Yesterday, Verkhovna Rada of Ukraine passed in first reading the Law on auctions for the support of electricity produced from renewable energy sources. After a long process of consultation with hundreds of stakeholders and eight different draft laws promoted by different groups of Members of Parliament, this draft Law is a well-balanced result which will put Ukraine on a sustainable energy path.
The Law was drafted in cooperation with the Secretariat and other international stakeholders. It follows the Policy Guidelines on competitive selection and support for renewable energy prepared jointly by the European Bank for Reconstruction and Development and the Energy Community Secretariat in collaboration with the International Renewable Energy Agency.
When it takes effect in 2020, the Law will replace the existing renewables support regime for wind and solar power based on excessively high administratively set ‘feed-in-tariffs’ with a competitive bidding process. The new regime will lower the cost of renewable energy while providing a stable framework for investors and having a less distortive effect on the energy market. The Law is expected to be finally adopted in February 2019.