Ukraine should remain a country with predictable laws and regulations

17-12-2018

Specialized associations together with the EBA and the Office of the National Investment Council called on deputies to adopt a draft law that will allow the green energy market to develop.

We will know already this Thursday whether the MPs will give a green light to the Ukrainian alternative energy or not. It is planned to put the draft law No.8449-d on amendments to some laws of Ukraine regarding the provision of competitive conditions for the electricity production from alternative energy sources to a vote in the first reading on that very day. This was announced by the Chairman of the Ukrainian Association of Renewable Energy and Head of the BRDO Energy sector Oleksiy Orzhel at a press conference in the UNIAN press center on December 17.

“The draft law No.8449-d is the draft law that has been finalized by using the compromise text of seven proposed draft laws, the approval of which has been awaited by all for more than six months,” Oleksiy Orzhel said. “So, we hope that its fate will be determined in the first reading this very Thursday. And we are here to emphasize the importance of its adoption.”

Specifically, the Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine Serhiy Savchuk told about the necessity of the fastest changes in the legislation.

“We present our comprehensive and finalized draft law that will make energy more sustainable and affordable. And, if this law is adopted already this Thursday, this will enable Ukraine to start working towards auctions already in the first quarter of next year. Thus, in 2019, test demonstration auctions will be conducted to establish a model of working, and from 2020, all auctions will be conducted on Prozorro,” the Head of the State Agency on Energy Efficiency said.

He also stressed that the issue of preserving the country’s investment potential was important, as investors would not stay long in unpredictable markets. According to Savchuk, if the law is not voted, large financial institutions will not provide credits for construction of green energy facilities.

“We hope that this draft law will be voted, and we are here to publicly ask all factions to vote for this draft law, which is extremely important for the industry,” Serhiy Savchuk said.

The Co-Chairman of the EBA Fuel and Energy Committee Maksym Sysoyev added that the delay in adopting the law, first of all, created uncertainty for investors.

“We agree that it is necessary to introduce auctions very carefully. Therefore, we carefully approached these issues and focused on loyalty of the system to all market participants. For example, it takes into account the experience of introducing auctions in European countries, in particular, in France. At present, uncertainty lasts more than half a year, which creates problems for investors. They go to other countries because of this legal uncertainty,” Maksym Sysoyev summed up.

The EBA appeals to the Parliament regarding the fastest adoption of the draft law No.8449-d. Representatives of the Association noted that they were ready to join in its further finalization after the adoption in the first reading.

“We have seen the pressure coming from international banks that calculate the risks, do not participate in large projects and suspend funding,” the Head of the Ukrainian Wind Energy Association Andriy Konechenkov explained. “For us, the main thing is to preserve the investment climate. Our market is promising, but everyone is concerned about the legal framework.”

“The first step towards changes is the adoption of this law. The proposed date for introducing auctions is a necessary compromise, because we are late in implementing necessary changes, because these changes should have been made earlier. However, Ukraine should remain a country with predictable laws and regulations. I once again call on people’s deputies to support this draft law,” Oleksiy Orzhel concluded the conference.

As a result of the press conference, an application letter to the Chairman of the Verkhovna Rada of Ukraine Andriy Parubiy requesting to support the draft law No.8449-d in the first reading this Thursday.

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