Ukrainian green energy, which once demonstrated dynamic growth, today faces a number of financial difficulties. Andrian Prokip, an expert in the "Energy" program of the Ukrainian Future Institute, emphasized the need to fulfill state obligations to investors in renewable energy. As he emphasized, it is important to ensure a full settlement with producers and liquidate accumulated debts.
Back in 2020, a memorandum was signed between the government and producers of renewable energy sources (RES). The agreement provided for a voluntary reduction of "green" tariff rates in order to reduce the financial burden on the state. Producers agreed to receive less, but hoped for stable payments in the stipulated amount.
According to Prokip, this agreement provided that part of the tariff — about 20% — would be financed by the budget. However, according to the expert, these funds were not included in the budget, and payments were transferred to NEC "Ukrenergo". This caused significant indebtedness to RES producers.
To reduce debt pressure, Ukrenergo issued green Eurobonds worth more than $800 million. However, due to problems with corporate governance and persistent funding shortfalls, the company declared technical default in October. According to Prokip, this is not the first time that "Ukrenergo" is forced to take out loans to pay producers, while debts to the company itself are only accumulating.
Another revision of the electricity transmission tariff is currently on the agenda. The regulator proposes to reduce the justified tariff by 25%, although the legislation requires full coverage of Ukrenergo's costs. Such reduction, according to experts, will further aggravate the financial crisis in the company.
For his part, the adviser to the Prime Minister of Ukraine and a member of the Supervisory Board of "Ukrenergo" Yuriy Boyko predicts an increase in debt for the current year by another 8 billion hryvnias. If the situation does not change, debts to RES producers will only grow.
Renewable energy remains an important part of Ukraine's energy security. At the same time, the failure of the state to fulfill its financial obligations endangers its further development. According to experts, Ukraine urgently needs to implement transparent and long-term financial mechanisms to support green energy and avoid default in the industry.
