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Ukrainian authorities assume the commitment to fix and approve annual quotas in support of green energy and ensure that auctions are held to distribute such quotas.
The Cabinet of Ministers of Ukraine says it has signed a Memorandum of Understanding with investors in "green" energy, which provides for a reduction in the so-called "green," or feed-in, tariffs for solar stations by 15%, and for wind farms – by 7.5%.
The document was signed by Ukrainian Prime Minister Denys Shmyhal, acting Minister of Energy and Environmental Policy Olha Buslavets, responsible officials of the European-Ukrainian Energy Agency (EUEA), and the Ukrainian Wind Energy Association (UWEA).
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"The Memo stipulates that RES [renewable energy sources] producers accept the conditions for the voluntary restructuring of the green tariffs, which provides for their reduction. In particular, tariffs for all solar power plants (SPP) are expected to be cut by 15%, and for wind power production facilities – by 7.5%," the ministry's press service said on its website on June 10.
For their part, the Ukrainian authorities are committed to taking every measure to ensure the timely payment to the Guaranteed Buyer State Company and the repayment of existing debts to RES producers who have agreed on the terms of the restructuring.
Apart from that, the Ukrainian authorities assume the commitment to fix and approve annual quotas in support of green energy and ensure that auctions are held to distribute such quotas.
In addition, the responsibility of RES producers for unbalanced electricity production is increasing. RES manufacturers also accept the terms of limiting the commissioning of new facilities related to feed-in tariffs. Thus, from August 1, 2020, new solar power plants with a capacity of more than 1 MW will be able to be put into operation with state support only through participation in auctions.
"We are staunch supporters of green energy infrastructure development and such energy being the most widespread, as the cleanest one. But it is important to us how much it will cost. If the price of electricity produced at new SPPs is determined at auctions, the tariff won't be high," Shmyhal said, expressing confidence that other investors and producers will join the said associations.
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As UNIAN reported, on May 26, foreign investors in the renewables sector together with Ukraine's Ministry of Energy and Environmental Policy consolidated their proposals to support and stabilize the financial situation in the energy market and appealed to the Ukrainian prime minister to sign the Memorandum of Understanding.
Earlier, the Ukrainian Association of Renewable Energy, which brings together companies with about 40% capacity, said that the Cabinet of Ministers' terms for revising feed-in tariffs, stipulated in the Memorandum, are unacceptable and discriminatory for investors.
Ukraine's acting Minister of Energy and Environmental Policy Olha Buslavets in April said Ukrainian power industry was completely unbalanced in mutual settlements. Moreover, the state debt for electricity generated by renewables may reach UAH 26 billion (US$976 million) by the end of the year. More than 20% of the country's renewable energy market belongs to Ukrainian businessman Rinat Akhmetov's DTEK energy holding. Then come Swedish, Chinese and Ukrainian companies.