GREDA believes that the CFD tariff for HPPs should be increased from 6.5 to at least 9 cents. Will a third CFD auction be held?
“The third CFD auction will definitely be on the agenda” - GREDA Executive Director believes that the current 6.5-cent tariff can no longer finance investment in hydropower, given inflation and the rising cost of construction materials. As Maia Melikidze stated in an interview with “Samis Kursi”, it is necessary to hold a third CFD auction, where the tariff is expected to increase to 9 cents.
"Inflation has affected everything. The calculations that private sector representatives had made and thought that they would recover their investment in 7, 10, 12 years, now this figure has exceeded even 15 years. Therefore, the increase in prices for construction materials that should be used to build hydropower or solar power plants has caused quite a lot of inflation and price increases. Therefore, naturally, the need to hold a third CFD auction will be on the agenda, and we simply cannot avoid it given the circumstances we are in now.