What is preventing the construction of new renewable energy capacities in Ukraine?

The accumulation of debt owed to producers in the renewable energy sector hinders the construction of new capacities, which are critically important for overcoming Ukraine’s electricity shortage, said Volodymyr Omelchenko, director of energy programs at the Razumkov Center.

The expert believes that to solve the problem, the state needs to develop a clear debt repayment plan and implement it. He said the Ukrenergo’s transmission tariff was insufficient to cover the Guaranteed Buyer’s ₴8B in costs for 2022-2023 and another ₴10B in 2024.

“The debt situation does not changes from year to year, and now green generation receipts are only 65% ​​of the required level. The rest of the money is simply not received by the industry, which should be the lead in the reconstruction of the energy sector,” the expert emphasized.

He added that, without solving the debt problem, investors will not come to Ukraine to build new renewable energy capacities.

Instead, green energy companies have begun to seek payment of debt owed by the Guaranteed Buyer through the courts. A Kyiv court ordered the state-owned enterprise to pay the Solar Karpaty company more than ₴15M in debt and inflationary losses.