MPs were urged to save 800 MW of new wind power capacity from bankruptcy shutterstock

MPs were urged to save 800 MW of new wind power capacity from bankruptcy

Katerina Belousova

In Ukraine, the wind energy sector is exclusively a sector of private investment

In Ukraine, deputies were urged to extend the term of technical conditions and contracts for the purchase and sale of green electricity in order to save the completion of 800 MW of wind generation with a total investment of €1 billion.

Otherwise, the projects will go bankrupt, reports the "Ukrainian Wind Energy Association – UWEA" on Facebook.

These projects were to be built in 2022.

The article noted that such a decision will strengthen the state's image in the eyes of foreign investors and help to attract faster and larger investments in the country's recovery after the victory.

Most of the investors in these wind farms are companies from the USA, China and Turkey. They concluded contracts, purchased equipment for construction, but due to the war and security issues, all projects stopped.

Already purchased equipment is lying in ports, in warehouses of wind equipment manufacturers, or even just on sites. Some are located near or directly in the war zone.

Every day of such equipment storage is a huge loss for investors. In the conditions of war, they will not have time to build their wind farm projects until the end of 2022, because it is unlikely that the war will end in the near future.

In addition, after the victory, a certain period must pass for foreign companies to decide on the resumption of their activities in Ukraine, which in any case postpones the construction.

"I believe that for the future of Ukraine it is extremely important to do everything so that investors who believed in the state and were ready to build green energy could complete their projects. To do this, it is necessary to extend the validity period of the technical conditions and the terms of putting wind energy projects into operation, which in fact were already in the active phase of construction when the war started," says Andriy Konechenkov, chairman of UWEA's board.

If the deputies do not extend the validity period of the already concluded contracts for the purchase and sale of electricity for a period of up to 2 years after the end of martial law, then the projects will go bankrupt.

This will greatly undermine the reputation of Ukraine in the eyes of foreign investors and negatively affect their plans to fill the economy of Ukraine, because the wind energy sector is a sector of exclusively private investment.

Support for the renewable energy sector is particularly important at the moment. The decision of the deputies can be both a positive signal for foreign investors and the first step towards the implementation of plans for the construction of 10 GW of RES capacity by 2032 and another 30+ GW of green power plants for the production of renewable hydrogen and its export to the EU, which were presented by the minister of energy by Herman Galushchenko at the international conference on the post-war recovery of Ukraine's economy in Lugano.

"Rejecting the bloody russian energy resources, Europe is betting on renewable energy sources, primarily on wind energy. Ukraine should also follow this path, especially taking into account the fact that the price of electricity produced by wind is increasingly lower than the weighted average price in the day-ahead segment of the electricity market," the article noted.

UWEA also emphasized that not making any decisions at a time when companies with wind projects for Ukraine are on the verge of destruction is a crime against the state and its future.

Earlier, EcoPolitic wrote, that russia dealt a powerful blow to Ukrainian green energy and the future of the industry depends from the victory, the government's solution to the problems in the electricity market and investors.

As EcoPolitic previously reported, the Ministry of Energy initiated a draft law on supporting the production of green electricity by generating plants of consumers, which provides replacement of the green tariff to the new Net billing support model.

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