RAE, the Regulatory Authority for Energy, has taken action aimed at improving licensing procedures for the installation of power generators.
The matter has been the cause of friction between the authority and PPC, the main power utility, which, in the past, has criticized RAE for delaying the issuance of licenses needed to install power generators on islands. PPC argued these delays have negatively impacted the power utility and electricity consumers on islands.
PPC has also criticized the regulatory authority for failing to recognize transportation and installation costs concerning mobile power generators used on non-interconnected islands. The power utility had undertaken such initiatives without previous approval from RAE. Costs for such ventures are recoverable only in cases for which production licences have been issued.
The dispute between the two sides, dating back to 2016, was eventually resolved but matters concerning the issuance of licenses, especially the need to hasten the process, remained pending.
It remains to be seen whether the new framework decided on by RAE will help hasten licensing procedures.
RAE has pointed out that restrictions concerning the use of mobile power generators, which run on diesel and mazut, are necessary as a result of EU climate change policies and emission targets set by the Paris climate accord.