The Government of Andorra approved the amendment to the law “About electric power industry”, according to which now private investors can participate in the development of this industry. The draft law provides the reorganization of electric power industry of the country. The import, export and distribution of electric energy, as well as technical operation of the system are still under government control.
Private investors are invited to participate in the construction and operation of facilities for the production of energy. In particular, the government plans to attract private investors for the financing of projects such as cogeneration (the process of joint generation of electricity and thermal energy).
According to the Minister of finances of Andorra (Pyrenees) Jordi Cinca, the aim of the government is to increase the production of energy in the Principality, to increase energy independence on neighbouring Spain and France. Minister of environment and agriculture of Andorra Sílvia Calvó declared that according to the development plan of the energy sector of Andorra for the next 10 years investment amount should be more than 230 million €. The budget of the Principality is able to allocate funds about 110-180 million €.
The government offers two ways of participation. The first option is based on a concession under the leadership of private investors. The second option is to sell to the investors shares of energy companies in Andorra while maintaining a controlling stake in state hands. The government believes that the reorganization will not cause any negative consequences. The issues of tariff policy will still be controlled by the state.
Sylvia Calvo offered one of real projects for the development – the construction of a cogeneration plant in the area of La Comella.
The Andorran government also supports projects for the production of electricity from renewable sources (first of all, solar-energy projects).
See also Andorra business guide
See also Andorra company formation
