One of the redlines identified by many investors in the solar industry, which was not included in the Memorandum, is a 2-year extension of the Power Purchase Agreement (PPA) in the case of a 15% feed-in-tariff reduction for projects commissioned till the end of 2019, the American Chamber of Commerce in Ukraine has said in a statement.
"The memorandum has brought parties closer to a consensus, but extending PPAs remains crucial for many solar investors and still needs to be considered by policymakers during the parliamentary process when discussing draft law No. 3658," the Chamber said.
The Chamber said that the prolongation for two years would make the terms truly voluntary and restructuring, by encompassing the majority of solar investors as well as most wind investors.
The Chamber said that rendering the State Guaranteed Buyer solvent and reinitiating payment to renewables producers, which has been delayed for several months, is a crucial obligation of the government under the reached agreement. The timely implementation of draft law No. 3658 based on memorandum terms before parliament's summer break is essential to avoid a high number of defaults in the sector.