30.Nov .2021 16:30

State Does Not Have The Luxury Of The PPA Mechanism Today – Minister

State Does Not Have The Luxury Of The PPA Mechanism Today – Minister
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Minister of Economy and Sustainable Development Natia Turnava declares, that the Power Purchase Agreement (PPA) played its role in 2014-2015 and assisted the development of many small power plants, but today the state no longer has the luxury of financing new generations through this mechanism.

This is how the Minister of Economy answered the question of a BMG journalist about the fact that the energy sector demands the restoration of the PPA mechanism.

"This is almost 100% reinsurance, the luxury of which the state does not have today. Therefore, the electricity exchange is a more modern mechanism, which is represented both in our region and in European countries. Price formation is based more on the market principle, but the state still retains the leverage to help small power plants, including the wind, solar or hydroelectric investors. This will be the so-called – “Feeding Premium”. Not fully, but partially provides additional assistance and a guarantee of 1.5 cents per kWh. Today we are in a highly developed energy market and sector, as quite a lot has been done since 2017, when the state joined the Energy Union in terms of reform. Therefore, this mechanism will work quite well," Turnava said.

According to the minister, the electricity exchange market will be launched from March, 2022.