AbstractThe government has taken a strong interest in the privatization of the power industry and engaged a number of measures to attract private sector cooperation. Reasons motivating this choice include, on the one hand, power demand, the growth of subscriber numbers, and the rising expectation levels in terms of power quality, and on the other hand the lack of crucially needed financial resources. Implementing a policy of guaranteed power purchase by the government is one of the measures put in place to supplement financial resources and provide guarantees for private investors. In this article, the researcher calculates the tariff of guaranteed purchase power from fossil fuel plants and presents a recommended tariff for this purchase. The researcher believes that private sector investors would be encouraged by the tariffs applied by the government to invest in the infrastructure sector. Additionally, this would constitute a step towards the power industry reform.
Keywords: Fossil fuel Power Generation, Guaranteed Pricing, Tariffs.