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Variable tariff schemes available for new PPAs – Energy Minister

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Minister of Power and Energy Kanchana Wijesekera has revealed that developers of projects pertaining to renewable energy will now have the option to choose from either a fixed tariff or a variable tariff when signing Power Purchase Agreements (PPA).

Taking to Twitter, the Minister explained that a 20-year variable feeding tariff for new renewal energy developments up to 10 MW has been made available from 13 June, adding that the new tariffs will be applicable only to new PPAs.

However, while developers can now choose a suitable tariff at the signing of the PPA, they will not be able to switch after the signing, Wijesekera emphasised.

Speaking further on variable tariffs, he noted that rates paid for every PPA signed on the variable tariff scheme will be varied every 3 – 6 months over the 20 years, factoring interest rates and other parameters being considered when calculating the formula.

Meanwhile, when considering fixed tariffs, the Minister noted that the rates made available at the signing of fixed tariff PPAs will remain the same throughout the 20 years.

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