The start of construction of new renewable energy power plants in Ukraine is once again under threat due to the issue of non-payment for already generated electricity, which prevents companies from having sufficient funds to implement planned projects. This was reported by the Ukrainian Wind Energy Association (UWEA) following a working meeting with the Secretariat of the Energy Community, which has developed a roadmap for the development of Ukraine's renewable energy sector and the resolution of existing market issues by the end of 2024.
According to the association, producers of "green" electricity reiterated that without settling the outstanding debt of 17 billion UAH, ensuring a project insurance mechanism, and incentivizing international investors to invest in the Ukrainian economy, the development of new generating capacities is at risk.
UWEA notes that the problem of debt in the market can be addressed by providing companies with the opportunity to receive financial assistance from the state, including in the form of government bonds. At the same time, according to experts' calculations, Energoatom is capable of repaying potential debt with government bonds by the end of 2025, thanks to the reduction in the burden of special duties for the population starting from June 1 of the current year.
Market participants also emphasized the need for timely revision of the transmission tariff by NPC Ukrenergo to avoid accumulating new debts in payment for transmission services amidst increasing the share of renewable energy production and to be able to settle existing debts.
"We want to note that NEURC initiated the tariff review process for transmission at the beginning of June 2024, however, as of the end of the month, no decision has been made on this issue," the association stated.
Producers highlighted the need to maintain the current support mechanism for electricity production from renewable energy sources, specifically the presence of special obligations in the tariff for electricity transmission services towards increasing the share of electricity production from renewable energy sources.
