The European-Ukrainian Energy Agency, together with other sectoral associations in the RES sector, expressed their concern about the current situation of non-compliance with the Memorandum signed between the Government of Ukraine and associations related to this sector on June 10, 2020, and the violation of the debt repayment schedule. During January, EUEA have sent 5 letters and applications addressed to SC “ Guaratneed Buyer”, SE NNEGC “ Energoatom”, President of Ukraine, NEURC and the Prime Minister of Ukraine.
In the letters, EUEA described the requirement to repay the debt according to the schedule agreed in the Memorandum of Understanding, in particular, to ensure payment of 40% of the accumulated debt to electricity producers from RES for March-July 2020. The letters were sent after NEURC has passed a decision on January 16, 2021, to transfer at least 50% of funds received from NPK “Ukrenergo” within the framework of loans provided by banks under state guarantees to repay debts to SE NNEGC “Energoatom”.
In addition, EUEA made a public statement concerning inappropriate derogatory rhetoric against RES, which was expressed by Energoatom authorities in response to a humiliating press release, in which the latter called the return of the old debt to RES producers “looting” in favor of RES ». In particular, EUEA appealed to the management of Energoatom to stop any manipulation around the “green” generation and to respect the current legislation of Ukraine and other participants in the electricity market.
However, despite the situation with Memorandum, EUEA expressed its sincere regards to all staff of Energoatom for their conscientious work to ensure the sustainable functioning of Ukraine’s energy system. EUEA also mentioned, that it is always open to peaceful dialogue and hopes to resolve the difficult situation with the repayment of debts in the renewable energy sectors as soon as possible.
The Government responded to the situation regarding the distribution of money between Energoatom and RES producers of electricity, in particular, Prime Minister of Ukraine Denis Shmygal said: “I would like to see the involvement of the Ministry of Energy. Today we will hold a meeting with the director of Guaranteed Buyer. I agree, that this problem needs to be resolved. ” The Prime Minister is waiting for a decision from the director of Guaranteed Buyer by the evening of February 3, 2021.
It will be recalled, that after the signing the Memorandum of Understanding, the Government of Ukraine pledged to exercise the following commitments ещ RES investors :
(1) to resume the payments of the SE “Guaranteed Buyer” to producers of electricity from renewable energy sources in the month following the adoption of the Law of Ukraine № 810-IX.
(2) to repay the “old” debt of SE “Guaranteed Buyer” to electricity producers from renewable energy sources, which, as of August 1, 2020, was UAH 22.4 billion, according to the following schedule: 40% in the 4th quarter of 2020 and a uniform repayment of 60% during each of the four quarters of 2021.
If the Guaranteed Buyer repays the “old” debt to RES producers with RES in less than 40%, as agreed in the Memorandum of Understanding, it will lead to a number of negative consequences, which we sought to avoid during negotiations on a Memorandum of Understanding, including non-compliance with RES obligations by bank electricity producers, initiating the application of political risk insurance provisions in IFO financing and arbitration proceedings against Ukraine under existing Agreements on Promotion and Mutual Protection of Investments, as well as Energy Charter.
