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Ukrainian government proposes new RES legislation, following industry’s open letter

On 10 February, the Ukrainian Cabinet of Ministers approved two new legislative proposals related to the country’s regulatory framework for renewable energy sources (RES), which have now been registered by the Ukrainian parliament, the non-profit organisation European-Ukrainian Energy Agency (EUEA) announced on 14 February.

The first draft act, “Amendments to Certain Laws of Ukraine on the Introduction of the Register of the Guarantee of Origin for Electricity Produced from Renewable Energy Sources”, proposes the establishment of a legal basis for the issuance, use and cancellation of guarantees of origin for the electricity produced from renewables. As part of this, the authorised body for issuing the guarantee of origin of electricity produced from RES would become the NEURC and the market operator will be responsible for the trading of the guarantees of origin of electricity produced from RES.

The EUEA has expressed its support for this legislative proposal. The introduction of the certificate circulation, confirming the origin of “green” electricity produced in Ukraine, will allow producers to receive additional income. In the long term, the law would enable synchronisation with the European registers of guarantees of origin of electricity, the EUEA said.

The now registered drat act was listed among the main asks in an open letter to the President of Ukraine from the country’s RES industry on 3 February, which called on the relevant authorities to reaffirm “legislative guarantees” for the development of the country’s renewables industry.

The second draft act, “Amendments to Certain Laws of Ukraine on Improving Conditions for Supporting Electricity Production from Alternative Energy Sources by Consumer Generating Installations,” sets out plans for the introduction of a net metering system to ensure the development of RES small distributed generation without additional financial support from the state and consumers. In addition, the introduction of a new contract for the purchase and sale of electricity is previewed based on the mechanism of self-production and the definition of categories of consumers who have the right to use the mechanism of self-production.

The law is expected to enable the development of the small distributed generation of electricity from RES at the account of prosumer installations, according to the EUEA. This will contribute to increasing the share of green electricity from RES in the structure of the total final energy consumption and strengthening the energy security of the country, the non-profit organisation added.

An important development for Ukraine’s RES investments

From an investors’ perspective, the latest legislative developments will have a positive impact on Ukraine’s RES investment landscape, tells CEENERGYNEWS, Kateryna Polyakova, Director of EUEA. “Introduction of GOs will facilitate exports of Ukrainian green energy and ease the effect on CBAM for power exports and it will launch the development of the internal market for GOs, the growth of which will be driven by requirements of CBAM and ESG reporting of the multinationals, operating in Ukraine,” she says.

In terms of other key regulatory areas that require legislative action, the EUEA Director points firstly to the extension of pre-PPA (purchase price allocation) for wind power projects, which were in the process of construction at the beginning of the war and were meant to be commissioned in 2022 under a green tariff. This would enable the investors to complete the projects, which are already underway, she adds. Secondly, Ms Polyakova points to the introduction of amendments which would allow repairs of the existing generation facilities without losing the green tariff.

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