On April 17, the Verkhovna Rada registered the Draft Law №9213 “On Amendments to Certain Laws of Ukraine on Restoring Energy Security and Green Transformation of the Energy System of Ukraine”.

Draft Law and explanatory note: https://itd.rada.gov.ua/billInfo/Bills/Card/41787

As explained in the justification, this act is aimed at supporting the development of renewable energy and the integration of “green” generation into the energy system and the electricity market, which will help reduce dependence on energy imports. In addition, the act is aimed at the implementation of the provisions of European legislation on the development of renewable energy sources, in particular, the introduction of a system of guarantees of the origin of RES electricity, in order to ensure competitiveness and stable electricity prices.

Among the main ones, the draft act provides:

• the opportunity to receive a “green” tariff, at the level established during the commissioning of the facilities, for RES facilities that were damaged or destroyed during the martial law, after their restoration;
• determination of conditions and mechanisms for the implementation of a support system for the production of RES electricity through auctions:
  • introduction of a model of contracts for difference instead of a fixed tariff;
  • simplifying the conditions for participation in auctions and holding auctions for the construction of RES facilities together with energy storage facilities;
  • determining certain hours of the day during which support may be provided based on the results of the auction.
• granting the right to export RES electricity, both by producers and the guaranteed buyer;
• stimulating the development of direct electricity purchase and sale contracts (Corporate PPA’s), both physical and virtual;
• provision of the possibility of leaving the balancing group of the guaranteed buyer for individual renewable energy facilities, and not for producers in general;
• determination of the NERCUas authorized to issue guarantees of the origin of RE electricity;
• introduction of a register of guarantees of origin of electricity produced from RES;
• extension for 2 years of the commissioning period of RES electricity facilities or phases of their construction (start-up complexes) (except SPPs) by business entities that have concluded contracts for the purchase and sale of electricity at the “green” tariff until December 31 2019;
• extension the validity period of technical conditions by the end of 2024 for RES electricity facilities (except for SPPs), which concluded contracts for the purchase and sale of electricity at the “green” tariff until December 31, 2019;
• introduction of the net billing system to ensure the development of small distributed RES generation without additional financial incentives from the state and consumers;
• introduction of a new contract for the purchase and sale of electric energy based on the mechanism of self-production;
• clarification of the terminology regarding the definition of liquefied or compressed biomethane.

Currently, the EUEA expert team is analyzing all aspects of the draft law and intends to follow the further development of the situation.