Orzhel Predicts Guaranteed Buyer’s Deficit at UAH 17 billion in 2020

The Ministry of Energy and Environmental Protection of Ukraine increased its forecast of Guaranteed Buyer SE’s deficit in 2020 from UAH 8 billion to UAH 17 billion, the relevant minister Olexiy Orzhel informed on 21 February 2020.

“We assessed the Guaranteed Buyer’s deficit at the rate of UAH 8 billion, the market of the electricity should be improved because the deficit of Guaranteed Buyer has risen to UAH 17 billion so far. We have to understand what is going on with the best will in the world to save the investment climate,” Orzhel said.

ExPro’s Reference, according to the current Ukrainian law Guaranteed Buyer has to buy out all electricity produced by renewable sources (solar, wind, hydro, biogas and biomass). The state enterprise gets funds to pay generators in two ways, firstly it earns proceeds by trading electricity in day-ahead market, and secondly, it draws invoices to TSO Ukrenergo. The last company is obliged to cover all the deficit generated by Guaranteed Buyer. Besides the news about the unprofitable trade of the state entity has been published recently.

The above-mentioned ministry increased its assessment of the deficits because of the enormous growth of renewables share in the structure of Ukrainian energy balance.