On behalf of its members, the EUEA would like to express the support to the Draft Law #2543 “On introduction of changes to certain Laws of Ukraine on improvement of investment climate in the renewable energy area” registered in the Parliament on the 6th December 2019.
Our support of the Draft Law #2543 is based on the following:
1. Proposed feed-in tariff (FIT) restructuring framework has voluntarily nature, e.g. renewable power plants that decide to stay at the old support scheme are not penalized. This principle goes in line with numerous public statements made by the President of Ukraine and Prime Minister of Ukraine during past months that there would be no retroactive changes to legislation and any solution should be found in the dialogue with investors.
2. Parameters of the feed-in tariff restructuring (% of FIT reduction, prolonged duration of Power Purchase Agreement after restructuring, suggested regulatory improvements) are in general in line with the proposals expressed by EUEA members in their earlier individual letters sent to the President and to the Government, thus, increasing probability that significant share of market participants will join the restructuring scheme.
3. Presence of the stabilization clause is positive factor that would increase confidence of investors to go for FIT restructuring.
4. Based on our estimates, 2020 annual savings for the Guaranteed Buyer from the FIT restructuring proposed under the Draft Law #2543 may reach UAH 2.5 billion helping to improve financial position of the Guaranteed Buyer.
The official letter of support is sent to the Chairs of Commettees of Parliament – on Energy & Utility Services, Mr. Gerus, and on Economic Development, Mr. Natalukha; to the authors of the draft law.