On December 17, 2019, the European – Ukrainian Energy Agency (EUEA) organizes a press conference “Investors in the renewable energy sector appeal to the President of Ukraine for support of a compromise solution” in the information agency “Interfax – Ukraine” (Reytarska, 8/5a).
EUEA is an industry association, since 2009, brings together investors from Belgium, the United Kingdom, Spain, Norway, the United States, Turkey, Ukraine, Switzerland, and other countries that are implementing renewable energy projects in Ukraine. EUEA members have more than 2.1 GW of renewable energy power plants already commissioned, 0.6 GW under construction and about 2.5 GW of RES projects that have already signed Pre-PPA Power Purchase Agreements ).
EUEA, as an association, is interested in stabilizing the situation on the RES market and, in particular, in the sustainable position of the Guaranteed Buyer. EUEA participates in working groups and meetings on the revision of the RES support system, initiates proposals on effective conditions for the voluntary restructuring of the “green” tariff and to eliminate the risk of retrospective changes to the regulatory environment of RES and prevent disputes between investores and Governement.
For example, on November 27, 2019, after an internal meeting with Members, EUEA announced its proposals about options to stabilize the situation on RES market and the terms of a compromise solution, including a willingness to voluntarily reduce the “green” tariff to certain extent.
On December 6, 2019, the Verkhovna Rada of Ukraine registered the draft law #2543 “On Amendments to Certain Laws of Ukraine on Improving the Investment Climate in the Renewable Energy Sector”. EUEA has expressed its support for the draft law with additional comments, as it contains balanced compromise solutions that are supported by the biggest investors. Based on our estimates, the annual savings of the Guaranteed Buyer as a result of the restructuring of the “green” tariffs proposed in accordance with Draft Law No.2543 could reach up to 2.5 billion UAH per year.
On December 13, 2019, a meeting of the Committee on Energy, Housing and Utilities Services of the Verkhovna Rada of Ukraine was held, where draft law #2543 did not find support in the majority of members of the Committee.
December 17, 2019 EUEA members – representatives of the largest investors of RES will gather for a press conference to present their position on a compromise solution and appeal to the President of Ukraine for support of such solution in order to stabilize the situation and avoid the impression of confrontation between investors and the Government.
A delayed or unbalanced Government decision serious repercussions for continued and future financing of all infrastructure projects in Ukraine, not just in the renewable energy sector, as well as for success of renewable energy auctions that the Government plans to launch next year.