An uneasy meeting of the Committee on the Fuel and Energy Complex has come to an end. During the meeting, the deputies had to adopt a coordinated draft law on “green” auctions.
I have my own position regarding this issue. “Green” auctions are necessary. Moreover, they are needed immediately. A wide range of manufacturers should participate in them. And only such approaches will ensure high competition and will contribute to the decrease in tariffs.
The coordinated draft law was approved by the deputies. The committee majority once again showed support for the industry lobbyists instead of supporting consumers. Instead of introducing auctions already in the first half of next year – the way I suggested doing – they want to delay this period until January 1, 2020.
The pool of participants is being deliberately narrowed down only to the largest start-up complexes. For example, in 2020, solar power plants with a capacity of less than 10 MW and wind power with less than 20 MW are exempt from auctions. And this, by the way, is the absolute majority of all renewable energy facilities. My suggestion is to start with 3 MW. This will really ensure competition.
Our colleagues did not listen to our propositions to significantly reduce the “green” tariff due to the significant reduction in the cost of equipment and about the importance of correct distribution of capacities across regions to ensure balance in the power system.
If today’s document becomes law, we will not see real auctions and a significant reduction in the rates of alternative energy for at least another few years.
What will be the consequences?
The annual growth of “green” energy by 1-2 GW due to the “fat” tariffs will exhaust other types of generation, winding down any attempts to modernize our “traditional” power plants and to improve the social standards of their personnel. After all, there is a forecast that in the next year, given the current “green” tariff, the rising renewable energy sources will “swallow” up to 25% of revenues in the market. This means some kind of generation will not receive its revenues.
Let’s not forget that someone will have to pay for the increase in the cost of the energy “mix”. These will be no one else than consumers. This means that the population, industry, schools, hospitals, offices and so on will need to prepare for the further rise in the cost of electricity, and therefore, for a new increase in inflation.
In whose pockets will the “green” tariffs paid by the consumers end up? In the pockets of its manufacturers.
And who is the number one producer of alternative electricity in Ukraine? DTEK company.
Therefore, the owner of DTEK, Rinat Akhmetov, can receive several billion superprofits from Ukrainians under the “green” tariff scheme. In addition to his billions from Rotterdam+.
I can congratulate the representatives of Rinat Akhmetov in the Fuel and Energy Complex Committee upfront. You have won the first round – you have got the approval of the document that you consider profitable.
But there is still voting in the parliament waiting for you. We are not withdrawing our alternative bill 8449-5. We will actively fight for its support by the majority of deputies.
Our colleagues should make their mind whose interests they will defend – of the industry lobbyists or of millions of Ukrainian consumers.
There is good news though. We have managed to push through a new for Ukraine rule on international arbitration regarding investment projects for “green” auctions. This gives more chances for the participation of international players, whose presence, I hope, will lower the tariffs at auctions. So, the price for the consumers will become lower.