The renewable clean energy market in Ukraine (wind, sun, bio-, hydro-) has been in a fever since spring.

On May 8, the Ministry of Energy and Environmental Protection of Ukraine reported that following a video conference held with representatives of the World Bank, recommendations were received for the Ukrainian government to postpone the commissioning of new power plants operating on renewable energy sources (RES). In addition, recently, government representatives have been actively discussing the thesis on the need to revise the rates of the “green” tariff set for producers of electricity from renewable sources, such as sun and wind.

On June 10, Cabinet of Ministers signed a memorandum with renewable energy producers who agreed to cut tariffs. The document says that producers of “green” energy voluntarily agreed to restructure tariffs in the direction of their reduction.

“In particular, for all objects of the electric power industry that produce solar energy, it is planned to reduce tariffs by 15%, for objects that produce electricity from wind energy – by 7.5%.” Also, this agreement provides that the Ukrainian government undertakes to determine and approve annual quotas for support of “green” energy and ensures the holding of auctions for the distribution of such quotas. At the same time, the memorandum strengthens the responsibility of green energy producers for unbalanced electricity production.

By this moment the share of energy from renewable sources (RES) is about 2% of all generation, and its cost is almost 9% of the turnover on the electricity market.

This financial burden is caused by the “green” tariff tied to the euro. The tariff approved several years ago is one of the highest in Europe. It no longer reflects the real cost to be invested in building a solar or wind power plant in terms of capital costs.

Therefore, the government approved an updated energy balance, which provided for smaller volumes of nuclear energy production in favor of “green”. Also, the Ministry of Energy proposed to ban the commissioning of new solar and wind power plants.

These innovations do not apply to biowaste energy producers. Our thermal power plant (TPP), which will work with sunflower husk obtained in the process of oil production at the factories owned by the group, has not been affected by the changes in legislation. Sunflower husk is an environmentally friendly renewable fuel and the technology for its processing is still one of the most widespread. And we took part in the development of renewable energy in Ukraine with the idea that our children will live here.

In August, our TPP has already reached the planned capacity of 7 MW, however, a number of nodes require increased attention to achieve maximum stability.

Talking about terms of payments, in August we received about 60% of our energy production; the rest of the amount is guaranteed to be transferred in the near future.

With kind regards, team of GC “Agroliga”.