Regarding payment for electricity to RES plants in the temporarily occupied territories

28 СЕР 2023


Reports of payments made by Guaranteed Buyer for electricity generated by RES producers located in temporarily occupied territories have been widely shared on social media and covered by news outlets.

Given that the discussion on this issue is ongoing both in the energy community and among public authorities, SE Guaranteed Buyer, as a party to the disputed legal relations, considers it necessary to provide appropriate clarifications:

The purchase and sale of electricity generated from alternative energy sources is carried out in accordance with the requirements of the Procedure for the purchase by the guaranteed buyer of electricity generated from alternative energy sources (hereinafter - the Procedure), approved by NEURC Resolution No. 641 of 26.04.2019.

Pursuant to the Procedure, Guaranteed Buyer pays electricity sellers at the feed-in tariff in accordance with the operational data on the volume of industrial production provided by the CMA (NPC Ukrenergo) to Guaranteed Buyer, signed by the QES of the authorized person of NPC Ukrenergo.

Thus, the certified, validated, operational data on the volume of industrial production provided by the CMA (NPC Ukrenergo) signed by the QES of the authorized person is the only source of information on the actual electricity supply by sellers under the feed-in tariff.

Regarding the media reports about the alleged payment to RES producers from the state budget of Ukraine, we note the following:

RES producers are paid exclusively from the proceeds from the sale of their electricity in all segments of the country's energy market and part of the fee for electricity transmission by Ukrenergo to all participants in the energy system. These payments are in no way subsidized by the state budget of Ukraine.

Regarding the media reports about payments to renewable energy producers that operate "out of sync with the IPS of Ukraine," we note the following:

According to NPC Ukrenergo, there are 73 plants (62 legal entities) of RES producers in these territories.

Until the second half of June 2023, NPC Ukrenergo provided Guaranteed Buyer with operational data on the volume of industrial production for settlements, signed by the QES of the authorized person of NPC Ukrenergo, for each generating unit, which, including in the volume column, indicated the actual data on the volume of electricity supplied to the grid, with the trading zone - IPS of Ukraine (IPS).

In accordance with clause 1.1.2 of the Market Rules approved by the NEURC Resolution No. 307 of 14.08.2018, "Trading zone (zone) is a separate zone determined by the transmission system operator in agreement with the Regulator, in which synchronous operation of electricity-generating equipment is carried out".

Starting from July 2023, the CMA (NPC UKRENERGO) began to provide Guaranteed Buyer with commercial metering data signed by the QES of the authorized person, which indicated the volume of electricity supply by RES producers located in the temporarily occupied territories as "0", and in the trading zone column as a dash.

Therefore, Guaranteed Buyer has not been paying RES producers located in the temporarily occupied territories and, according to NPC Ukrenergo, operating asynchronously with the IPS of Ukraine since July 2023.

Please note that in July and August 2023, the CMA (NPC UKRENERGO) provided Guaranteed Buyer with adjusted data for the previous period (April-June 2023) for RES producers located in the temporarily occupied territories, in which it indicated zero output for the enterprises for which it provided Guaranteed Buyer with data for settlements in previous months, indicating the fact of electricity supply to the trading zone of the IPS of Ukraine.

Guaranteed Buyer appealed to renewable energy producers requesting a refund of previous payments (reason: adjustment of commercial metering data by the Commercial Metering Administrator NPC Ukrenergo - MMS2).

Some producers, disagreeing with NPC Ukrenergo's stance on "asynchronous operation," in their written responses referenced how NPC Ukrenergo had provided operational and technological dispatch control services for RES facilities in temporarily occupied territories until July 2023, issued invoices and received payment for these services to RES producers in the TOT, as demonstrated by service provision documents.