16:56 17.10.2017

EBRD considers introduction of auctions to stimulate renewable energy sources for Ukraine to be promising

EBRD considers introduction of auctions to stimulate renewable energy sources for Ukraine to be promising

 The European Bank for Reconstruction and Development (EBRD) considers it promising for Ukraine to introduce a mechanism of auctions to stimulate energy generation using renewable energy sources, bank deputy director Marina Petrov has said in an interview with Energoreforma (http://reform.energy/).

"The ways of stimulating renewable energy sources are changing. In today's world, it's more appropriate to hold auctions on power rather than the feed-in tariff used today," she said.

Petrov added it would be correct to keep the feed-in tariff for those power plants that are already running, or are being launched now. At the same time, for new projects it is more appropriate to develop more progressive incentive mechanisms.

"We are already discussing with the [Verkhovna] Rada and the Ministry of Energy [and Coal Industry] the need to develop new legislation that will replace the existing mechanism of feed-in tariffs and propose other ways of stimulating. These could be auctions where potential "green" energy producers will give their price proposals: at what tariff they are ready to sell energy from newly built facilities," she said.

The expert noted the launch of auctions could ultimately lead to a reduction of renewable energy burden on tariffs.

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