“at a low price of traditional energy resources in the emphasis on economic motivation and justification, because it is cheaper to burn gas than to build new renewable energy,” – said in an interview with the Fund “Recongress” Deputy energy Minister Pavel Sorokin.
most of the projects of renewable energy sources (RES), primarily solar and wind generation throughout the world still are too expensive that you can afford in fat and rich in times, not in times of crisis or recession. Without generous public subsidies and incentives renewable energy can not yet compete with traditional generation. Now as a result of the decline in economic activity due to pandemic coronavirus further very significant financial investment in the field of renewable energy (in 2019 investments amounted to 282 billion dollars) was under a big question.
According to General Director of “MC Sputnik – capital Management” Alexander Losev, the development of renewable energy has long been rather in the field of politics than Economics. The US and Europe tried to reduce the dependence of their power systems from the supply of hydrocarbons from Russia and the Middle East. But now is the time for pragmatism, he said.
Position is that falling prices for oil and gas will lead to higher performance “green generation” is very bold, but is split from the point of view of economic profitability. If RES is barely through subsidies and tax breaks to compete with hydrocarbon generation in the period of high prices for raw materials, they are more than twice the fall left the economic attractiveness of “green energy” for consumers far behind. Especially now, when due to quarantine restrictions decreased the total energy consumption in the world, and competition has intensified.
Losev said that the American Association of manufacturers of solar energy has lowered the projected growth input into this year’s capacity by more than a third from 19 to 6 GW. In the end, the works can to lose 125 thousand people employed in this industry. Lobbyists for renewable energy are asking the legislators and their governments to provide subsidies and tax incentives. “But times have changed. Budget deficits are skyrocketing, huge funds are spent in support of the victims of the pandemic, sectors and population groups,” said Losev.
on the other hand, to finally bury the “green generation” is premature. Rather, we can talk about her slower development. According to the analyst of the Institute of comprehensive strategic research (ICSI) Natalia Churkinoj, the cost of renewable energy projects in ten years, significantly decreased up to 70-80%. As a result, the drop in the price of notft will not affect the competitiveness of renewable energy so much as it was earlier. In addition, the policy for the protection of the environment and reducing carbon emissions is not abolished, and it focuses the industry on the development of clean energy sources.
“most Likely, in those countries where renewable energy has not yet become a priority, including in Russia, in the current crisis it will again recede into the background, but where renewable energy is actively developing, the current crisis, by contrast, could be the impetus for a gradual strengthening of its role,” – said Churkin.