The Ministry of Energy and Environmental Protection has developed the terms of a memorandum on reducing the “feed-in” tariff for SES by 15%, for wind farms – by 7.5%. It is proposed to set the upper limit of the feed-in tariff at 22 eurocents per kWh.
This is stated in the presentation of the terms of the memorandum of the Ministry of Ecology, which are available to BusinessCensor.
According to the interlocutor of BC in the Ministry of Energy, this presentation was presented to President Vladimir Zelensky, but he refused to approve it.
According to the terms of the memorandum, it is proposed to reduce the “feed-in” tariff for SES put into operation by 2020 by 15%. For SES put into operation in 2020 and later – another 2.5%. The overall effect of the decrease compared to 209 is 27.5%.
It is proposed to reduce the “feed-in” tariff for wind farms put into operation by 2020 by 7.5%, and those introduced after the beginning of 2020 by another 2.5%. The overall effect of the decrease compared to 2019 is 12.5%.
The marginal “feed-in” tariff for renewable energy sources (RES) is proposed to be reduced by 52% to 22 eurocents per kWh.
The tariff is reduced for all objects without prolongation of terms of support. As you know, support for renewable energy should end on December 31, 2029.
The Ministry of Energy also proposes to limit the validity of the Pre-PPA (preliminary agreements for the sale of “green” energy) for SES – until June 30, 2020, for wind farms – until December 31, 2022.
It is also proposed to accelerate the responsibility of RES for imbalances. From 2021 – up to 50%. From 2022 – up to 100%. It is also proposed to reduce the period of permissible error of the forecast without liability for imbalances from July 1, 2020, and not from December 31, 2029, as prescribed by law.
For its part, the state undertakes:
- Pay for “green” electricity on time from July 1, 2020.
- Repay the current debt to the “green” (UAH 9 billion) by the end of 2021.
- In the future, do not change the conditions of support for electricity producers with a “feed-in” tariff.
- Introduce quotas for RES and start auctions to allocate these quotas.
- The Ministry of Energy and Energy estimates the effect of the implementation of such measures at UAH 6.6 billion per year, or EUR 2.2 billion for the entire support period.
Investors, for their part, in return for such a reduction in tariffs demand to extend support for renewable energy for 5 years for facilities introduced in 2017-2019 – until 2035. For 15 years from the date of commissioning for facilities commissioned after 2020.
According to the Ministry of Energy, each year of prolongation of support for renewable energy increases the overpayment on the “feed-in” tariff by 0.8 billion euros.
We will remind, in the previous project of the memorandum the government offered to reduce the tariff for SES by 25%, for VES – by 12,5%.