On December 7, 2020, the concept of the pass-through tariff for the support of renewable energy sources (RES) was introduced. This tariff will be applicable from July 1, 2021.
According to the Law "On Electricity", the costs of purchasing electricity produced by RES facilities from a Financial Settlement Centre (FSC) are included in the marginal tariffs for electricity. The annual increase in the volume of electricity from RES decreases the volume of funds allocated by the traditional energy producing organisations for their development.
The purpose of the amendments is to reduce the losses of conventional energy producing organisations that buy electricity, produced by RES facilities. In order to prevent losses of these organisations, the costs of purchasing electricity produced by RES facilities from FSC will be included in the surcharge in excess of the marginal tariff of the conventional energy producing organisation.
Overall, the pass-through tariff for the support of RES is a surcharge to support the RES which is the price determined by the FSC in accordance with the zone of electricity consumption for energy producing organisations that are conditional or qualified conditional consumers.
Currently, the Ministry of Energy and FSC are developing a mechanism for calculating and application of the pass-through tariff to support RES.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.