Electricity Authority Hearing: Competitive Proceeding for High-Voltage and Low-Voltage Solar Installations
Recently, the Electricity Authority published a Call for Bids for the purpose of determining the rate for electricity generation using photovoltaic (PV) technology at PV plants to be connected to the high-voltage and low-voltage grids. This is the second of six bidding rounds the Electricity Authority expects to publish by the end of 2018. (The first such bid was held at the beginning of 2017).
Within the scope of its plan, the Electricity Authority intends to take action to allocate additional quotas of about 1,300 MW for electricity generation. It aims to meet the target set by the government, whereby 10% of the total electricity consumption in Israel will be produced by renewable energy sources by 2020.
The Call for Bids specifies the principles for participating in the competitive bidding proceeding:
- The bidder must be a duly incorporated and registered corporation (or, if it is a partnership, a registered partnership) without any insolvency proceedings pending against it, including liquidation or receivership proceedings or a stay of proceedings.
- The aggregate output to be allotted in the proceeding must not exceed a cumulative total of 50 MW.
- The winner of the competitive proceeding must submit a Certificate of Commercial Operation for the Electricity Authority’s approval in relation to every PV plant by the deadline specified in the decision. This deadline is set at 21 months after the date the Electricity Authority sends notices to the winning bidders. A winner that does not construct a plant by the deadline will be able to complete construction by the “maximum deadline”—23 months after the date the Electricity Authority sends notices to the winning bidders.
- The rate to be set during the proceeding will remain in effect for 23 years after the startup of commercial operation.
- Participation in the proceeding and the construction of photovoltaic plants by virtue thereof are not contingent upon the receipt of a conditional license. The Electricity Authority will grant an electricity generation license to the winner that constructs a PV plant with an output of 5 MW or more before the maximum deadline.