Energy strategy slows down development of RES

The draft of the updated Energy Strategy of Ukraine for the period up to 2030 slows down the development of renewable energy sources and may stop foreign investment in this industry. This general position was expressed today during a press conference by the head of the Ukrainian Wind Energy Association (UWEA) Andrey Konechenkov, co-founder of Rentechno and Avenston Dmitry Lukomskyi and president of the Association of Alternative Fuel and Energy Market Participants of Ukraine (APEU) Vitaliy Daviy. According to Vitaliy Daviy, the renewable energy industry has only just begun to form in Ukraine, investments have begun to be made, including foreign ones. However, the appearance of the new version of the energy strategy has forced this process to slow down, the expert is convinced and assures that this will have a negative impact on the investment attractiveness of the country as a whole. “In 2015, the share of renewable energy in the overall balance will not be 3-6%, as noted in the strategy, but will be more than 6%. 3% and 6% are actually barriers,” says the head of APEU.

Dmytro Lukomskyi agrees with him, realizing that very few investors will invest in the industry, guided by such a strategy. “We know what the pool of potential investors breathes, what the industry lives by. However, the draft document may not be a good enough service in this case. Reducing the share of renewable energy sources is not very reasonable and timely,” the expert said. Another negative factor is that the strategy speaks of the need to reduce the “green” tariff without reference to existing laws. “Investors are already postponing their decisions and this is a fact,” notes Dmitry Lukomsky.

In support of what was said, Vitaly Daviy gives a real example – in Ukraine, not a single “green” tariff has been issued in the last six months. “Ukraine has been living without a “green” tariff for six months, not a single one has been issued. Since there is a requirement for a “local component” at the level of 15%, and there is still no procedure that would determine it. Why do we need an energy strategy when we are stopping the industry with such initiatives,” the expert is surprised.

In turn, Andrey Konechenkov notes that the document is mandatory for execution. “Today, documents are accepted as a guide for action and, if it is adopted in the form in which it is now, the renewable energy market will not only stop, but there may also be conflicts within the Kyoto Protocol and the Energy Community,” he said.

Experts are confident that with the adoption of the draft document, without changing the fundamental things in it regarding the share of renewable energy in the country’s balance, reducing the rate of the “green” tariff, etc., it will be simply impossible to prove to foreigners about investing in this industry.

Let us recall that in the draft of the updated Energy Strategy of Ukraine for the period up to 2030, the text of which was published on the website of the Ministry of Energy and Coal Industry for public discussion, the share of installed capacity of renewable energy in Ukraine should be 5-7 GW (10-12 GW including large hydroelectric power plants in 2030 or at least 10% of the total installed capacity with an annual production volume of 11-16 TWh (23-28 TWh, including large hydroelectric power plants).