The bill and the Memorandum on the reduction of “green” unfair expert

Законопроект и меморандум о снижении «зеленых» несправедливы – эксперт

Photo: RBC-Ukraine

the head of management Board of CNBM International Corp Jason Jang

The bill on “green” tariffs, and the Memorandum of the government with market participants to defend the interests of certain players and violated the rights of others, says the head of the largest investor in renewable energy of Ukraine.

The Verkhovna Rada adopted in first reading the draft law №3658 on the reduction of “green” tariff, as well as a Memorandum with some market participants vozobnovlenie energy, which formed the basis of this bill are unfair and lobbying the interests of certain sectors of the market. Such opinion in interview to RBC-Ukraine was expressed by the Chairman of the Board of CNBM International Corp Jason Jang.

We will remind, one of the largest players in the solar energy market of Ukraine – the Chinese Corporation CNBM– did not sign the Memorandum, because it considers it discriminatory. The fact that the bill and the Memorandum suggested a reduced 15% rate for all solar power plants of over 1 MW which were commissioned before 2020. However, for companies CNBM rate was already reduced in 2015 by 44%. In addition, the cause of the crisis in the energy sector, which forced the government to initiate the reduction of tariffs, specified uncontrolled growth of generation from renewables in 2018-2019.

“However, our company in 2013 have not commissioned not a single new kilowatt of power. Not to mention the fact that the cost of equipment in years when we bought it and installed, was a multiple above, and accordingly, the return on investment is substantially longer. That is the problem you want to solve at the expense of those who did not create it,” says Jang.

According to him, “even the naked eye can see that in the Memorandum defended the interests of only one part of the market – wind farms”.

“The pressure on the solar projects is enormous. For example: boundary rate is set only for SES, at the individual wind farm boundary rate is not – that is, the rates for all SES will be reduced by 15% and the tariff for old wind farms (until 2017) will not be reduced; will reduce liability for the unbalance for the SES are spelled out with an error of 5%, and VES – allowed 10%; for SES canceled pre-PPA for wind farm — stored (pre-PPA is the commit rate, which allows you to avoid auctions). We have such benefits and was not – we do not own the pre-PPA, so we’re outsiders. Considering all these factors, it is not surprising that the document was signed only “wind” of the Association”, — he stressed.

According to Jung, the position of CNBM and the PRC Embassy in Ukraine, the Ministry of energy and other authorized government entity ignore – the company was not invited to discuss the reduction of tariffs, and to the letters and did not meet.

This state of Affairs in CNBM is considered as a barrier to further investment in Ukraine.

“CNBM has invested in Ukraine about $1 billion in equipment and commodity credits, but a few years ago were ready to invest another $2 billion, not only in renewables but also in the coal industry and power engineering. But first we got a voluntarist decision to reduce the tariff by 44%, then there were attempts of raider capture of our objects, now we see a new initiative to reduce the tariffs while the investors have promised their stability until 2029. All this makes investment in Ukraine any sense,” said Jang.

According to him, if a compromise is not found – CNBMбудет to protect their legitimate interests in international bodies.