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Wednesday 21.11.2018 | Name days: Andis, Zeltīte
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Expert: full refusal of MPC system is not possible

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUIt is not possible to completely drop the mandatory procurement system or the fee for green energy, said Economy Ministry’s work group member and energy expert Juris Ozoliņš in an interview to Rīta panorama programme of LNT.

He stresses that green energy production creates specific costs that need to the covered.

At the same time, Ozoliņš was critical of the proposal to replace MPC with «green certificates». He says there had been a plan once to introduce «green certificates» in all of Europe. However, the author of the idea – Denmark – and other countries dropped it in the end. This is because the ‘green certificate’ system is hard to manage.

Ozoliņš also says results of the work group’s performed research can be summarized as Economy Ministry’s attempt to compile «a varied collection of different opinions» from members of the work group.

At the same time, the expert admits that the work group has accomplished much to consider their work positive. To accomplish changes, one needs to learn from history – if you want to accomplish something, there has to be an understanding between parties and social groups.

As previously reported, Economy Minister Arvils Ašeradens intends to report on work group’s proposals for cancellation of MPC system. On Wednesday, 1 August, the last meeting of the work group will take place. It is planned to make the final decision in regards to MPC system’s future there.

Economy Ministry’s work group may offer replacing MPC system with «green certificates» at its last meeting. During the transition period, it may be possible to use subsidized energy tax, as reported by Panorāma programme.

Economy Ministry has plans for other measures to ensure full refusal of the unpopular MPC system. First of all, the work group proposes restoring subsidized tax for electricity producers participating in mandatory procurement procedures. Doing this would allow transferring part of MPC burden on producers. Secondly, it is planned to reduce the internal revenue norm for supported stations so that the state would have to pay a smaller additional cost for electricity. Thirdly, MPC capacity fee could be included in the electricity transmission tariff. This means consumers will have to pay extra to ensure continued function of large thermal power plants. Authorities are also continuing to search for energy production plants whose permits to participate in MPC procedures are to be revoked.

«Green certificates» would be compulsory for electricity traders to purchase from electricity producers that will continue participating in mandatory procurements in 2021. As a result, consumers would end up paying for «green energy» either way, as reported by Panorāma.

The work group was ordered to evaluate by 1 August the influence of MPC and subsidized electricity system’s on national economy. The work group was also ordered to prepare proposals for continued function of recipients of state support after cancellation of the system.


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