Today, December 1, 2021, EUEA took part in the second German-Ukrainian Energy Day within the framework of the Ukraine-Germany Energy Partnership and in partnership with the Ministry of Energy of Ukraine and the Federal Ministry of Economic Affairs and Energy of Germany.

The German-Ukrainian Energy Day is a central annual event for German and Ukrainian stakeholders, which is held to discuss current issues, present the results, while providing a platform for public participation.

EUEA Director Oleksandra Gumeniuk spoke at the event during the panel “Mobilization of finance and business for the transformation of Ukraine’s energy system.” In particular, she answered a number of important questions and outlined the general investment situation in Ukraine regarding “green” energy:

“Currently, the issue of payments on the “green” tariff is very hot. November was quite difficult for investors and energy producers from RES, because after the successful issuance of NPC “Ukrenergo” Eurobonds and, consequently, raising funds to pay last year’s debt to “green” producers, The disbursement process was insufficiently transparent, understandable and protracted, and the issue of inequality of rights and payments in the electricity market was raised during the month, which we are still able to observe. Therefore, EUEA calls on the Government of Ukraine to adhere to the principle of non-discrimination and equality of all market participants. In addition to the payment of old debts, the task is to prevent the accumulation of new debts to producers.

Also today, December 1, the Regulator will consider the issue of approving the tariff for the transmission of NPC “Ukrenergo” for 2022, which is the main financial source for payments to “green” producers provided by law. However, if the tariff is adopted today lower than calculated by the Transmission System Operator, new debts are expected to be accumulated. This decision may violate a number of agreements and commitments made by the Government of Ukraine to producers with RES and investors, which will further negatively affect the investment climate of the country.

I also want to strengthen the message of investors on the need for transparency of mechanism of curtailment the production of energy from renewable sources and mechanism for liability for imbalances, because from January 1, 2022, full liability for imbalances will come into effect.

Earlier this autumn, the Ministry of Energy announced a new support mechanism – Feed-in Premium. EUEA and our members have expressed their proposals for the Draft Law, where one of the main principles, in our opinion, should be the voluntary transition from Feed-in to Feed-in Premium. We are currently waiting for the Draft Law to be registered in the Verkhovna Rada to join the discussion process. We believe that such transition should take place only in the presence of maturity and transparency in the electricity market. But today, this market is overfilled with regulations and unpredictable, which creates a feeling of insecurity among its participants”.

Summing up, Oleksandra Gumeniuk noted that a reliable investment climate is possible only if the rule of law is observed and cooperation between associations and the Government is strengthened. She has also pointed out that energy efficiency and the development of clean energy sources are inseparable and always go hand in hand. And the exchange of experience between German and Ukrainian companies and business-related institutions is a key factor for reaching success.