The Verkhovna Rada adopted the restructuring of FIT

The Verkhovna Rada of Ukraine supported the draft Law on Amendments to Certain Laws of Ukraine on Improving the Conditions for Supporting the Production of Electric Power from Alternative Energy Sources (No. 3658) in the second reading, Kosatka.Media reports.

288 MPs voted for adoption of the draft law. The draft law provides for the restructuring and reduction of FIT, and a change in the terms of its validity for investors in renewables.

To recap, on June 10, the Cabinet of Ministers signed a Memorandum of Understanding on the settlement of problematic issues in the field of renewable energy with investors. The document stipulates that renewable energy producers accept the terms of voluntary restructuring of FIT for commissioned SPPs in 2015-2019 by 15%, for SPPs launched during the specified period with a capacity of up to 1 MW – by 10%. For wind farms, the tariff will be reduced by 7.5%.

However, a number of direct and indirect foreign investors believe that the position reached in the Memorandum is not a satisfactory compromise for all market participants.

On July 14, representatives of the National Anti-Crisis Headquarters of Renewables, UAWE, the Association of Solar Energy of Ukraine, the Assembly of Nationalities of Ukraine appealed to Chairman of the Verkhovna Rada of Ukraine, Head of Housing and Utilities Andriy Gerus and the deputies of Ukraine with a request to take into account 17 proposed amendments to the draft law No.3658 “On Amendments to Certain Laws of Ukraine on Improving the Conditions for Supporting the Production of Electric Power from Alternative Energy Sources”. In particular, given the proposed level of reduction of FIT for solar power plants, which were commissioned from July 1, 2015 to December 31, 2019, investors propose to extend the validity period of FIT for 2 years.