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Ambassadors representing countries that had invested in renewable energy projects in Ukraine have written a letter to Ukrainian Prime Minister Denys Shmyhal and Head of the Presidential Office Andriy Yermak to express disappointment over a potential retrospective review of the so-called "green," or feed-in, tariff, and urged the government to abandon the idea.
In the letter signed by the ambassadors of Germany, France, UK, Sweden, Belgium, Canada, Norway, and South Korea expressed disappointed that the results achieved in the sector and investor confidence caused by the country's determination to fulfill its obligations under Ukrainian law are undermined by decisions that they say may have short-term benefits, but very negative long-term consequences for Ukraine's electricity sector and the investment climate as a whole.
The ambassadors have called on the government not to reverse laws and regulations that provide foreign investors with a guaranteed basis for their investment. Diplomats noted that otherwise, investors would seek legitimate opportunities to counter such moves.
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A number of Ukrainian renewable energy projects were provided with export loan guarantees secured by foreign governments, the envoys noted, adding that, therefore, they cannot rule out the possibility that any unilateral cancellation of legal guarantees by Ukraine could lead to the unwillingness of foreign governments to provide such guarantees in the future.
Also, the diplomats expressed optimism that it would be possible to successfully complete the mediation process on the issue with the participation of the Energy Community Secretariat, which should lead to a consensus agreement with foreign investors and stakeholders to eliminate uncertainty in the sector.
Ukraine's acting Minister of Energy and Environmental Policy Olha Buslavets recently stated that the ministry would resume negotiations with investors in renewable energy projects to cut feed-in tariffs and address the issue of energy system imbalance.