The Law of Governmental Financial Provisions

This Law was authorised by the 4th FYDP in order to attract investment from the non-governmental sector in producing electricity from renewable sources. The Ministry of Energy is obliged to purchase produced electricity from private and state owned power plants at a guaranteed price. This price will be proposed by the National Management and Planning Organisation.

A feed-in tariff for renewables was set in 2008 by the Council of Ministers at IRR1,300/kWh (USD0.048) for peak and normal load hours, and IRR900/kWh (USD0.033) for off-peak hours. To reduce the consumption of fossil fuels and to encourage investment in renewables, it establishes a rate of at least IRR650/KWh (USD0.024) for peak and normal hours, and at least IRR450/KWh (USD0.017) for off-peak hours (Maximum 4 hours per day/night).