Authorization
Today the UWEA jointly with other RES industry associations have appealed to the President of Ukraine Volodymyr Zelenskyy, Prime Minister Denys Shmyhal and Minister of Energy Herman Halushchenko for their help in preventing bankruptcy of the renewable energy sector, the most transparent and investment attractive sector in the energy sector of Ukraine. The copy of the letter was also sent to the NEURC Chairman Konstyantyn Ushchapovskyy.
In their letter, the leading associations outline the current status of the RES sector and focuse on the key challenges facing the market. According to them, illegal decisions made by some power industry authorities have imposed several artificial barriers to the stable operation of the RES market, in particular:
According to the RES associations limitation of settlements with RES producers has been made artificially since the relevant state companies responsible for settlements with “green| generators have enough financial resources to cover almost 100% payments due in 2022. For example, NPC Ukrenergo could collect about 16-18 billion UAH (including 8-10 billion UAH for transmitting electricity and 6-8 billion UAH - from additional sources).
In response to the publicly available information on the NEURC’s consultations with Energy Community on possibility to temporary cancel the “green” tariff, the associations warned:“Ukraine could lose about 8 GW of RES capacity due to the bankruptcy of the RES industry, which will definitely lead to the deterioration of Ukraine's energy security, loss of its own energy independence and reduction in electricity available for electricity export trading essentially important for Ukraine, ( in July 2022 electricity export trading generated about 1 billion UAH in profit for the state operator Ukrenergo”).
The problems artificially-created in the RES market Ukraine are leading the industry to default; they undermine the investment attractiveness of Ukraine. Associations recalled that over the past 10 years the international and Ukrainian RES investors have attracted about USD 12 billion in direct investments to the Ukrainian economy.
The Ukrainian RES associations called for the President of Ukraine and the power industry authorities to respect the state guarantees to the RES investors, refrain from any retrospective changes to the current legislation, and lift the above-mentioned artificial barriers to the conduct settlements with RES producers.
Finally, the association stressed: “The RES sector does not require any additional financial support or subventions from the state, but strives to receive those funds for the supplied electricity, which are provided for by the current contracts and the current legislation of Ukraine”.
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