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In June 2023, the Parliament adopted two laws that, although different from each other, are aimed at solving one of the most important problems in the RES sector. This problem concerns the extension of electricity purchase and sale agreements under the feed-in tariff that were concluded before 31 December 2019 (pre-PPA), and technical conditions for grid connection (TC):
At the end of 2022, due to the russian aggression, the "green" generation companies faced the problem of the expiration of the deadline for commissioning "green" power plants (except for solar power plants) for which pre-PPAs were concluded before 31 December 2019. In addition, the technical conditions for grid connection for such facilities expired on 31 December 2022. Draft laws to address this issue were registered at the end of last year, but were not adopted.
How does the Law propose to solve this problem?
Although the laws are aimed at solving the same problem, they do so in different ways.
Law on REMIT
The Law extends the pre-PPA for one more year. In this context, we want to emphasise that such agreements are not extended until 31 December 2023, but for one year. After all, some of them expired earlier than 31 December last year. As for the technical conditions, they are extended until 31 December 2024, that is for two years.
The extension of the pre-PPA and technical conditions affects the feed-in tariff coefficient, which will be reduced as follows:
Unfortunately, the Law does not explain how pre-PPAs will be re-concluded or extended and new PPAs will be extended or issued TC on the old terms. This shortcoming may lead to problems that may arise in practice.
Law on Green Transformation
In this law, the pre-PPAs are extended explicitly until 31 December 2023, instead of one year. The technical conditions are extended until 31 December 2024, with the possibility of extending them for another year until 31 December 2025. The requirements for such an extension are as follows:
The Green Transformation Law details the process of such an extension, which provides for:
The exception for the extension of technical conditions is the following technical conditions for solar power generation facilities and facilities located in the temporarily occupied territory.
The Law on REMIT came into force on 2 July 2023. The Law on Green Transformation is currently awaiting President's signature. If it is signed and comes into force, its provisions on the extension of the pre-PPA and technical conditions will apply.