The Ministry of Energy and Environmental Protection does not support a draft law No.2543

The Ministry of Energy and Environmental Protection is opposed to the scenario of restructuring a feed-in tariff for renewable energy producers, as prescribed in the draft law No.2543. This was reported by the press service.

The Ministry noted that in 2018, after a sharp drop in the cost of solar panels and other equipment for building renewable energy in the world, the Ukrainian expert community and deputies insisted on an urgent reduction in a feed-in tariff from July 1, 2019.

However, the delay in necessary legislative changes led to:

- “green” auctions will be launched only from 2020;

-  over the past year, more than 2.5 GW of “green” capacities were commissioned at an overestimated tariff (mainly solar, at the highest tariff in Europe – 15 cents)

- in 2020, consumers must pay for renewable energy more than 42 billion UAH;

- in spring it will be necessary to significantly limit the work of cheap nuclear generation;

- “green” generation will have to be balanced by thermal power plants, which will significantly increase emissions of harmful substances and greenhouse gases into the atmosphere;

- the possibility of default on payments to investors in renewable energy.

All these factors will lead to an increase in the cost of electric energy for end consumers, the Ministry said.

According to the results of discussions with investors in the renewable energy market, “a comprehensive package of measures was developed to stabilize the situation, which envisaged actions by the state (amendment of the Regulation on imposing special duties in order to stop subsidizing losses in electric networks, the stabilization provision in the law for those who will go for restructuring, improved PrePPA, the market price for household consumers of electric energy with high consumption), and actions by investors (voluntary restructuring, reduction of terms of commissioning of renewable energy facilities for a feed-in tariff, on the responsibility of changing the provisions of the imbalance)”.

However, some deputies and part of the renewable energy market did not support the Ministry’s proposals and presented draft law No.2543 “On amendments to certain laws of Ukraine regarding the improvement of the investment climate in the field of renewable energy”.

Recall, the ASEU said that the draft law No.2345 needed to be adjusted in terms of the terms and conditions of prePPA for solar projects.

Tags: The Cabinet of Ministers, contracts, renewable energy, NPP, tariffs, solar energy, wind energy, legislation, electricity, EU, The Minystry of Energy and Coal Mining, energy market, feed-in tariff, electricity market, foreign affairs, Guaranteed buyer, Orzhel, ВИЭ, The Verkhovna Rada, draft law, investments, investors

Read also

Installed capacity of solar and wind farms in China reaches 415 GW
Gerus sent Ukrenergo’s request on non-payments to owners of rooftop photovoltaics
EU will help to increase investment in renewable energy sources of Ukraine and other countries