Authorization
On 2 July, 2021, the representatives of the UWEA met with Konstantin Petrykovets, Director of SE Guaranteed Buyer, to discuss key problems of the renewable energy sector, namely, the issue of indebtedness and possible ways of its resolution, potential introduction of excise tax on RES electricity and imbalances.
In order to increase transparency and prevent any manipulations in the market, it was agreed that the SE Guaranteed Buyer (Guaranteed Buyer) would provide more detailed information on its activity in all market segments.
The discussion focused on the issue of the debts to “green” generation. According to Mr. Petrykovets, the debts incurred to the RES generators in 2020 currently amounts to UAH 16,3 billion. Commenting on debts accumulated in 2021 Konstantin Petrykovets stated: “The main reason for incomplete payments for current “green” electricity deliveries is a failure of NPC Ukrenergo to sign relevant certificates required for settlements with the RES producers over the last 5 months. A possible solution to the problem would be covering 20% of the arrears in payments for electricity at the “green” tariff with budgetary funds, as provided for by the legislation. Based on the state’s interests, we propose to address the Ministry of Finance of Ukraine to initiate the issue of government bonds with a long maturity period. It could minimize the burden on the budget and resolve problem of indebtedness in the market until the end of the year. Support from the RES industry associations is needed to succeed in it.”
Possible introduction of excise tax on RES electricity was also discussed at the meeting. “The provision of this Draft Law, which provides for the introduction of excise tax on “green” electricity requires further elaboration. It envisages the inclusion of excise tax in the cost of “green” electricity, which violates the provision of the Memorandum of Understanding, as actually constitutes illegal “green” tariff reduction,” Konstantin Petrykovets said.
With regard to issues related to calculating and paying for imbalances, it was noted that SE Garanteed Buyer is open for discussion with all RES producers. According to Konstantyn Petrykovets, actual supply and demand in the electricity market directly affects the activity of Guaranteed Buyer’s balancing group. Nevertheless, despite all challenges, Guaranteed Buyer manages to sell “green” electricity at higher prices than those of nuclear generation. For example, at a day-ahead market “green” electricity has been sold at 1400 UAH per MWh, while “nuclear” one – at 1200 UAH per MWh.
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