Ukraine Wind Energy Association calls upon National Energy and Utilities Regulatory Commission (NEURC) to set deadlines for approval of the cost of Guaranteed Buyer’s service to enhance the RES electricity generation share in electricity mix of the country (hereafter - Guaranteed Buyer’s service cost) in order to solve the problem related to delays in payments to “green” energy entities.
At present, there is a problem of untimely payments to the RE producers from SE Guaranteed Buyer. One of the reasons for systemic budget deficit of SE Guaranteed Buyer is absence of deadline for the NEURC to approve Guaranteed Buyer’s service cost.
According to the UWEA, the law stipulates that SE Guaranteed Buyer shall receive funds from the NEC Ukrenergo for further settlements with the RE generators only after the NEURC’s approval of the Guaranteed Buyer’s service cost. It is worth noting that the delays in approving the relevant documents were caused precisely by the NEURC itself. For example, Guaranteed Buyer’s service cost covering December 2019 was approved by the NEURC only on February 7, 2020. Therefore, renewable energy producers will receive final payment for December 2019 only in February 2020 instead of January 2020.
Therefore, the UWEA requests the NEURC to amend Resolution No 641 dd. 26.04.2019 and establish time limit for Guaranteed Buyer’s service cost approval.
“We respectfully ask to schedule the relevant legislative amendments for consideration for the NEURC next meeting after receiving documents from the Guaranteed buyer,” the UWEA`s appeal states.
The UWEA also stressed importance of timeliness of payments, since most investors attracted external funds for the implementation of their projects in Ukraine.
“Moreover, delays in payments to RES producers lead to violations of payment terms under loan agreements entered into between RES generators and financial institutions for the purpose of financing their projects. Such situation, in turn, creates mistrust among financial institutions both to the Ukrainian renewable energy sector and energy industry in general. Also, this problem complicates future financing of energy projects and increases the cost of such financing,” summarizes the UWEA`s letter.