2023 should be a turning point for the green energy industry of Ukraine – UWEA shutterstock

2023 should be a turning point for the green energy industry of Ukraine – UWEA

Katerina Belousova

In 2022, the level of underpayments for "green" energy was about 50%

Specialists of the Ukrainian Wind Energy Association (UWEA) said that 2023 should be a turning point for the renewable energy sector of Ukraine, which should develop within the framework of the European green energy course.

It is necessary to solve the problems of the industry, which have been accumulating for years, and the solution of which has been constantly postponed, UWEA reports on Facebook.

The message emphasized that green energy can significantly strengthen the energy security of the country, contribute to the decentralization of generating capacities and reduce the use of fossil fuels.

The authors noted that the development of the industry directly depends on the solution of the following issues:

  • Extension of pre-PPA agreements and technical conditions for wind energy projects, the active construction of which took place until February 24, 2022.

They explained that the construction was interrupted by the military aggression of the Russian Federation. However, investors are ready to complete the construction of these wind farms, which will "right now" contribute to the stabilization of the country's energy supply and the development of a decentralized energy system.

It was registered in the Cabinet of Ministers in November draft law No. 8191 "On the extension of the term of commissioning of renewable energy facilities under contracts for the purchase and sale of electric energy at the green tariff concluded by December 31, 2019." It provides for an extension of the deadline for the implementation of wind energy projects.

UWEA emphasized that, despite the extreme importance of the document, the Verkhovna Rada Committee on Energy and Housing and Communal Affairs has not yet considered it.

"We call on the specialized Committee to conduct a relevant discussion of legislative changes as soon as possible and adopt them," the message reads.

  • Repayment of debt for supplied electricity.

The authors emphasized that in 2022, the level of underpayments became the most critical in the entire history of renewable energy in Ukraine and amounted to about 50%.

They explained that one of the reasons for such a debt is the deficit tariff for electricity transmission services of Ukrenergo, which is approved in this format from year to year by the National Commission for the Regulation of Energy and Utilities (NEURC). Currently, the debt of Ukrenergo for the service to increase the share of RES has reached UAH 12.4 billion.

"In the opinion of the industry, the Regulator should set tariffs for electric energy transmission services of Ukrenergo as early as the II quarter of 2023, which will cover all the company's obligations and needs for the restoration of damaged infrastructure," the message emphasized.

  • Dispatch restrictions on the production of green electricity in 2022

It is noted that currently such debts on the part of Ukrenergo reach 3 billion hryvnias.

The authors said that the entire industry expected that "Ukrenergo" would ensure the payment of such debts, because in the summer of 2022 it was publicly said that due to the borrowed loans from the European Bank for Reconstruction and Development (EBRD) in the amount of €97 million and the European investment bank (EIB) in the amount of €50 million, the issue of payment of RES restrictions will be resolved at the beginning of autumn.

"Despite the fact that one of the arguments for attracting these loans was the need to make payments to RES enterprises, the issue of payments of green generation was postponed and has not been resolved until today. We call on the operator of the transmission system to resolve the issue of arrears for limiting the production of green electricity at the expense of previously received credit resources as soon as possible," they emphasized.

UWEA also expressed concern that the RES industry is on the verge of survival at a time when the country needs to strengthen energy security and decentralize generating capacities. This is unacceptable, because the advantage of RES is much greater decentralization of the energy system, which is very important in the realities of war.

"UWEA calls for the immediate implementation into real actions of the messages voiced by the top leadership of the state regarding the prospects of renewable energy in Ukraine, and to start a green energy transition by improving the financial condition of the renewable energy industry," the message said.

The authors also added that it is necessary to reduce the risks of default of RES enterprises.

As EcoPolitic reported earlier, Ukrenergo will receive €150 million from the European Bank for Reconstruction and Development for debt payments to the green generation

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