The actions of the authorities kill the investment attractiveness of «green» energy — a representative of the industry StopCor

This opinion was expressed by the chairman of the Ukrainian Association of Renewable Energy Alexander Kozakevich round table in Ukrinform on the topic: «Alternative energy in Ukraine: opportunities for investors and producers.»

«The main requirement for the memorandum and negotiations, which lasted a year, is that there can be no claims against us until the end of the» green «tariff. Any change in the operating conditions in this sector should not affect the financial performance of these companies. And at the last moment, during the consideration in the Verkhovna Rada, they voted for an amendment that allows these changes. And judging by the reaction of deputies, we should expect some more changes that will affect the financial performance of investors, «said Kozakevich.

According to him, this significantly reduces the investment attractiveness of tariff reduction for the first «green» power plants built in Ukraine.

It was a big misunderstanding that the first stations built in Ukraine, with a capacity not exceeding 10 megawatts with a total capacity of about 60 megawatts across the country, received the highest «green» tariffs until August 1, because they had large investments and should receive the high «Green» tariff. And they were cut, according to the memorandum, first to 53%, and then the law slightly improved to 47%. It kills investment attractiveness, «Kozakevich said.

In addition, in his opinion, it is not common sense to forcibly restructure the industry in the form of lower tariffs for «green» energy.

«It is unclear how an investor can agree to restructuring simply by lowering tariffs. Common sense would require at least some extension of the «green» tariff to make it look like voluntary restructuring. We agree to reduce the tariff now, but give us a period for which this «green» tariff continues, «Kozakevich stressed.

He also considers the cost of borrowed capital to be too high, which in Ukraine is up to 10%. For comparison, in Germany with its high level of «green» energy — only 1.5%.

As reported, on June 10, the Cabinet of Ministers signed a memorandum with electricity producers from RES, who agreed to reduce tariffs. This agreement stipulates that the Ukrainian authorities undertake to set and approve annual quotas in support of green energy and provide for auctions to allocate such quotas. Instead, the manufacturers agreed to adjust the commissioning of new facilities at a «green» rate. Thus, from August 1, 2020, new solar power plants with a capacity of more than 1 MW will be able to be put into operation with state support only by participating in auctions.

On July 21, the Verkhovna Rada passed a law «On Amendments to Certain Laws of Ukraine on Improving the Conditions for Supporting the Production of Electricity from Alternative Energy Sources.» It enshrines key provisions of the government’s memorandum with green energy producers and reduces energy tariffs for solar power plants by 15% and for wind power plants by 7.5%, which will allow the state and all Ukrainians to save almost UAH 7 billion annually. And by 2030, the memorandum will reduce payments to the «green» generation by about 2 billion euros.