Leading associations in the renewable energy sector (EUEA, UARE, UWEA) are categorically against the introduction of excise duty on electricity produced from renewable sources, provided in the draft law №5600 from 02.06.2021 to increase the excise tax to 3.2% on the sale of electricity produced from renewable energy sources (RES).

Associations call for the exclusion from the draft law on excise duty, as it violates the commitments provided by the state bodies of Ukraine when signing the Memorandum of Understanding on the settlement of problematic issues in renewable energy in Ukraine, which were confirmed by the Verkhovna Rada of Ukraine “On Amendments to Certain Laws of Ukraine on Improving the Conditions for Supporting the Production of Electricity from Alternative Energy Sources” from July 21, 2020 No. 810-IX (Law No. 810-IX).

The introduction of the excise tax will change the current legislation on the date of entry into force of Law No. 810-IX and  violate the guarantees provided by the state in Article 9-4 of the Law of Ukraine “On Alternative Energy Sources” and paragraph 22 of the Memorandum. These changes will worsen the regulatory environment for electricity producers with RES, as they will lead to an increase in the amount of tax liabilities to be paid by such producers in the sale of electricity, and the actual withdrawal of part of their income. Moreover, the introduction of the excise tax is a de facto reduction of the “green” tariff by an additional 3.2% for existing stations, as this tax will be paid by electricity producers with RES.

Read the letter:09_06 EUEA, UAWE, UARE letter