Power Purchase Agreement Mauritius

This model shifts energy production from inefficient public sector generators to private electricity generators, known as independent electricity generators (IPPs). As far as Mauritius is concerned, the CEB was not an inefficient electricity producer, but the policy nevertheless had the upper hand and gave way to IPPs. The AAE will set the producer`s electricity generation and supply obligations at certain points and set the price at which this benefit is acquired. Renewable energy poses several challenges to the negotiation process. The definition of demand and performance requirements should take into account the intermittent and highly unpredictable nature of wind and solar energy. A commonly used mechanism is a multilayer-looking back with an accumulation of credits for performance above minimum levels to be compensated during underperformance. However, geothermal and biomass facilities do not suffer from intermittent problems. Geothermal AAEs should eliminate uncertainties related to the amount of geothermal resources by regularly measuring and certifying the geothermal resource on the day of commercial exploitation and thereafter. Similarly, the strategic location of power plants can result in significant transportation costs that should be considered when considering the economic viability of the project during the AAE negotiations. The facility was commissioned in 2000 and the power purchase contract was signed with the local utility for a period of 25 years.

The plant is managed by Terragen Management Ltd, a joint venture led by Albioma, the group`s French strategic partner. The group participates in a 2 x 35 MW thermal power plant of Terragen AG, which produces about 370 GWh of electricity from bagasse and coal per year (401 GWh in 2014). An electricity purchase contract (AAE) is a legal and commercial document between an electricity producer as a seller and the bulk of the energy as a buyer/buyer. The PPP is at the heart of any energy production project. The contract follows an AAE signed last year with local company PAD Greeb for a 29.4 MW project that was overturned for the use of Suzlon turbines and is expected to be commissioned next summer. Aerowatt has yet to complete funding for the new project or choose a turbine supplier. These projects are part of Mauritius` goal of purchasing 35% of its electricity from renewable energy sources by 2025, with wind supply providing 8% of total generation. The government is currently working on a renewable energy master plan to indicate how it intends to achieve this goal.

Currently, it has only 1.28 MW of installed capacity on the island of Rodrigues. Various initiatives are underway to speed up the availability. The CEB is exploring ways to integrate more wind and solar energy on Rodrigues Island, without compromising grid stability. He is also responsible for creating a wind atlas and bringing 20MW of wind to the main Mauritius system every three years from 2017. Many AAEs contain „early termination rights“ that allow any party to the AAEs to end the same situation if certain events occur. Such an event is the seller`s inability to obtain the necessary financing. However, the problem may be in situations where the producer has invested heavily but has not yet reached the commercial operating date and the buyer terminates the contract.