Section 26Part 3 — Licensing
Duration of licence
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A T&D licence shall be for a period not exceeding twenty years from its date of commencement.
A generation licence shall be for a period not exceeding twenty-five years from its date of commencement.
Where a Generator is awarded the right to supply additional electricity generation under the generation solicitation process, its existing licence shall be cancelled and a new licence issued to the licensee for a term not exceeding twenty-five years, to correspond with the period required for construction, reconstruction, replacement or modification of a generating station or any generating unit therein, together with the estimated economic life of the relevant generating unit or units or the term of the relevant PPA as appropriate; and the new licence shall cover —
the new generating unit or units and any existing generating unit or units covered under its previous licence which have not been retired; or
the new PPA and any existing PPAs covered under its previous licence which have not expired, as appropriate.
Upon application by a Generator, the Office may, if it is satisfied that it is economic to extend the life of an existing generating unit or units, without application of the generation solicitation process, grant a new generation licence, the terms of which shall correspond with the new estimated life of the generating unit or units.
If, outside the contexts of section 9(2)(e)(i) and (ii) — the Office may grant a licence to another person either — and any such licence shall be temporary in nature, shall be granted for no longer than such period of time as is reasonably necessary in the circumstances, and shall be subject to such conditions as the Office may, in its discretion, deem appropriate.
due to a destructive event, some or all of a Generator's generation assets are damaged or destroyed so as to prevent the Generator from being able to satisfy its obligations to supply sufficient electricity to the T&D licensee; and
the Office is of the view that it would be in the best interests of consumers,
during the period in which the Generator is repairing or replacing its generation assets that are so damaged or destroyed; or
if the Generator's PPAs are validly terminated as a result of its inability to recover from the destructive event, during the period that it will take to conduct the generation solicitation process in order to replace the Generator's generating capacity and enable the new licensee to put in place the generation assets that are required to meet such capacity,
A licence may be renewed upon application by the licensee, or otherwise modified, suspended or revoked in accordance with this Law.
Generation licences shall not be exclusive.
Defined Terms
PPA
Cross References
- Section 9 of Electricity Sector Regulation Act
section 9(2)(e)(i) and (ii)