Payments to RES producers

As of November 16, 2020, the Guaranteed Buyer has paid to RES producers the following amounts:

UPDATE-IN-RENEWABLES-SECTOR

 

Increase of Transmission Tariff of Ukrenergo[1]

  • Starting from 1 December 2020 the transmission tariff will be increased by 30% from UAH 240 to UAH 312.76.
  • In addition, the National Energy and Utilities Regulatory Commission is now planning to set the transmission tariff for 2021 on the level of UAH 309.80 . The relevant resolution will be publicly discussed on 25th November 2020.

 

According to the calculations, the increase of the transmission tariff shall secure around 80% of payments expected to be paid to RES producers for the generation in 2021. The Government still has to fund the remaining 20%.

State Guarantees to NEC “Ukrenergo”

On 17 November 2020, the Parliament of Ukraine has adopted the Law of Ukraine “On Amendments to the Law of Ukraine “On the State Budget of Ukraine for 2020 (regarding the implementation of Article 11 of the Law of Ukraine “On Gas Market”)”.

The law entitles the Cabinet of Ministers of Ukraine to provide state guarantees to NEC “Ukrenergo” for raising financing in order to pay its debts to the Guaranteed Buyer.

This law is an important step in implementation of the obligations of the Government provided in the MoU with the RES producers signed in June 2020, according to which the Government has undertaken to settle 40% of the debt accumulated towards RES producers in 2020 by the end of this year.

The law still needs to be signed by the President to become effective.

In this connection, according to Mr Yuriy Draganchuk, the Deputy Finance Minister, the Finance Ministry is not considering issuing hryvnia government loan bonds to pay debt owed to solar and wind producers of electricity, thus relevant financing will be raised through either state banks or international financing institutions.

[1] Transmission Tarif is prime income source of the Guaranteed Buyer for payments to RES producers