A bill was registered on introducing a system of auctions while stimulating RES

On June 7, 2018, deputies of the Verkhovna Rada of Ukraine of Committee on Fuel and Energy registered a bill #8449 on the introduction of a system of auctions in stimulating RES. It was reported by Energoreform.

Co-author of the bill, noted that the document maintains the most comfortable conditions for investors who have already invested in the Ukrainian REE, but can prevent of “green energy default”, which is inevitable with a consistent course in the energy sector.

Deputies assure that now the system with green tariffs is valid for SES with capacity up to 30 kW, which is owned by individuals, but it is proposed to raise the level up to 500 kW and extend its operation to small business (legal entities).

Conditions of the bill:

  • the size of the “green tariff” for solar power plants will decrease by 30% from 2020;

  • for companies that have already built power plants on RE and signed a PPA (Power Purchase Agreement) or sign it by July 1, 2019, the current support system – the Green Tariff – will remain in force.

Conditions of auction:

  • each participant in the auction will have to provide a bank guarantee of $ 50 thousand. For each lot, the winner will be able to return such a guarantee at the completion of construction for up to three years (if he refuses to implement the project he will lose money);

  • auctions will be held until 2029;

  • each winner will be able to sign an agreement with a guaranteed buyer of electricity for a term of 20 years. The adoption of the law can be expected by the end of this year.

Source: reform.energy

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