Authorization
On October 8, 2020, the leading industry associations - Ukrainian Wind Energy Association, European-Ukrainian Energy Agency and Ukrainian Association on Renewable Energy held a press conference: “The Government's unfulfilled commitments: the future of "green" generation is under threat”. CEO of DTEK Renewables, Maris Kunickis and Co-Chair of the Energy Committee of the European Business Association, Karl Sturen were among speakers. Andriy Konechenkov, the Chairman of the UWEA Board, moderated the discussion. The press conference was a logical follow up to the Association`s Appeal addressed to the Prime Minister of Ukraine on October 5, 2020.
In his opening speech, the Chairman of the UWEA Board, Andriy Konechenkov noted: “Two months after the Law of Ukraine No 810-IX has come into force we see little progress from the Government to implement its commitments under the MOU, despite the fact that the FIT reductions for renewable producers were implemented right away by the Regulator on 1 August 2020 in accordance with Law of Ukraine No810-IX. The recent legislative changes related to the reduction of the “green” tariff rate, will save annually approximately UAH 8 billion. The firm commitments by the Government to make and implement
the appropriate decisions to restore the solvency of the Guaranteed Buyer (including for example, the issuance of government bonds in domestic or foreign markets or the attraction of loans to the TSO from State-owned banks or international financial institutions) remain unfulfilled.”
At the same time, the Chairman of the Ukrainian Association of Renewable Energy,
Oleksandr Kozakevych reported that some market participants had already filed claims in the Ukrainian courts against the Guaranteed Buyer demanding repayment of debts amounting approximately to UAH 600 million.
In turn, Karl Sturen, the founder of Vindkraft Ukraine and the Co-chairman of the Energy Committee of the European Business Association, noted that RES investors currently have a credit debt to the state-owned banks worth about Euro 1,5 billion: “There is a large debt to both the EBRD and Ukrainian state-owned banks, so it’s not just about the energy sector, it’s about possible crisis in banking sector,” he explained. “For 5 consecutive months there have been no payments done for the “green” electricity. We understand the problems related to the COVID-19 pandemic, however, why does one type of generation get paid at the rate of 70% of the payment obligations, while green generation gets nothing? It’s absolutely political decision and manipulation,” Karl Sturen stressed.
Māris Kuņickis, CEO of DTEK Renewables, noted that the artificial prolongation of the process automatically delayed the restructuring of investors' loans by banks. “Therefore, we would like to draw the attention of the State’s highest authorities to this problem once more time. It’s high time to start solving the crises effectively by making real decisions,” said Māris Kuņickis.
Executive Director of the European-Ukrainian Energy Agency Oleksandra Gumeniuk, summed up: “If the payment discipline of the Guaranteed Buyer is not restored right away, with support from credible funding sources to ensure the ongoing stability of payments, it will lead to a series of negative consequences that the foreign investors sought to avoid when negotiating the Memorandum, including initiation of arbitrations against Ukraine under Bilateral Investment Treaties and the Energy Charter”.
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