Ukraine drafts rules for renewable energy auctions

Ukraine's Ministry of Energy has published a draft law on its website to set up an auction scheme for large-scale renewables.

Under the new regulations, technology-neutral feed-in premiums would be paid to renewable energy plant operators, in addition to the wholesale electricity price under contracts for difference.

The provisions will now have to be registered with parliament. The new scheme is designed to replace the country's expired feed-in tariff scheme, which has been the main driver for the Ukrainian solar sector over the past several years.

In December 2020, the Ministry of Energy suggested holding auctions for 155 MW of new solar capacity this year, with 170 MW to follow in 2022, 180 MW in 2023, 190 MW in 2024, and 200 MW in 2025. The ministry said at that time that the solar capacity envisaged under the program for next year would be more than triple the 50 MW of new project capacity suggested by the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE).

The figures suggested for the following four years compare with solar volumes of 80 MW, 110 MW, 140 MW, and 170 MW suggested by the SAEE, according to the presentation. National transmission system operator Ukrenergo had proposed the same mix in 2022 as for the following year, without offering suggestions related to solar beyond that point.

According to the International Renewable Energy Agency (IRENA), Ukraine had 7.33 GW of installed solar capacity by the end of 2020. Last year, around 1.39 GW of new PV capacity was deployed in the country.