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Expert: work group will not agree on MPC system’s liquidation

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe work group led by Latvia’s Economy Ministry and charged with finding a way to terminate the mandatory procurement is unlikely to reach an agreement on this matter. The work group may reach an agreement on restoration of reputation for renewable energy industry, says energy expert Juris Ozoliņš.

Economy Minister Arvils Ašeradens’ press-secretary Agita Baltbārde says that second to last meeting of the work group took place on Thursday, 26 July. Next week it is planned to review the work group’s final report on the future of MPC system.

She admits that during the meeting members of the work group discussed several scenarios to sort out the MPC system. She admitted that the work group had discussed several scenarios for MPC system. She did not comment which scenario may be submitted for approval to the Cabinet of Ministers. It is planned that Ašeradens may report on the work group’s accomplishments after the final meeting. The report on MPC may be submitted to the government around 7 August.

Ozoliņš says the work group has yet to reach an agreement on any specific solution. This is because discussions are set to continue at the last meeting. At the same time, he said it is likely the final meeting will not propose rejection of MPC. Instead members of the work group will discuss different proposals to help sort the system.

«One proposal provides increasing control over green energy stations provided with permission to sell electricity within mandatory procurement component system. It will be proposed to introduce a subsidized energy tax. There may also be separate restrictions for biogas stations,» says Ozoliņš.

The expert says the work group’s report will not include a single solution. Instead there may be a whole list of recommendations to help restore the reputation of green energy.

Ozoliņš also adds that members of the work group are in agreement that support for green energy should remain. «Unfortunately, Economy Ministry does not seem to have any interest in offers from members of the work group. One proposal offers changing the support system starting from 2019 and paying energy producers a bonus for energy supplied to the network,» says the energy expert.

As previously reported, the government decided on 17 April to form a work group in order to search for ways to cancel the MPC system. Ašeradens is the leader of the work group. Economy Ministry’s state secretary Ēriks Eglītis is his deputy.


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