The support quota for renewable energy projects for 2026 has been increased to 1 GW
On 27 May 2026, the Cabinet of Ministers of Ukraine adopted Order No. 508-r, thereby updating Order No. 298-r On certain issues regarding the conduct of auctions for the allocation of renewable energy support quotas for 2026 and the establishment of indicative forecast figures for annual support quotas for 2027–2029.
The amendments implement the provisions of Law No. 4777-IX, which amended Article 9-3 of the Law of Ukraine "On Alternative Energy Sources". The Law introduced a separate minimum support quota of 10% for solar power plants (SPP) equipped with energy storage systems (ESS), creating additional incentives for the development of SPP+ESS projects and expanding their access to state support mechanisms.
Key changes
Increase of support quotas
The volume of support for renewable energy projects for 2026 has increased:
|
Type of energy source
|
Initial plan (MW)
|
Updated quota (MW)
|
|
WPP
|
250
|
700
|
|
SPP
|
33
|
50
|
|
SPP+ESS
|
—
|
100
|
|
Other types of alternative sources (biogas, biomass, small hydropower)
|
47
|
150
|
|
TOTAL
|
330
|
1,000 (1 GW)
|
Investor takeaway:
- Guaranteed sales and fixed income
- Priority for wind generation, as it is more stable and less dependent on the time of day compared to solar
- Launch of SPP + ESS projects: an opportunity for businesses to test a battery-based model within a separate auction featuring less competition and special conditions
- An incentive for businesses to achieve energy independence
- Priority and efficiency of power system balancing
- Scaling up the renewable energy market
Updated schedule of auctions
An updated schedule for auctions to allocate support quotas for 2026 has been approved.
|
Type of energy source
|
Schedule (initial)
|
Schedule (updated)
|
|
WPP
|
June
|
September
|
|
SPP
|
June
|
September
|
|
SPP+ESS
|
—
|
September
|
|
Other types of alternative sources (biogas, biomass, small hydropower)
|
June
|
October
|
Investor takeaway:
- A clear deadline for preparation: the postponement of auction dates to the autumn gives developers the opportunity to finalise feasibility studies, obtain technical conditions for grid connection and arrange bank guarantees.
- The opportunity to adapt the business to new technical requirements, particularly for SPP+ESS projects (Law No. 4777-IX)
- Alignment with financing: the availability of an official schedule allows businesses to coordinate credit line schedules with banks, as the auction date is a key milestone in the investment cycle.
No territorial restrictions
No territorial restrictions on SPP lots. SPP quotas are distributed across the whole of Ukraine, not just on the left bank of the Dnipro River, as in the previous version of the CMU decree.
Investor takeaway:
- Freedom of choice of location: construction of SPP in any region of Ukraine where the security situation is better or grid connection is more convenient.
- Risk reduction: the opportunity to diversify assets and invest in regions with lower levels of military threat, which is critical for insuring facilities and securing loans.
- Simplified decentralisation: businesses anywhere in the country can now apply for support by creating autonomous energy hubs where they are most needed for production.
- Level playing field: competition in auctions becomes more transparent, as all market players now have access to quotas regardless of the location of their sites.
Long terms targets
Indicative forecast figures for annual support quotas have been updated and set for 2027–2030. Under the previous Order No. 298-r, indicative forecast figures were set for the period up to 2029.
Investor takeaway:
- Planning horizon +1 year: extending forecasts to 2030 gives developers a clear understanding of market volumes for the next four years. This is critical for large projects (particularly wind farms), which have an implementation cycle of two to three years.
- Cash flow predictability: early assessment of the chances of securing support and calculating the payback period for projects at the design or land allocation stage.
- A signal to banks and donors: the availability of official government indicators up to 2030 simplifies the process of securing loans.
- Incentive for localising production: clear quotas set several years in advance encourage equipment manufacturers (cables, pylons, services) to open or expand their facilities in Ukraine, as they see guaranteed demand.
CONCLUSION:
Expanding the renewable energy market with government support through a market premium mechanism serves as an incentive for building new generation capacity, attracting private investment, and developing a decentralized power grid with self-sufficient communities.
For additional information, please contact Asters' Partner Yaroslav Petrov and Senior Associate Tetiana Piskun
