“European-Ukrainian Energy Agency is concerned with the recent news about the amendment proposed to the Law on the Electricity Market that establishes prioritization of payments from the Guaranteed Buyer to different types of renewable power plants. As we understand, such amendment will be reviewed by the Parliament Tax Committee on 30 October 2020 as part of the Draft Law 4101d introducing changes to the Tax Code of Ukraine.
We object against discrimination of renewable power plants based on their capacity or technology. Every investor in Ukraine’s renewable energy sector made its investment in full reliance on the state commitments to ensure full current settlements at the feed-in tariff. Despite the fact that renewable sector is among TOP 3 sectors in Ukraine that attracted most of FDI during past several years, investors have been facing multiple challenges during past year.
After suffering from 90% non-payment during March-July 2020 renewable investors faced feed-in tariff reduction in August 2020. As part of stabilization package, EUEA and UWEA associations signed the Memorandum of Understanding with the Government and the Regulator in June 2020. There is a clear paragraph in the Memorandum saying: “State Authorities of Ukraine shall ensure full and timely current payment by the Guaranteed Buyer to the RES Producers for the electricity delivered by them, starting from the month following the month in which the Law on the Agreements comes into force”. Such Law No. 810 came into force on 1 August 2020 and represents clear commitment from Ukraine to ensure 100% timely payments to renewable power plants, without any exclusions or priorities.
On this basis, we appeal to the Members of the Parliament to (a) decline suggested amendment as discriminatory; (b) support implementation of the Memorandum and the Law 810 by ensuing sufficient state budget co-financing of the Guaranteed Buyer and repayment of old debt to RES via issue of government bonds or other relevant instruments. This will prevent further deterioration of the investment climate in Ukraine and reduce the list of reasons for international investors to go to international arbitrations and open cases against Ukraine for breach of promises given to investors.”