The Verkhovna Rada of Ukraine has adopted in the second reading and as a whole draft law No. 13219 aimed at improving competitive conditions for electricity generation from renewable energy sources. The state continues to establish clear and competitive rules for the development of renewable energy — solar, wind, and other “green” sources. This is an important component of the country’s energy security, particularly amid ongoing enemy attacks on the power system. Private investment is essential to restore and further develop the sector.
One of the key innovations of the law is the introduction of a support mechanism for renewable energy auction winners in the form of a “clean” market premium (FiP) instead of contracts for difference (CfD). This approach ensures a more transparent revenue model and provides businesses with greater opportunities for financial planning.
The law extends the validity of the “green” auction mechanism until 31 December 2034, replacing the previously established deadline of 31 December 2029. This creates a long-term outlook for investors and enables the planning of new project cycles in the renewable energy sector.
The legislation also reduces the financial burden on participants of “green” auctions. The amount of the bank guarantee is reduced from EUR 15 to EUR 10 per kilowatt of awarded capacity, and in the case of construction deadline extensions — from EUR 30 to EUR 10. These changes lower market entry barriers for medium-sized and new players.
To enhance competition, the law provides greater flexibility in quota formation. The minimum share for specific technologies — solar, wind, bioenergy, and others — has been reduced from 10% to 5%. This broadens participation opportunities in auctions and stimulates healthy competition among different types of generation.
The law integrates modern energy storage solutions and harmonizes the market with European standards. It improves the mechanism of guarantees of origin for electricity in line with EU requirements, which is crucial for international buyers and export contracts. In addition, it enables the integration of battery energy storage systems (BESS) into the cable-pooling mechanism, opening new prospects for the development of the energy storage market in Ukraine.
The adoption of this draft law creates new conditions for restoring investment activity in the renewable energy sector and lays the foundation for launching new auctions and advancing renewable energy projects in Ukraine.
