Economy
Posted: 2 weeks ago

Project: New HPPs with Over 5-megawatt Generation to Sell Electricity at Energy Exchange

New hydropower plants (HPPs) with more than 5-megawatt generation will sell electricity at the Energy Exchange and the Government will provide financial support to them, Deputy Economy Minister David Tvalabeishvili told reporters.

“A week ago we submitted a special package to the Government. The document regulates HPPs with over 5-megawatt generation, offers a special financial support component and determines base principles – all HPPs will trade at the exchange under the same principle. As reported, the Energy Exchange will have been shaped and enforced in 2021. The package provides certain preferences. The Government will pass this decree within a week and then I will update you on this mechanism.

As for wind and solar power projects, similar mechanisms are being prepared and they will be agreed with corresponding government offices and we will take special decisions up to 2021”, the Deputy Minister noted.

The new HPPs that will launch operation in 2021 will also receive certain financial support, Tvalabeishvili 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 ESCO or the Government will be to pay additional finances 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.

“Supposedly, the greater part of the facilities will trade at the exchange, because the Energy Exchange offers a competitive environment, open pricing and the majority of them will trade at the Exchange”, Tvalabeishvili pointed out.

We remind you that the law on renewable energy production and employment came into force in 2020. The very law obliges the Government to prepare and introduce renewable energy support schemes.