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Tariffs - one of problems in development of renewable energy sector

One of the main problems in the development of the renewable energy sector (RES) in Kyrgyzstan is electricity tariffs. Beknur Maratbekov, expert of the Project Preparation Fund of the Climate Financing Center under the Ministry of Natural Resources, Ecology and Technical Supervision of Kyrgyzstan, said at a briefing in Bishkek.

«The biggest problem for the development of RES is tariffs. Those tariffs that are set — 3.27 soms, we could previously provide for a certain amount only — for 200 megawatts of power per year. Under the new law, these restrictions have been removed. That is, the tariff applies to the entire volume — electricity will be purchases from all renewable energy facilities that will be built at such a tariff,» he said.

According to him, this carries a large financial burden on energy companies with a state share, in particular on Electric Stations, which act as a single purchaser.

«It would be good if we switched to the auction method for selecting renewable energy projects. The energy company itself would have determined the area in need of generation and determined the maximum possible tariff at which it would have bought. By agreement with the applicant, prices could be reduced — whoever gives the lowest price wins. It would be fair,» Beknur Muratbekov added.

The Parliament of Kyrgyzstan approved the bill «On Renewable Energy Sources» in the third reading. The document proposes to determine the conditions and procedure for the generation and supply of electrical energy using renewable energy sources. In addition, it regulates the legal regime for the generation and supply of electrical energy using renewable energy sources. Experts believe that the law will not work as it should and will make this sector unprofitable.

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