The government has made a decision to develop distributed generation: what is it about

The government has decided to hold a tender for the construction of generating capacity, among other important decisions adopted today for the development of distributed generation, the Ministry of Energy reported on Tuesday, UNN reports.

Details

"The government has approved the terms of the tender for the construction of generating capacities and the implementation of demand management measures. This will increase the volume of generation in the power system and its further development," the Ministry of Energy said.

In particular, it is envisaged to hold tenders for the construction of facilities with a capacity of 5-80 MW each, and a total capacity of 700 MW. The respective facilities are to be commissioned by the end of 2027.

As noted by the Ministry of Energy, this is one of three important decisions adopted by the government today for the development of distributed generation.

Also, the National Renewable Energy Action Plan for the period up to 2030 and an action plan for its implementation were reportedly approved.

The National Renewable Energy Development Plan is a complement to the National Energy and Climate Plan (NECP) and defines renewable energy development trajectories by sector until 2030 with measures for their implementation, taking into account the policies and measures defined by the NECP.

According to the Plan, the share of RES in gross final energy consumption in 2030 will be 27%, namely: in heating and cooling systems - 33%; in electricity generation - 29%; in the transport sector - 17%.

Another government decision, as indicated, established an additional annual support quota for business entities that produce electricity from alternative energy sources for 2024, as well as approved a schedule for pilot auctions for the distribution of the support quota for 2024.

Auctions for the allocation of support quotas are the most common mechanism in the world to stimulate the development of renewable energy sources on a competitive basis.

According to the Government's decision , the additional annual support quota is set at 110 MW, of which 11 MW for SPPs, 88 MW for wind farms, and 11 MW for other types of alternative energy sources.

According to the schedule, pilot auctions for the distribution of support quotas are scheduled to be held in October-November this year. The first power generation facilities commissioned following the pilot auctions are expected to start supplying electricity to the grid in 2025.