Improvement of power grids will increase the investment attractiveness of Ukraine — expert

Улучшение электросетей повысит инвестпривлекательность Украины — эксперт

Photo: Ukrainian news

Director of the Center for transport strategies Sergey Vovk

The grid is one of the segments, which clearly monitored in preparation for the infrastructure ratings, in which Ukraine participates.

Improving the quality of operation of power networks can improve investment attractiveness of Ukraine, as supply is one of the segments, which clearly monitored in preparation for the infrastructure ratings. This was stated by the Director of the Center for transport strategies Sergey Vovk, reported on Monday, August 3, Ukrainian news.

At the moment, according to experts, the situation with electricity in the transport sector is one of the most problematic, “because there is a high connection fee and no transparent tariff compensation mechanisms that would allow to reduce this value.”

“To investors, potential operators of this market, including utilities, is (modernization of power grids – approx. ed.) is disadvantageous, because the tariff structure does not contribute to the fact that they saw a return on their investment. Here the situation can improve the scheme of RAB-tariff, which provides some possibility of return of investment on segment a certain period of time, will significantly extend the internal electricity market” — said Vovk.

In his opinion, the tariff should include the opportunity to invest in the network because their existing capacity is insufficient even for a qualitative covering of the internal market.

“Not to mention the possibility, when any natural disaster leads to damage of networks. Of course, the model of the RAB-tariff, which was approved in Europe, was invented just in order to upgrade the existing grid without having to make a significant tariff increase, and this model needs Ukraine”, — said Vovk.

The expert also expressed the opinion that reducing the cost of connectivity and improving their quality will improve operational efficiency in the industrial sector and, consequently, increase the level of taxes and other economic effects of their work.

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