Ukraine intends to reduce green tariffs for solar energy

The Verkhovna Rada is considering reducing the existing green tariff for solar energy and other renewable energy sources.

Currently, Ukraine has two different green tariffs for solar energy. The first tariff, which is set at €0.46 per kilowatt hour, applies to solar power plants built before April 1, 2013, and the second applies to facilities that were built later, the rate for them is at €0.339 per kilowatt hour.

The Ukrainian parliament says that the reduction of green tariffs will not have a negative impact on the profitability of existing solar power plants.

According to the bill, the tariff can be reduced to €0.235 per kilowatt hour and will apply only to those power plants that will be built after July 1, 2014. At the same time, another version of the bill involves reducing the tariff for existing solar power plants with a capacity of more than 10 MW.

According to the speaker of the Verkhovna Rada, the tariff reduction will not have any negative impact on the profitability of plants, since in recent years the costs associated with the construction of new solar power plants in Ukraine have significantly decreased.

Some Ukrainian analysts in the field of solar energy have already criticized the new plans of the Verkhovna Rada. According to Andriy Olenyuk, a lawyer at global law firm Clifford Chance, the reduction of the green tariff rate by the Ukrainian government violates existing rules to protect foreign investment in Ukraine.

Olenyuk said the move could negatively affect foreign investors’ plans for further development in Ukraine, despite the national government’s intentions to continue supporting solar and other renewable energy projects.

Source: aenergy.ru