Today, November 15, 2021, the European-Ukrainian Energy Agency (EUEA) took part in a joint press conference with investors, industry RES associations and the former head of SE “Guaranteed Buyer” on the topic “Do Investors in green energy not receive payments again?”.

Participants of the event:

  • Oleksandra Gumeniuk, Director of the European-Ukrainian Energy Agency,
  • Konstantin Petrykovets, ex-chairman of the State Enterprise “Guaranteed Buyer”,
  • Andriy Konechenkov, Chairman of the Board of the Ukrainian Wind Energy Association,
  • Oleksandr Kozakevych, Chairman of the Ukrainian Association of Renewable Energy,
  • Karl Sturen, Director of Windcraft Ukraine,
  • Loic Lerminiaux, Director of Gurish,
  • Maris Kunickis, CEO of DTEK Renewables

It will be recalled that on Thursday, November 11, 2021, NPC “Ukrenergo” transferred UAH 19.3 billion that it received from the sale of green bonds to the Guaranteed Buyer to repay debts to producers of renewable energy sources (hereinafter RES). RES producers expected to receive payments by the end of last week, but this did not happen. Instead, on Saturday, November 13, 2021, Oschadbank froze the company’s funds, and the Cabinet of Ministers fired the Director of the “Guaranteed Buyer” Konstantin Petrykovets, who tried to respect current legislation and send funds to RES producers on Friday.

The current situation is evidence of outright disregard of the Memorandum of Understanding signed in June 2020 by the Prime Minister of Ukraine Mr. Shmygal, the Acting Minister of Energy Ms. Buslavets, the Chairman of the Board of the NEURC Mr. Tarasyuk and two industry associations (EUEA and UWEA) as a result of a mediation process led by the Secretariat of the Energy Community.

EUEA Director Oleksandra Gumeniuk said in her speech: “EUEA is a business association that unites the largest foreign and Ukrainian investors in RES sector, which have already invested more than 3.5 billion euros. I want to say that the situation that has happened this weekend has received a lot of feedbacks from our members, who are extremely concerned about that. We are anxious about the ambiguity of the Government’s intentions. Resolution from October 11, 2021, № 1049 on the Provision of State Guarantees to  Ukrenergo was approved specifically to allow the company to issue “green” bonds for sustainable development, raise funds for “green” projects and to repay debts to electricity producers from RES. This was its main purpose. The Resolution of the Cabinet of Ministers, namely, paragraph 5 clearly stipulates this – to ensure the repayment of debts to producers of electricity from RES. I also want to note that the pressure on the director of the State Enterprise “Guaranteed Buyer” is an unprecedented phenomenon when the state interferes in the economic activities of the enterprise. In addition, investors, including the EBRD, bought Ukrenergo bonds, relying on the Government’s promise that the funds would be transferred on “green” projects and on settlements with RES producers by  Guaranteed Buyer. We believe that all funds that were transferred to the Guaranteed Buyer’s account, namely UAH 19.3 billion, should be distributed among all market participants in proportion. I also want to remind you that taking into account UAH 19,3 billion to cover the debt, there will still be UAH 7 billion of debt for 2021. It is also important to mention, that NEURC has recently adopted a Resolution approving the transmission tariff of NPC Ukrenergo for the next year, and, according to our calculations, it is lower than may be needed to cover payments of “green” energy. This may accumulate new debts of approximately UAH 15 billion in 2022 “.

Despite the fact that some “green” enterprises received certain charges (UAH 5.6 billion), the participants at the press conference agreed that according to current legislation and the Constitution of Ukraine, the received funds should be evenly distributed among all producers of RES. Also, the attitude of the Government to investors and owners of RES stations is opposite to Ukraine’s position in the international arena concerning “green” energy. When the whole world is trying to make renewable sources available, promote the development of this technology, decarbonise the economy, the Ukrainian government is trying to kill the industry and do everything in order to make “green” energy look like something negative and bad in the eyes of our citizens.

Summing up, Oleksandra Gumeniuk added at the end of the press conference: “Indeed, Ukraine should proceed to stimulate the development of “green” energy, because Feed-in tariff is a thing of the past. And we need to develop new conditions to stimulate the transition of the RES sector to the market conditions. This will not be possible if the investment climate is killed. That is why we call on the Government to solve the debt problem to let the new period of market economy development in the green energy sector take place “.

Watch the press conference: