News Column

Krsv coefficient

August 26, 2014

Yesterday, the Energy Ministry disclosed the draft methodology for calculating the Krsv coefficient. The coefficient, which is a part of the DPM formula, defines which part of the return assigned to a newly built unit will be gained via capacity payments and which part is attributed to the profits from selling electricity on the spot market. The existing DPM methodology implies the initially predefined Krsv coefficients depending on the type of generating equipment, which is set to be examined after three and six years of the unit being in operation.

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Source: EMBIN (Emerging Markets Business Information News)

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