Crimea Reduces Prices for Wind, Solar Power to Ukraine Levels

Aug 08, 2014 9:19 am ET

Aug. 8 (Bloomberg) -- Crimean solar and wind companies may restart power generation at lower rates as Crimea set prices for renewables at no higher than electricity imports from Ukraine.

Rates for renewables will be reduced to about 3.42 rubles (9 U.S. cents) per kilowatt-hour, or a about a quarter of those granted before Crimea joined Russia, the Moscow-based Kommersant newspaper reported, citing Alla Chekalina, Crimea’s deputy head of tariffs and pricing. Chekalina confirmed the report when contacted by Bloomberg News.

Crimea voted to join Russia in a referendum in March after President Viktor Yanukovych fled Ukraine’s capital Kiev amid violence and protests. Russia’s subsequent annexation of the Black Sea peninsula halted output from renewable power generators.

Even with reduced rates, Russia will still need to pay about 9 billion rubles in subsidies for renewables by the end of the year, Chekalina said. Wind and solar generators have agreed to work at the current rate, Chekalina said.