“Declaration of the “green” tariff as unconstitutional is an unprecedented sort of pressure on industry,” UWEA noted.
On September 9, 2020, Public Union “Ukrainian Wind Energy Association” applied to the Constitutional Court of Ukraine on possibility to participate in involving to the constitutional proceedings initiated by 47 MPs of Ukraine to declare some provisions of the Law of Ukraine No 555-IV “On Alternative Sources of Energy” dd 20.02.2003 and the Law of Ukraine No 2019-VIII “On Electricity Market” dd 13.04.2017 as unconstitutional. More specifically, the deputies considered introduction of he “green” tariff mechanism as unconstitutional.
Considering that the UWEA members actively involved in the RES sector of Ukraine in line with the above mentioned Laws and sell electricity at “green” tariffs, impartial proceedings is impossible without taking into account the position of the whole industry, which is one of the largest contributors to the State budget of Ukraine. Thus, during 2020, RES producers paid to the State budget approximately UAH 20 billion in taxes.
Andriy Konechenkov, the Chairman of the UWEA Board, convinced that declaration of certain provisions of the laws as unconstitutional would have a negative impact on Association's members, as it would significantly reduce the opportunities for wind electricity producers, and investment activity in Ukraine, as the RES sector is the largest recipient of foreign investment.
“Historically, the “green” tariff is one of the main instruments for stimulating the production of “green” electricity. In Ukraine “green” tariffs became an economic engine for a successful development of the RES industry. The declaration of the “green” tariff as unconstitutional is an unprecedented pressure on industry. That is why the UWEA, by bringing together leading market participants, seeks to safeguard the rights and interests of both, national RES market and foreign investors, through providing the Court with all necessary information about “green” tariff practices in the European and Ukrainian markets,” stated Andriy Konechenkov.
The UWEA noted that the declaration of some legislative provisions as unconstitutional could lead to the bankruptcy of many RES producers and as a result, to the reduction in tax revenues to the State budget; loss of investments and international investor confidence in Ukraine, as well as Ukraine's failure in the “green” energy transition.