Pro-presidential Party of Regions lawmaker Mykola Romaniuk says his amendments to the law on electricity, specifically the so-called “local content” requirement, should stimulate the development of the renewable energy sector in Ukraine.
The amendment,
proposed by Romaniuk and two other deputies in his faction, would
increase the required amount of “local content” used to build
renewable plants from the current 30 to 50 percent, a change that
some foreign investors say could force them out of the country.
The draft law,
adopted in the first reading in July, was to be voted by parliament
in the second reading on Oct. 16, but deputies decided to postpone
the decision until after the parliamentary elections scheduled for
Oct. 28.
In his Oct. 16
interview to the Kyiv Post, Romaniuk defended the amendment, arguing
that it should develop Ukraine’s renewable energy market by
assisting production, creating more jobs in the sector and, as a
result, generating more tax revenue. He said Ukraine “has its own
technologies” to meet the needs of any renewable energy developer
planning to set up a renewable energy power station with 50 percent
of domestic components.
Some foreign
investors in the wind electricity generating market have said such an
amendment would effectively
close off the entire market to foreign businesses, potentially
leading them to leave the market.
“We made the first
step (to develop this market). Those (investors) who wanted, they
made the first step (to set up their facilities),” said Romaniuk.
“But in order to further develop this market there should be a
‘local content’ (requirement).”
According to him,
the discussion around the changes to the electricity law is not about
the “local content” rule, but about the green tariffs rates –
high prices the government pays for electricity from renewable energy
sources – for electricity generated from biogas and solid waste.
At present, DTEK,
Activ Solar and Donetsk-based Wind Parks of Ukraine are the most
active market participants. DTEK, which recently launched a 60
megawatt capacity wind park, is owned by Ukrainian billionaire and
President Viktor Yanukovych ally Rinat Akhmetov.
Solar energy
developer Activ Solar is allegedly connected to Ukraine’s Security
and Defense Council Head Andriy Klyuyev, a claim the company has
repeatedly denied. In recent years it launched some of Europe’s
biggest solar farms for a total capacity of 270 megawatts.
Wind Parks of
Ukraine reportedly has ties to Anatoliy Blyzniuk, minister of
building and housing, an allegation the company’s management
denies. Wind Parks of Ukraine has a 200 megawatt wind power
electricity generating capacity.
Romaniuk said he
does not fear foreign investors might leave as a result of his
amendment.
“Ukraine’s
(renewable energy) market is now so attractive to foreign investors
that they are only dreaming to enter Ukraine’s market,” he said.
“(Green) tariffs on wind and solar power are very high.”
“Those who want to
work, they work. Those who do not want to work, they do not work,”
he added, dismissing any complaints by foreign investors as baseless.
Romaniuk believes
that recent criticism of certain foreign investors regarding the
“local content requirement” was brought up “because (some
foreign critics) took the path of least resistance in pursuit of easy
money,” but “it does not work like that.”
Kyiv Post staff
writer Yuriy Onyshkiv can be reached at [email protected]
