Bill Overview
The draft law No. 13219 has been registered in the Ukrainian Parliament and is publicly available on the legislature’s official portal. Its core goal is to revise the auction model used to allocate support for electricity production from renewable energy sources (RES), making it more transparent, competitive, and appealing to investors.
According to the explanatory note, the bill aligns with Ukraine’s national energy objectives and its obligations under the EU Association Agreement. It also addresses lessons learned from 2024 pilot auctions, which showed low investor engagement due to structural inefficiencies.
National Renewable Energy Targets
Ukraine aims to reach a 29.4% share of RES in electricity consumption by 2030, as defined in the National Energy Plans. Achieving this target will require an estimated $11 billion in investments, making auction reform a critical step toward meeting climate and energy security goals.
Key Objectives of the Bill
The proposed legislation aims to:
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Enhance investor confidence by simplifying and improving auction mechanisms;
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Increase competition in the green energy sector, helping to reduce consumer costs for RES support;
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Align Ukraine's policies with EU standards and best practices in renewable energy development.
Main Provisions of the Draft Law
The bill introduces several important changes:
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✅ Switch from contracts for difference to a "clean premium" model of support for auction winners until December 31, 2029;
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✅ Clarifies support quota rules per participant in cases of additional quotas;
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✅ Reviews quota allocation for various RES categories — solar, wind, biomass, biogas, and small hydropower;
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✅ Introduces a new financial guarantee mechanism to replace traditional bank guarantees;
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✅ Extends the auction system to December 31, 2034;
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✅ Reduces bank guarantee costs to ease the financial burden on participants;
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✅ Allows a 10% deviation between the installed capacity and the awarded quota;
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✅ Improves the issuance of guarantees of origin for electricity, aligning with EU recognition rules;
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✅ Supports the integration of energy storage through cable pooling mechanisms.
Political and Economic Context
The initiative is co-authored by MPs Andriy Gerus, Oleg Bondarenko, Andriy Kit, Viktoriya Hryb, and others. Importantly, the bill does not require funding from state or local budgets, reducing barriers to implementation.
Ukraine's renewable energy sector has faced significant investor skepticism, primarily due to regulatory instability, payment arrears, and broader political uncertainty. The new auction reform seeks to rebuild trust and ensure long-term predictability for domestic and international investors.
Outlook
If adopted, this law could become a turning point in Ukraine’s green transition, revitalizing investor interest, and accelerating the deployment of clean energy projects—a move that is especially critical amid wartime energy challenges and reconstruction efforts.
