Ukrainian Parliament is Considering the First Draft Law Impacting Renewable Energy

On 17 October 2019, the Verkhovna Rada Committee on Energy and Housing and Communal Services approved for a plenary session a draft law "On Introduction of Amendments to the Law of Ukraine "On Electricity Market of Ukraine" No. 2236-2 (the "Draft Law"). 

The key amendment which influences the already constructed and to be constructed RES objects is curtailment of the electricity generation. According to the Draft Law while dispatching the electricity market, the system operator, i.e. the National energy company "Ukrenergo" can curtail the generation for the RES objects. Noteworthy, that only the RES objects with installed capacity of up to 150 MW receive the compensation for these Ukrenergo's curtailments based on the feed-in tariff (named "green" tariff in Ukraine) price or auction price. In other words, all projects above 150 MW will not be compensated in case of curtailment. 

The other important amendments suggested by the Draft Law are as follows: 

• the Cabinet of Ministers of Ukraine becomes empowered to impose a temporary ban or restriction on the export and / or import of electricity; 

• the Regulator becomes empowered to set the cap prices for the sale of electricity on the day-ahead and the intra-day markets, the cap prices for the sale of ancillary services on the ancillary services market and for the sale of balancing services on the balancing market; 

and 

• the introduction of a mandatory sale of all electricity imported from non-Energy Community countries exclusively on the day-ahead and balancing markets, except for electricity imports from the Republic of Belarus. 

According to the lawmakers, the Draft Law will help to stabilize prices on electricity and decrease the price of electricity for final consumers. 

Contrary, the Draft Law has received negative feedback from RES producers and boosted discussions on potential changes in the "green" tariff support. 

For further information, please contact Asters' partner Yaroslav Petrov  or associate Olena Sichkovska.