28.11.2019 Ministry's draft law on stabilization on RES market

On November 28, 2019, at the X International Renewable Energy Forum, Konstantin Chizhyk, Deputy Minister of Energy and Environmental Protection of Ukraine presented a general overview of a draft law prepared by the Ministry to stabilize the situation on the RES market in Ukraine.

 Government steps:

 1. raising the tariff for electricity for consumers consuming more than 500 KWh per month

 2. Cancellation of subsidies for technological losses via PSO mechanism

 3. Increase the TSO tariff

 4. Openness to dialogue 

 Expected steps from business:

 1. voluntary restructuring for existing facilities:

 SPP -17% of the size of the "green" tariff;  + 5 years of tariff validity;

 WPP - 10% of the green tariff;  + 5 years of green tariff.

 2. For new facilities (restructuring of prePPA): SPP -15% of the size of the “green” tariff and increase of the support period by 5 years;  WPP - 10% of the relevant tariff and + 5 years.

 3. Accelerating the onset of liability for non-balances for RES operators.  For entities that have gone for voluntary restructuring, liability comes in 20% per year, beginning from 2021.  For the objects that remain under current conditions, the liability for non-balances will be 35% from 2021; 70%, from 2022 and 100% from 2023.

 4. By 01.04.2020, all market participants must decide on the conditions they have chosen.

 5. It is also proposed to shorten the construction time of the objects: by 01/04/2020 the objects that remain to work under the current conditions must be entered.  By 01/07/2020, the SPP that would agree to restructuring should be introduced.  By 31.12.2020, WPP that remain in force and those that are going to be restructured must be put into operation.

 

 The draft law is scheduled to be submitted to the Verkhovna Rada of Ukraine early next week.

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