Older industrial PPAs to be given connection-term priority

A legislative revision promising connection-term priority to RES projects whose output is intended for long-term PPAs with industrial and agricultural consumers will apply only to older agreements going back two years, such as those established between power utility PPC and metal processing company Viohalko and cement producer Titan, energypress has been informed by sources at the energy ministry, preparing to submit the revision to Parliament today.

The legislative revision will be attached to a finance ministry bill concerning a 15 percent minimum tax rate on multinationals.

Market players who rushed to establish PPAs in the lead-up to this legislative revision will not be entitled to connection-term priority rights.

The number of PV projects – in terms of capacity – to be granted connection-term priority rights as a result of the legislative revision will be decided through a ministerial decision at a latter date, when the energy ministry has a precise figure on the number of PPAs energy-intensive consumers have established with RES producers.

However, it is already considered certain that roughly 500 MW in PV projects to be developed for lower-cost electricity to the agricultural sector will benefit from the legislative revision.

The overall capacity of RES projects – for agricultural and industrial energy consumption – linked to this legislative revision may be below a 1,300-MW capacity initially reported.