Government of Georgia adopted the Ordinance on the approval of the Support Scheme for the Production and the Use of Energy from Renewable Sources (Hydropower Plants)

• On 2 July 2020, Ordinance of the Government of Georgia on the Approval of the Support Scheme for the Production and the Use of Energy from Renewable Sources (Hydropower Plants) was published on the website of Legislative Herald of Georgia;
• Ordinance determines the measures to facilitate the operation and construction of the Hydropower Plant with capacity of no more than 5 MW conducted by the private investors;
• Deliberations on the Investment proposal and the conclusion of the arrangement on the application of Support Scheme is carried out pursuant to the Law on Public and Private Partnership;
• Support Scheme consists of two components: Support period and Premium Tariff;
• Support Period is determined for 10 years (8 months per year), from the commencement of exploitation of the plant and  issuance of production license (if needed);
• Premium Tariff is 0.015 USD per 1 kWh, except the cases when the difference between the wholesale price of electricity for the relevant hour on the organized market and 0.055 USD is less than 0.015 USD, in which case above difference will be the Premium Tariff.
• Premium Tariff is payable additionally to the wholesale price of electricity for the relevant hour on the organized market only when during the Support Period wholesale price generated in the given hour and the wholesale price per 1 kWh fixed on the organized market is less than 0.055 USD.
• Ordinance became effective upon its publication.

Source and date of publication: The Legislative Herald of Georgia; 02.07.2020.