BAKU, Azerbaijan, October 26
By Tamilla Mammadova – Trend:
The Georgian government has made a new decision in the field of electric power, Trend reports citing Georgian media outlets.
The Georgian government has decided to lower the amount of hydropower plant construction guarantees from $100,000 to $10,000 per proposed megawatt of electricity generation potential for investors who do not require guaranteed purchase agreements and guaranteed tariffs
The decision was made at the government meeting on October 25.
“This is another step taken as part of the reform of the energy market. On the one hand, this is an incentive for investors not to require guarantee purchase agreements in order to open the electricity market and make it competitive. In addition, we have reduced the required building guarantees. Thus, investors will be able to save their resources, which will accelerate the construction process, ” said Natia Turnava, Minister of Economy and Sustainable Development of Georgia.
A guaranteed purchase agreement of electricity is one of the components of a memorandum of understanding (MoU) between the Ministry of Energy and privately owned hydropower plants. According to this component, the government undertakes to purchase a certain amount of electricity at a certain price within a specified period of time.
A construction guarantee is a bank guarantee based on the total installed capacity of a power plant or power plant cascade.
Before the change to the requirements, hydropower plants of 100 megawatts or less needed construction guarantees of $100,000 per megawatt.
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