NEURC forecasts an increase in the cost of "green" electricity in 2021 by 23%, up to UAH 50 billion

The National Energy and Utilities Regulation Commission (NEURC) estimated that the weighted average "green" tariff in 2021 compared to 2020 will decrease by 4.4% from 399.89 UAH/MWh (2020) to 382.12 UAH/MWh (2021), while the total cost of electricity from RES will increase by 23.3%, from UAH 40.579 to UAH 50.032 billion.

This forecast was voiced on April 21, 2021, by Oleksandr Mykhailovskyi, Head of the Alternative and Renewable Energy Department of the NEURC.

According to the commission, the cost will increase due to an increase in electricity supply from RES. The NEURC gave the following breakdown of the total cost of RES electricity:

  • - UAH 21.659 billion - service in the tariff for the transmission by the NEC Ukrenergo;
  • - UAH 17.355 billion - the amount that will be able to earn SE Guaranteed Buyer through sales of RES electricity in the day-ahead market;
  • - UAH 11.55 billion - the share (20%), which, according to the law, must be compensated from the budget (or through the issuance of IGLBs);
  • - UAH 2.468 billion - the cost of occasional restrictions on dispatch of electricity from RES generation to the grid caused by balancing problems, which will be paid by NEC Ukrenergo to RES producers.

"The share of 20%, which according to Law № 810 should have been provided in the budget of Ukraine, will be 11.5 billion UAH… We have 53 billion UAH - this is the total amount to be paid in 2021 for electricity from RES,” said Oleksandr Mykhailovskyi.

According to the estimates of the NEURC, the total volume of electricity production from RES in 2022 will exceed 15 billion kWh (in 2020, according to the Ministry of Energy, it was 10.862 billion kWh).

"The dynamics of commissioning of new RES facilities has fallen significantly, while the dispatch of RES electricity kept on increasing this year and the next .... Many facilities continue to join the grids… By the end of 2022, we will exceed 15 billion kWh," Mikhailovsky added.

10:27 / 26 April 2021

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