RES absorption cuts, application freeze for saturated areas

A new legislative revision will enable RES output absorption cuts of as much as 5 percent, annually, in areas where grids are considered to be saturated. Applications for RES licenses will also be stopped at areas deemed to be saturated.

The absorption cuts will apply retroactively for RES projects that have received connection term offers prior to the new legislation, have already completed their licensing procedures, as well as investments still awaiting connection terms.

The new RES absorption cut rule will exempt units that are already operating as well as units that have been declared as ready to operate.

RES units for which investors had secured tariffs at auctions prior to the ratification of the legislative revision will also be exempted from absorption cuts as any belated cut would invalidate the financial conditions investors had taken into account when shaping their bids.