More than 90 percent of RES producers meeting requirements for two-year suspensions of their project operating contracts with RES market operator DAPEEP, in order to engage in direct market participation or establish PPAs, will make the most of this option, the operator has estimated.

DAPEEP’s estimate represents the basis of a Budgetary Estimate of Revenue and Expenditure Report concerning new projects linked to National Energy and Climate Plan objectives. The RES market operator has forwarded this report to all relevant agencies.

DAPEEP expects roughly 2,100 MW in new RES projects with tariffs to penetrate the RES market in 2024.

The measure offering RES producers two-year suspensions of their project operating contracts with DAPEEP is particularly appealing to producers as this two-year period will not be deducted from existing 20-year tariff agreements with the operator.

It also promises RES producers sale of their output at levels probably higher than guaranteed-income levels offered by their existing project operating contracts with DAPEEP.

A legislative revision permitting RES producers to suspend their operating contracts by two years is scheduled to come into effect February 1.

Investors behind large RES projects of over 1 MW that either received operating permits or were electrified after March 28, 2023, will be eligible, as will small RES projects under 1 MW that were electrified following this date.