The Ministry offers investors a 10-17% reduction of a feed-in tariff

The Ministry of Energy and Environmental Protection offers renewable energy producers voluntarily to switch to a 10-17% reduction in a feed-in tariff to extend its validity period by 5 years, by April 1, 2020 Expro reports. This was stated by Deputy Minister of Energy and Environmental Protection for European Integration Kostyantyn Chyzhyk at the International Renewable Energy Investment Forum.

“We offer a comprehensive compromise solution – this is a reduction in a feed-in tariff and the validity period exclusively on a voluntary basis. Until April 1, 2020, companies will be able to decide whether a new restructuring model is suitable for them, or they decide to stay at the current feed-in tariff”, he said.

The Ministry proposes the following changes: for existing SPPs, the current rate will be reduced by 17%, for wind farms – by 10% and its extension by 5 years. For stations with which preliminary agreements are concluded (pre-PPA), with Guaranteed Buyer – minus 15% for a solar power station and minus 10% for a wind farm with a 5-year extension.

Chyzhyk said that companies may refuse to restructure, but then they will be required to go to auctions, or stay at an old feed-in tariff. The Ministry plans to hold the first auction on April 1, 2020.

“In order to stay at an old feed-in tariff, if it is the sun, the company must put the station into operation until April 1, 2020, if the wind – until December 31, 2020. If the company does not commission the station within the specified time, it will have two options: go for restructuring or auction”, he said.

Recall, Kostyantyn Chyzhyk said that the deficit of funds for payments to Guaranteed Buyer by the end of the year will amount to 400 million UAH.

Tags: The Cabinet of Ministers, contracts, renewable energy, tariffs, solar energy, wind energy, bio-TPP, legislation, electricity, EU, The Minystry of Energy and Coal Mining, Top management, feed-in tariff, electricity market, ВИЭ

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