Solar energy system investors are expressing strong interest to participate in Apollo, a 20-year RES support program presented early this month by the energy ministry and envisaged to offer RES output to low-income households, local government organizations, as well as public drainage and municipal water supply and sewerage companies.

This program has generated investor interest as it is expected to provide a development outlet for RES projects with a total capacity of 1.1 GW. It will also enhance grid-capacity preservation.

At present, roughly 8 GW in wind and solar energy projects with finalized connection offers have yet to secure tariffs for sale of output to the energy market. This shortcoming is creating financing obstacles for investors as banks hesitate to extend loans to customers without steady revenues. If they do decide to offer loans under such high-risk circumstances, interest rates are set extremely high.

Through the Apollo program, investors would succeed in derisking, or hedging risk, as the program is practically like signing a 20-year bilateral contract with the state as an off-taker.

The program also promises to boost new RES capacity, which, without Apollo, would be limited to the capacity offered by the approved RES licensing procedure, foreseeing 2 GW in new projects by 2025.

However, questions remain as to whether measures will be introduced to offset the program’s cost for the RES special account.