AMENDMENTS TO THE "GREEN" TARIFF IN UKRAINE
02/07/2020
On June 25, 2020, the Verkhovna Rada Committee on Energy and Utility Services approved voting in the first parliamentary hearing the draft Law № 3658 "On amendments to some Laws of Ukraine on improving support for electricity production from alternative energy sources" submitted by the Cabinet of Ministers of Ukraine.
The draft Law is based on Memorandum of understanding on resolution of problematic issues in the RES sector between the Ukrainian authorities and RES producers / investors dated 10 June 2020.
On June 18, 2020, the President of Ukraine declared the draft Law as urgent, and on June 19, 2020, it was included in the agenda of the parliament session.
The draft law sets out the conditions for restructuring the "green" tariff for solar power plants (SPPs) and wind power plants (WPPs), as well as introduces some other changes:
1. Reduction of “green” tariff commissioned from 1 July 2015 to 31 December 2019:
- Solar power plants (1 MW and more) – 15%;
- Solar power plants ( up to 1 MW) – 10%;
- Wind power plants (wind turbines 2 MW and more) – 7,5%.
2. Reduction of “green” tariff for SPPs and WPPs commissioned in 2020 and later:
- Solar power plants (with capacity 1 MW and more commissioned before July 31, 2020) – 2,5% ;
- Solar power plants (with capacity 1 MW and more commissioned from August 1, 2020) – 60% (the Alternative Draft Law suggests the reduction starting with July 1, 2021);
- Wind power plants – 2,5% (the Alternative Draft Law also suggests reduction of GT by 20% for WPPs commissioned starting with January 1, 2022).
3. Introduced a state guarantee for restructured RES producers: the state of Ukraine guarantees that the laws effective as of date of entry into force by the Draft Law shall apply (except for changes in legislation that reduce and / or abolish taxes and fees, and / or simplify regulation of RES power plants, simplify procedures for state supervision (control) in the field of commercial activities, mitigate liability or otherwise improve the condition of RES producers, as well as changes in legislation relating to defense, national security, civil order and environmental protection).
4. Introduced a liability for imbalances (except for power plants up to 1 MW for which liability will be increased by 10%):
- 50% from 2021;
- 100% from 2022
5. Wind power plants with 3 turbines regardless of their capacity are not entitled to GT and shall participate in the auctions. Only WPPs with power capacity up to 5 MW are exempted from mandatory auctions and still may enjoy GT scheme of support.
6. Maximum amount of the auction price for wind farms:
-9 euro cents per kWh at auctions until December 31, 2024;
- 8 euro cents for auctioneers after January 1, 2025.
Maximum amount of the auction price for other RES power plants - 12 euro cents per kWh.
The draft law also provides for many other changes, but the final version of the law may be changed. This depends on the results of the vote in parliament.
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