The European-Ukrainian Energy Agency, the Ukrainian Association of Renewable Energy, the Ukrainian Wind Energy Association sent a joint meeting to President of Ukraine Volodymyr Zelenskyy, in which outlined the problems and threats to the development of the prominent energy sector and also asked for a personal meeting between the President and key players and investors in renewable energy.
The letter says that despite the advantages of the start of the electricity market in 2019, many of its imperfections were found that threaten, in particular, the field of renewable energy. The government represented by Prime Minister Denys Shmygal and acting Minister of Energy and Environmental Protection of Ukraine Olga Buslavets made a number of decisions to address the crisis in the energy sector, but the renewable energy sector is in danger of default.
The green energy industry has attracted 10 billion US dollars of investments in the Ukrainian economy, which is 25% of all investments in the country since independence. The development of the sector has contributed to increased investment by citizens – about 2.5 million households have installed home solar power plants.
Associations note the urgency of taking the next steps to resolve the crisis and ask the President to consider the arguments:
- Assistance is required from the President regarding the urgent amendment of a number of laws of Ukraine and regulatory acts of the NBU and the National Commission for State Regulation of Energy and Utilities after reaching a compromise between the government and investors;
- It is necessary to maintain international relations and the investment rating of Ukraine. Any negative result of negotiations between the government and investors will immediately stop investments not only in the renewable energy industry but in other sectors of the economy;
- It is necessary to save jobs. Renewable energy and related industries have created about 30,000 jobs in the country.
The settlement of the situation is important not only for the functioning of the business but also for ensuring the energy security of the state and the investment attractiveness of our country. Over the 12 years of the existence of the state support system for renewable energy, investors have repeatedly proved their desire and ability to negotiate. During this time, the income tax exemption was canceled, the green tariff for solar power plants was reduced by a factor of four, an auction model for the development of the industry was introduced, the terms of validity of technical conditions for connection to electric networks were reduced, the development of many projects was stopped voluntarily, and hundreds of millions of hryvnias in losses.
The European-Ukrainian Energy Agency, Ukrainian Renewable Energy Association, the Ukrainian Wind Energy Association represent the vast majority of Ukrainian and foreign investors in green energy. The renewable energy industry has worked out a common position on resolving the market situation, but the dialogue between the Government and investors is dragging on, which only deepens the crisis. In this regard, associations turn to Volodymyr Zelenskyy with a request for a meeting and personal intervention:
“Dear Volodymyr Oleksandrovich, with all due respect, we ask you to take into account all existing and possible risks from the lack of a solution to the situation and to meet with key players and investors in the renewable energy sector at any time convenient for you. We are ready to provide you with all the necessary data, figures and facts indicating last year’s successful state of development of the industry, its positive impact on the electric energy market, filling the state budget and the development of the Ukrainian economy as a whole. ”