Chronic debt owed to green electricity producers is hindering the development of new projects.

Ukraine’s issue with debts that it owes to renewable energy producers impacts the industry’s growth prospects, said Olga Rybachuk, a manager at Elementum Energy, which has invested in the construction of new wind turbines at the West Wind Park.

“Since the end of last year, debts have declined. However, this remains a significant issue affecting not just current projects, but also future prospects. Initially, the primary investors willing to invest in Ukraine will be those already present in the market who understand the conditions and risks involved. New investors typically enter the market after consulting with them. Existing debts influence future projects or the lack thereof,” Rybachuk stated.

The green auctions for new projects are ineffective. They have attempted to initiate these auctions twice, but to no avail.

“The Guaranteed Buyer’s chronic debt and the unstable regulatory environment do not instill confidence and stability in market players,” she clarified.

Rybachuk further emphasized that while green auctions are valuable tools, the credit risk associated with the counterparty-buyer is also crucial.