Economy 2021-02-16T04:02:06+02:00
Ukrainian news
Amount Of Compensation To Electricity Producers From RES Will Be USD 10-20 Billion By 2029 - Vitrenko

Amount Of Compensation To Electricity Producers From RES Will Be USD 10-20 Billion By 2029 - Vitrenko

compensation, Yurii Vitrenko, RES

Acting Minister of Energy Yurii Vitrenko states that the amount of compensation to producers of electricity from renewable energy sources (RES) will amount to USD 10-20 billion until 2029.

He stated this during a public discussion of the draft national economic strategy-2030, Ukrainian News Agency reports.

“We must understand that if we look at the difference between the green tariff and the market price, multiply this by the validity period of the green tariff until 2029, then the amount of compensation from the state budget to investors in green energy will be from USD 10 to USD 20 billion. Unfortunately, in Ukraine, we have a situation where the established green tariff is several times higher than the market price," Vitrenko said.

He noted that for a country like Ukraine, the amount of USD 10-20 billion is a problem.

Vitrenko also added that now green energy does not benefit the energy system, but rather unbalances it.

"In addition to the problem with coal generation that we have, such an unbalanced approach to the development of green energy has created problems for us with debt to green investors," he stressed.

Besides, Vitrenko noted that compensation for the green tariff is due to the tariff for the transfer of the Ukrenergo national energy company, which the company pays for household consumers and businesses.

"In Ukrenergo's tariff, two-thirds are actually compensation for the green, and one-third are their costs. Compensation from the Ukrenergo tariff is now more than the cost of electricity that Energoatom receives, which compensates for this electricity. Only the difference, which is actually not consumed by the population, is more than the cost of electricity that Energoatom receives,” Vitrenko summed up.

As Ukrainian News Agency earlier reported, Prime Minister Denys Shmyhal said that on February 4, the Guaranteed Buyer state enterprise will make the first tranche to pay off the debt to electricity producers from renewable energy sources (RES).

In June 2020, two of the three associations that include investors in renewable energy sources (RES) signed a memorandum on a voluntary reduction of the green tariff.

In January, the Ukrenergo national energy company signed loan agreements with three state-owned banks for UAH 10.25 billion to pay off debt to the Guaranteed Buyer state-owned company.

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