Debts for "green" electricity are rising by 30% each year, according to an investor.

In Ukraine, there is an issue where debts owed to renewable energy producers increase by at least 30% annually.

This was reported by RBK-Ukraine, citing Igor Tynny, co-founder of the Ukrainian Renewable Energy Association.

"On average, the payment level throughout the year reaches no more than 70%. This means that year after year, debts grow by 30%... In other words, debts are accumulating rather than decreasing," Tynny stated.

He noted that payments for generated green energy are made in hryvnias, and due to the accumulated debts, investors are losing funds because of the devaluation of the hryvnia, as loans were provided in foreign currency. Additionally, imported equipment was purchased with foreign currency.

He also mentioned that the recent declaration of default by Ukrenergo regarding bond payments, as well as its debts to green investors, is a result of systemic underfunding of the company.

At the same time, Tynny emphasizes that legislation requires the National Commission for State Regulation of Energy and Public Utilities (NKREKU) to ensure the financial sustainability of state energy companies.

"Its revenues (Ukrenergo – ed.) are entirely determined by the tariff set by the Regulator... If Ukrenergo's tariff is set at a level that ensures its financial sustainability, there will be no debts," Tynny stressed.

Moreover, he stated that he currently does not see any actions from the government indicating that there is work underway to address the previous debts in green energy.

As previously reported, the debt of NEC "Ukrenergo" for compensation of electricity production from alternative sources to the state enterprise "Guaranteed Buyer" exceeded 30 billion hryvnias.

Experts and investors are urging the government to prevent further accumulation of debts by "Ukrenergo" for services related to increasing electricity production from renewable energy sources.