Agreement-CREE-25-2022

Objective. The purpose of this Technical Standard is to establish the procedures, requirements, and responsibilities applicable to the connection, operation, and control of electrical generation equipment that utilizes renewable resources, located within the internal installations of a residential or commercial User of the Distribution Company, which possesses generation equipment for the purpose of supplying its demand and which could inject excess generated energy into the electrical distribution network.

Acronyms. ANSI American National Standards Institute. AT High Voltage. BT Low Voltage. CIMEQH College of Mechanical, Electrical, and Chemical Engineers of Honduras and related branches. CREE Electrical Energy Regulatory Commission. IEC International Electrotechnical Commission. IEEE Institute of Electrical and Electronics Engineers. MT Medium Voltage. NT-CD Technical Standard for Distribution Quality. UTM Universal Transverse Mercator coordinate system.

Definitions. In addition to the definitions established in the General Law of the Electrical Industry and its Regulations, for the purposes of this Technical Standard, the following shall be understood as: Self-Producer User: Users who possess electrical energy generation equipment within their own residence or internal installations, capable of operating in parallel with the network. Commercial User: User connected to the distribution network that is not classified within the residential tariff category. Residential User: User classified within the residential tariff category. TITLE II Generalities of Self-Producer Users CHAPTER I Generalities

Classification of Self-Producer Users. Self-Producer Users, in accordance with their commercial and technical characteristics, with the aim of defining the required electrical studies and establishing corresponding timelines in the process of requesting authorization for connection and change of metering equipment, shall be classified as follows: A. Type A Self-Producer Users shall be denominated as all Residential Users and those Commercial Users connected at low voltage. B. Type B Self-Producer Users shall be denominated as those Commercial Users connected at medium voltage with an installed capacity of generation equipment equal to or less than 1 MW. C. Type C Self-Producer Users shall be denominated as those Commercial Users connected at medium voltage with an installed capacity of generation equipment greater than 1 MW. CHAPTER II Database of Self-Producer Users

Contents of the database. Distribution Companies shall maintain an updated registry with the information of Self-Producer Users connected to their electrical network. The registry must contain at minimum the following information: A. General Data: i. Name of the Self-Producer User. ii. Code of the Self-Producer User. iii. Contact data of the Self-Producer User such as email address, telephone number. iv. Exact address of the site where generation equipment is located (department, municipality, neighborhood, district). v. UTM coordinates of the site where generation equipment is located. vi. Tariff category. vii. Type of User (residential or commercial). viii. Classification (type A, B, or C, as described in Article 4 of this Technical Standard). ix. Generation capacity permitted at the connection point, determined through electrical studies. B. Data of generation equipment: i. Generation technology. ii. Type of generation equipment. iii. Quantity of equipment. iv. Installed capacity in alternating current described in kW per equipment. v. Storage capacity. vi. Substation, circuit, and distribution transformer associated with the connection point. vii. Voltage level at the connection point. viii. Date of initiation of operation of the generation equipment. ix. Date of withdrawal of the generation equipment. C. Data of operation and payment of excess energy injected into the network (for each User, on a monthly basis): i. Excess energy injected into the distribution network, in kWh. ii. Approved rate for the purchase of excess energy, in HNL/kWh. iii. Amount for payment of excess energy in HNL. Distribution Companies shall deliver to the CREE a quarterly report with the information detailed in this article, as well as accumulated information of Self-Producer Users connected to their networks, using the format and channel that the CREE establishes for such purpose. If deemed necessary, the CREE may request additional information to fulfill its supervisory duties. TITLE III Procedure for the request and connection of generation equipment CHAPTER I Prefeasibility of connection of generation equipment

Prefeasibility analysis. Distribution Companies shall provide updated information of the distribution network through electronic means such as: public access website, spreadsheet, georeferenced information, among others. The objective of this information is to allow Users to conduct an analysis of the installation of generation equipment with the possibility of injecting excesses at the connection point of interest and, subsequently, to submit a request for authorization. The information in question shall be public, free of charge, and shall be updated semiannually. It is recommended that the published information include at minimum the following aspects: A. Georeferenced information that allows identification of the distributed generation potential near the supply point of interest. B. Technical information of the network: i. Medium voltage circuits by transformer station. ii. Capacity and nominal voltage of the circuits and transformers AT/MT or MT/MT. iii. Minimum and maximum demands per circuit and transformer AT/MT or MT/MT, for the last twelve months. iv. Installed and operative power of distributed generation per medium voltage circuit, disaggregated by primary source. v. Installed power, disaggregated by primary source for distributed generation with access request per circuit. Once the User, using the information described in this article, identifies that there is no restriction or limitation in the network for the connection of its generation equipment, it shall proceed to submit a request for authorization. CHAPTER II Request for Authorization

Request for authorization. Any Residential or Commercial User of Distribution Companies that with the aim of supplying their consumption wishes to install electrical energy generation equipment with renewable energy sources, shall request authorization for the connection of its generation equipment within its internal installations; likewise, shall request the substitution or reprogramming of the metering equipment through which the supply is billed. New Users who intend to connect generation equipment in their installations may submit a request for authorization for the connection of generation equipment and installation of bidirectional meter simultaneously with the request for service, complying with the requirements established in the Regulation of Electrical Distribution Service that correspond. A. The request for authorization shall be signed by the holder of the supply contract or its legal representative and shall contain, at minimum, the following information: i. User Code, in the case of an existing User. ii. Contact data such as email address, telephone number. iii. Technology and number of generation equipment. iv. Capacity per unit in kVA of the generation equipment. v. Total installed capacity in kVA of the generation equipment, in the case of photovoltaic systems the data of the elements that limit the generation capacity of the installation must be presented. vi. Estimated production of the generation equipment in kWh. vii. Estimated date of initiation of operation of the generation equipment. viii. Sworn Declaration duly authenticated by which the User declares that the information provided is true and accurate. B. The applicant or its legal representative, together with its request, shall provide the following documents: i. Last invoice issued by the Distribution Company previously paid, in the case of an existing User. ii. Document or sheet describing the technical characteristics of the devices that make up the generation equipment. iii. For water or geothermal resources, a copy of the current document that supports the concession of water use rights. C. Additionally, Self-Producer Users type B and C shall provide the following documents: i. Copy of identification document of the person responsible for the design and installation of the generation equipment. In the case of a legal entity, a copy of the deed of incorporation of the commercial partnership must be presented. ii. Solvency certificate issued by the CIMEQH in the name of the electrical engineer who conducted the design and installation of the generation equipment. iii. Statement signed and sealed by said electrical engineer in which he certifies that the design and installation complies with the provisions considered in the current national and international applicable standards and regulations, such as IEC and IEEE. iv. Single line diagram of the generation equipment that allows identification of its nominal power, the connection point of the generation equipment with the User's electrical installations, the connection of said installations to the distribution network, and the protective devices provided. Said diagram must be signed by the licensed electrical engineer described in the preceding paragraphs. v. Copy of compliance certificates of electrical equipment manufacturing standards for each of the main components of the generation equipment. Such as: UL, IEC 61215-1: 2016, IEC 61215-2: 2016, and in the particular case of solar panels, IEC 61730-1:2016 and IEC 61730-2:2016 standards.

Deadline for processing authorization requests. Distribution Companies shall have a period of ten (10) business days from the date of receipt of the request to approve or reject it in the case of Type A Self-Producer Users, as well as a period of fifteen (15) business days for other types of Self-Producer Users.

Request for additional or clarifying information. In the event of inconsistencies in the request for authorization for the connection of generation equipment and installation of bidirectional meter, Distribution Companies, within the deadline indicated in Article 8, shall communicate to the User the inconsistencies identified so that the User may remedy them within a period of ten (10) business days. The request for additional or clarifying information from the User restarts the deadline for Distribution Companies to authorize or reject the request, with said deadline being activated from receipt of the new documentation. If, once the deadline has elapsed for the User to resolve the inconsistencies observed, the User has not provided the information requested by the Distribution Company, the request for authorization for the connection of generation equipment and installation of bidirectional meter shall become void and shall be filed. If the User wishes to continue with the proceeding, the User must initiate the process described in the preceding articles again with updated documentation.

Response to the request for authorization. In the response to the request for authorization, Distribution Companies shall inform the User of the technical conditions, the metering equipment necessary for the supply, and corrective actions to be implemented in cases that correspond. In the event that the connection of generation equipment has a negative impact on the quality of service or causes an increase in technical losses in the circuit associated with the connection point, Distribution Companies shall present a detailed report containing the following: A. The expansions or modifications necessary in the distribution network to ensure that the connection point associated with the User complies with the limits established in the NT-CD; and so that the injection of excess electrical energy at said point does not cause an increase in technical losses in the associated circuit. B. Description of the increase in monthly and annual energy losses caused by the User's injection of excesses in the current system. C. Maximum generation capacity that the User may connect in order to eliminate the negative impact on the network. The User may choose to implement the necessary actions in order to make the connection of its generation equipment to the distribution network technically viable, for which purpose, the User shall have a period of five (5) business days following notification of the response to communicate its decision.

Rejected request. If a request is rejected, the Distribution Company shall present to the applicant the reasons for the rejection in a clear manner with proper justification.

Validity of the request. The validity of all approved requests for the connection of generation equipment and installation of bidirectional meter shall depend on the type of Self-Producer User: For Type A and B Self-Producer Users, the authorization shall have a validity of ninety (90) calendar days counted from the date of notification of the approval of the request. After this deadline the request shall lose its validity, so that, in case the connection of the generation equipment has not been completed, the User must perform again the entire process described in this Technical Standard. For Type C Self-Producer Users, the validity of the authorization shall be equal to the deadline agreed between the Distribution Company and the Self-Producer User for the performance of the necessary expansions or modifications to ensure the correct functioning of the distribution network. In no case shall the deadline be greater than six (6) months counted from the date of notification of the approval of the request. After this deadline the request shall lose its validity, so that, in case the connection of the generation equipment has not been completed, the User must perform again the entire process described in this Technical Standard.

Increase in capacity. Self-Producer Users who require an increase in their generation capacity shall notify the Distribution Company of the intention to expand the capacity of its generation equipment, likewise, shall present the information and comply with the requirements described in this Technical Standard, considering the respective modifications, expansions, or changes. The deadlines and stages established for the authorization request process shall be the same for the expansion process.

Request for withdrawal of generation equipment. Self-Producer Users who wish to withdraw generation equipment from their installations shall submit a withdrawal request to the Distribution Company, indicating the date of withdrawal with an advance notice of ten (10) business days. Once the withdrawal of said equipment is confirmed, Distribution Companies shall have a period of five (5) business days to update the corresponding information in the database described in this standard. CHAPTER III Evaluation of the request

Evaluation of the authorization request. Prior to the response to the authorization request, Distribution Companies shall evaluate the information and documentation provided by the applicants, and must ensure compliance with the limits established for the permitted generation capacity, as well as the criteria of operational safety and corresponding quality standards.

Verification of Regulatory Requirements for Self-Producer Users. Distribution Companies shall verify annually, through an analysis of energy and power projections and records, that energy associated with generation equipment of Self-Producer Users will be intended exclusively to supply partially or fully the demand of their consumption, according to the minimum requirements established in the Regulations of the General Law of the Electrical Industry for Self-Producer Users.

Technical analyses required for the connection of generation equipment of Self-Producer Users type B. Prior to the response of the authorization request, in the case of Self-Producer Users type B, Distribution Companies shall conduct a qualitative analysis that shows that the nominal capacities of circuits will not be exceeded, considering aggregated distributed generation in the circuit and the evaluation of the contribution to short-circuit power. A. The permitted generation capacity shall not exceed the minimum value among the permitted generation capacities for nighttime and daytime schedules, as presented in the following equation: CAPERM ≤ minimum[CAPERM_nocturno, CAPERM_diurno] Where: i. CAPERM_nocturno = Permitted generation capacity for nighttime schedules expressed in kW; ii. CAPERM_diurno = Permitted generation capacity for daytime schedules expressed in kW; The permitted generation capacities shall be determined in accordance with the following relationships: CAPERM_nocturno = CAnominal + DM_min nocturno - Σ(CCAGN) + Σ(CCAGSOLAR) + Σ(CCAGNE) CAPERM_diurno = CAnominal + DM_min diurno - Σ(CCAGNE) + Σ(CCAGSOLAR + GESE) Where: i. CAnominal = Nominal capacity of the circuit expressed in kVA; ii. DM_min nocturno = Minimum demand at the connection point expressed in kVA, recorded in the last twelve (12) months in the time slot between 6 p.m. and 6 a.m.; iii. DM_min diurno = Minimum demand at the connection point expressed in kVA, recorded in the last twelve (12) months in the time slot between 6 a.m. and 6 p.m.; iv. ECGNER = Generation equipment with renewable primary energy sources other than solar, connected or planned to connect to the common connection point associated with the applicant's supply point; v. ECGSOLARES = Solar generation equipment with capacity to inject energy to the grid from any energy storage system, connected or planned to connect to the common connection point associated with the applicant's supply point; vi. ECGNEN = Generation equipment with non-renewable primary energy sources, connected or planned to connect to the common connection point associated with the applicant's supply point; vii. ECGNN = Generation equipment with non-renewable primary energy sources, connected or planned to connect to the common connection point associated with the applicant's supply point; viii. CCGi = Installed capacity of generation equipment i, expressed in kVA. In case the minimum demands for nighttime or daytime hours are not known, they shall be estimated as 30% of the respective maximum demands. B. In order to evaluate the impact of excess injections foreseen in the single-phase and three-phase short-circuit power of the zone, the short-circuit current ratio shall be evaluated, which must comply with the following condition: RCCI = Σ(mj/kj × SGj) / Scc RCCI ≤ 0.1 Where: i. RCCI = Short-circuit current ratio; ii. mj = Short-circuit contribution factor corresponding to generation equipment, being 1 for generation equipment with current inverter, 6 for asynchronous generation equipment and 8 for asynchronous generation equipment; iii. SGj = Nominal apparent installed capacity of generation equipment i connected to the circuit under analysis expressed in kVA; iv. Scc = Short-circuit power at the common connection point associated with the evaluated generation equipment expressed in kVA. The evaluation in question shall consider generation equipment connected in the feeder under evaluation, as well as generation equipment associated with Self-Producer Users with valid authorization requests. In case the analysis shows that installation of generation equipment causes the admissible short-circuit power of some elements to be exceeded or generates power flow reversal through elements that are unable to operate with reversed power flows, it shall be the responsibility of the Self-Producer User to limit the disturbance it causes, or, if applicable, readjust the elements that exhibit operation outside technical specifications.

Electrical Studies for the connection of generation equipment of Self-Producer Users type C. Prior to the response of the authorization request, in the case of Self-Producer Users type C, Distribution Companies shall conduct electrical studies with the objective of guaranteeing correct operation and safety of the distribution network. A. Power Flow Study: A power flow analysis shall be conducted for scenarios of maximum and minimum expected demand in the corresponding circuit for the year of installation of generation equipment. The current electrical modeling of the distribution network shall be taken into account together with expansions foreseen for said year, typical operation of the network and distributed generation projects (in service or whose year of entry coincides with the Self-Producer User under study). The analysis shall show in all scenarios that the capacity of conductor sections of the circuit through which it injects its electrical power will not be exceeded. On the other hand, it shall be observed that voltage profiles in the area remain within the permitted operating band, or, failing that, corresponding corrective actions shall be evaluated. B. Short-circuit Study and Protection Coordination The study shall contain an analysis of the impact of generation equipment injections on single-phase and three-phase short-circuit power of the zone, showing that the nominal capacities of network equipment (circuit breakers, reclosers, fuses, etc.) are not exceeded. In case the analysis shows that installation of generation equipment causes the admissible short-circuit power of some elements to be exceeded or generates power flow reversal through elements that are unable to operate with reversed power flows, it shall be the responsibility of the Self-Producer User to limit its disturbance or readjust the elements on which operation outside technical specifications occurs. Likewise, short circuits shall be simulated at different points in the distribution network with the objective of verifying that the Self-Producer User's generation equipment and existing protection systems maintain a protection scheme with adequate selectivity, sensitivity and speed in the face of at least single-phase and three-phase short circuits in the zone. In case abnormal operating conditions are observed, corrective actions to be implemented shall be analyzed with the objective of mitigating them.

Implementation of corrective actions. In case the Self-Producer User opts to implement the actions described in Article 10, said user shall communicate to the Distribution Company regarding the completion of the corresponding corrective actions in order to verify that these comply with the established conditions.

Start of operation of generation equipment. The Self-Producer User shall communicate to the Distribution Company the date and time of start of operation of the generation equipment with an advance notice of fifteen (15) days so that the Distribution Company may conduct an inspection of the works if it deems it appropriate. If the installations of the Self-Producer User do not comply with the requirements of this Technical Standard, the Distribution Company may refuse to connect the generation equipment while the Self-Producer User does not make the corresponding adjustments and corrections. In such case, the Distribution Company shall communicate its decision to the applicant within a maximum period of five (5) business days, and shall substantiate and attach the respective supporting documentation.

Protection, control and disconnection devices. Prior to the connection of generation equipment, the Self-Producer User shall install the necessary protection, control and manual or automatic disconnection devices that guarantee that it cannot inject electrical energy to the distribution network in case of faults, when the voltage of the distribution network is outside the tolerances established in the NT-CD or when the medium voltage network is out of service due to scheduled or forced maintenance. Distribution Companies shall be responsible for defining the protection, control and disconnection devices that Self-Producer Users shall use in accordance with their classification, such as: directional protections, distance or differential protections, improved circuit breakers with remote operation, fault current limiter coordinated with reclosers, among others. The CREE shall resolve in case there are discrepancies regarding the devices required by Distribution Companies. In this case, Users may file a complaint with the CREE through the established channel for such purpose.

Installation of bidirectional measurement equipment. Prior to the start of operation of electrical energy generation equipment, Distribution Companies shall install, within a maximum period of fifteen (15) days, bidirectional measurement equipment that is capable of separately recording values of energy and power injected and withdrawn from the distribution network by Self-Producer Users. In case Distribution Companies do not have bidirectional measurement equipment, the Self-Producer User may supply it based on the criteria defined in the Regulations of the Distribution Electrical Service. Self-Producer Users type B and C shall additionally install, to the supply measurement equipment, an exclusive measurement equipment for the generation equipment, which shall be installed in accordance with the power of the generation equipment and its energy flow. These shall be properly synchronized with the Distribution Company's measurement equipment, reflecting the same values of date, time and parameters to be recorded. This equipment may be incorporated in the monitoring and control equipment of the generation equipment or in the inverter in cases where it applies. The energy and power data collected by said equipment shall be sent to the Distribution Company in accordance with the format it establishes, within the first five (5) business days of the month of September of each year.

Coordination of protection devices. The protection devices to be installed at the connection point shall be properly coordinated with the protection system used by the Distribution Company.

Safety and system operation. Distribution Companies may refuse to permit the use of their installations when the connection or injections from the generation equipment represent a danger to the operation or safety of the distribution network, of their own installations, those of third parties or of persons. In such cases, the response of Distribution Companies shall be duly substantiated and shall include the respective supporting documentation.

Inspection of installations. Distribution Companies shall verify the correct functioning of measurement, connection, control and protection equipment between the User's installations and the distribution network, as well as the operational conditions necessary for the supply. For such purposes, they may conduct such inspections as they deem necessary. Likewise, for reasons of safety or quality of service or other justified cause, Distribution Companies or the CREE may inspect the generation equipment and its functioning. For such purposes, the Self-Producer User shall be notified with at least five (5) days' notice, indicating the technical reasons why review is required and the identification data of the personnel who will conduct the inspection. If as a result of an inspection any condition is found that represents a danger to the operation or safety of the distribution network, own installations, those of third parties, or of persons, Distribution Companies by their own initiative or by instruction of the CREE, shall notify the Self-Producer User, no later than within twenty-four (24) hours following the inspection, to proceed to disconnect the generation equipment, and shall also inform the Self-Producer User, with a copy to the CREE, of the adjustments that must be made in order to reconnect the generation equipment. If a User or third party connects generation equipment without following the procedure established in this Technical Standard, Distribution Companies may disconnect said equipment without prior notice, and shall notify the CREE so that it conducts the corresponding sanctioning processes, without prejudice to the civil or criminal responsibilities in which it may incur.

Maintenance and responsibilities. The Self-Producer User shall be responsible for maintaining his generation equipment in good condition to guarantee the safety of these, as well as of the installations to which they are connected, furthermore, shall be responsible for damages that his installations cause to third parties or to the equipment with which it is connected.

Incidence in service quality by Self-Producer Users. Self-Producer Users shall design, construct and operate their installations in such a way that they comply with the admissible limits of Technical Product Quality established in the NT-CD. If there are indications that the installations of a Self-Producer User do not comply with the minimum requirements of service quality, Distribution Companies may conduct measurements to verify the incidence on service quality by the Self-Producer User's installations. If non-compliance is found, it shall be addressed in accordance with what is established in the NT-CD.

Valuation of excess energy. Distribution Companies shall remunerate the excess electrical energy from renewable energy sources generated by Residential and Commercial Self-Producer Users, at a rate approved by the CREE based on avoided supply costs.

Binomial tariff. Every Self-Producer User shall have a binomial tariff for the consumption it makes of the Distribution Company's network.

Remuneration for excess energy. Remuneration shall be applied as credits to the electricity supply invoice. If during a billing period the amount to be credited is greater than the amount to be billed for energy consumption, the remaining balance in favor of the Self-Producer User after billing of said period shall be applied as credit to the amount of energy charges billed for the following period.

Update of information of existing Self-Generating Users. Users who currently have generation equipment in operation shall update their data with their Distribution Company in compliance with the provisions established in this Technical Standard. For such purpose, they shall have a period of three (3) months counted from the date of entry into force of this standard.

Addendum to the supply contract. The content of the addendum to the supply contract that shall be executed between the Distribution Company and a Self-Generating User must be approved by the CREE. For the foregoing, the Distribution Company shall submit a proposed addendum to the CREE within the first thirty (30) calendar days of the entry into force of this Technical Standard. The CREE shall have fifteen (15) business days counted from the day following delivery of the proposal to approve or request modifications; subsequently, the Distribution Company shall have a period of ten (10) business days from the day following notification by the CREE to make the modifications requested by it. If the CREE does not pronounce itself within the established period, the proposal shall be deemed accepted.

Definition of protection, control and disconnection devices. Distribution Companies shall define the protection, control and disconnection devices that each type of Self-Generating User must install prior to connection of their generation equipment. For such purpose, they shall have a period of three (3) months counted from the date of entry into force of this standard. Distribution Companies shall communicate to their Users the information described in this article. Such information shall be public and free of charge.

Delivery of information of Self-Generating Users in operation. Distribution Companies shall deliver to the CREE within the first four (4) months of the entry into force of this Technical Standard the database described in the

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Page | 15 ANNEX I PROCEDURE FOR REQUESTING AUTHORIZATION FOR TYPE A SELF-GENERATING USER

Page | 16 ANNEX II PROCEDURE FOR REQUESTING AUTHORIZATION FOR TYPE B AND C SELF-GENERATING USERS