Investors will be able to enter a contract for the sale of generating "green" electricity at an auction price of 20 years

The only agreed bill on the implementation of auctions in renewable energy in Ukraine (based on draft law No. 8449) prepared by the working group of the Verkhovna Rada Committee on Fuel and Energy Complex, Nuclear Policy and Nuclear Safety, together with all interested parties, including with the participation of the State Department of Energy Efficiency, was approved at the meeting of the said Committee. Parliament is recommended to adopt it in the first reading.

The main goal is to radically change the rules of the game, namely, to introduce auctions in which the one who will offer the lowest green tariff for the project planned for implementation is going to win. That is, for new powerful projects in alternative energy, it is proposed to introduce an auction system for the sale of energy rights under the green tariff.

The explanatory note to the Draft Law No.8449 provides the following data: in 2017, the volume of green electricity released was only 1.5% of the total volume of electricity sold to the market, but the share of payment from the wholesale energy market to these producers reached 7.5% of total amount! It's easy to calculate that last year the "green" generation received 12 billion UAH (all produced in 2017, electricity cost about 160 billion USD).

Consequently, if alternative energy is gradually replacing cheap atomic and thermal, then tariffs for the population should increase at a time. It is because of this the need for legislative changes has appeared.

In accordance with the draft law agreed by the Committee, investors will have the opportunity to enter into a contract for the sale of generating "green" electricity at an auction price of 20 years.

Different companies will be able to participate in the auctions, regardless of the installed capacity of the facility and the source of "clean" energy.

At the same time, such auctions will be mandatory for the following projects:

- from 2020 - the SES is more than 10 MW and the WES is more than 20 MW;

- from 2021 - 2022 - the SES is more than 5 MW and the WES is more than 20 MW;

- since 2023 - SES is more than 1 MW and WES is more than 3 MW.

Auction participants must have a confirmation of ownership of the land and an agreement on joining the electrical networks.

Auctions are planned to be held twice a year in the system of electronic public procurement "ProZorro" (https://prozorro.gov.ua).

In addition, it is proposed to set quotas annually for 5 years.

According to Sergey Savchuk, the Head of State Department of Energy Efficiency, this bill will become one of the key acts that will ensure sustainable development of renewable energy in the country, establish a real market price for electricity from renewable sources and create a transparent competition between investors.

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