AmCham members welcome the passing the Draft Law #3658 in the first reading, that amends the rules for renewables support and development scheme in Ukraine.
The Draft Law is based on a set of mutual commitments stipulated in the Memorandum of Understanding signed between the Government and renewables investors. The adoption of the Draft Law is crucial for putting an end to the uncertainty in the sector and setting a benchmark for its further development.
At the same time, AmCham members - investors in the solar industry – expect that for the second reading the Draft Law will include a 2-year extension of the Power Purchase Agreement in the case of a 15% feed-in-tariff reduction for solar projects commissioned till the end of 2019. This would make the terms truly voluntary and restructuring, by encompassing the majority of solar investors as well as most wind investors.
The Draft Law will help to avoid a high number of breach of financial obligations in the sector and potential investment slowdown in the renewables sector, minimize potential arbitration cases as well as unblock payment to renewables producers, which has been held up for several months.
The American Chamber of Commerce in Ukraine hopes that Members of Parliament will support Draft Law #3658 in the second reading before Parliament’s summer break ensuring an acceptable environment for solar investors by addressing the solar redline issue in the Draft Law.