The owners of SES ask the President to contribute to the renewal of the “green” tariff in exchange for its decline

Владельцы СЭС просят президента способствовать продлению действия «зеленого» тарифа в обмен на его снижение

A group of foreign and domestic solar power plant owners appealed to the President of Ukraine Volodymyr Zelensky to support their proposal on extension of validity of “green” tariffs (s/t) for SES for two years in the consideration of the bill on conditions of development of renewable generation No. 3658, including a reduction of 15%.

“One of the essential requirements of the solar industry – the renewal of contracts for the purchase of electricity for two years in exchange for a 15% reduction “green” tariff was not included in the Memorandum and the bill. This request is critical to SES, as well as international financial institutions, providing funding for the relevant projects,” – said in a letter to industry representatives, the text of which has “Interfax-Ukraine”.

A letter addressed to the head of state and Chairman of the Verkhovna Rada Dmitry Razumkova, the head of the government Denis Shmyhalou and acting energy Minister Olga Bukovec, was signed by representatives of around 120 foreign and domestic companies-owners of SES, in particular, GS Engineering & Construction (South Korea), Norsk Solar and Scatec Solar (both Norway), TIU Canada (Canada), United Green (UK), VR Capital (US/UK) and Ukrainian Association of renewable energy.

The letter indicated that the arrangements outlined in this position displays the view of companies holding SES total installed capacity of approximately 3 GW and invested in projects around EUR3 billion.

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The authors of the letter note that in its current form the bill and the conditions of renewable energy development No. 3658, and signed by representatives of the industry and the government Memorandum on the basis of which developed the draft law are prejudicial to investors in solar energy and in this regard not received the support it deserves most of them. “If government and Parliament agree with the proposal, it will be an important catalyst for the vast majority of investors in solar energy to support the Memorandum and the bill,” reads the letter.

According to its authors, the support of investors, in turn, will allow to avoid lawsuits to the government concerning changes in the conditions of development of the industry, to maintain the investment climate and support sustainable development of renewable energy resources.

As reported, the Energy community Secretariat expressed regrets that a significant part of investors in renewable energy are unable to join the signing of the Memorandum, stressing that the restructuring of the s/t should not jeopardize the financial viability of projects.

The Memorandum with the government about a further support for renewable energy was signed by the European-Ukrainian energy Agency and Ukrainian wind energy Association.

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Ukrainian Association of renewable energy expressed disagreement with the provisions of the Memorandum, insisting in particular on the extension of the s/t for two years during its reduction (after December 31, 2029 – if). It was supported by the European business Association, saying on June 25 about the need for the extension of the two-year validity period of e/t for the receiving of renewable energy facilities, as well as on the consolidation of the maturity of current debt of GP “Guaranteed buyer” to producers of electricity from RES.

The parliamentary Committee on energy and utilities supported for adoption in the first reading the bill №3658 on amendments to some laws of Ukraine concerning improvement of conditions of support of electricity production from alternative energy sources.

The government bill provides, in particular, lower s/t to put into operation in the period from 1 July 2015 until 31 December 2019 solar plants of over 1 MW at 15%, for wind farm turbines with 2000 kW – 7.5% without extending the validity of s/T.