12:38 24.06.2022

No possibility to pay for RES generation in full this year - adviser to PM

3 min read
No possibility to pay for RES generation in full this year - adviser to PM

There is no possibility to fully pay to producers of "green" electricity this year, Yuriy Boiko, the adviser to the prime minister of Ukraine, a member of the supervisory board of Ukrenergo, believes.

"Given the unlikely revision of the Ukrenergo transmission tariff with a significant increase, we can conclude that this year it is not possible to pay the feed-in tariff in full," Boiko said in an interview with Interfax-Ukraine.

At the same time, he noted that it is possible to increase the amount of funds for producers of "green" electricity. According to him, this can be done in two ways: either to revise the amount of payments established by the order of the Ministry of Energy, or to temporarily provide such producers with the opportunity to leave the Guaranteed Buyer balancing group and independently sell electricity on the market.

Boiko explained that the second way provides for the suspension of the feed-in tariff for the duration of the war and six months after the lifting of martial law, and then its restoration and extension for the same period.

"The main consequence of leaving the Guaranteed Buyer balancing group for all "green" producers is the money that they would receive without delay. And, of course, the experience of working in a competitive market. Especially in the context of the future expansion of exports to Europe, I am convinced "green" electricity will be in great demand abroad," the prime minister's adviser said.

According to him, smaller than the feed-in tariff, but quick money that can be obtained from the market, for many may be a more interesting alternative from an economic point of view. This idea remains open for discussion, and the prospects for its implementation depend on the activity of the "green" themselves," Boiko said.

At the same time, he clarified that Ukrenergo today pays compensation for the feed-in tariff "as far as possible", taking into account, in particular, the reduction in electricity consumption, and, accordingly, the volume of transmission, the proceeds from payment of which go to settlements with green producers.

"But even if we assume that Ukrenergo will increase the volume of payment for the service, then in the current model, let me remind you, Guaranteed Buyer will still pay the "green" companies in the amounts indicated in the order of the ministry (as a percentage by type of generation of the volume of electricity produced, from 15% for solar power plants and 60% for bio-thermal power plants). If these percentages are not changed, then "green" electricity producers will not have more money," Boiko explained.

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