"During the work of the Directorate for development of small and medium-energy, we have identified a number of difficulties in the energy sector of Kyrgyzstan," head of the Directorate Valeri Dil said at today's roundtable "Issues of security of investments and energy sector of Kyrgyzstan".
"First, investors are always interested in economic and political money-back guarantee. But we can not guarantee them. Second, investors are asked to name the rate at which they will sell electricity. According to the law on renewable energy, return on investment should not exceed 8 years. We did a rough calculation and found that for each station the price should be 6.8 cents per kilowatt. The question is where to take the difference in order to recoup the costs of the investor. We have repeatedly offered to create a development fund of energy, which would accumulate capital from the export of electricity, privatization, grants, international financial institutions," Valeri Dil told, news agency "24.kg" reported.
"The real picture with tariffs is as follows: today we pay 70 tyiyn per kilowatt, or 1.5 cents. We understand that the Kyrgyz Republic has great potential of mountain rivers, therefore, we can construct a station at the rate of $ 1.25 million per 1 MW of power. During the elaboration of 7.5 million kilowatts annually at a price of 1.5 cents investment will be repaid within 14 years. Hence, the question about the investment attractiveness. Any investor will tell you that there are other places where they can invest on more profitable conditions and get returns, "he said.
Therefore, he believes that we should develop public-private partnership in which investors must see a real benefit.
"As for the tariff policy, there is one solution - to create common market with Kazakhstan and Russia. If there is a single space, there will be different tariff policy," he said.