Ukrainian Parliament passes law on green auctions for investors in green energy
KYIV. April 25 (Interfax-Ukraine) – The Verkhovna Rada at a plenary session on Thursday passed bill No. 8449-d on green auctions for investors in renewable energy. A total of 251 lawmakers baked the bill amending some Ukrainian laws regarding ensuring competitive conditions for production of electricity from alternative energy facilities.
The document proposes the introduction of auctions from 2020 and the obligatory participation for investors in solar power plants with a capacity of more than 1 MW and wind farms with a capacity of more than 5 MW (or one turbine).
The pilot auction should be held no later than December 31, 2019, and the ProZorro electronic trading system is proposed to be the platform for the auctions. The period of granting a guaranteed tariff for transmission of electricity by the winner of the auction is 20 years.
The project assumes that the size of quotas to be put up for auction, according to the Cabinet of Ministers, is approved by the Ministry of Energy and Coal Industry. During the first three years it is planned to provide wind farms and solar power plants with 30% of quotas, after this period – at least 15%.
Responsibility of producers of renewable energy facilities for misbalances is proposed to be introduced after the intra-day market is recognized as liquid, but no later than 2024.
It is proposed to reduce the current feed-in tariff for solar power plants in 2020 by 25%, and in 2021-2023 – by 2.5% annually.
For wind farms with a capacity of more than 2 MW, the tariff is proposed to be reduced in 2020 by 10% without further annual reductions.
The tariff for energy generated from biomass and biogas is proposed to be maintained at the current level.
For household solar power plants, the tariff is planned to be reduced by 10% from 2020 (currently it is EUR 0.18 per kWh). Before the start of the voting, the deputies returned the amendment, which introduces the condition for its receipt, the installation of a solar power plant up to 50 kW on roofs, facades of buildings and other hard-wall facilities.
