On 20 May 2026, the Cabinet of Ministers of Ukraine adopted Resolution No. 644, which updated the Procedure for Conducting Electronic Auctions for the Sale of Electricity under Bilateral Agreements (Resolution No. 499). These changes implement Law No. 4777-IX, which previously amended Article 66 of the Electricity Market Law and effectively opened the market for the conclusion of corporate PPAs outside of auctions.
Key changes
Ukrainian legislation now permits the conclusion of cPPAs outside of auctions for two categories of producers:
- Renewable energy producers that do not receive state support under the “green” tariff.
- Electricity producers operating distributed generation facilities (located near the consumer, with a local impact on the grid).
For both categories, participation in electronic auctions is now voluntary, enabling the conclusion of direct long-term bilateral contracts, including corporate PPAs.
What has changed:
Before the amendments introduced by Law No. 4777-IX:
- for most producers, selling electricity under bilateral contracts was possible only through electronic auctions
- RES producers could participate in such auctions voluntarily, but this did not apply to other categories
After the amendments:
- distributed generation producers are no longer required to sell electricity through auctions
- renewable energy producers without a “green” tariff have been granted full freedom to enter into direct contracts
- Resolution No. 644 formally enshrined these changes in subordinate legislation
The Procedure now clearly distinguishes three groups of sellers:
- producers for whom auctions remain mandatory
- renewable energy and distributed generation producers for whom auctions are voluntary
- other market participants who wish to sell electricity through auctions
The adopted changes create a solid legal basis for concluding corporate PPAs between producers and corporate consumers, which:
- allows renewable energy producers without a “green” tariff to build business models on market terms
- paves the way for on-site and near-site PPAs for distributed generation
- enhances the energy resilience of enterprises during periods of security risks
- provides businesses with price predictability and hedging opportunities
- reduces the load on the power grid and stimulates the development of local generation
- creates favorable conditions for private investment in new renewable energy projects
Impact on RES and Distributed Generation Projects
Law No. 4777-IX and Resolution No. 644 shape a new reality in the Ukrainian electricity market: renewable energy producers without a “green” tariff and distributed generation can enter into direct bilateral agreements, including corporate PPAs, without mandatory auctions. This is one of the most important steps toward creating a competitive, flexible, and investment-attractive electricity market in Ukraine.
For additional information, please contact Asters' Partner Yaroslav Petrov and Senior Associate Tetiana Piskun.
