Ministry working to resolve PPA issues faced by industry

The energy ministry is working on a plan that would allow industrial enterprises to use green-energy power purchase agreements (PPAs) as a means of gaining long-term visibility on energy costs, while keeping supply prices at internationally competitive levels.

As part of the effort, the ministry is seriously considering the possibility of requiring RES projects that secure tariffs at future RES auctions to sign bilateral contracts with industrial consumers for a share of their overall power output.

Though a first round of green-energy PPAs involving energy-intensive consumers have already been established, challenges have been encountered, a key problem being a drastic reduction in grid capacity availability.

One solution being worked on by the energy ministry entails increasing an injection limitation for new photovoltaics to 50 percent of output, as well as making battery installations compulsory for new solar farms.