The proposals sent to the draft resolution “On approval of amendments

to the resolution of the NEURC from April 26, 2019 № 641″(hereinafter – the project)

Download: Пропозиції до постанови_641_20201127_ЄУЕА (1)

This project, among other regulations, amends to:

  • The order of purchase by the guaranteed buyer of the electricity produced from alternative energy sources;
  • A standard contract for the purchase and sale of electricity at a “green” rate. A standard contract for the purchase and sale of electricity at the “feed-in” rate.

Amendments are aimed at implementing the provisions of the Law of Ukraine № 810-IX, which entered into force on August 1, 2020 and provides for the introduction of liability for imbalances of RES producers of more than 1 MW in the amount of 50% – from January 1, 2021, and starting from January 1, 2022 – in full  size(100%). In particular, the changes reflect the latest changes in the Law of Ukraine “On the Electricity Market”, concerning the right of the Guaranteed Buyer to sell electricity from RES producers in other market segments.

Amendments to these regulations can be divided into those related to:

  • the procedure for calculating (formula) the amount of compensation of RES producers to the Guaranteed Buyer of the share of the cost of settling the imbalance;
  • the order of registration and terms of settlements on separate operations (concerning RESproducers shortened terms for certain types of settlements);
  • expansion of the grounds for termination of theРРА (The guaranteed buyer has the right to terminate the PPA in a unilateral case in case of detection and confirmation of the facts of providing inaccurate information during the conclusion of the PPA);
  • others.

Based on the results of the analysis of these regulations,  have been prepared proposals to protect the interests of RES producers, in particular:

  1. Regarding the procedure for calculating (formula) the amount of compensation of RES producers to the Guaranteed Buyer.

It is proposed to adjust the formulas to determine the amount of reimbursement of part of the cost of settling imbalances of the Guaranteed Buyer, which arose through the fault of producers at the “feed-in” tariff and will be paid by such producers in favor of the Guaranteed Buyer in part:

  • correction of arithmetic mistakes;
  • reduction of imbalance on the amount of electricity(not released due to the execution of the dispatcher’s commands);
  • settlements only in relation to imbalances that arise in the Guaranteed Buyer due to the deviation of electricity supply by producers at the “feed-in” tariff from RES producers forecast schedule(without taking into account the imbalances arising from the performance by the Guaranteed Buyer of other types of special obligations, the so-called PSO for the population).
  1. Regarding the terms of payments of RES producers on separate

For those operations for which the payment terms are reduced, it is proposed to return to the previous payment terms. Payment after signing the paper document by both parties.

 

  1. Expansion of the grounds for termination by the Guaranteed Buyer of the PPA unilaterally.

It is proposed to delete the relevant provisions. An appropriate justification is provided.

 

  1. Additionally initiated proposals to part 4 of the Procedure “Forecasting the volume of electricity supply  by sellers.”

It is proposed to return to the discussion with the Regulator and the Guaranteed Buyer on the issue of reducing the time for adjustment by RES producers of forecast schedules of electricity supply within the day. It is proposed to reduce this time from 2 hours. 45 min (in the current version of the Procedure) up to 1 hour. 30 min. This will improve the performance of RES producers in the market, minimize imbalances.

  1. Other proposals have editorial nature and aimed at improving comprehension of the text.