Investors preparing to take part in an upcoming RES auction on July 2 to offer renewable energy installation capacities appear to be favoring the Deposits and Loans Fund over commercial banks for their letters of guarantee as the fund’s terms are more favorable and, most crucially, it requires just one day to issue, market officials have pointed out.

Investors will need to submit RES auction applications by June 5. Given the little time remaining ahead of this deadline, the swifter letter of guarantee procedures promised by the Deposits and Loans Fund are crucial.

Many prospective auction participants have held back as they await an energy ministry revision to legislation for terms enabling letter of guarantee returns for projects not successful at the RES auctions.

The energy ministry has ensured the required legislative revision will be made but has not yet fulfilled this promise.

Terms for a pilot auction offering capacity for solar energy installations in December, 2016, had clarified in advance that guarantees would be returned to unsuccessful participants.

Letter of guarantee returns are expected to come with project licence cancellations to free capacities for other investors.