Model License for Power Plants Above 30MW

The program aims to support the Power Market reforms, the energy sector strategy development, and to promote cross-border trade with Georgia. This includes working towards facilitation of Armenian regulatory practices and harmonization of the Power System standards with the EU directives. The Model License for Power Plants Above 30 MW is focused on clarification of rights and responsibilities defined by the Public Services Regulatory Commission for such plants in compliance with the RoA Energy Law requirements. It also defines cases of supervision over license operation and imposition of fines. The License grants the right to the Licensee to generate electricity (capacity) at a power plant of a specified rated capacity. The Licensee has the right to sell or export its own electricity (capacity) on the wholesale market, according to the Market Rules. In case of combined heat and power generation, the Licensee has the right to sell thermal energy in procedures defined by the Commission. The Licensee is obliged to sell electricity to the Universal Supplier, Supplier, and Qualified Consumers at tariffs set by the Commission, in cases and procedures provided for by Market Rules. In other cases, the Licensee may sell electricity to market participants or to export at non-regulated prices. The License specifies the conditions for implementation of the licensed activity, including compliance with the RoA Energy Law, other laws, this License, Transmission Network Code, Trading Rules, and other legal requirements. The Licensee is required to submit to the Commission the Plant construction design that passed through a corresponding expertise, along with the positive conclusions attached. The Licensee is also required to register with the Market Operator the contracts signed on the wholesale market, as well as contracts on export of electricity (capacity) according to the Market Rules. The Licensee is obliged to follow the instructions of Electricity System Operator according to the Transmission Code. The License specifies the procedures for alienation, other transfer, or mortgage of shares or rights towards those shares, as well as the requirements for obtaining the Commission's preliminary approval for such actions. The License also specifies the procedures for obtaining the Commission's approval for the transfer of the function of electricity generation stated in the License. The Licensee is required to ensure access of representatives of the Commission to the property necessary to perform the licensed activity and involved in that activity. The Licensee is also required to submit information and reports on its licensed activity in procedures and forms approved by the Commission. The License is valid until a specified date, in which the construction period until a specified date and the electricity (capacity) generation period until a specified date are defined. The Licensee is required to submit a corresponding application to the Commission to extend the License validity (operation period) provided for by this Chapter.