Bilateral power deals for energy intensive industries

Following repeated consultations between the prime minister’s office and large business groups, as well as the visible risk of plants being shut down due to energy costs, the Energy Ministry will this week introduce new regulations allowing bilateral contracts between energy intensive industries, Public Power Corporation and RES providers.

The option to enter into bilateral contracts has been a key demand of the industry since last summer, but the imposition of a cap on producers’ income has made it impossible to renew expired agreements.

Bilateral contracts offer stable prices over a long period of time, versus exposure to daily market fluctuations.