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05.06.2020

STATE RAIDING OR A NEW INVESTMENT POLICY FOR «GREEN» ENERGY?

On June 5, 2020, three leading Renewable Energy associations in Ukraine – the Ukrainian Wind Energy Association, the Ukrainian Association of Renewable Energy and the European-Ukrainian Energy Agency - conducted a joint press conference “State raiding or new investment policy for “green” energy?” in the Interfax-Ukraine news agency.

Ukraine’s energy sector is experiencing an unprecedented crisis resulted from the launching of the flawed electricity market model, the populist actions of the authorities and the lobbying of financial and industrial groups in legislative and executive bodies. At first some decisions and actions seemed to reflect incompetence, negligence and corruption.  But over time a state riding instrument against RES investors has been developed.

Speakers of the press conference included:

  • Ihor Tynnyy, Co-founder of the Ukrainian Association of Renewable Energy
  • Andriy Konechenkov, Chairman of the UWEA Board and Vice-President of the WWEA
  • Carl Sturen, Founder and General Director of Vindkraft Ukraine
  • Oleksandra Humenyuk, Director of the European-Ukrainian Energy Agency

Andriy Konechenkov noted that after long negotiations, which lasted almost 9 months, market players had a feeling of reaching a compromise between investors and the state: “However, now, when Andriy Gerus speaks about the destruction of the “green” energy sector and not considers the consequences for Ukraine, both from the investors and the international community, I would like to understand who determines investor policy in Ukraine? How are investments protected in Ukraine? Who is responsible to the President of Ukraine for putting into practice President’s promises and statements on investment attractiveness of Ukraine?

Andriy Konechenkov also stressed that in order to stabilize the situation in the energy sector and maintain the Ukraine course of decarbonised economy, investors are ready for 80 billion UAH losses because of “green” tariffs reduction. Any further development in this area depends on the President of Ukraine. Therefore, the UWEA really hopes that President of Ukraine Volodymyr Zelenskyy will make a clear and immediate decision and support the Memorandum between Ukraine a RES investors.

Carl Sturen presented the position of foreign investors: “For 9 months, foreign investors have been trying to find a compromise with the Government, However  we are not heard; moreover they try to intimidate us into giving up our projects. Due to non-payment for “green” electricity, we cannot pay off the  loans. Next week, we,  foreign investors and some other market players, are planning to file complaints against SE Guaranteed Buyer” - Carl Sturen informed.

Speakers also noted that slowing down the process of resolving the energy crisis and reaching a consensus between investors and the Government also have a negative impact  on the provision of a loan to Ukraine by the International Monetary Fund .

Video of the press conference: https://www.youtube.com/watch?v=v17-7JHeuos&fbclid=IwAR0HC8iRMihnl2KZtVgFfZc4rRw-FUysaaNAUKlDvbPbQIVMZr94-bIp8lo