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Gradual replacement of gas by other fuels is a state priority

Created date

13 06 2014

A plan of comprehensive measures to ensure gradual replacement of gas by other fuels will be submitted to the Government soon. The Ministry for Regional Development, the Ministry of Finance, the Ministry of Economic Development, State Energy Efficiency Agency and other government agencies, representatives of relevant institutions and associations have already taken part in its development. It was reported by the Vice Prime Minister - Minister of Regional Development, Building and Housing and Communal Services of Ukraine Volodymyr Hroisman at a governmental meeting on energy efficiency.

According to his words, before we switch from gas to alternative fuels a few important issues should be solved. At first, today the use of gas is more economically advantageous for heat producers than switching to alternative fuels. This is because mechanisms of tariff compensation are valid only when using gas. Therefore it is proposed to improve the tariff system as regards reduction in the amount of compensation for difference in tariffs on heat energy produced from natural gas, in favor of increase of compensation for the cost of heat energy produced by alternative fuels. However, implementation of such mechanisms will also have an additional stimulatory effect on the national economy as the multiplier mechanism will work: domestic producers, primarily local ones, will receive support.

Comprehensive measures also provide for implementation of other mechanisms aimed at promoting energy efficiency and renewable energy.

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