The operator of the Ukrainian energy system was on the brink of default. In addition to Ukrenergo not paying its debts for the production of green electricity, which saves the country from blackouts, the company announced the suspension of Eurobond payments.
Ukrenergo found itself on the brink of technical default. The energy system operator announced that as of November 9 it will suspend payments on green bonds issued in 2021 under government guarantees for $825 million.
“This technical solution will remain in force until the debt restructuring planned in the coming months is completed. NEC Ukrenergo, together with the government of Ukraine, is taking all necessary measures to reach an agreement with bondholders in the near future.” – said the operator.
Previously, the state company Guaranteed Buyer held a pilot auction to distribute a support quota to companies that produce green electricity, but there were no takers. Debts for clean electricity already produced are increasing. Manufacturers receive them through Ukrenergo’s “Guaranteed Buyer”.
According to ExPro, the Ukrainian operator’s payment level for renewable energy services fell in 2024 from 91.5% to 60.8%. As a result, the total debt increased to 30 billion hryvnias (more than 730 million dollars). In October it grew by 1.6 billion hryvnias.
After retaliatory attacks by the Russian military, wind and solar energy became one of Ukraine’s main sources of electricity. The country’s green energy capacity is 2 to 3 GW.
