The European Bank for Reconstruction and Development (EBRD) said on July 16 the bank “is seriously concerned about the current situation in the Ukrainian Renewable Energy Sector”.
Mediation led by the Energy Community Secretariat between renewable energy investors and the Ukrainian authorities aiming to find a balanced and consensual restructuring of the renewables support scheme is a positive development, the EBRD said, warning, however, that while the process has secured agreement in many areas, it continues to raise concerns with many investors, who may face material financial losses if it is implemented in the current form.
The Verkhovna Rada is now considering Draft Law 3658, based on the memorandum. ‘While the EBRD supports many of the elements in it, we urge the administration and legislators to continue their dialogue with investors in order to reach a consensual solution which is supported by the sector as a whole,” the bank said in a statement.
According to the EBRD, Ukraine’s renewable sector so far has delivered more than 5 GW of clean, local electricity generating capacity, creating jobs and paying taxes across the country, while attracting billions of Euros of domestic and foreign investment. “The EBRD therefore urges all stakeholders to preserve this success,” the statement read, adding that consensual solution would reduce the cost of renewable electricity for consumers while also demonstrating, both at home and abroad, the resilience, stability and predictability of the Ukrainian investment environment.