President al-Assad issues a law establishing a fund to support the use of renewable energies and raise energy efficiency

Damascus - Sana

Today, President Bashar al-Assad issued Law No. 23 of 2021 establishing a fund to support the use of renewable energies and raise energy efficiency.

Below is the text of the law:

President of the Republic

It issues the following:

Article 1 –

The following words and phrases, in the context of applying the provisions of this law, shall have the meaning indicated next to each of them:

Article 2 -

The Ministry has a fund called “The Fund to Support the Use of Renewable Energies and Raise Energy Efficiency,” which enjoys legal personality and financial and administrative independence.

Article 3 –

Fund Objectives:

• a- Encouraging energy consumers to use renewable energy sources, and working to raise the efficiency of energy use.

• b- Working to raise the contribution of renewable energy sources to the target percentages.

• C- Reducing the consumption of fuel and electric energy used in the main sectors (domestic, industrial, agricultural, commercial, service, and others).

• d- Reducing emissions of gases harmful to the environment and limiting climate changes.

• e- Contribute to raising awareness among citizens of the importance of renewable energies and spreading the culture of its use and its role in the sustainability of energy resources.

• f- Creating new job opportunities for citizens.

• g- Contribute to the transfer and settlement of renewable energy technology and energy-efficient equipment.

Article 4 –

The fund undertakes the following tasks:

• A- Providing support to beneficiaries in accordance with the provisions of this law.

• B- Taking measures to ensure the implementation of studies, activities and events to achieve the objectives of the fund, in cooperation with the National Center for Energy Research and other bodies.

Article 5 –

Fund budget:

• A- The fund has a special branch within the state’s general budget.

• b- The fund’s budget is issued by a decision of the Minister of Finance.

Article 6 –

Fund Finance:

• A- A current account with a public bank shall be opened for the Fund, in which the funds allocated to the Fund shall be deposited.

• B- The sources of funding for the Fund shall be determined as follows:

• 1- The appropriations allocated to him in the state’s general budget.

• 2- Fees collected in favor of the fund in accordance with the provisions of this law.

• 3- Gifts, donations, subsidies and contributions made by third parties inside or outside the Syrian Arab Republic in accordance with the laws and regulations in force.

• 4- Bank interest for fund deposits.

• 5- The proceeds of the fund's activities.

• 6- An allowance for services rendered by the Fund to the beneficiary, which is determined by a decision of the Prime Minister based on the proposal of the Minister of Electricity, and in coordination with the Minister of Finance.

• 7- Any other resources approved by the Council of Ministers in accordance with the laws and regulations in force.

Article 7 –

The aspects of disbursing the funds of the Fund shall be determined as follows:

• A- Providing support to beneficiaries in the form of interest-free loans and interest subsidies on loans in accordance with the provisions of this law.

• b- Paying the fund's expenses.

Article 8 -

The alimony necessary to secure the fund's business shall be concluded from the disbursement order, disbursed and recorded on the fund's account.

Article 9-

The fund provides support for renewable energy projects and raises the targeted energy efficiency. Its value, terms and conditions are determined by a decision of the Council of Ministers based on the proposal of the fund’s board of directors.

Article 10 –

Projects that benefit from the Fund's support:

• 1- Domestic sector:

• Application of thermal insulation in new and existing buildings.

• Installing a home solar heater.

• Installing a photovoltaic system, a wind turbine, or any other applications of renewable energies.

• 2- In the agricultural sector:

• Generating electricity for self-consumption using one of the renewable energy sources.

• Pumping water using renewable energies.

• Establishing bio-digesters using plant or animal waste in rural areas.

• 3- In the industrial sector:

• Generating electricity for self-consumption using one of the renewable energy sources.

• Implementation of opportunities to provide energy carriers or raise the efficiency of their use resulting from energy audit studies for the industrial facility in which the project will be established.

• Producing the fuel necessary for the activity of the industrial facility from non-conventional sources.

• 4- In the commercial and service sector:

• Generating electricity from a renewable energy source to provide all or part of its need for energy carriers.

• Implementation of opportunities to provide energy carriers and raise the efficiency of their use based on energy audit studies.

Article 11-

  In order to obtain one of the Fund’s support methods for the implementation of the projects specified in Article 10 of this law - with the exception of projects specific to the domestic sector - it is required that the technical studies and economic feasibility of renewable energy projects and opportunities for raising energy efficiency be either carried out by the National Center for Energy Research, or by companies and energy services offices or one of the energy services engineers licensed by the Engineers Syndicate, provided that these studies are approved by the National Center for Energy Research.

Article 12-

• A- Fees to support renewable energies and raise energy efficiency are determined as follows:

• 1% (one percent) of the value of the electricity consumed for all subscribers.

• 0.005% (five per thousand) of the tariff for selling all oil derivatives and liquefied gas.

• 0.005% (five per thousand) of the value of all tourist equipment and vehicles consumed by energy carriers imported from abroad, in addition to the value of customs duties, with the exception of equipment and machinery that are classified as energy efficient.

• b- These fees are transferred to the current fund account opened with a public bank, which is determined by a decision of the Minister of Finance.

• C- A list of equipment and mechanisms that are classified as energy efficient is issued by a decision of the Council of Ministers based on the proposal of the Fund's Board of Directors.

Article 13-

• a- The board of directors is composed of:

The decision to form the Council is issued by the Prime Minister.

• b- The Board meets at least once a month, and it may meet when necessary at the request of its Chairman or the majority of its members.

• C- Board meetings are not considered legal unless attended by the majority of its members, including the chairman or his deputy in the absence of the chairman.

• D- Board decisions are taken by a majority vote of those present, and in the event of an equal number of votes, the side of the session chairman shall prevail.

• e- The Chairman of the Board may invite whomever he deems appropriate from among the specialists to attend the meetings of the Board without them having the right to vote.

• F- The members of the Council shall receive compensation for the sessions.

Article 14-

The council undertakes the following tasks:

• A- Develop plans, policies and work programs for the Fund, including activities that support and stimulate the dissemination of renewable energy applications.

• b- Approving the annual estimated budget draft of the Fund.

• c- Laying down the foundations and conditions for providing support to the beneficiaries, which are issued by a decision of the Council of Ministers.

• d- Approve and amend the list of executors.

• e- Accept gifts, contributions, aid, donations and bequests in accordance with the laws and regulations in force.

• f- Approval of the fund's accounts.

• g- Take the necessary decisions regarding the quarterly reports submitted by the manager regarding the work of the fund.

• h- Establishing branches for the Fund in any of the governorates by decisions of the Minister.

Article 15-

The Minister is responsible for the liquidation and disbursement of the Fund.

Article 16-

• a- The director is named by a decision of the minister, and he is a first-class worker in the ministry or in the public authorities associated with it.

• B- The Director shall undertake the following duties:

• 1- Managing the affairs of the Fund approved by the Board.

• 2- Implementing the Fund's policies approved by the Board.

• 3- Executing the fund's work plan to achieve its objectives.

• 4- Preparing the annual estimated budget project for the Fund.

• 5- Preparing the annual final accounts of the fund.

• 6- Preparing quarterly reports on the Fund's work and submitting them to the Board.

Article 17-

The work of the fund and its branches is regulated through an internal regulation issued by a decision of the minister based on the proposal of the board of directors.

Article 18-

The National Center for Energy Research provides the necessary technical and administrative support to the Fund, and participates in the implementation of its tasks, as determined by the executive instructions of this law.

Article 19-

The General Corporation for Electricity Transmission and Distribution and its subsidiaries in the governorates provide technical and administrative support and the necessary mechanisms, headquarters and needs of the Fund, in accordance with the executive instructions of this law.

Article 20-

The fund manager prepares the annual final financial accounts, sends them to the Central Agency for Financial Control for auditing and prepares the necessary report on them, and then submits them to the Board of Directors for consideration for approval.

Article 21-

• A- The fund's financial balance at the end of the year is considered a roll for the following year.

• B- In the event the fund’s work is terminated, a committee will be formed from the Ministries of Electricity and Finance and the Central Organization for Financial Control, whose mission is to liquidate the fund’s business and transfer the remaining balance in its account to the state’s public treasury.

Article 22-

The fund’s fiscal year begins on January 1 of each year and ends on December 31 of the same year, except for the first year, which starts from the date the fund begins its duties, and ends at the end of the 31st day of December of the said year.

Article 23-

In everything that is not provided for in this law, the laws and regulations in force applicable to public bodies of an administrative nature shall be applied to the fund.

Article 24

The executive instructions for the provisions of this law shall be issued by a decision of the Minister.

Article 25-

This law to be published in the official newspaper.

Damascus on 3/13-1443 AH corresponding to 10/19-2021 AD