CFO of Interpipe: In Ukraine, no one is interested in real investments in ecology and supporting exporters
Ecology has become "a screen for some to gain profitability at the expense of others," believes Denys Morozov, Director of Economics and Finance at the Ukrainian company "Interpipe."
In Ukraine, no one is interested in real investments in ecology. This opinion was expressed in a column on "Ekonomichna Pravda" by Denys Morozov, Director of Economics and Finance at the Ukrainian company "Interpipe."
"In Ukraine, no one is interested in real environmental investments, and ecology has become a screen for some to gain profitability at the expense of others. The high 'green' tariff for electricity is a constant subject of criticism from all industrial electricity consumers. The essence of the claims against 'green' energy producers is extremely simple: private companies, which predominantly own solar and wind power plants, received an opportunity from the state to collect funds from consumers for a product at a price three to four times higher than the market price," he wrote.
According to Morozov, funds for compensating "green" energy producers were included in the "Ukrenergo" company's transmission tariff.
"Only in the last few months, 'Ukrenergo' has increased its rates by 55% and announced another 30% increase. If this happens, the electricity transmission tariff will double in 2020. At the same time, 'Ukrenergo' plans another wave of increases in 2021," he stated.
Morozov reminded that the Ukrainian energy system had a surplus of generating capacities long before the construction of "green" generations began, and the only motive for their appearance was to improve the environmental situation.
"It was believed that the emergence of 'green' power plants would lead to a reduction in emissions in general and in the energy sector in particular. But, unfortunately, something quite the opposite happened. The sharp increase in 'green' capacities led to a decrease in the output of nuclear generation and an increase in thermal power plants, which are the most environmentally harmful types of electricity generation. At the same time, the obligation to pay a high 'green' tariff fell on Ukrainian consumers and, first of all, on industrial enterprises, including those that reduced emissions through large investments," he stated.
According to Morozov, the company invested in reducing CO₂ emissions.
"We closed environmentally dirty open-hearth steel production and invested approximately $1 billion in innovative technologies. As a result, we reduced CO₂ emissions by 10 times. This is one of Ukraine's most environmentally friendly investments. Therefore, we consider it illogical that, in addition to our own significant investments in emission reduction, we have to pay a premium to private companies that have built "green" energy facilities... In this situation, the conclusion is disappointing: in Ukraine, no one is interested in real environmental investments and supporting exporters. Environmental motives have become a cover for some private companies to obtain 400 percent profitability at the expense of others," he wrote.