Ukraine reveals prepare for retroactive FIT cuts

Mar 2, 2020 12:00 PM ET
  • The federal government has actually recommended PV plant drivers approve a 'volunteer' 12.5% decrease in feed-in tolls. If designers decline, policymakers can enforce 15-25% cuts, albeit with repayment agreements expanded 5 years. The radical steps are being thought about to minimize the price of the state-owned Guaranteed Buyer body, which acquires all electrical power created in Ukraine from renewable resource centers.
Ukraine reveals prepare for retroactive FIT cuts
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The Ministry of Energy as well as Environmental Protection of Ukraine is taking into consideration lowering feed-in tolls (FITs) for existing huge range PV plants 15-25%, profession body the Ukrainian Association of Renewable Energy (UARE) has actually informed pv magazine.

A statement to that result was apparently made by Konstantyn Chyzhyk, head of workplace at non-governmental business the National Investment Council, throughout the Ukrainian Energy Forum occasion.

The FIT cuts present would certainly see solar plants with a generation capability of approximately 10 MW shoulder a 15% decrease in repayments with the number rising to a 20% cut for 10-50 MW projects and also 25% for bigger centers. Chyzhyk apparently used to soften the strike for designers by prolonging the regard to impacted ten-year agreements by 5 years.

The FIT program which ended at the end of in 2014 paid big range, ground-mounted PV projects EUR0.1502/ kWh over a duration of 10 years.

' Voluntary'.

An option technique of decreasing the price of supporting Ukrainian solar would certainly see programmers of PV projects of all dimensions consenting to take a "volunteer" 12.5% FIT decrease. Russian press agency Interfax reported Chyzhyk informed the power discussion forum on Thursday: "The reasoning of this alternative is that such a decrease is a lot smaller sized than a decline [integrated with] expanding the repayment term. [Either] you pass restructuring, prolonging the settlement term however at the same time you reduced the feed-in toll by a bigger portion, or you [do] not expand [the] settlement term yet at the same time take a somewhat reduced toll decrease.".

With Ukraine presently saving solar programmers expenses of discrepancy-- the responsibility to economically make up the grid for over or under-production from their generation properties-- the National Investment Council head of workplace supposedly cautioned, project proprietors that do not consent to volunteer cuts will certainly deal with the intro of such settlements this year. Programmers that play ball, nonetheless, will certainly not need to pay such prices till 2022, Chyzhyk apparently recommended.

The power discussion forum likewise apparently listened to the suggested retroactive FIT cut for wind power centers would certainly be 10% integrated with five-year repayment agreement expansions.

Capitalist self-confidence.

Renewables lobby team the UARE stated the propositions contradicted strategies introduced by Ukrainian head of state Volodymyr Zelensky to draw in renewables financial investment.

" If the proposition of the ministry ... will certainly be applied, the nation will certainly shed the count on of financiers and also the strategy of bring in $50 billion of financial investments within [the] following 5 years will certainly [fall short]," the profession body mentioned.

The organization exposed the federal government had actually remained in talks with the renewables market considering that October as it tries to decrease a monetary shortage at the Guaranteed Buyer, a state-owned body which should buy all renewable resource created in Ukraine.

" Since that time [October] a great deal of functioning team conferences were held where capitalists provided modifications that can be appropriate for them," the UARE claimed. "Unfortunately, supplies provided by the Ministry of Energy and also Environmental Protection of Ukraine on Thursday are much various from those capitalists can settle on. The suggested modifications are not appropriate for the manufacturers of power from renewable resource resources, as they will certainly bring about ... financial investment default.".


The organization included, there are currently hold-ups in renewable resource repayments which adversely impact market and also capitalist view.

The UARE claimed its participants had actually suggested a 10% FIT cut for tidy power centers with a generation ability of as much as 10 MW and also 15% for bigger projects, with the decrease used just to centers functional from the beginning of 2017 throughout of in 2014. In return, designers requested for agreement expansions throughout of 2034.

The profession body requested tiny solar projects-- with a capability of less than 1 MW-- to be exempted from prices of inequality responsibilities together with all centers which went into procedure prior to June 11, 2017, when an 'On Electricity Market' legislation entered into pressure. In case of federal government prepare for a volunteer FIT cut to be supplied, the UARE recommended programmers that do decline such settlement decreases can pay prices of inequality from following year. Designers that approved such a settlement regression, recommended the profession body, can pay just 10% of such prices following year, with the percent increasing 10% each year to strike 100% in 2030.

Ukraine had 1.3 GW of mounted PV ability at the end of 2018, according to International Renewable Energy Agency stats. Huge projects appointed in 2015 consisted of a 240 MW solar plant as well as a more 240 MW of net-metered roof PV was likewise released, making sure the country presently flaunts at the very least 1.8 GW of solar ability.

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