The development of “green” energy requires modernization of grid – expert

Развитие «зеленой» энергетики требует модернизации энергосетей – эксперт

The sector of “green energy” in Ukraine increased to 8% in ten years, but for further development it is necessary to modernize old power grid, experts say.

Ukraine has a high proportion of obsolete power grids with an excessive level of wear, hindering the development of renewable energy. Ukrainian power grid must be modernized and adapted to new requirements of the energy market through the implementation of RAB tariff. This writes senior researcher at CSIS, economist Vladislav Inozemtsev in his column “the Ukrainian revolution of “green” energy has its problems, but it does not seem a distant dream” for the British publication the Independent.

Inozemtsev says that in 10 years, the sector of “green energy” has grown to total capacity reaches 7 GW in may 2020, providing approximately 8 percent of the total electricity production. For comparison, in the UK and it took 23 years (from 1988 to 2011) to achieve such changes.

But on the way of further development of renewables is a sharp reduction in the energy consumption due to coronaries and the extremely poor condition of the grid. The expert said that the outdated power grid, which includes 63.9% of high-voltage lines, operated for 40 years or more, must be adapted to the new requirements of the market. Also requires the installation of a vast network of batteries and smart interconnection of power lines.

According to experts, the “green” revolution will be to facilitate the transformation of legacy networks to modern smart grid, which the country needs. To meet this need can transition to RAB tariff.

“These days, the Ukrainian authorities finally discuss the implementation of tariffs RAB (regulatory asset base) for electric distribution companies that will allow to carry out more reforms with a market orientation in the energy sector,” — said Inozemtsev.

Earlier energoekspert Edward Chow said that without a modern energy infrastructure, Ukraine will not be able to enter the European energy market.

Advisor to the energy Minister Serhiy Chekh said that to modernize the infrastructure will be possible only at introduction of the RAB tariff on European methodology. According to experts, the correct RAB-the tariff has 2 defining features: the rate of return RAB should be United without separation bases of assets and meet the economically justified level of WACC.