Entered into force the long-awaited changes to support “green energy”
KIEV. August 12. UNN. August 1, 2020, entered into force changes in Ukrainian legislation concerning the support of electricity production from alternative sources (law on RES). Overview of provisions of law made by experts of the European business Association, reports UNN.
First and foremost – the law on renewable energy reduced the “green” tariff. With the updated tariffs can be found here.
“The decline for solar power plants (SPP) and wind power plants (WPP) already operating and are under construction. The degree of reduction “green” tariff depends on the type of technology (solar or wind), the production capacity and dates of commissioning,” – said the Association, adding that the RES law does not extend the validity of contracts for the sale of electricity at “green” tariff (PPA) more than the current date is January 1, 2030.
In the EBA informed that the new law does not set a date for the commissioning of renewable energy projects. But, the RES law restricts new solar generation by the radical reduction “green” tariff. So, solar power with capacity more than 1 MW and commissioned after November 1, 2020, experience, the reduction rate from 30% to 60%.
Moreover, the RES law introduces the so-called “stabilization” position. According to him the rates of “green” tariff will not decrease in the future.
“Renewable energy projects are protected from changes in the Ukrainian legislation, which may take place after the entry into force of the law on renewable energy”, written in the EBA, adding that “stabilization” does not apply to changes of legislation in the spheres of defence, national security, public order, protection of the natural environment.
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Another innovation is the increase in the allowance for renewable energy projects commissioned between 1 July 2015 and 31 December 2024. Such allowance will be issued to the investors in the construction of power plants use equipment of Ukrainian origin.
“The allowance is paid in addition to the “green” tariff and is calculated by multiplying the rate of “green” tariff coefficient. The national Commission sets the premium based on the calculations and documents”, – said in the EBA.
Financial responsibility for the unbalance – it will not change only for RES projects with a capacity less than 1 MW. For them, continues to be a transitional period for the gradual introduction of responsibility for the unbalance.
“Beginning in 2021, these renewable energy projects will pay only 10% of the cost of settling off-balance sheet activities. This percentage will increase annually by 10% until 2030. However, for renewable energy projects greater than 1 MW the share of financial responsibility will be 50% in 2021 and 100% in 2022,” write the experts.
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In addition, the law on renewable energy sources, reduces the margin of error in predicting electricity for all renewable energy projects.
“Preliminary regulatory responsibility for the unbalance was not applied in the case of deviations of actual hourly volumes of electricity supply from the hourly vacation schedule less than 10% for solar and 20% for WPP. The RES law reduces the permissible deviations up to 5% for SES and 10% for wind power stations”, – told in the Association.
Also, the law on renewable energy sources aims to repay the growing debt in the “green” tariff.
For this you need to:
▪ this is the transmission system operator “Ukrenergo” (OSP), was passed 35% of the income derived from the distribution of throughput of interstate section, “guaranteed buyer” for repayment of the debt;
▪ now, the government submitted the bill to November 1, 2020, to issue bonds of internal state loan with a maturity of 5 years for the same purpose.
In the EBA added that the government can provide for the financial support of the “guaranteed buyer” for payment of “green” tariff in the amount of not less than 20% of the projected electricity production from RES.
“Guaranteed buyer” can sell electricity through bilateral contracts. Rate swaps for the transmission of electricity should include funding that OSP provides a “guaranteed buyer” to provide payments for “green” tariff,” – said in the Association.
We will remind, a Memorandum with the producers of “green” energy and the corresponding bill prepared by the head of the energy Ministry Olga Bukovec and approved by the Cabinet. Summing up his first 100 days for Ministerial positions Ministry of energy, Bukovec said that the reduction of “green” tariffs was one of its main priorities.