«2021 was a year of stabilization for the renewable energy sector (RES). On the positive side, the majority of the Guaranteed Buyer’s debt was paid to RES producers, but the debt of 2020 has not been paid in full, and we also have a deficit for 2021, moreover, the debt for the next 2022 is projected to accumulate due to the low level of the TSO transmission tariff» – said Yuri Kubrushko, Member of the EUEA Board, Managing Partner of IMEPOWER, during the EUEA press-briefing on December 24, 2021.
«Another achievement in 2021 is the system of limiting the production of electricity by “NPC “Ukrenergo”, which means, stations that are connected to the operator will receive compensation for restrictions.»
Regarding the next 2022, Mr. Yuriy said: “I hope that 2022 will be the year when the obligations of the state will be fully fulfilled and the situation will be stabilized, because there are certain moments that are troubling, namely:
1. The situation that occurs with SE “Guaranteed Buyer”, in general. Despite the inefficiency or non-transparency of the actions of SE “Guaranteed Buyer”, the company was a very predictable counterparty for RES market participants all the time, however, the events of the last 2 months have led to destabilization of relations and misunderstanding of SE “Guaranteed Buyer” commitments on PPA, relations with SE NNEGC “Energoatom”.
2. The state of affairs of state-owned companies such as: NPC”Ukrenergo”, SE”Guaranteed Buyer”, which operate in accordance with the conditions created for them by the NEURC and the Government of Ukraine, however, these regulatory conditions produce billions in losses each quarter, leading to the accumulation of debt on the balance sheets of one of the enterprises, and at the same time the Government and the Regulator are absent (as for example, the situation with the signing of monthly acts).
Why is this important not only for RES investors?
“Recently, we see a clear trend that Ukraine will need investment in new types of generation, which will replace TPS, introduce the construction of new generations – energy storage, etc. The problem that exists is that the funds for new projects must come from the private sector because to rely on loans from IFIs and state guarantees are not the best option, as such projects show certain limitations. However, we do not see how massive investments can be attracted until the current problems with existing investors in Ukraine are not resolved.
The main task for the state for 2022 is to combine two trends together: the first concerns all statements of Ukraine in the international market on green transition, climate, decarbonisation, stabilization of the energy market, with the second – what is happening in the RES market in Ukraine, because it’s all connected” said the expert.
🎬Video of the press briefing: https://www.facebook.com/EUEA.UA/videos/2231025337037369
📍Press release: https://cutt.ly/UUKr7pm