On July 6, 2022, the draft law №7524 on amendments to some legislative acts of Ukraine regarding the introduction of mechanisms to minimize the risks of price fluctuations for energy electricity produced from alternative energy sources, which are proposed to amend the Law of Ukraine “On the Electricity Market” and the Law of Ukraine “About alternative energy sources” was registered.

The Draft law: https://itd.rada.gov.ua/billInfo/Bills/pubFile/1389268

The explanatory note to the draft law states:

  • The purpose of this Draft Law is to implement a mechanism for minimizing price risks that arise for RES producers and consumers during the electricity market activities.
  • The essence of the mechanism is to introduce a service to ensure the stability of the RES electricity price, through the conclusion of an agreement on the provision of such a service between a renewable energy producer and an electricity consumer.
  • – As a result, it will allow: to implement of a mechanism for minimizing price risks; expand the list of mechanisms for ensuring the payback of investment projects in the field of RES; create conditions for attracting external financing for the creation of new RES facilities, at the same time, will not create restrictions in the future development process of derivative contracts in the energy market.

The specified mechanism can be used by investors in the field of “green” energy at any time: before the start of construction and commissioning of RES facilities, or after putting the power plant into operation and acquiring the status of a market participant.

The application of the proposed contractual structure will allow investors and RES producers to attract external financing for the creation of new RES facilities without state financial support. 

Resource: https://itd.rada.gov.ua/billInfo/Bills/Card/39925