On 16 September, a joint press conference was held by representatives of the EUEA / European-Ukrainian Energy Agency, Ukrainian Renewable Energy Association, Ukrainian Wind Energy Association, Solar Energy Association of Ukraine, as well as the law firm Arzinger law firm on the topic: “Ukraine’s green energy is under threat! Who wants to abolish green tariffs in the Constitutional Court?».
In early September, EUEA, EREA and UWEA field a petition to the Constitutional Court to involve associations as participants in the constitutional proceedings.
The reason for the constitutional proceedings was the appeal of 47 people’s deputies of Ukraine to the Constitutional Court on declaring unconstitutional the legislative provisions of the Law of Ukraine № 555-IV “On Alternative Energy Sources” of February 20, 2003 and the Law of Ukraine № 2019-VIII “On the Electricity Market” of April 13, 2017. According to people’s deputies, when adopting the law “On Alternative Energy Sources”, the Verkhovna Rada went beyond its powers, interfering in the sphere of constitutional powers of the executive branch, without alternatively establishing the coefficients and mechanisms for calculating the “green” tariff, which deprived the executive branch of its discretion and authority to change it. Accordingly, there is a threat of declaring the «feed-in” tariff in Ukraine unconstitutional.
Oleksandra Gumeniuk, EUEA Director, said the following during her speech:
“Structurally, what is the impact of this constitutional proceeding against green energy? First of all, the investors we represent will suffer; large, small and medium business too. RES is a unique sector for Ukraine, which today includes an extremely large number of representatives: households – 10%, small and medium business – 30%, foreign investors – 30%. Nowadays, the decision of the Constitutional Court to declare unconstitutional the “green” tariff and the mechanism of support for “green energy” investors who plan to participate in the shares, as well as small and medium-sized businesses and households on a “green” tariff will suffer.
As an agency, we have field a petition to the Constitutional Court with other associations, hoping that the Constitutional Court will take into account our arguments and explanations of the constitutionality of the “feed-in” tariff.
It should be noted that the Ukrainian case in the Constitutional Court is an unprecedented phenomenon in the international experience. Studying this issue with foreign partners, we did not find a country where there was a similar situation. ”
Consequences of declaring these articles unconstitutional:
Producers of electrical energy from alternative energy sources will be deprived of the previously established «green tariff» from the moment the decision of the CCU enters into legal force;
State guarantees for RE producers will be cancelled, including the mandatory buy-back of electrical energy at the «green» tariff and payment in full;
The increase in the «green» tariff will be cancelled, the auction price for compliance with the level of use of equipment of Ukrainian manufacture;
Violation of state guarantees provided to investors and, as a result, numerous lawsuits and arbitrations against Ukraine, which will increase State budget expenditure;
Economic non-viability of projects and bankruptcy of renewable energy investors can be treated as a violation of private property and investment integrity (regulatory forfeiture) without adequate compensation;
Reduction in the State budget’s tax revenues (during 2020, RE producers paid about UAH 20 billion to the State budget);
Ukraine’s loss of the image of an investment-attractive country and reliable partner of investors.
The full recording of the press conference can be viewed by the following link: https://www.youtube.com/watch?v=6MfEVyuVzZI
