{"id":22679,"date":"2020-07-10T15:23:10","date_gmt":"2020-07-10T12:23:10","guid":{"rendered":"https:\/\/euea-energyagency.org\/?p=22679"},"modified":"2020-07-10T15:23:10","modified_gmt":"2020-07-10T12:23:10","slug":"legislative-initiatives-for-18-30-june-2020-impacting-res-producers","status":"publish","type":"post","link":"https:\/\/euea-energyagency.org\/en\/news\/market-news\/legislative-initiatives-for-18-30-june-2020-impacting-res-producers\/","title":{"rendered":"Legislative initiatives for 18-30 June 2020 impacting RES producers"},"content":{"rendered":"<p><strong>The Legal Monitoring was prepared\u00a0specially for the European-Ukrainian Energy Agency by IMEPOWER &#8211; EUEA Energy Adviser 2020.<\/strong><\/p>\n<p><span style=\"text-decoration: underline;\">The original can be downloaded here<\/span>:<\/p>\n<p><a href=\"https:\/\/euea-energyagency.org\/wp-content\/uploads\/2020\/07\/IMEPOWER-Legal-Monitoring-2020-06-18_30-Eng.pdf\">IMEPOWER Legal Monitoring 2020 06 18_30 Eng<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><b>The Verkhovna Rada of Ukraine<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>Voted laws, resolutions<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>On 19 June 2020<\/b><span style=\"font-weight: 400;\">, the Verkhovna Rada of Ukraine adopted the Law on Amendments to Certain Legislative Acts of Ukraine Concerning Simplification of Attracting Investments and Introduction of New Financial Instruments (draft Law No. 2284). This law approved the Law \u201cOn Capital Markets and Organized Commodity Markets\u201d and amended a number of current legislative acts.\u00a0 Currently, the Law is being prepared for signing by the Chairman of the Verkhovna Rada of Ukraine.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The law, in particular, <\/span><span style=\"font-weight: 400;\">regulates circulation of \u201cgreen\u201d bonds in Ukraine the issue of which will ensure financing of RES projects. According to the law, \u201cgreen\u201d bonds are issued solely to finance the environmental projects; the latter include projects in the field of renewable energy, energy efficiency, waste management, conservation of flora and fauna and others. Funds received from the issue of securities should be used exclusively for the implementation of such a project.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, the law regulates other issues related to the functioning of energy markets, in particular, the issue of authorizing the National Energy and Utilities Regulatory Commission (the \u201cNEURC\u201d) and the National Securities and Stock Market Commission (the \u201cNSSMC\u201d) to regulate commodity spot markets and derivative contracts. Thus, according to the Law:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the NEURC is authorized to regulate the spot market of energy carriers;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the NEURC is authorized to regulate derivative contracts where the underlying asset is energy carrier with obligatory physical supply of the asset;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the NSSMC shall ensure regulation of derivative contracts where the underlying asset is energy carrier and if such a contract is a financial instrument;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the NSSMC regulates the rules of operation of commodity exchanges in such markets;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the NEURC shall set the conditions for attracting a clearing institution in the electricity and natural gas markets.<\/span><\/li>\n<\/ul>\n<p><b>On 18 June 2020<\/b><span style=\"font-weight: 400;\">, the Verkhovna Rada of Ukraine adopted the Law on Amendments to the Law of Ukraine \u201cOn Environmental Impact Assessment\u201d (draft Law No. 3438). The law is submitted to the President of Ukraine for signing. According to the law, for the period of quarantine prescribed by the Cabinet of Ministers of Ukraine in connection with COVID-19 and within 30 days after its cancellation the public discussions of planned activities shall be held only in the form of written comments and suggestions. Public hearings (in person) are not held.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These requirements apply to RES projects under development.\u00a0<\/span><\/p>\n<p><b>Registered legislative initiatives<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b><i>Registration No. 3665-1 dated 30 June 2020<\/i><\/b> <span style=\"font-weight: 400;\">&#8211; draft Law \u201cOn Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts of Ukraine Concerning Introduction of Withdrawn Capital Tax to Replace Corporate Income Tax\u201d. This draft Law is an alternative to draft No. 3665 registered at the Verkhovna Rada of Ukraine on 16 June 2020 (refer to the review of legislative initiatives for 1\u00a0&#8211;\u00a017\u00a0June\u00a02020).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The drafts are currently being considered by the Committee<\/span> <span style=\"font-weight: 400;\">on<\/span> <span style=\"font-weight: 400;\">Finance<\/span><i><span style=\"font-weight: 400;\">, <\/span><\/i><span style=\"font-weight: 400;\">Taxation and Customs Policy.\u00a0<\/span><\/p>\n<p><b>Registration No. 3753 dated 26 June 2020<\/b><span style=\"font-weight: 400;\"> &#8211; draft Law on amendments to certain legislative acts of Ukraine on improvement of terms of business activities during post-quarantine period. The draft Law proposes to amend a number of laws, in particular:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">to apply a moratorium on planned measures of state supervision (control) until the end of 2020 (currently &#8211; for the period of quarantine);<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">term of administrative services provision suspended due to the quarantine shall be extended for the period of quarantine and for three months from the date of its cancellation;\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">term of permit documents the validity of which expires during the quarantine period shall be prolonged for the quarantine period and three months from the date of expiration.<\/span><\/li>\n<\/ul>\n<p><b>Registration No. 3739 dated 24 June 2020<\/b><span style=\"font-weight: 400;\"> &#8211; draft Law on Amendments to the Law of Ukraine \u201cOn Public Procurement\u201d. The draft Law envisages changes in public procurement procedures through introduction of mandatory requirements for production localization (local content) of equipment or its components in Ukraine. That is, during the procurement procedure, not only the price criteria will be taken into account, but also degree of local content of Ukrainian equipment and components will be checked within the procurement framework. This applies to the following commodity items (the list is not exclusive):<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>CPV code according to the Common Procurement Vocabulary<\/b><\/td>\n<td><b>Description according to the Common Procurement Vocabulary<\/b><\/td>\n<td><b>The degree of local content of production in Ukraine since 2021<\/b><\/td>\n<td><b>The degree of local content of production in Ukraine since 2024<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">31124100-2<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Turbine generator sets<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">55%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">31170000-8<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Transformers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">55%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">31172000-2<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Voltage transformers<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">55%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">42110000-3<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Turbines and engines<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">60%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">42112100-8<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Steam turbines<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">60%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">42112200-9<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Hydraulic turbines<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">60%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Requirements of the draft Law may impact the projects implemented with budget funds or companies from the public sector of the economy.\u00a0<\/span><\/p>\n<p><b>Registration No. 3658-1 (A. Gerus) dated 23 June 2020<\/b><span style=\"font-weight: 400;\"> \u2013 draft Law on Amendments to Certain Laws of Ukraine on Improvement of Support Conditions of Electricity Production from Renewable Energy Sources. This draft law is an alternative to draft No. 3658 (CMU) registered at the Verkhovna Rada of Ukraine on 16 June 2020 (refer to the review of legislative initiatives for 1-17 June 2020).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><b>Registration No. 3657-1 (A. Zhupanin) dated 23 June 2020 <\/b><span style=\"font-weight: 400;\">\u2013 draft Law on Amendments to the Law of Ukraine \u201cOn the Electricity Market\u201d (on resolving of problematic issues in the electricity market). This draft law is an alternative to draft No. 3657 (CMU) registered at the Verkhovna Rada of Ukraine on 16\u00a0June\u00a02020 (refer to the review of legislative initiatives for 1-17 June 2020).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>The Committee on Energy and Housing and Communal Services<\/b><\/p>\n<p><b>Meeting of the Committee was held on 25 June 2020<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There was heard information about the draft Law on Amendments to Certain Laws of Ukraine on Improvement of Support Conditions of Electricity Production from Renewable Energy Sources No. 3658 (CMU) and alternative draft Law No. 3658-1 (\u0410. Gerus). Drafts aimed at implementation of the provisions of the Memorandum for resolving of the problematic issues in the renewable power industry of Ukraine.<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The Committee recommended to the Verkhovna Rada to adopt in the first reading the main draft Law No. 3658 (CMU). The draft Law is put to the agenda of the Verkhovna Rada of Ukraine scheduled on 2 June 2020.<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It was decided to recommend to the Verkhovna Rada to adopt in the first reading the draft Law on Amendments to the Law of Ukraine \u201cOn the Electricity Market\u201d No. 3199. The draft Law creates benefits for large industrial consumers of electricity providing the opportunity to buy electricity from producers under bilateral contracts. However, the law contains a number of shortcomings, in particular regarding the criteria for determining consumers entitled for such benefits.\u00a0<\/span><\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><b>The President of Ukraine<\/b><\/p>\n<p><b><i>On 30 June 2020, the President approved the decree \u2116258\/2020 <\/i><\/b><span style=\"font-weight: 400;\">\u201cOn approval of the rotation scheme of members of the National Energy and Utilities Regulatory Commission\u201d according to which following rotation is applied to members of the NEURC:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">until 1 July 2020 to Antonova Olena;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">until 1 July 2021 to Kryvenko Oksana;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">until 1 July 2023 to Magda Oleksii;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">until 1 July 2024 to Babii Olga and Kovalenko Dmytro;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">until 1 July 2025 to Kaidash Ruslan and Tarasiuk Valerii.<\/span><\/li>\n<\/ul>\n<p><b>The Cabinet of Ministers of Ukraine<\/b><\/p>\n<p><b><i>At the meeting held on 25 June 2020<\/i><\/b><span style=\"font-weight: 400;\">, the Cabinet of Ministers of Ukraine approved the list of members of the Competition Commission for selection of candidates for the positions of members of the NEURC.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The list of members of the Competition Commission includes:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Oleksii Riabchyn, 2) Svitlana Golikova, 3) Oleg Prokhorenko (elected from the Verkhovna Rada of Ukraine);<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">4) Sergii Chekh (elected from the Ministry of Energy of Ukraine);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">5) Yurii Andriichuk (elected from the Ministry of Community and Territories Development of Ukraine).<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>National Energy and Utilities Regulatory Commission<\/b><\/p>\n<p><b>Draft statutory instruments of the NEURC published for their further discussion\u00a0<\/b><\/p>\n<p><b><i>At the meeting on 24 June 2020<\/i><\/b><b>, <\/b><span style=\"font-weight: 400;\">the NEURC approved a draft resolution \u201cOn approval of the Procedure for Investigation of Violations of Legislation on Functioning of Electricity and Natural Gas Markets\u201d.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Draft resolution of the NEURC with substantiating materials was published on the official website of the NEURC for their discussion by the market participants &#8211; see the link<\/span><a href=\"http:\/\/www.nerc.gov.ua\/data\/filearch\/Proekty\/2020\/pr_146\/pr_146-2020.zip\"><span style=\"font-weight: 400;\">http:\/\/www.nerc.gov.ua\/data\/filearch\/Proekty\/2020\/pr_146\/pr_146-2020.zip<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As the draft resolution is being published for discussion for the second time, the deadline for comments and suggestions is set by 4 July 2020 (inclusive).<\/span><\/p>\n<p><b><i>At the meeting on 26 June 2020 <\/i><\/b><span style=\"font-weight: 400;\">the NEURC approved<\/span><b>:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">draft resolution of the NEURC \u201cOn Amendments to the Resolution of the NEURC dated 10 December 2019 No. 2669\u201d (concerning revision of the tariff for services of dispatching (operational-technological) management of PJSC NPC \u201cUkrenergo\u201d);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">draft resolution of the NEURC \u201cOn Amendments to the Resolution of the NEURC dated 10 December 2019 No. 2668\u201d (concerning revision of the tariff for services of electricity transmission of PJSC NPC \u201cUkrenergo\u201d);<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Draft resolutions of the NEURC with substantiating materials were published on the official website of the NEURC for their discussion by the market participants &#8211; see the link\u00a0<\/span><\/p>\n<p><a href=\"http:\/\/www.nerc.gov.ua\/data\/filearch\/Proekty\/2020\/pr_148\/pr_148-2020.pdf\"><span style=\"font-weight: 400;\">http:\/\/www.nerc.gov.ua\/data\/filearch\/Proekty\/2020\/pr_148\/pr_148-2020.pdf<\/span><\/a><\/p>\n<p><a href=\"http:\/\/www.nerc.gov.ua\/data\/filearch\/Proekty\/2020\/pr_147\/pr_147-2020.pdf\"><span style=\"font-weight: 400;\">http:\/\/www.nerc.gov.ua\/data\/filearch\/Proekty\/2020\/pr_147\/pr_147-2020.pdf<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">The open discussion was scheduled to take place remotely with technical means on 7 July 2020 at 8 a.m.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Legal Monitoring was prepared\u00a0specially for the European-Ukrainian Energy Agency by IMEPOWER &#8211; EUEA Energy Adviser 2020. The original can [&hellip;]<\/p>\n","protected":false},"author":135,"featured_media":22687,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[125],"tags":[],"class_list":["post-22679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Legislative initiatives for 18-30 June 2020 impacting RES producers - EUEA - European-Ukrainian Energy agency<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/euea-energyagency.org\/en\/news\/market-news\/legislative-initiatives-for-18-30-june-2020-impacting-res-producers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Legislative initiatives for 18-30 June 2020 impacting RES producers - EUEA - European-Ukrainian Energy agency\" \/>\n<meta property=\"og:description\" content=\"The Legal Monitoring was prepared\u00a0specially for the European-Ukrainian Energy Agency by IMEPOWER &#8211; EUEA Energy Adviser 2020. 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