Policy & Regulations Overview
Ukraine has international obligations for the development of RES. The country also has a series of set targets in its Energy Strategy until 2035 and in the National Renewable Energy Action Plan by 2020. According to the Decision D/2012/04/MC-EnC, Ukraine has an obligation to reach 11% of energy produced from RES (including large hydro power plants) in the overall structure of energy consumption of the country by 2020. Moreover, the Energy Strategy of Ukraine until 2035 provides for an increase in the share of RES to 25%.
The share of renewables (including large hydro power plants) in electricity production in Ukraine is approaching 10% (as of 3Q2019).
From 1 January 2020, a state support for the new RES projects will only be possible subject to their participation in the auctions. The state guarantees to purchase all electricity supplied by a RES generator at a price that depends on the auction results plus certain bonus for the use of the equipment produced in Ukraine. Introduction of RES auctions doesn’t mean full cancellation of the feed-in tariff support system in Ukraine. Both regimes will work in parallel till 2030. Already operating RES plants will continue selling electricity under FiT until 2030.
Moreover, FiT will be available until 2030 for the following projects:
• projects of any capacity and type of RES technology that have been commissioned before 2020
• projects of any capacity and type of RES technology that have signed preliminary PPA by 31 December 2019. Conditions for obtaining FiT in such cases include commissioning of the power plant within 2 years from the date of signing Pre-PPA for solar power plants, and 3 years for other types of RES projects which will be constructed after 1 January 2020, which installed capacity is less than the capacity for which auctions are mandatory (solar projects with capacity less than 1 MW and wind projects with capacity less than 5 MW or wind projects with 3 wind turbines regardless of unit capacity can choose support regime themselves).