Zone constitutes the maritime space delimited under sovereignty or jurisdiction

national in waters of greater depth than 30 m ( offshore ), in which it is intended

to foster the production of electric energy based on wave energy, as well as

carry out other activities in the terms provided for in this Decree-Law.

2-In the Pilot Zone other activities may be developed in addition to the production of

electrical energy from the energy of the waves of the sea, provided that the Entity Gestures

pronounce favourably, the activities shall subordinate to the preferential use of

energy production and are admitted under the terms of the legal regime of the securities of

use of water resources.

3-With the identification and constitution of the Pilot Zone link corridor to the substation

of electrical connection to the public electricity grid this goes on to integrate the Pilot Zone.

4-Whenever it is technically justified it can be constituted more than one corridor of

connection of the Pilot Zone to the electrical connection substation.

5-Within 10 years after its constitution, the delimitation of the Pilot Zone is the subject of

review, and may its area be reduced depending on the uses authorized for

same, so as to include only the required area, or predictably necessary, to the

exercise of the activities licensed by the Gestora Entity.

6-A reduction of the Pilot Zone area as well as its new limits, which will not be able

be exteriors to the perimeter constant of Annex I to this decree-law, are defined

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by decree-law.

7-A detailing of the Pilot Zone is shown on a map, at scale 1:100 000, whose original

is held in the possession of the Gestora Entity, and may be consulted by any

interested.

Article 5.

Grant of public service

1-A grant for the exploitation of the Pilot Zone is awarded to a Managing Entity

upon contract of concession, in which outorga, in representation of the State, the

member of the Government responsible for the area of Energy.

2-A concession is exercised in public service regime, its activities and the

facilities that integrate it considered, for all purposes, of public utility.

3-A Pilot Zone Gestures entity is chosen by tender procedure

public, unless assigned by direct adjustment to an entity under the effective control

of the State.

4-A The Pilot Zone public service grant includes the use of the strip

corresponding to the corridor for deployment of the infrastructures for networking

public electrical, as soon as its location is defined, as well as the

use of the maritime public domain in concession regime, attributable, in the

Terms of Law No. 58/2005 of December 29.

5-The bases of the Pilot Zone concession are contained in a decree-law.

Chapter II

Pilot Zone

Article 6.

Production of electrical energy

1-In the Pilot Zone can be installed prototypes and energy parks of the waves.

2-The maximum values corresponding to the sum of the installed power for each of the

concept, pre-commercial and commercial demonstration schemes are defined by

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would pore from the member of the Government responsible for the area of Energy.

Article 7.

Reception of electrical energy

1-A dealership of the electric power distribution network provident the construction,

next to the Pilot Zone, the infrastructures required to receive the electric power

provided by the promoters, for a global power up to 80 MW.

2-A dealership of the national transport network provident the construction, along the

Pilot Zone, of the infrastructures required to receive the supplied electrical energy

by the promoters, for a global power up to 250 MW.

3-Investment costs in transport and distribution networks are borne,

respectively, by the dealerships referred to in paragraph 1 and 2 of this Article,

deducted from possible public fund comholdings and are considered for

effects of fixation of network usage fees.

4-For the purposes of the previous number, the dealerships give knowledge of the value of the

investment in the infrastructure provided for in paragraphs 1 and 2 for issuance of opinion by the

Directorate General for Geology and Energy (DGGE), and final approval by the Entity

Regulator of Energy Services (ERSE).

Article 8.

Wire ramps

1-A The construction of the connection ramps of the facility to the receiving network is from the

responsibility of the respective promoters installed in the Pilot Zone, who must

present the corresponding project in the scope of the licensing process.

2-For the purposes of the previous number, the Entity Gestora identifies and promotes the

constitution of one or more corridors from the Pilot Zone to the receiving station

of electric power, where one or more infrastructure is installed by where they must

pass the connecting ramals.

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Article 9.

Connection to the electrical grid

1-A Managing Entity promotes together with the competent entities the identification and

constitution of one or more corridors allowing the connection of the Pilot Zone to the

electric power reception substations.

2-The corridors referred to in the preceding paragraph include a protection zone and are

sized in such a way as to allow the connection of the totality of the infrastructures of

production of electricity to be installed in the Pilot Zone, at its maximum occupancy, to the network

public electrical.

3-It is up to the Managing Entity to promote the construction and maintenance of the infrastructures

necessary for the use of the connecting corridors of the Pilot Zone to the electrical grid

public, as well as the definition and surveillance of the conditions of its use.

Article 10.

Connection procedure to the electrical grid

For compliance with the provisions of the preceding Article, the following procedure is observed

for definition of the location of the necessary infrastructures and electrical lines for

delivery of the electrical energy produced by the promoters at the substation referred to in paragraph 1 of the

article 7:

a) The Managing Entity identifies jointly with the entity responsible for the

construction of the electric power reception substation the site that brings together

better conditions for construction of the substation, and must indicate at least

an alternative location;

b) After identified the construction site of the substation, the Gestora Entity

identifies the best profiled for the linkage corridor, and must identify

also alternative profiling, taking into consideration the minimization of impactes

negatives arising from the constitution, use and conservation of the corridor;

c) The Gestora Entity promotes the approval of the corridor to the member of the

Government that outwits the granting of public service.

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Chapter III

Pilot Zone Gestora Entity

Article 11.

Competencies

They are competences of the Pilot Zone Managing Entity:

a) Licensing the installation of prototypes and wave energy parks in areas of the

Pilot Zone, in accordance with the schemes provided for in this decree-lei;

b) Licensing changes, modifications and ampliations of the energy parks of the

waves already installed in the Pilot Zone;

c) To promote and monitor the monitoring of installation activities, testing and

operation of prototypes and wave energy parks in the Pilot Zone;

d) Keep up with the temporary or permanent removal operations of the

energy-harnessing devices of the waves with a view to safety

of the Pilot Zone;

e) To promote the creation, maintenance and updating of common infrastructure in the

Pilot Zone, in them including connecting to the electrical grid, those of infrastructure

Nautical of support for the installation and maintenance of wave energy parks and

those of surveillance and security;

f) To promote the geophysical and environmental characterization of the Pilot Zone, ensuring the

access to the public of the data obtained, through information system

geographical resident in the Gestora Entity, as well as the identification,

mapping and geophysical and environmental characterization of other zones with

suitable characteristics for harnessing the energy of the waves, in

articulation with the remaining competent bodies in planning and

planning of maritime spaces;

g) To inform the competent entities, specifically the DGGE, the Institute of

Water, I. P. (INAG), the Hydrographic Region Administration (ARH)

territorially competent, the Portuguese Environment Agency (APA), the

Port Institute and Maritime Transport, I. P. (IPTM), the Directorate General

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of the Maritime Authority (DGAM) and the Directorate General for Fisheries and Aquaculture

(DGPA), on the result of the experiments carried out, with respect to energy

produced, production costs, environmental impacts, safety problems,

contribution to the creation of a cluster national and other relevant aspects;

h) Promote dissemination and training actions of technicians in the area of impactes

environmental and socio-economic;

i) To propose the value of the tariffs to be applied to the projects developed in the schemes of

demonstration of concept, precommercial and commercial;

j) Ensure the appropriate mechanisms for dissemination and promotion of the Pilot Zone a

national and international level.

Article 12.

Recipes

They constitute revenue of the Gestora Entity:

a) The monies received for allowance for the costs of characterisation

geophysics and environmental, of the infrastructure of the Pilot Zone and of the execution of

prototype monitoring programmes and wave energy parks, in the

scope of national, community or other support programs;

b) The monies resulting from the issuance of establishment permits;

c) The monies corresponding to the value of annual rents paid by the promoters;

d) The monies resulting from the provision of services to promoters or other

entities, either inside or outside the Pilot Zone;

e) The proceeds of borrowings for the exercise of its business;

f) The grants and donations that will come to you.

Chapter IV

Regime of servitude and expropriations

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Article 13.

Servitude and expropriations

1-A Managing Entity may constitute servitude and request expropriation by usefulness

public of the immovable property and rights to them inherent necessary for their social object and

to the pursuit of its ends.

2-The expropriations promoted by the Gestora Entity have an urgent character.

3-A competence for the declaration of the public utility of expropriations and servitude

administrative member belongs to the member of the Government responsible for the area of Energy.

Article 14.

Object of servitude

1-Can be constituted, under the terms of this decree-law, on buildings

rustic or urban that have not been the subject of expropriation or acquisition by way of

negotiating, for the deployment of the infrastructure necessary for the pursuit of the purposes of

Managing Entity, in particular for the deployment of the infrastructures for

passage of the connecting ramparts of the facility to the receiving public electrical grid.

2-Servings constituted under this decree-law shall not prejudice

military servitude already existing.

Article 15.

Content of servitude

The constitution of servitude for the deployment of the necessary infrastructure to the

pursuit of the purposes of the Gestora Entity implies the following restrictions:

a) The terrain may not be plated, or dug, at a depth of more than 50 cm;

b) The planting of trees or bushes is prohibited;

c) Construction of any kind is prohibited.

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Article 16.

Compensation

The amount of the compensation to be allocated to the holders of the expropriated real estate or

burdensome with the servitude is determined by mutual agreement between the parties or, in the absence of

agreement, fixed by arbitration pursuant to the provisions of the following article.

Article 17.

Arbitration

1-Any of the interested parties may apply to the Managing Entity the constitution of the

arbitration.

2-A The arbitration is carried out by a commission consisting of three arbitrators, being a

referee designated by each of the parties and the third chosen by those.

3-The proprietor of the burdened or expropriated real estate is notified by the Managing Entity by

registered letter with notice of receipt, when known, or by edices, in the remaining

cases, to, within five days, indicate your referee.

4-Should the period set out in the preceding paragraph be exceeded without the holder of the

burdensome or expropriated real estate has designated its arbitrator, or in cases where

there is no agreement as to the choice of the third arbitrator, the designation of this is carried out in the

terms set out in the Code of Expropriations.

5-The arbitrators shall start their proceedings within 30 days of the date of the

appointment.

6-A The decision of the arbitral commission is taken by a majority or, not being possible to obtain it

in this way, it will be worth as such, the arithmetic mean of the lauds that are closest to,

or the intermediate laude if the differences are equal.

Article 18.

Extinction of servitude

The servitude provided for in this decree-law shall lapse with the permanent cessation of all the

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activities that substantiated them.

Article 19.

Charge of the managing entity

1-The payment of compensation resulting from the constitution of servitude or of

expropriations will be in charge of the Gestora Entity.

2-The registration of the servings provided for in this decree-law in the conservatory of the register

predial competent is the responsibility and charge of the Gestora Entity.

Article 20.

Subsidiary regime

In anything that is not expressly provided for in this chapter in matter

of expropriations and servitude, is applicable, with the necessary adaptations, the regime

constant of the Code of Expropriations.

Chapter V

Arrangements and conditions for access to and exercise of the activity

Article 21.

Regime for the exercise of activities

1-A electrical energy production activity from the energy of the waves can be

exercised in one of the following schemes:

a) Concept demonstration regime;

b) Pre-trade regime;

c) Trade regime.

2-The concept demonstration regime is the one to which one submits a given

project, presented pursuant to this decree-law, in which the promoter

develops its activity in the sense of demonstrating that a particular concept,

total or partially innovative, of harnessing the energy of the waves for production

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of electrical energy has the potential to be technical and economically viable or that

can translate into a significant enrichment of technical knowledge or

scientific.

3-The precommercial regime corresponds to the exploration phase of a particular

concept of harnessing the energy of the waves for electric energy production

whose potential for technical and economic viability is already shown to be demonstrated but that

has not yet reached the degree of maturity or improvement that allows for its self-

economic sufficiency.

4-The commercial regime corresponds to the exploration phase of a given concept of

harnessing the energy of the waves for the production of electric energy whose

technology already find themselves in a state of maturity that allows for exploration

commercial.

Article 22.

Access

1-Access to electrical energy production activity in any of the schemes

provided for in paragraph 1 of the preceding Article shall be titled by licence of establishment and licence

of exploration to be issued by the Gestora Entity.

2-A The establishment permit authorizes the promoter to initiate the installation of the infra-

energy production structures and the operating license authorizes the promoter to

inject the produced energy into the public electricity grid.

3-A The validity of licences issued may be subject to the verification or maintenance of a

certain condition.

Article 23.

Access requirements

1-Any legal person may apply for the necessary license to develop

projects in the Pilot Zone, in any of the schemes provided for in Article 21, since

which makes evidence to the Managing Entity of which it has technical, economic capacity

and financial to develop the proposed project and prove:

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a) The safety of the project in the phases of installation and operation;

b) The potential of the project to achieve an industrial solution, verified by

independent entity;

c) The ability of technology to converge for economically competitive costs

or for technically robust solutions, verified by independent entity;

d) That the project does not have non-minimizable environmental incidences, owing to

the effect to present a study of environmental incidences.

2-A Managing Entity will be able to refuse the assessment of the project if it considers that:

a) There is no availability of space in the Pilot Zone;

b) There is no availability of bonding power, in the event that it is a

electric energy production project;

c) The dewound of the proposed project may lead to a conflict situation

with other projects already authorized for the Pilot Zone.

Article 24.

Grounds for refusal

1-A Managing Entity may refuse the assignment of licence to projects when it is not

check some of the requirements required in paragraph 1 of the previous article regarding the

promoter or the project.

2-Can still be refused license assignment for installation in the Pilot Zone of

projects in concept demonstration scheme:

a) When the technology is considered, by the Gestora Entity, as viable for

exploitation in the pre-commercial or commercial regime;

b) When the project does not possess sufficient merit, namely:

i) When dealing with technology not properly substantiated, by not having

been previously studied by accreditable entities through means

appropriate mathematicians and experimental methods, with a view to demonstrating their

feasibility for the production of energy;

ii) When the security aspects have not been adequately

considered or raise fused doubts;

iii) When there are founded doubts as to the potential for

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achieve an industrial solution.

3-It may also be refused the assignment of installation permit in the Pilot Zone of

projects in pre-commercial or commercial arrangements:

a) When it is insufficient the availability of space in the Pilot Zone;

b) When it is insufficient the availability of bonding power;

c) When the acceptance of the project can lead to a situation of conflict with

other uses or projects already installed or in the process of installation in

Pilot Zone;

d) When it is manifestly insufficient the evidence of the capacity of the

technology converge for economically competitive costs or for solutions

technically robust;

4-Compete to the Managing Entity to establish the Pilot Zone access regulation in the

concept, pre-commercial and commercial demonstration regimes.

Article 25.

Deadlines

1-The term of validity of the licences assigned by the Managing Entity will be what they

record, with respect to the provisions of this decree-law and other applicable legislation,

you may not in any case be more than 35 years.

2-The maximum period of validity of the operating licence for concept demonstration is

of 5 years, and may be extended, by decision of the Gestora Entity, for a period

additional 2 years the duly substantiated solicitation of the promoter, presented

up to six months before the term of the deadline.

3-The maximum period of validity of the operating licence for energy production

electrical in the pre-commercial or commercial regimes is 25 years, and may be

extended, by decision of the Gestora Entity, after it obtained assent

binding of DGGE, for two additional periods of 5 years, the solicitation

duly substantiated from the promoter, submitted up to six months before the expiry of the

deadline.

4-Whenever the alteration, modification or extension of an installation is authorized

existing the term of validity of the operating licence may be extended by having in

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account the investment made, the solicitation of the promoter and upon decision

substantiated from the Gestora Entity.

5-The extensions to which the previous figures are referred are granted if, at the date of the

respective application, are satisfied by the promoter the conditions laid down in the

present decree-law or others that will succeed you, and these will remain during the

period of the corresponding licensing.

6-The time limits referred to in the preceding paragraphs and their extensions shall not be able

exceed the maximum period of the concession referred to in Article 5 of this decree-law,

lapse automatically with the term of the concession.

Article 26.

Exploitation in concept demonstration scheme

During the demonstration phase of concept the promoter is obliged to develop the

its activity observing the conditions set out in the respective licence.

Article 27.

Exploitation in pre-commercial arrangements

1-A exploitation in pre-commercial scheme is titled by licence issued by the Entity

Gestures to the application of the person concerned and must respect the access requirements

constants of Article 23 as well as those set by the Gestora Entity

taking into consideration the specific characteristics of the proposed technology.

2-The conditions of the licence shall be averaged in the respective title and the observance thereof and

maintenance are conditions of validity of the same.

3-The licences awarded in pre-commercial arrangements will not be able to hold, in their entirety,

a power installed higher than the value set in portaria of the member of the Government

responsible for the area of the Economy.

22

Article 28.

Exploitation in commercial regime

The scheme provided for in the preceding Article shall apply, with the necessary adaptations and

observed the provisions of the following article, the allocation of establishment licences and

operating licences in commercial regime.

Chapter VI

Licensing

Article 29.

Application for establishment leave

1-The promoters interested in developing electric power production projects

from the energy of the waves must submit an application addressed to the Entity

Gestures to apply for the licensing, duly instructed in the terms provided for in the

following numbers.

2-The application must contain the complete identification of the applicant and be accompanied

of the following elements:

a) Identification of the scheme in which it intends to operate;

b) Demarcation of the intended area;

c) Programme of the work to be carried out, its duration, estimate of costs and

expected financial coverage;

d) Commitment relating to the guarantees to be provided;

e) Demonstrative elements of their technical, economic and financial capacity;

f) Certifying proof of the regularized tax and contributory situation, if the

applicant has already made proof of owning a stable establishment, and may

this being waived when the person concerned, upon permission provided in the

terms of the law, allow the Entity Gestures to consult it;

g) Demonstrative elements of the project's contribution to the creation of a

cluster associated industrial and the involvement of competence centres

national, should they exist.

23

3-The applicant must still deliver to the Managing Entity the documentary elements on

which focuses on mandatory consultation with the entities with tutelage on the areas with the

which facilities may interfere, namely:

a) Project of the electrical installations and other elements set out in Annex II of the

present decree-law, of which it is an integral part;

b) Maritime signaling project, with a view to ensuring the safety of the

navigation, in duplicate;

c) Project containing the plans and construction drawings of the supporting structures

of the activity and place of installation, in duplicate;

d) Study of environmental incidences drawn up in accordance with the provisions of the

applicable legislation and environmental monitoring plan of the work.

4-A Managing Entity refers the elements mentioned in the previous number to DGGE, to the

ARH territorially competent, to the local body of DGAM, to IPTM and to DGPA for

issuance of opinion with binding character.

5-The opinion of the entities referred to in the preceding paragraph shall be issued on the deadline

maximum 45 days counted from the date on which the Managing Entity requests its issuance,

presumably favorable if it is not issued within the prescribed time frame.

6-Within the maximum period of 20 days after receipt of the documents sent by the Entity

Gestures, the entities referred to in paragraph 4 may request the promoter, by a single

time, the provision of supplementary information or the submission of documents that

consider indispensable to the issuance of the requested opinion, giving notice to the

Entity Gestures of the solicitation made.

7-A request for the provision of supplementary information or the submission of

documents in the terms of the preceding paragraph determines the suspension of the planned time

in paragraph 4.

8-For each connection to the public electricity grid, the Entity Gestora gives knowledge to the

dealership of the distribution network or of the transport network, as the case may be, of the

power, voltage and too many features of the installation, requesting the respective

connection conditions.

9-They are also consulted with other entities whose opinion, pursuant to the legislation

applicable and the good practices of the activity, be indispensable for the instruction of the

24

process.

10-In the cases referred to in the preceding paragraph, the promoters are exempted from the

compliance with the established in the ( a) of paragraph 3 and of paragraph 5 of this Article.

Article 30.

Concursal procedure

1-Access to the Pilot Zone in commercial arrangements is made by tender, and may apply for

if promoters who are proposing to install energy exploration technologies from the

waves recognized by the Gestora Entity.

2-The contest will be launched at the initiative of the Gestora Entity following the

identification of an opportunity for exploitation or the submission of an application for

allocation of licence in commercial arrangements.

3-The terms and conditions of the contest referred to in the preceding paragraph shall be drawn up

by the Entity Gestora staying the launch of the contest and respective terms

dependent on prior authorization of the member of the Government responsible for the area of

Energy.

4-The contests referred to in the preceding paragraphs are carried out with respect to the

general principles of public procurement.

5-In the wake of public tender that has been deserted, the Gestora Entity can

authorize access to the Pilot Zone in commercial regime by direct adjustment, or renew the

title of use to the previous holder, if any.

Article 31.

Concursal procedure in the application sequence

1-The applications for licensing for access to the Pilot Zone in commercial arrangements

presented by promoters and considered viable by the Gestora Entity, are

advertised through the affixing of editais and publication in two numbers followed by

daily newspaper of national expansion.

2-Within 30 days counted from the second publication referred to in the preceding paragraph,

may other stakeholders apply for the issue of licence with the object and purpose

25

advertised.

3-Elapsed the time limit referred to in the preceding paragraph without any applications being submitted

competitors, the initial request is appreciated and decided.

4-In case they are submitted, within the period referred to in paragraph 2, one or more requests for

allocation of licence with the object and purpose advertised pursuant to paragraph 1, the

Entity Gestora will initiate a concursal procedure.

5-In the case referred to in the preceding paragraph, the first applicant shall enjoy the right to

preference provided that they communicate, within 10 days of the notification of the

choice of the proposal, subject to the conditions of the proposal that comes to be selected.

Article 32.

Assessment of environmental incidences

1-The licensing of electric power generation projects from the energy of the

waves in the Pilot Zone that do not find themselves subject to environmental impact assessment is

preceded by the submission of a study of environmental incidences by the promoter having

in consideration of the prevailing energy and environmental policies.

2-The study of environmental incidences of a project to harnessing energy from the

waves in the Pilot Zone can assess the advenient environmental incidences of the facility

of a power higher than that which is intended to be installed through that same project.

3-The environmental incidences of a particular technology and power to be installed in the Zone

Pilot may still be the subject of evaluation through the presentation of a study by the

Entity Gestora, by business associations or by producers of equipment of

harnessing energy from the waves.

4-Do not lack the presentation of study of environmental incidences the projects for

harnessing energy from the waves in the Pilot Zone that cut to technologies and

manage the installation of accumulated powers that have already been the subject of evaluation

by one of the studies referred to in n. the

2 and 3 of this Article, but the

promoters required to submit the plan for environmental monitoring of the work

and compliance with the measures of minimization, compensation and plans to

monitoring stipulated for the technology, competing for the Gestora Entity to coordinate

these actions.

26

Article 33.

Consequences of favorable environmental assessment

1-For projects which, under the applicable law, are lacking in procedure of

Environmental Impact Assessment, the issuance of Environmental Impact Statement

(DIA) favorable or conditionally favorable is sufficient condition for:

a) The dispensation of issue of the authorisation provided for in the paragraph a) of Article 4 (2) of the

Decree-Law No. 93/90 of March 19, in the wording given by the Decree-Law n.

180/2006, of September 6, in the cases of projects to be located in areas

delimited as National Ecological Reserve (REN);

b) The approval by the competent CCDR, in cases in which the regime is behollable

transitional applicable to areas that have not yet been the subject of delimitation

from REN.

2-For projects which, pursuant to the present decree-law, are lacking in procedure of

assessment of environmental incidences, the decision favorable or conditionally

favorable on the study of environmental incidences by the member of the Government

responsible for the area of the Environment, determines the application of the provisions of the number

previous.

Article 34.

Assignment of establishment leave

1-Within 20 days of the receipt of the last opinion of the entities consulted, the

Entity Gestora appreciates the elements presented by the promoter, requesting, by a

only time, the remaining elements that in their understanding are necessary to the appreciation of the

request.

2-A establishment permit is issued by the Gestora Entity within 45 days

shall be counted, as the case may be, from the receipt of the last opinion of the entities

consults or the additional documentary elements requested from the prosecutor.

3-A The license integrates all the conditions imposed by the entities consulted as well as

other deemed necessary by the Gestora Entity, namely compliance

27

of the time frame for installation of the necessary infrastructures for the production of energy of the

waves.

4-A issue of the licence shall be conditional on the provision of collateral in the form of guarantee

banking on the first solicitation, issued in favour of the Managing Entity, in the amount of

10% of the investments provided by the promoter.

5-When duly justified, the Managing Entity may extend the planned deadline

for the installation of the necessary infrastructure for energy production.

Article 35.

Vistory

1-The holder of the establishment permit for production of electrical energy shall

apply for DGGE, pursuant to the Licence Regulation for Electrical Installations

(RLIE), the realization of the survey with a minimum of 20 days in advance

relatively to the target date for the start of the exploration, describing, in report

annex to the application, the state of compliance with the conditions laid down in the respective

license.

2-The holder of the establishment permit referred to in Article 4 (2), as well as

the holders of the establishment permit referred to in Article 4 (1) of the

project do not behold the connection to the electricity grid, they must apply for DGGE to

realization of the survey within a period of not more than 30 days.

3-A survey is carried out by DGGE, which can make itself accompanied by representative of the

dealership of RNT, or RND, as the case may be, and of the remaining entities to whom

has been referred to the licensing process, as well as by other technicians or

experts, with a view to verification of the compliance of the facility with the project

approved.

4-For the purposes of the preceding paragraph, DGGE marks the date and time of the realization of the

survey, notifying the licence holder and the entities it intends to designate

representative for monitoring of the survey, in advance of 15 days.

5-In situations where the connection to the electrical grid is found to be drawn up

survey in the terms provided for in the RLIE, of which it shall appear, in particular, the

verification that the installation is located or not in conditions of being authorised to

28

operation and, if it is the case, the measures to be taken by the licence holder.

6-In the remaining situations the survey report should contain in particular the

verification of the compliance with the project presented in the application for a licence to

establishment.

7-When in previous surveys, conditions have been imposed and set deadline for their

realization, DGGE conducts new verification survey of its compliance, and may

carry out a last survey if it persists the default of the measures

previously imposed.

8-If after the realization of the surveys provided for in the preceding paragraph take place the

non-compliance with the conditions imposed on the promoter, the assigned operating licence

is revoked.

9-Vistoried favourably the facility, the Managing Entity proceeds to the issuance of the

operating license.

Article 36.

Extinction of licences

1-The permits for establishment and exploitation extinguished by lapse or by

repeal.

2-It is grounds for expiry of the licences:

a) The course of the period of validity fixed;

b) The extinction of the titular legal person of the licence;

c) The de facto occurrence that causes the definite impossibility of development

of the activity in question.

3-A Managing Entity can revoke the licences in the following cases:

a) If the holder does not comply with the obligations imposed on him by law or by the

own licences;

b) If it is not met with a condition of issue or maintenance of the licence;

c) If the unsuccessful or insufficiency of the solution of the concept in question is to be found.

Chapter VII

Rents, fees and fees

29

Article 37.

Annual income

The promoters are subject to the payment of an annual income calculated in the function of the

occupied area and power whose facility is authorised, ascertained according to

formula to be defined by poration of the member of the Government responsible for the area of

Economy.

Article 38.

Fees

1-Previously on the issuance of the establishment permit, the promoters are subject to the

payment of the fee provided for in the Decree-Law No. 4/93 of January 8 to be held à

Entity Gestora.

2-A Managing Entity is taxable person of legally due water resources rate.

Article 39.

Tariff for the energy produced

1-A tariff applicable to electric energy produced by the facilities integrated into the scheme

of demonstration of concept is fixed by porterie of the members of the Government

responsible for the areas of Environment and Energy.

2-The tariffs applicable to electrical energy produced by the integrated plants in the

pre-commercial and commercial production regimes are defined by member porterie

of the Government responsible for the area of Energy, taking into account the state of

development of each technology and the set of technologies and the contribution to

the development of national competences.

3-A operating licence for pre-commercial and commercial schemes can only be issued

after the publication of the porterie mentioned in the preceding paragraph.

30

Chapter VIII

Surveillance and counter-ordinations

Article 40.

Surveillance of activities

1-A supervision of the production activity of electrical energy from the energy of the

waves, in the context of safety, conservation, maintenance and removal of the infra-

structures, as well as of the interconnection to substations on land and network connection

public service electrical, is assigned to the Gestora Entity, without prejudice to the

competencies legally conferred on the organs and services of the Ministries of Defence

National, of the Internal Administration, the Environment, the Territory Planning and

of Regional Development and Economics and Innovation.

2-Verified the practice of an illicit, the authorities referred to in the preceding paragraph with

surveillance, surveillance or police skills of the activities that are

develop in the spaces under sovereignty or national jurisdiction, must exarize a

auto news outlet that send to the entities that pursuant to this decree-law are

competent for their respective instruction and procedural decision.

Article 41.

Counter-ordinations and fines

1-Constituent counterordinance punishable with fine:

a) From 20,000.00 a to € 44,891.81, proceed to the installation of structures or

equipment for the exercise of the energy production activity a

departure from the waves without for this to have the necessary licences provided for in the articles

39. and 40 of the present decree-lei;

b) From 20,000.00 a to € 200,000.00, the use of structures or equipment that

do not meet the safety requirements, where the compulsory insurance includes.

2-Constituent counterordinance serious environmental ordinance, punishable under the terms of Law No. 50/2006, of

August 29:

a) The non-compliance of the constant minimization and compensation measures

31

of the assessment of environmental incidences provided for in Article 32;

b) The lack of achievement or poor achievement of monitoring in the face of

conditions laid down in the assessment of environmental incidences referred to in Article 32.

3-Constituent counterordinate light environmental ordinance, punishable under the terms of Law No. 50/2006, of

August 29, the lack of delivery of monitoring reports in the conditions and deadlines

set by the competent entities.

4-A negligence and attempt are punishable.

5-A conviction for the practice of serious offences provided for in paragraph 2 when the measure

concrete of the applied fine exceeds half of the maximum amount of the fine abstract

applicable, may be the subject of advertising, pursuant to the provisions of Article 38 of the Law

n. 50/2006, of August 29.

6-A competent body for the application of the fine with respect to serious infringements

provided for in paragraph 2 of the preceding Article may proceed to the cautionary seizures and apply the

ancillary sanctions that show adequate, pursuant to the provisions of Law n.

50/2006, of August 29.

Article 42.

Competent entities for instruction and procedural decision

The instruction of the proceedings and the application of the fines and ancillary sanctions concerning the

offences set out in paragraph 1 of the preceding Article are committed to the following entities:

a) To the Directorate General for Geology and Energy, with respect to the offences

related to the production of electrical energy and connection to the public network;

b) To the Port Institute and Maritime Transport, I.P., in related matters

with the safety of structures and equipment;

c) To the Capitania of the Port in whose jurisdiction space is to be installed a

structure or equipment of energy production, as to the offences

related to the preservation of the marine environment, safety of navigation and

mandatory insurance.

32

Article 43.

Precautionary measures

1-When the seriousness of the offence justifies it and proves appropriate to prevent or

mitigate environmental injury or other relevant interests, specifically in the event of

death, serious accident or incident that provokes relevant impacts, may the

competent authorities defined in the previous article to impose, as precautionary measures:

a) The seizure of the structures or equipment belonging to the offender, used

or intended to serve for the practice of counterordinance or that may come to be-

lo in the practice of new offences;

b) The seizure of structures or equipment, materials or objects that are not

find in conditions of being used;

c) The requirement for deposit of a surety, the amount of which corresponds to the limit

maximum of the abstractly applicable fine;

d) Suspension of the work in progress.

2-The decisions provided for in this article shall be notified to the holders of rights which

by they may be affected.

Article 44.

Product of the fines

The product of the fines provided for in Article 41 (1) reverses:

a) 40% for the State;

b) 20% for the Gestora Entity;

c) 20% for the entity to raise the news self;

d) 10% for the competent body for procedural instruction;

e) 10% for the competent entity for the procedural decision.

Chapter IX

Civil liability

33

Article 45.

Responsibility of prosecutors

The damage caused by the structures of generating electricity from the energy of the

waves are the full responsibility of the promoters of the projects, which they must ensure,

in what the environmental damage concerns, the reconstitution of the situation that would exist, if not

if it had verified the event that obliges the repair, and still safeguard the people and

property aggrieved by collision or interference of activities.

Article 46.

Insurance

1-The holders of establishment and operating licences shall carry out and maintain

valid for civil liability insurance, whose policy conditions are

previously approved by the Gestora Entity, intended to cover the damage arising

of its activity caused to the own and to third parties, by actions or omissions thereof, of the

your representatives or the people at your service, for which they can be civilly

held accountable.

2-The compulsory insurance provided for in this decree-law aims to guarantee the obligation of

indemnify established in civil law, up to the amount of the mandated capital fixed

for this type of insurance, the minimum capital of which is € 1,500,000.00 (one million and

five hundred thousand euros), for the concept demonstration scheme, and of € 5,000,000.00

(five million euros), for the pre-commercial and commercial regimes.

3-The insurance supporting documents must be displayed to the authorities

competent whenever by these are requested.

Chapter X

Final and transitional provisions

34

Article 47.

Transitional arrangements

1-The scheme provided for in this decree-law applies, with the necessary adaptations, to the

projects to harnessing the energy of the waves that at the date of its entry into force

are authorised to use the maritime public domain pursuant to the Decree-Law

n. 254/99, of July 7.

2-Projects covered by the previous number are authorized to undertake expansion

in the pre-commercial scheme up to a total power of 20 MW whenever the energy

produced can be received by the public electricity grid.

3-The competent authorities for allocation of resource use securities

water can either license or concessionate the projects for energy use

of the waves whose use-title allocation procedure has started up to

December 31, 2006 together of the Port Institute and Maritime Transport, I.

P., pursuant to the Decree-Law No. 468/71, of November 5, and of the Decree-Law n.

254/99, of July 7, with no need for prior concursal procedure.

4-The projects of harnessing the energy of the waves for energy production

electrical that at the date of the entry into force of this decree-law are ongoing and that

due to its characteristics are likely to be integrated into the Pilot Zone

may transit to this, by sensing them applicable to the scheme provided for in this Decree-

law, as long as the respective promoters require it within one year after the

constitution of the Gestora Entity and that the inclusion of the projects in question be accepted

for this one.

5-Should the projects referred to in the preceding paragraph find themselves in a situation of

competition, should be taken into account for the purpose of transition to the Zone

Pilot the seniority of the submission of requests for prior information for the purposes of the

your hierarchization.

6-The promoters of the projects that are integrated into the Pilot Zone in the terms of the

previous figures, must apply for the adaptation of the respective occupancy titles of the

maritime public domain within a maximum of six months from the date of

acceptance of the project by the Gestora Entity, under penalty of the said securities lapse,

without having to attend to its holders the right to any compensation or compensation.

35

Article 48.

Removal of infrastructure

1-In the event of the extinction of the electric power production license, the promoters are

required to remove all the infrastructure and equipment that is part of the

installation of electrical energy production from the energy of the waves of the sea.

2-For the purposes set out in the preceding paragraph, the Managing Entity notifies the promoter

for, within 90 days, remove from the Pilot Zone all facilities and equipment

referring to the demonstration of the concept.

3-In the situation provided for in the preceding paragraph, if the promoter does not comply with the order of

removal of the installation and too much equipment, the Gestora Entity may proceed by

itself to the respective removal.

4-In the case provided for in the preceding paragraph, costs shall be borne by the promoter.

5-In the situation provided for in paragraph 3, the Managing Entity may resort to the collateral provided by the

promoter in the framework of the establishment's licensing process.

Article 49.

Supplement law

In everything that does not contravenes the provisions of this decree-law, it is supplement

applicable to the licensing of regulated electrical energy production facilities in the

present decree-law the regime applicable to the licensing of production facilities of

electrical energy with origin in renewable energy sources.

Seen and approved in Council of Ministers of

The Prime Minister

The Minister of National Defence

The Minister of the Environment, Territory Planning and Regional Development

36

The Minister of Economy and Innovation

The Minister of Agriculture, Rural Development and Fisheries

The Minister of Public Works, Transport and Communications

37

Annex I

Pilot Zone

38

Annex II

Elements of the electrical project

The project, including the connection to the public network, in triplicate, and in electronic form,

accompanied by the term of responsibility for its elaboration, shall understand:

a) Descriptive memory

Descriptive memory and justification indicating nature, importance, function and

characteristics of the facilities and equipment, the general conditions of your

establishment and its operation, land connection systems, the main provisions

adopted for the production of electricity, processing and transport as well as the

protections against overintensities and overstresses and their calculations, when if

justifies.

Description, types and characteristics of electrical power generators, transformers,

cutting and protective apparatus, as well as the rest equipment.

b) Drawings

General plant location of the facility referenced by coordinates and at scale not

less than 1:25 AM 000, according to the respective standard, indicating the location of the works

main.

Plants, footwear and cuts, on a convenient scale, chosen according to the standard

EN-ISO 5455, of the premises of the installation, with the arrangement of the electrical equipment and

mechanic, in number and with sufficient detail to be able to check the observance

of the security regulatory provisions.

General electrical schemes of the designed plants, with an indication of all the

machines and apparatus of measurement and protection and command, using the graphic signals

normalized.

All parts of the project will be initialed by the responsible technician, apart from the

last piece written, where the signature, the name by extensive and the references should appear.

of your enrolment in the competent entity.

The written and drawn pieces constituting the project should have dimensions

standard, be drawn up in accordance with the standards in force and rules of the technique and be

numbered or identified by letters and digits.