Yesterday (November 28th, 2019) Ministry of energy and environmental protection of Ukraine shared initial version of the draft law on the changes to the “green” tariff support system. Next week the draft law will be registered in the Parliament.
Yesterday (November 28th, 2019) Ministry of energy and environmental protection of Ukraine shared initial version of the draft law on the changes to the “green” tariff support system. Next week the draft law will be registered in the Parliament.
According to the Ministry of Energy the proposed changes are caused by expected huge deficit of Guaranteed Buyer’s budget for payments to RES producers operating under the “green” tariff.
Proposed changes for commissioned and operating projects
Voluntary reduction of the “green” tariff:
- for solar projects – reduction by 17% with PPA extension until January 1, 2035;
- for wind projects – reduction by 10% with PPA extension until January 1, 2035.
Only projects that were commissioned after January 1, 2017 till 2020 and that have applied for restructuring by April 1, 2020 will be allowed to restructure their “green” tariff. New PPA is intended to have a stabilization clause against legislative changes and will establish a fixed “green” tariff amount.
Commissioned and operating projects are allowed to continue working under the current state support scheme without reduction of the “green” tariff and prolongation of the PPA term. At the same time, changes in relation to imbalances will be applicable to them as well.
Proposed changes for projects under development that have entered into prePPA
Option 1. Voluntary reduction of the “green” tariff:
- for solar projects – reduction by 15% with PPA for 15 years;
- for wind projects – reduction by 10% with PPA for 15 years.
In order to be eligible to the proposed restructuring the extended prePPA shall be concluded by April 1, 2020 and what is more important and complicated – solar projects have to be commissioned until July 1, 2020 and wind projects – until January 1, 2021.
Option 2. “Green” tariff will be effective since 2020 until 2030 under the current rates. However, such option will be applicable only to solar plants commissioned until April 1, 2020 and for wind plants commissioned until January 1, 2021.
Changes in liability for imbalances
For non-restructured projects:
- until December 31, 2020 – 0 %;
- since January 1, 2021 – 35%;
- since January 1, 2022 – 70%;
- since January 1, 2023 – 100%.
For voluntarily restructured projects:
- until 31 December 2020 – 0 %;
- since 1 January 2021 – 20 %;
- since 1 January 2022 – 40 %;
- since 1 January 2023 – 60 %;
- since 1 January 2024 – 80 %;
- since 1 January 2025 – 100%;
The draft law is subject to review by the parliamentary committee after official submission and provided provisions can be changed.