Today, the Deputies of Verkhovna Rada of Ukraine adopted in the second reading and as a whole the Law on Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine (registration number of the draft law 9011-d).
The law is aimed at support the production of electricity from alternative energy sources, taking into account the best global practices.
The main provisions of the Law:
- Implementation of the system of guarantee of origin (confirmation of the origin of electricity produced from renewable sources). The register mechanism is similar to the European Union system. Guarantees of origin are important to confirm that goods and services that used electricity have a smaller carbon footprint. Thus, it is one of the components for achieving global climate goals. Moreover, it is an additional source of income for electricity producers from RES.
- A partial change in the mechanism of conducting auctions for the renewable energy generation construction. On the one hand, the barriers for participants to enter the auction are reduced (the requirement to have a plot of land and a contract for joining is removed), and on the other hand, the auction organizer can more flexibly set requirements for the subject of purchase at the auction (set specific hours or a load profile for which the auction price will be paid). In addition, support based on the results of the auction will be provided in the form of feed-in-premium.
- Introduction of the possibility of transition for existing producers from the green tariff to feed-in-premium.
- Providing the opportunity to restore damaged RES generation while maintaining the green tariff.
- Introduction of the possibility of consumer participation in the provision of services on the electricity market through aggregators. Aggregators connect consumers and small producers of electricity into a kind of virtual power plant that can buy and sell electricity and provide other services in the electricity market.
- Creation of a self-generation mechanism that enables consumers to set up generation for their own needs and sell the remaining unused electricity to their supplier. The money received from the sale of electricity is used to pay for the consumed electricity and tariffs for the transportation of electricity, and the consumer can withdraw the remaining money to his own bank account. The specified mechanism will provide incentives for the installation of generation at places of consumption and, accordingly, the development of distributed generation.
- The law extends for one year the period during which wind turbines can be built at the green tariff. Thus, investors who were unable to implement wind farm construction projects due to the war have been given the opportunity to complete the implementation of their projects.
In general, the Law creates prerequisites for consumers to actively participate in the electric energy market and earn money from it, and also creates incentives for investments in the construction of distributed generation from RES.
We are grateful for the support of an important Law that will undoubtedly have a positive impact on the development of the renewable energy sector. This is a powerful incentive for investors and an important step forward! A large number of issues are covered: guarantees of origin, auctions, green tariff, self-production mechanism!