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Tuesday 10.12.2019 | Name days: Judīte, Guna
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Economy Minister: the current green energy cost model is not sustainable

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Daniels Pavluts

The current green energy cost model is not sustainable. It is only a myth, that, yes, green energy is more expensive, but it is «our» energy, which gives us additional benefits (these benefits are not usually specified) and helps us fight for Russian gas and oil products, respectively – it is «better», says Economy Minister Daniels Pavluts.

This is only surface thinking. These so called additional benefits are incapable of covering the large difference between the market price of electrical energy and the feed-in tariff, the minister said in an interview to Diena.

He points that green energy evolved rather originally in Latvia – coupling with the natural gas reference.

«It should be the following way: green energy technologies successfully develop, the industry becomes more effective and, theoretically, costs also decrease. With that, support could naturally and painlessly decrease in time. What happens in Latvia? It «couples» with fossil fuel prices and goes side by side with them». With fossil fuel becoming more expensive green energy becomes more expensive as well. It is pointless. If this continues, no kind of economic growth will be able to compensate for this kind of «gap» […],»-Pavluts says.

He believes that policy creators should not depend on their current understanding on how technologies will develop in the future and organize «beauty contests» – wind will be given this kind of support, the sun will have this, etc. «Principles need to be defined – if you have pushed your costs to a specific level using your technology, you are welcome, you have qualified for a specific type of support. You haven’t? Continue your work. Simply put – the principle of technological neutrality, with no exceptions. Secondly, the support mechanism should be ordered along the market price, instead of being isolated from it. What we see now is people that realize these projects have no motivation to be effective, because the amortization pillow is so big that there is no need to follow the events that transpire on the market,»- the minister believes.

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