DiXi Group experts propose a way of restoring financial balance of the renewable energy support scheme
DiXi Group published a position paper describing the challenges faced by the government with regard to “green” energy support system.
The document contains an overview of efforts aimed to settle financial imbalances in the electricity market, including restructuring of the “green” tariff and other novelties of the Law 810-IX. DiXi Group experts note that the adopted changes are not enough to restore Guaranteed Buyer’s solvency and settle the debt owed to green electricity producers. The so-called “nontariff mechanisms” of financial support envisage measures beyond redistribution of funds in the electricity market, and may have an adverse impact on public funds.
Considering the foregoing, DiXi Group experts proposed a number of actions, both tactical and strategic, aimed to restore financial balance of the renewable energy support scheme.
The necessary actions include:
– Revising the sources of funding Guaranteed Buyer’s services, and first of all, settling Ukrenergo’s debt;
– Bringing regulated prices for households to market level;
– Switching from commercial to financial PSO model;
– Improving design of support quota allocation auctions;
– Launching a mechanism of compensations payable to renewable electricity producers in the event of systemic restrictions;
– Technical integration of renewable energy sources into Ukraine’s power system;
– Abolishing subsidies for fossil energy sources, and introducing effective taxation of СО2 emissions.