DTEK refuses to build renewable energy generation facilities under feed-in tariff – CEO

KYIV. Nov 10 (Interfax-Ukraine) – DTEK intends to build renewable energy generation facilities without reference to the feed-in tariff, but under direct contracts with consumers or for the sale of generated electricity on the open market, DTEK CEO Maksym Timchenko has said.

"The 500 MW Tiligul wind farm currently under construction by the company is our last project under a feed-in tariff. All other new projects in the field of renewable energy will be outside the feed-in tariff," he said at a press conference in Kyiv on Tuesday.

According to Timchenko, the company mainly relies on concluding PPA – lo ng-term contracts with electricity consumers.

"If we build a 500 MW facility, then it can only be built within the PPA. I am convinced that companies such as Metinvest, Arcelor, Western companies represented in Ukraine, will conclude long contracts for the supply of green electricity," the CEO of DTEK said, expressing his opinion.

He also said that electricity could be sold on the open market and the company could participate in future auctions for the distribution of support quotas, but there, according to him, there will be "small volumes."

At the same time, Timchenko said that the company is currently developing the first project without the feed-in tariff.

"The project that we are currently working on is at the development level – land acquisition, connection, etc. It will not operate at the feed-in tariff. This project will operate within the PPA," the head of DTEK said.

At the same time, he did not indicate the details of the project.

At the same time, Timchenko drew attention to the fact that the price of electricity on the market is already 15-20% higher than the established feed-in tariffs; nevertheless, according to his forecast, with warming and an increase in the generation of renewable sources, it will decrease.