We hope that the Ministry of Finance and Ministry of Energy will work with the Parliament’s Budget Committee to determine the appropriate amount of the bond issue, sufficient to cover 40% of the accumulated debt and ensure 100% of current payments to renewable energy producers (RES producers) for August-December 2020.
Our Members believe that the adoption of Draft Law #4151 amending Law “On the State Budget for 2020” aimed at supporting the production of electricity from renewable energy sources may help the fulfillment of the State's obligations and back up the settlements with RES producers by reducing existing debt and preventing its further accumulation. Providing for the issue of the state bonds, as part of the instruments envisaged by Law #810-IX, the Draft Law will allow RES producers to provide timely payments to the Ukrainian state-owned banks and international financial institutions under their loan agreements.
According to Law #810-IX, which contained the main agreements of the Memorandum of Understanding signed on June 10, 2020, between the Government, National Commission for State Regulation of Energy and Utilities, and renewables associations, the decreased feed-in tariff (FIT) rates were launched on August 1, 2020, reflecting the fulfillment of the investors' commitments.
The commitments made by Ukraine’s Government still need to be met. So far, the Guaranteed Buyer has paid only 27.8% for the electricity purchased from the RES producers in September. As a result, the Government is still de facto in breach of its commitments under the Memorandum and its obligations under existing legislation.