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The state reduces debt owed to renewable energy investors

07/ 04/ 2025
  The National Energy and Utilities Regulatory Commission (NEURC), the Cabinet of Ministers of Ukraine, and the Verkhovna Rada are implementing a set of measures aimed at normalising payments in the renewable energy (RES) sector. This has been reported by member companies of the Energy Committee of the European Business Association. These efforts are bringing cautious optimism to investors considering participation in green auctions to build new energy capacities in Ukraine. As of early 2025, current payments have approached the 100% mark – a level not seen in previous years. This has been supported, in particular, by the Verkhovna Rada’s adoption of the law amending certain acts in the energy and heat supply sectors (draft law No. 9381). Among other provisions, this legislation allows for the redistribution of surplus funds generated by NPC Ukrenergo from dispatching activities in 2023–2024 to cover debts on the balancing market owed to industrial renewable generators and household solar producers. The law stipulates the following allocation of surplus income from Ukrenergo’s dispatching operations in 2023–2024: 45% for settling Ukrenergo’s debts on the balancing market, 45% for paying debts to the State Enterprise “Guaranteed Buyer” for industrial RES facilities, 10% for settling debts to universal service suppliers for payments to household solar power plants. Thanks to coordinated efforts by NEURC and Ukrenergo, the distribution of savings from 2023 has already been executed, and a similar allocation of 2024 savings is expected soon, further contributing to the reduction of debt on the electricity market. Stable payments in 2025 have also been supported by NEURC’s long-awaited approval of a balanced transmission tariff for Ukrenergo for the year 2025. This enables Ukrenergo to make full payments for the RES service to the “Guaranteed Buyer”. RES market participants have noted increasing confidence in the state’s commitment to its strategic renewable energy development goals. New projects are now being launched in 2025, with investors ready to accelerate or scale up implementation, provided stable and full financing is ensured. However, a significant outstanding debt of UAH 23 billion still hinders this progress. It is crucial that these funds are returned to investors, as they would be promptly reinvested into the construction of new wind farms and energy storage facilities. According to the “Guaranteed Buyer”, the total debt owed to RES producers decreased from UAH 35.8 billion in September 2024 to UAH 22.3 billion in March 2025 – a reduction of 37.7%. RES electricity payments, which stood at 86% in 2024, have increased to 93% in 2025. Ukrenergo’s payments for the RES service also improved – from 72.9% in 2024 to 85.2% in 2025. As for historical debts, the current situation is as follows: 2022 – UAH 14 billion (63% payment rate), 2023 – UAH 0.4 billion (99% payment rate), 2024 – UAH 7.2 billion (86% payment rate). The business community welcomes the adopted decisions and steps taken to improve the situation with payments to RES investors. At the same time, the state must continue progressing towards fulfilling its obligations and seek further solutions to debt challenges. This is essential to maximise the recovery of Ukraine’s energy potential and enhance energy security.

The National Energy and Utilities Regulatory Commission (NEURC), the Cabinet of Ministers of Ukraine, and the Verkhovna Rada are implementing a set of measures aimed at normalising payments in the renewable energy (RES) sector. This has been reported by member companies of the Energy Committee of the European Business Association. These efforts are bringing cautious optimism to investors considering participation in green auctions to build new energy capacities in Ukraine.

As of early 2025, current payments have approached the 100% mark – a level not seen in previous years. This has been supported, in particular, by the Verkhovna Rada’s adoption of the law amending certain acts in the energy and heat supply sectors (draft law No. 9381). Among other provisions, this legislation allows for the redistribution of surplus funds generated by NPC Ukrenergo from dispatching activities in 2023–2024 to cover debts on the balancing market owed to industrial renewable generators and household solar producers.

The law stipulates the following allocation of surplus income from Ukrenergo’s dispatching operations in 2023–2024: 45% for settling Ukrenergo’s debts on the balancing market, 45% for paying debts to the State Enterprise “Guaranteed Buyer” for industrial RES facilities, 10% for settling debts to universal service suppliers for payments to household solar power plants.

Thanks to coordinated efforts by NEURC and Ukrenergo, the distribution of savings from 2023 has already been executed, and a similar allocation of 2024 savings is expected soon, further contributing to the reduction of debt on the electricity market.

Stable payments in 2025 have also been supported by NEURC’s long-awaited approval of a balanced transmission tariff for Ukrenergo for the year 2025. This enables Ukrenergo to make full payments for the RES service to the “Guaranteed Buyer”.

RES market participants have noted increasing confidence in the state’s commitment to its strategic renewable energy development goals. New projects are now being launched in 2025, with investors ready to accelerate or scale up implementation, provided stable and full financing is ensured.

However, a significant outstanding debt of UAH 23 billion still hinders this progress. It is crucial that these funds are returned to investors, as they would be promptly reinvested into the construction of new wind farms and energy storage facilities.

According to the “Guaranteed Buyer”, the total debt owed to RES producers decreased from UAH 35.8 billion in September 2024 to UAH 22.3 billion in March 2025 – a reduction of 37.7%.

RES electricity payments, which stood at 86% in 2024, have increased to 93% in 2025. Ukrenergo’s payments for the RES service also improved – from 72.9% in 2024 to 85.2% in 2025.

As for historical debts, the current situation is as follows: 2022 – UAH 14 billion (63% payment rate), 2023 – UAH 0.4 billion (99% payment rate), 2024 – UAH 7.2 billion (86% payment rate).

The business community welcomes the adopted decisions and steps taken to improve the situation with payments to RES investors. At the same time, the state must continue progressing towards fulfilling its obligations and seek further solutions to debt challenges. This is essential to maximise the recovery of Ukraine’s energy potential and enhance energy security.

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