PLANNED REDUCTION OF "GREEN TARIFF"
19/05/2020
On May 14, negotiations were held between the Government of Ukraine and RES investor.
The Government of Ukraine has proposed a draft memorandum that provides a reduction of the "green tariff" for solar power plants by 25%, for wind power plants - by 12.5% without extending the validity of this tariff.
Since the end of 2019 by were affected by payment deficit from Guaranteed buyer. For now the indebtedness of GB before the RES producers already constitutes over UAH 9 billion. The project proposes the restructuring of relevant debts.
The exact provisions of the memorandum are under negotiations with the RES investors. As reported by Acting Minister of Energy, "restructuring options include measures such as:
- reduction of the "green" tariff;
- introduction of full financial responsibility for imbalances (the draft memorandum states that the responsibility for imbalances for electricity RES producers, who did not agree to the terms of voluntary debt restructuring, comes from 2020, while for those who agreed - from January 1, 2022);
- cessation of construction of new facilities within the existing support system of the development of green generation;
- giving the system operator the right to temporarily limit generation of "green" electricity.
In addition, it is proposed to limit the commissioning of SEP under the "green tariff" on July 1, 2020, WPP - July 1, 2021.
Please note, that all the proposed changes are still under the discussion and no final edition of the memorandum has been signed, but it's obvious that the new memorandum will somehow decrease the "green" tariff. The terms of the signed memorandum will form the basis of the relevant bill.
According to the Ministry of Energy, after signing the memorandum, the agency will begin to discuss options for repayment of debt to RES investors.
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