10:55 23.05.2023

DTEK in RES development focuses on market model without feed-in tariff - DTEK RES head

2 min read
DTEK in RES development focuses on market model without feed-in tariff - DTEK RES head

DTEK Energy Holding, in its strategy for the development of renewable energy generation, focuses on a market model without a feed-in tariff, said Oleksandr Selischev, the general director of DTEK RES.

"Partly something else will fall under the feed-in tariff, but we plan to bring all subsequent projects for the construction of capacities only to the market," he said at a press conference on the opening of the Tylihulska wind farm.

He explained that the feed-in tariff for wind energy is EUR88/MW, which is only a few euros higher than the market electricity tariff to make it profitable to target it.

At the same time, according to Selischev, if market tariffs grow or there is an opportunity to export green electricity, which is also in DTEK's plans, it will be more profitable for the company to abandon the feed-in tariff and reorient to a market model.

"Now, for example, there is a discussion on softening price caps. If such a decision is made, then the price on the market will be on a par, or even higher than the feed-in tariff. Wind will become commercially attractive," the head of DTEK RES described the scheme.

At the same time, he noted that now DTEK RES is more inclined towards the development of wind generation, rather than solar.

"In terms of economics, the sun loses to the wind. Moreover, in the south all connections are busy. We also see an increase in prices for panels after the European boom in solar power plants," Selischev explained.

At the same time, the top manager is convinced that the situation will stabilize with an increase in the tariff on the market and in a few years interest in the "sun" will return, as it happens today with the "wind." This, according to him, will also contribute to the conclusion of long-term contracts for the purchase and sale of electricity.

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