On June 10, 2020, the Government of Ukraine and authorized representatives of the European-Ukrainian Energy Agency and the Ukrainian Wind Energy Association signed the Memorandum of Understanding for the resolution of problematic issues in the renewable energy industry of Ukraine.
Brief summary of key MOU provisions is presented below:
Repayment of debts from the Guaranteed Buyer to RES producers:
40% – Q4 2020,
60% – during 2021 in 4 equal quarterly installments.
Full and timely monthly payment from the Guaranteed Buyer to RES producers: from the month following the month when respective Law (implementing the MOU conditions) comes in force.
Solar pre-PPA “cut off” date: 31 July 2020
Wind pre-PPA “cut off” date: none (current legislation remains in force, e.g. 3 years from pre-PPA signing date)
Wind FIT reduction (no PPA extension) by commissioning period:
2020-2022: -2.5%
01/07/2015-31/12/2019: -7.5%
Solar FIT reduction (no PPA extension) by commissioning period:
01/01/2020-31/07/2020: -2.5%
01/07/2015-31/12/2019: -15.0% for SPPs with capacity equal or above 1 MW / -10% for SPPs with capacity below 1 MW
Before 01/07/2015: special FIT “cap” of 220 EUR/MWh has been introduced
Curtailment: no changes (current legislation remains in force, e.g. full compensation at FIT)
Balancing responsibility: 50% from 2021; 100% from 2022
Forecast tolerance margin (until end of 2029): 5% solar, 10% wind
