Authorization
Dear Prime Minister,
I am writing to express the concerns of the European Wind Energy Association (EWEA) regarding the regulatory framework for wind energy in Ukraine.
EWEA has been a strong supporter of the Association Agreement concluded this year by your government and the EU. We consider this landmark deal to be a tremendous opportunity for economic cooperation notably in the energy sector. The development of wind power in particular will be critical to any credible strategy tackling our common energy security challenge.
In this context, we welcome the adoption of a Ukrainian Renewable Energy Action Plan setting an ambitious target for wind energy installations by 2020. Meeting this objective will require a strong regulatory framework underpinned by a reliable support mechanism.
It has been brought to our attention that the National Committee on Regulation of Energy and Utilities Services has not adjusted the wind energy feed-in tariff over the past months. Failing to review the tariff to reflect inflation and the EUR/UAH exchange rate has already cost wind energy developers 45 million hryvnia. It is arguable that this failure to adjust the tariff may be in breach of the law on electric power. More fundamentally, it undermines the confidence of investors in the Ukrainian regulatory framework for wind energy.
This situation sends a counter-productive signal to the wind energy industry particularly as it is a capital intensive sector. The industry has invested €700 million in the Ukraine and considers the country to be a key emerging market. However, this potential can only be harnessed through a robust regulatory framework rooted in the rule of law.
We trust you share our concerns regarding the necessity to create a positive investment climate in Ukraine.
I remain at your disposal for any further exchanges on these matters.
Yours sincerely,
Thomas Becker,
CEO European Wind Energy Association
Home