European-Ukrainian Energy Agency (EUEA) became aware that more than 1,000 of amendments were submitted by the Members of the Parliament (MPs) to the Draft Law 3658 introducing changes to renewable energy support system.
We would like to draw attention of MPs to the fact that the Draft Law 3658 was prepared on the basis of the Memorandum of Understanding concluded on 10 June 2020 by the Cabinet of Ministers, NEURC and several renewable associations and is part of a wider compromise agreement on resolution of the crisis in renewable energy sector.
If any amendments that worsen conditions for renewable power plants (compared to the original version of the Draft Law 3658 approved in the first reading) are approved by the Parliament this will lead to the breach of the MOU by Ukraine. It will have immediate negative impact on investor confidence in the country and trigger the negative consequences which we tried to avoid by signing MOU – defaults under existing loan agreements, numerous litigations in domestic courts and international arbitrations, freezing of international financing for new projects in different sectors of the Ukrainian economy.
At the same time, we would welcome if MPs take into account proposals submitted by investors after MOU signing, which are aimed to improve conditions for renewable power plants, in particular, by providing 2 years PPA extension for those projects commissioned between 01.07.2015 and 31.12.2019 that face “green” tariff reduction. Such step would increase inclusivity of the agreement reached between the state and renewable investors and ensure maximum support from the market participants.