The head of Ministry Alexander Novak stated this on May 26 during a personal reception of citizens in the Government House. One of the issues that the Minister addressed was related to the possible addition of renewable energy sources by other mechanisms and the possibility of extending the current program after 2024.
The head of the Ministry underlined the relevance of this issue, recalling that he was considered at a meeting of the working group under the Supervisory Board of the Association “NP” Market Council “on the functioning of generating facilities based on the use of renewable energy sources. Then the participants of the meeting did not agree that the majority noted the shortcomings of the current support system and recognized the need to change the approach at the next stage. The fact is that the existing system increases the financial burden on market participants who are investors in generating objects of RES, and does not bear any tangible positive effects for them. On the other hand, according to a number of investors, the current support system does not create sufficient conditions for the implementation of new projects. Moreover, through existing support mechanisms, incentives to increase the efficiency and competitiveness of renewable energy projects have not been realized, which violates one of the general principles of the organization of the state policy in the electric power industry – the formation of a sustainable system for meeting the demand for electricity, provided that the quality is ensured and its cost is minimized.
Thus, for the further implementation of the state policy in the sphere of increasing the energy efficiency of the electric power industry on the basis of the use of renewable energy, it is necessary to develop new incentive mechanisms that eliminate the above-mentioned shortcomings.
Alexander Novak noted that the Ministry of Energy considers it expedient to extend measures to support generating facilities of renewable energy sources after 2024, taking into account the results of the current program in the wholesale electricity and capacity market until 2024. The Ministry believes that, taking into account the proposals of market participants as measures to support RES after 2024, it is possible to consider the use of mechanisms of support for RES that are not connected to the wholesale market, such as: reducing the cost of borrowing capital, developing the export potential of production of equipment and technologies for Renewable energy, creation of voluntary demand for “green electricity”.