NEFCO is not ready to resume investments in renewable energy in Ukraine until the government begins to comply with obligations

NEFCO (Nordic Environment Finance Corporation, NEFCO) still refuses to invest in new renewable projects in Ukraine, waiting for the government of Ukraine to comply with its obligations and a stable and predictable investment environment will be established in the country, Interfax-Ukraine reports.

As stated in a letter from the organization to the European-Ukrainian Energy Agency (EUEA) on Thursday, which the agency published on its website, NEFCO considers the introduction of an excise tax on renewable energy as a wrong move, proposing to subsidize clean energy by increasing the CO2 tax.

The organization is also concerned about the failure of Guaranteed Buyer to fulfil its obligations to pay for electricity produced by renewable energy sources, which violates the agreements reached with the government last year.

“NEFCO is seriously disappointed that the Ukrainian government is retrospectively lowering green tariffs for already approved projects,” the letter also says.

As reported, the managing director of NEFCO, Trond Moe, at the beginning of December last year announced the suspension of investments in new renewable energy projects due to the situation with debt payments for the generated electricity.

“The future of renewable energy in Ukraine is at risk due to the situation with the lack of payment for generated electricity and the reduction of green tariffs. NEFCO is no longer able to confirm new investments in this sector until the situation with green tariffs is resolved and the state starts paying off generation,” Moe said at the time.

Tags: The Cabinet of Ministers, legislation, feed-in tariff, electricity market, foreign affairs, Guaranteed buyer, debt, renewables, investors

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