The document spelled out in the fourteen points.
In the Memorandum signed between the government and renewable energy producers on 10 June, declared the need for a speedy transition to a system of auctions on distribution of quotas for support of renewable energy. About it writes the edition Westie, who is the last agreed version of the text document.
Besides, the text clearly indicates the need to solve the budget deficit of the state enterprise “Guaranteed buyer”.
According to the publication, it is noteworthy that in the negotiation process involved “Troika” of international creditors of Ukraine and ambassadors of countries represented investors in renewable energy and are party to the negotiations.
Standards prescribed in 14 paragraphs of the Memorandum. The publication highlighted the most important positions:
- State agencies before August 1 of the current year will propose and support changes in the laws of Ukraine “About alternative sources of energy”, “On electricity market” and other laws governing the restructuring of “green” tariffs.
- NKREKU and “Ukrenergo” will provide the development and adoption of normative framework for defining compensation for undeveloped energy producers of renewable energy. That is specifically will implement a guaranteed compensation for the limitation upon the operator’s request.
- The adoption of amendments to the laws “On foreign investments” and “On alternative sources of energy.” Thus the power at the legislative level will strengthen the “integrity” of the special status of “green” investors, in particular foreign companies. This will prevent renegotiation, even in extraordinary circumstances.
- Providing your current payment is a “Guaranteed buyer” producers of renewable energy for electricity with the month following the month in which the act of understanding will enter into force. This means that producers of “green” megawatts will have absolute priority over nuclear power plants.
- Ensuring repayment of debt “Guaranteed buyer” to producers of renewable energy starting 1 January 2020 before 31 December 2021. According to this schedule: 40% in the 4th quarter of this year, 15% on a quarterly basis for 2021.
- The revision of the tariff “Ukrenergo” for the transmission of electricity and the possibility of using other revenues to ensure a “Guaranteed buyer” meet financial obligations to the RES producers. According to media reports, this decision benefit investors and suggests possible increase in tariffs for Ukrainian consumers.
- State agencies, state-owned banks and the NBU will assess the impact of the terms of restructuring the “green” tariff to their solvency in the framework of loan programs for implementation of renewable energy facilities. That is, the national Bank may provide investors with incentives to pay the loan.
- The Ministry of energy will update its annual forecast balance sheet for the adjustment of a tariff for transmission services with respect to its cost of services the increase in the share of production of renewable energy.
- Approval of the annual quota support within two months from the date of entry into force of the law on agreements and conduct auctions on distribution of quotas for the support of RES producers to the end of 2020.
In theory, selling green power in competitive auctions reduce its cost. However, producers of renewable energy provided for repayment of all volume at the price determined at auction. In fact, it does not guarantee a reduction in the cost of “green” energy and can contribute to the implementation of the various schemes support the “right” manufacturers.