Energy: the agenda for 2022
About environmental, economic, and political benefits of RES, you can read in the new joint article of the President of MHP Eco Energy, Chairman of the Global 100% RE Ukraine Oleksandr Dombrovskyi, and Head of the Board of the Bioenergy Association of Ukraine, Member of the Board of the Global 100% RE Ukraine Georgii Geletukha for the online media “Economichna Pravda” (in Ukrainian). In Ukraine, environmental levers to support RES do not work. Why and how to change it? Experts say.
Economic aspect
The myth “RES is expensive” is firmly rooted in the Ukrainian consciousness and hinders the economic development of the country.
Why? During the hybrid war against RES in Ukraine, the world entered a deep energy crisis. Natural gas prices have risen 15-20 times and have already crossed the $ 2,000 per 1,000 m3 mark several times. Forecasts of reaching the level of $ 3000 per 1000 m3 are already more and more real this winter. Coal prices have more than tripled in the last two years, reaching $ 220 / t in October and about $ 150 / t in December 2021.
What is the result? We have record high prices for electricity and heat.
Why RES? The most important thing is that every year the cost of electricity from RES decreases significantly, and from the traditional generation increases rapidly. The large-scale development of RES is the way to achieve the cheapest price of electricity for the final consumer. This is evidenced by authoritative data and scientists. You can see a table of the cost of electricity from the generation of different types from LAZARD.
According to estimates by the Finnish company Wärtsilä, the scenario that provides the cheapest electricity in Ukraine envisages the share of electricity from RES — 83% by 2050. The other 17% will be generated by shunting gas generation.
Suggestions?
- Development of solar and wind generation to displace coal from the electricity sector.
- Bioenergy will play a key role in replacing natural gas in heat supply and decarbonizing transport.
- Biomethane is one of the most promising gases for decarbonization of gas shunting capacities, as well as transport.
Political aspect
Unprecedented political pressure on Ukraine and the EU from Russia. The issue of the cost of natural gas is the most acute.
How much is Ukraine losing? On average, Ukraine imports 10 billion m3 of natural gas/year. Even at a cost of $ 1,000 per 1,000 m3, we need to spend $ 10 billion a year. In addition, Ukraine imports about 19 million tons of thermal coal, which, at a price of $ 150 per ton, requires $ 2.8 billion per year.
Should gas and coal be replaced by RES? Ukraine will save about $ 13 billion. The energy efficiency of the Ukrainian economy will increase, and Ukraine will embark on the path of energy and, consequently, political independence.
Mandatory steps? Read about the legal framework, regulatory mechanisms, and key options for the development of RES in the full material at the link (in Ukrainian).
Source: The column “Renewable energy: the task for 2022” on the online media “Economichna Pravda”: https://bit.ly/34RuBek.
