National Energy Regulatory Council (NERC), in
order to clearly regulate how the maximum bid prices for persons operating
existing and planned facilities ensuring capacity are set, has prepared and
submits for public consultation a DRAFT on the bids of the Capacity auction participants and the auction maximum
price setting methodology – submit comments and
suggestions by 30 June (inclusive).
Substantive provisions:
• When setting maximum
prices, the assessment of new entrant’s electricity generation, energy storage facilities in the electrical
system, electricity demand for the facilities of independent aggregator will be
performed in the following stages: the reference technology
is selected; the characteristics of the selected reference technology are
described; total costs of the reference technology are determined; net costs of
the new entrant are determined; maximum price caps of bids from persons
operating existing and planned capacity ensuring facilities are set.
• Reference technologies and their costs levels, other indicators/parameters will be assessed based on the experience of other
countries, the latest information from experts, competent authorities and
interested parties, research and scientific literature, analyses performed by
consultants, etc.
• Maximum price cap for new entrants will
be calculated by
adjusting (increasing) costs of the reference technology by a 1.5 coefficient which is related to the uncertainties of the projected expenditures and
receivable incomes. The coefficient was chosen based on the practice of other
countries (Ireland, Poland).
• Maximum price cap
for entrants operating existing facilities will
be set by a 0.6 coefficient by adjusting (reducing) maximum price cap of new entrants. This coefficient has been chosen also taking into account the fact that
some of the investments of the existing generators have already returned (based
on the practice of Poland) and aiming at maximum economic efficiency and
minimum financial burden for electricity consumers, as the Capacity mechanism
should not be the only source of the costs recovery for the persons who are
going to participate in the Capacity mechanism, they are encouraged to
participate actively in the market and thus to get additional income.
⁎⁎⁎⁎
• Submit comments and suggestions by
post Verkių g. 25C-1, Vilnius, LT-08223, fax + 370 5 213 5270, e-mail
[email protected] or through the information system of draft legal acts of the
Parliament of the Republic of Lithuania.
• Deadline for comments and
suggestions: 30 June 2020 (inclusive).
• The submitted comments and
suggestions are published under the heading Public consultations.
