The Parliament of Ukraine adopted the Renewable Auction Law (8449-D) that introduces new support system for renewable energy projects.
IMEPOWER provided legal support to the Parliament Fuel and Energy Sector Committee during elaboration of the Law.
Summary of the Renewable Auction Law in English and Ukrainian prepared by our experts is published below.
Key provisions of the adopted Law are as follows:
|Date of new support scheme introduction||01 July 2019|
|Pilot auctions||To conduct a pilot auction during 6 months from the effective date of the Law; on or before 31 December 2019. The Cabinet of Ministers of Ukraine decides on the quota size for the pilot auction.|
|Annual auctions||Annual auctions from 01 January 2020|
|Support for the successful bidder||20 years|
|Allocation of annual quota by RES types||Annual quota is allocated by shares by separate RES types with following minimum level:
· for wind – not less than 15%
· for solar – not less than 15%
· for other RES types (biomass, biogas, hydro-, geothermal) – not less than 15%
During the auction, RES competition is ensured within these groups.
|Auction platform||Prozorro electronic auction platform|
|One-stage sealed-bid auction. The bidders shall submit closed bids containing the technical bid (capacity) and the price bid (electricity price per 1 kilowatt hour).|
|Auction ceiling price
|“Green” tariff for corresponding RES technology (WPP, SPP) as of the auction date
As for other RES types (biomass, biogas, hydro, geothermal), auction ceiling price cannot exceed the “green” tariff for biomass as of 01.01.2020.
|Bid bond||EUR 5/1 kW to participate in the auction
EUR 15/1 kW to be provided in case of auction winning as the guarantee of contractual obligation fulfilment. In addition, the bid bond for participation in the auction will be refunded.
|Responsibility for imbalances||Full responsibility after recognition of the intra-day market to be liquid (the Regulator shall decide on liquidity); from 2024 by latest.|
|Final date to sign a pre-PPA to complete the launched RES projects using the “green” tariff scheme (regardless of the project size)
|By 31 December 2019.
Terms and conditions for the pre-PPA conclusion:
• confirmed right for land ownership/use;
• concluded grid connection agreement for the facility;
• construction permit.
|“Green” tariff term||“Green” tariff is valid until 2030 only|
|“Green” tariffs for SPPs||Decrease for SPPs in 2020 is 25% with a further decrease by 2.5% annually during 3 years.|
|“Green” tariffs for WPPs||Decrease for WPPs in 2020
– for turbines with the installed capacity exceeding 2 MW – decrease by 10% (without further annual decrease)
– for turbines up to 600 kW, from 600 kW to 2,000 kW – decrease by 10% (with a further decrease by 1.5% annually during 3 years)
|“Green” tariffs for biomass, biogas||Current “green” tariff shall be valid during 2020-2030|
|“Green” tariffs for micro-, mini-, small HPPs, and geothermal facilities||10% decrease of the “green” tariff in 2020|