New HPPs generating over 5 MW of electricity to sell it at Georgia's Energy Exchange

Oil&Gas Materials 30 June 2020 17:21 (UTC +04:00)
New HPPs generating over 5 MW of electricity to sell it at Georgia's Energy Exchange

BAKU, Azerbaijan, June 30

By Tamilla Mammadova – Trend:

New hydropower plants (HPPs) generating over 5 megawatt of electricity will sell it at the Energy Exchange in Georgia, while the government will provide financial support to them, Deputy Economy Minister David Tvalabeishvili said, Trend reports with reference to Georgian media.

“A week ago we submitted a special package to the government. The document regulates HPPs with over 5-megawatt power generation, offers a special financial support and determines base principles, all HPPs will trade at the exchange under the same principle. The Energy Exchange will have been shaped and enforced in 2021”, he said.

According to Tvalabeishvili, for wind and solar power projects, similar mechanisms are being prepared to be agreed with corresponding government offices.

The new HPPs that will launch operation in 2021, will also receive certain financial support, the deputy minister added.

"We talk about future HPPs. This mechanism will not apply to the HPPs with signed guaranteed agreements. The new facilities will trade at the Energy Exchange, and we have to determine whether the Electricity System Commercial Operator of Georgia (ESCO) or the government will be paying additional funds to them in a certain period of the year”, he explained.

As for the existing facilities, they will have an option to either trade at the Energy Exchange or to sign direct agreements with subscribers, he added.

“Supposedly, the greater part of the facilities will trade at the exchange, because it offers a competitive environment, open pricing”, Tvalabeishvili noted.

Meanwhile, the law on renewable energy production and employment came into force in 2020. Under the law, the government is obliged to prepare and introduce renewable energy support schemes.


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