Please find attached the 18th issue of our Energy brief in 2020 with update on:

  1. Developments in RES sector
  2. Energy Crisis Task Force – second meeting and implemented measures
  3. DTEK Oil&Gas achieved daily gas production of 5 mln m³
  4. Electricity market update
  5. Two months of DTEK Grids in lockdown: 21 thousand incidents resolved and more than 1 mln consultations
  6. IEA: Global Energy Review 2020 and renewable energy market update

Developments in RES sector
The compromise between the state and RES producers in a form of Memorandum of Understanding (MOU) is in the making. On May, 25th both international and local investors have agreed on a joint position which reflects their desire to support the Government in stabilizing the financial situation through voluntary restructuring of feed-in-tariffs. The group of international investors with renewable power plants under operation and construction reaching more than 2 GW installed capacity suggested a compromise which at the same time contains red lines that are of critical importance to them:

 Payments to RES producers: The State must ensure the repayment of arrears that have accrued since the beginning of the year within an agreed time period and the timely payment of future receivables. This should be achieved with the proper financing of the Guaranteed Buyer via the TSO transmission tariff or other sources and no later than December 31st, 2020. Any further delay of payments would require negotiation of special terms.

 Feed-in-tariff (FIT) restructuring for power plants commissioned in 2017-2019:
- Solar: with 2-year power purchase agreement (PPA) extension, projects with installed capacity more than 10 MW – 15%, less than 10 MW – 12.5%
- Wind: with 2-years PPA extension 7.5%