To date renewable energy facilities have been selling the electricity produced in facilities for a fixed feed rate set by the Electricity Authority, when in recent years the Authority has set the tariffs in accordance with designated competitive procedures it has published. Although the fixed tariff guaranteed the manufacturer a guaranteed and fixed income throughout the life of the facility, it created dependence on procedures and tariffs published by the Authority from time to time, with a delay on the part of the Authority meaning a delay in combining renewable energy production facilities. In addition, fixed tariffs require monitoring throughout the life of the facility and setting rules for changing the facility, enlarging it, etc., while integration into the market model allows flexibility for manufacturers, encourages storage integration to shift production to hours when the half-hour price is higher (due to shortages) and produces lifelong commercial opportunities. The facility.
It should also be noted that the supply segment has recently opened up to competition, with suppliers purchasing electricity from the system manager at tariffs based on the half-hourly market price. The existence of producers who sell electricity to the system manager at a half-hour price alongside suppliers who purchase the electricity at this price can form the basis for long-term hedging transactions between suppliers and renewable energy producers that will allow suppliers to offer consumers renewable energy support packages. The suppliers.
In its decision, the Authority stipulates that facilities to be established within the framework of these rules may also be integrated into additional procedures that will include support for renewable energy production facilities, and in particular the planned procedure for setting a protection tariff for renewable energy producers. That is, the current decision makes it possible to proceed with the construction of the facility and start operating commercially without such a preliminary procedure, but does not prevent those manufacturers from competing in additional procedures whose purpose is to further support the facilities with renewable energies.
The decision also includes a change in the operating rules of existing conventional facilities in a way that unifies and simplifies existing regulation and allows greater flexibility in the operation of the facilities, in order to adapt the operating regime to a system with significant amount of solar energy requiring frequent load reduction of conventional facilities.
for further details:
Uriel Ben Gozi, Strategy and Policy Control Division [email protected]