RES investors opting to establish bilateral power purchase agreements (PPAs) with industrial consumers will be given licensing priority for the projects over peers planning to secure tariffs the customary way, through RES auctions staged by RAE, the Regulatory Authority for Energy, according to an energy-sector bill expected to be submitted to Parliament in June.
This plan essentially aims to offer investors incentive to stop focusing their efforts on how they will secure fixed tariffs for their RES projects by offering favorable licensing treatment for projects holding bilateral tariff agreements.
Over the next three years, a RES capacity totaling 3.5 GW is expected to be offered by authorities to investors.
It should be pointed out that projects linked to fixed tariffs gained through RES auctions are likely to enjoy more favorable bank treatment for project financing. On the contrary, RES investors holding PPAs will need to have struck handsome deals to convince banks for money.