During the past few months, the renewable energy legislation experienced several important developments, in particular:
- changes to the procedure for temporary connection of power plants to the distribution system during martial law
- draft law on the extension of the pre-PPA and technical conditions for grid connection
- changes to the Procedure for Holding Electronic Auctions for the Sale of Electricity under Bilateral Contracts
- recalculation of the feed-in tariff for the first quarter of 2023
Changes to the procedure for temporary connection of electrical installations to the distribution system during martial law
On 18 October 2022, the National Energy and Utilities Regulatory Commission (NEURC) amended the Procedure for temporary connection of electric installations to the distribution system during the period of martial law in Ukraine (Procedure). Renewable energy producers will be able to temporarily connect generating power plants to the grid for the period of martial law. When the martial law is over, such facilities will be connected on a permanent basis. Temporary connection is possible if the connection point is located on the customer's territory or on its border. The customer also should:
- Develop and approve with the distribution system operator (DSO) the design documentation for construction based on the technical specifications. Then, carry out construction, installation and commissioning works
- Obtain a certificate from the State Energy Supervision Inspectorate of Ukraine on the inspection of electrical installations and the linear part of the connection
- Transfer the electrical installation and the networks of the linear part of the connection to the DSO for state registration of ownership
Draft Law on extension of the pre-PPA and technical conditions for grid connection
On 8 November 2022, the Ukrainian Government registered Draft Law No. 8191 "On amendments to certain laws of Ukraine on extension of the term for commissioning of renewable energy facilities under feed-in tariff electricity purchase and sale agreements concluded before 31 December 2019" (Draft Law).
The Draft Law extends until 31 December 2024 the deadline for commissioning of "green" power plants (except for solar power plants) that entered into power purchase agreements (pre-PPAs) under the feed-in tariff before 31 December 2019.
The validity of technical specifications for such facilities is also extended until 31 December 2023. However, this period may be extended for an additional year if the customer:
- agrees with the transmission or distribution system operator on the design documentation for the new construction, reconstruction or re-equipment of the external power supply networks for such a facility by 31 December 2023
- pay for them in full or in part
Industry associations reported that approximately 800 MW of wind power plants were supposed to be operational by the end of 2022. Due to Russian aggression and full-scale war, projects EUR 1 bln worth have been frozen and cannot be implemented by the end of this year.
Noteworthy that the pre-PPA and technical conditions for connection, which were issued in 2019, expired at the end of 2022. The draft law should consider these circumstances and allow extending the validity of such documents. It is currently under consideration by the Committee on Energy, Housing and Utilities.
Changes to the procedure for holding electronic auctions for the sale of electricity under bilateral contracts
The Ukrainian Government, by its Resolution No. 1319 as of 25 November 2022, enabled SE Guaranteed Buyer to sell electricity from renewable energy sources under bilateral agreements at a bilateral continuous auction.
Recalculation of the feed-in tariff for the first quarter of 2023
On 30 December 2022, the NEURC recalculated the feed-in tariff for the first quarter of 2023 for industrial green power plants, cooperative power plants with an installed capacity of less than 150 kW, and private household power plants. The recalculation was carried out at the average Euro exchange rate for the period from 30 November to 29 December 2022 of UAH 38.63 per Euro. More information about the tariff rates are available in rationale for the NEURC resolutions.
For more information, please contact Asters' Partner Yaroslav Petrov.
