Ukraine Implements Global Standard to Boost Construction of Renewable Energy Projects – Sky Bulletin

The Ukrainian government has passed a resolution enhancing the green electricity auction model. Deviating from the previous fixed tariff system, the newly adopted contract-for-difference framework will enable auction winners to share renewable energy support quotas. This marks the introduction of a new international benchmark to encourage the establishment of renewable energy installations. The decree also simplifies the terms for renewable energy source (RES) investors to enter the auctions. Requirements such as owning land and pre-acquired technical conditions for grid connections are no longer needed for application submissions. Auctions can now be conducted flexibly, including opportunities for energy storage facilities on predetermined plots or buildings. The period for the contract secured by the winner of the auction with the assured purchaser has been cut down from an excessive 20 years to a European norm of 12 years.

 

What is the main change in the green electricity auction model introduced by the Ukrainian government?

The main change is the introduction of a contract-for-difference mechanism, replacing the fixed tariff system, and allowing auction winners to allocate renewable energy support quotas.

How has the application process for RES investors been simplified?

Investors no longer need to have a plot of land or the necessary technical grid connection conditions ready when submitting their applications, increasing the accessibility of the auctions.

What advantages does the new resolution offer regarding energy storage facilities?

The resolution allows more flexibility in conducting auctions that include energy storage facilities, which can be situated either on designated land plots or on existing structures.

What is the new duration for contracts with the guaranteed buyer?

The duration of the contracts has been reduced to meet European standards, going from 20 years down to 12 years.

The novel legislative resolution by Ukraine exhibits a strategic shift towards alignment with global energy practices. By easing the entry barriers for RES investors and introducing a market-responsive auction model, Ukraine sets an ambitious precedent for accelerating the transition to renewable energy. This move not only aids in energy security amidst current global challenges but also signifies Ukraine’s commitment to sustainable and responsible energy production.