Reuters/21-07-2020

KYIV: Ukrainian parliament adopted a law significantly reducing tariffs for renewable energy, eliminating the problem of mass non-payments in the energy sector, criticized by investors and Western partners. Ukraine set up special tariffs for renewable energy companies several years ago to expand the green power production and pledged to buy all the energy produced. But these high tariffs have become a burden for the state, which faces recession caused by coronavirus epidemic. The government expects the economy to shrink 10% in the second quarter after a 1.3% drop in the first quarter. In June, the government and some companies signed a memorandum on reducing tariffs by 15% for solar generation and by 7.5% for wind generation, and lawmakers say the adopted law will allow the government to implement this document. Prime Minister Denys Shmygal said in a tweet that the legislation would help reduce prices for solar and wind energy, as well as achieve green goals and protect international investors. The law contains the same level of cuts as the memorandum and if the president signs the law, the tariffs will be reduced from July 1 while Ukraine will provide investors with guarantees that the adopted legislations will not change in the future.