NEURC plans to increase the cost of paying for “green” electricity

The National Energy and Utilities Regulatory Commission plans to set the electricity transmission tariff for NPC Ukrenergo at UAH 678.58/MWh (hereinafter excluding VAT) starting from January 1, 2025.

According to Energoreforma, according to the relevant draft resolution of the NEURC, the transmission tariff, if approved, will be 28.4% higher than the current one in 2024 (528.57 UAH/MWh) and 2% higher than the one approved at the meeting on November 13 (665.26 UAH/MWh).

In addition, the costs of fulfilling the special obligations of the NPC to pay for renewable electricity, which make up the largest share of the tariff, are to be increased by almost UAH 1.5 billion. While the project approved in November included UAH 23.7 billion to support industrial RES generation, the updated version contains UAH 25.1 billion.

As the regulator explains, the updated forecasted volume of electricity supply by producers under the feed-in tariff mechanism introduced in 2024 was taken into account.

The amount of payment for electricity from domestic SPPs remained at UAH 6.98 billion. For comparison: in 2024, these figures were UAH 12.3 billion and UAH 3.93 billion, respectively.

The justification also states that the tariff was recalculated based on the performance indicators of the NPC for 9 months of 2024, and not for half a year, as it was done earlier. However, the tariff planned for consideration is 13% lower than the one initially proposed by Ukrenergo (UAH 780.41/MWh).

In addition, the regulator plans to set the electricity transmission tariff for “green” metallurgy at 351.90 UAH/MWh, which is almost at the level of the approved one, as well as the dispatch tariff at 92.26 UAH/MWh, which is 3% lower than the approved one.