The green tariff has become a catalyst for the development of the renewable energy sector (RES) in Ukraine, as foreign and national companies have invested hundreds of millions of dollars in RES projects, while international financial institutions and commercial banks have provided debt financing based on state guarantees.
These projects are in line with the state’s declared goals to achieve renewables capacity growth in future years and have spawned an industry that provides clean energy and promotes Ukraine’s energy independence. Furthermore, according to the often-stated priorities of the new Government on Ukraine’s commitment to attract foreign direct investment to fuel GDP growth, the protection of investments in Ukraine is a top priority. A unilateral retroactive review of the conditions for investors is not acceptable.
AmCham Renewables Committee representatives have actively participated in discussions with the President’s Office, the Parliament, and the Government to achieve a mutually acceptable solution to the current renewable energy sector challenges considering the long- term and predicted regulation of the sector.
Investors developed the latest proposals which reflect the “red lines” of the feed-in-tariff (FiT) voluntary restructuring terms taking into account the potential calculated returns, the investment risk profile of Ukraine, and the necessity to address the outstanding deficit of the Guaranteed Buyer. Such proposals include issues on payments to renewables producers, FiT restructuring for power plants, construction under FiT, imbalance responsibility, curtailment, and stabilization clause.
AmCham Renewables Committee Members believe that such proposals are an optimum solution which may be mutually acceptable to change the regulatory framework of the market, preserve the investment climate of Ukraine’s renewables sector, maintain state guarantees, and prevent initiations of many lawsuits against Ukraine in international arbitration courts.
“We hope that the Government will avoid a unilateral imposition of severe tariff cuts that could be detrimental to the viability of renewables projects and create lasting damage to Ukraine’s fledging FDI environment. The American Chamber of Commerce in Ukraine calls the Government to support the latest investors’ proposals on voluntary restructuring terms while reaching an agreement aimed at resolving the renewables crisis,” commented Andy Hunder, President of the American Chamber of Commerce in Ukraine.