UWEA dpty head: Several European countries, IFIs ready to fund Market Risk Guarantee Fund for RES
The creation of the Market Risk Guarantee Fund, which could be used to provide guarantees of the minimum price of electricity to producers of renewable energy resources and protect them from market fluctuations, could begin as early as February or spring 2025, according to regional director of Notus Energy and deputy head of the board of the Ukrainian Wind Energy Association (UWEA) Oleksandr Podpruhin.
"The idea of creating the Fund has been discussed for quite some time, and we really hope that we will move on to implementing this project in the coming months. It could become part of the Ukraine Facility as early as February or spring 2025. And this fund, without attracting funds from the state budget or state-owned enterprises, will be able to launch gigawatts of new capacity in Ukraine," he said at a UWEA press conference at Interfax-Ukraine on Thursday.
"I won't get ahead of myself, but several European governments have already announced their readiness to participate in the creation of the Fund and provide funds. There is one international financial institution that has announced that it is ready to be the manager of this fund – to create it and then administer the issuance of guarantees," he said.
Podpruhin also said the European Commission is interested in creating such a mechanism, "since they see it as one of the key elements for directing money to renewable energy projects in Ukraine."
According to him, the ministries of economy and energy also support the creation of the fund. "All these are benefits, because the more attention, the more views and hopes for this institution, the faster it should be created. And, yes, indeed, there is hope that at the end of winter or at the beginning of spring it can be institutionalized," Podpruhin said.
As reported earlier, member of the European-Ukrainian Energy Agency's board, GOLAW law firm partner Oleksandr Melnyk presented the concept of the Market Risk Guarantee Fund, initiated by the agency together with the Ukrainian Wind Energy Association.