Kiev. The 1st of December. The development of green energy in Ukraine will ensure sustainable energy supply in the future in the context of decline in reserves of hydrocarbon fuel and advance in its price. However based on economic situation for the moment it may make more sense to concentrate on improvement of the country’s energy efficiency and energy conservation, which can lead to more reliable result for less money.

This was declared in the course of the debates “Ukraine is too poor to invest in green energy”, organized by the Foundation for Effective Governance and the company “Intelligence Squared”, by the Director of the Foundation Natalia Izosimova.

“Until in the energy balance of Ukraine green energy constitutes less than 1 per cent, so-called green tariff does not form considerable budget burden, but if we refer to the point that the rate of green energy is to successively go up, like for instance in the EU countries, then it will stand for entirely different level of burden. Is Ukraine ready for that and how essential is it for us, with the country remaining one of those countries with the highest energy consumption all over the world? Or maybe at this point it is reasonable to invest into energy conservation and energy efficiency of the country, which will directly make it possible to reduce energy consumption by 30%,” – N. Izosimova underlined.

The supporters of the motion, that for the moment Ukraine cannot afford green energy, in the course of the debates stated, that now the country should set itself quite different challenges.

“Program on energy system improvement, nuclear power plants and investments into domestic natural gas production – all this is a vital need for the country, taking into consideration limited financial resources of Ukraine. In consequence of such measures energy loss and carbon dioxide emissions will reduce, dependence on the natural gas import will decrease,” – Malcolm Grimston, Associate Fellow at the Royal Institute of International Affairs, Chatham House (the United Kingdom), said in his speech.

In the point of view of Stephan Solzhenitsyn, Principal at McKinsey&Company (Moscow), Ukraine should upgrade the electrical power stations, which are not in use for now, to ensure energetic stability.

“The renewables are sure to save fuel and reduce carbon dioxide emissions into atmosphere, but this does not mean, that other energy sources should not be taken into consideration. Electrical power plants and energy grids, which are currently not in operation, also constitute a resource, with no other country possessing such a resource in such an excess supply. For Ukraine it is the cheapest way to receive additional kilowatt-hours of energy via modernization of such stations and its further efficient utilization,” – he underlined in the course of the debates.

The participants of the debates against the motion in the course of the debates underlined that it is essential to proceed with green energy development as soon as possible for it to piece out shortage of conventional fuel in the future, so that society does not experience irregularities in energy delivery.
“A country, willing to ensure its security of energy supply, solve climate changes challenges and facilitate economic growth, should take active measures towards diversification of power supply, which requires elaboration of the respective strategy on green energy development,” – informed Tracy McKibben, President of MAC Energy Advisors LLC, Partner at Elk Partners LLC (USA).

Vitalii Radchenko, Senior Associate at CMS Cameron McKenna (Ukraine), agreed with the abovementioned statement. His viewpoint was that diversification of the country’s energy mix by the reducing of usage of nuclear energy and decommissioned thermal power stations will not only protect the environment and ensure energy security, but also will have positive effect on the country’s economy.

About debates

The debates “Ukraine is too poor to invest in green energy”, which took place on the 1st of December, 2011 in Kiev, are the eighteenth in succession public debates in “Oxford club” format. The organizers of the event are the Foundation for Effective Governance and the British company Intelligence Squared. Within 2009 and 2010 the Foundation was holding a range of debates (http://debaty.org), devoted to the reform of the Ukrainian economy. In particular the following essential topics have been discussed: agricultural lands market, tax reform implementation, relations between Ukraine and Russia, higher education system competitiveness, necessity for Special economic zones establishment, development of innovations and new technologies, potential of tourism development.
“The debates are aimed at establishing substantial and effective discussion on issues of development of the Ukrainian economy lacking evident and decisive answers. At the same time all of them are of great importance for the present as well as for the future of our country, - says Natalia Izosimova, Director of the Foundation for Effective Governance. – However we mind not only the content, but the discussion as well. We aim at arguments for contrary viewpoints to be explained and examined in evidence-based and respectful manner”.
The Partner of the Intelligence Squared company Nick Pisani is convinced that such debates are drawing attention of society to political discussion culture. “They encourage the present, and what is the most important, the future generation of decision-makers to begin to think and act differently,” – he believes.

Reference
The Foundation for Effective Governance (www.feg.org.ua) was founded upon the initiative of Mr. Rinat Akhmetov in 2007 for elaboration and implementation of projects and programs, targeted at sustainable development of the Ukrainian economy. For the implementation of these tasks the Foundation engages leading impeccable national and international experts. The independence of the organization is ensured by the International advisory board, which includes famous public and political persons from different countries with unique experience and untarnished reputation.
Among them are the former prime-minister of Canada Kim Campbell, the former president of the National bank of Hungary György Surányi, Executive Director of the International investment bank Morgan Stanley in Ukraine Ihor Mitiukov. The International Advisory Board participates in formulating the Foundation’s strategy, helps to define project priorities and approves them, evaluates the Foundation’s performance and represents the Foundation’s interests in Ukraine and abroad.

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