EBRD and BSTDB finance new solar project in Ukraine via USELF program

EBRD and BSTDB finance new 57.6 MW solar plant in the Mykolaiv region in Ukraine. Both lenders are financing the construction with parallel loans of €19.1 million each. Upon the completion the new plant will be generating at least 65,000 MWh of renewable eelectricity per year.

IMEPOWER has performed due dillignece of this project for the EBRD in the framework of Ukraine Sustainable Energy Lending Facility (USELF).

Find more information about the largest EBRD and BSTDB solar project in Ukraine to date here.

Update on Draft Renewable Auction Law (8449-D)

IMEPOWER continues its support to the Parliament Fuel and Energy Sector Committee processing comments and proposals received from the Parliament Members on the Draft Law 8449-D (introducing auctions for support of renewable energy projects) adopted in the 1st reading in December 2018.

Updated version of the Draft Law shall be approved by the Committee by the end of February and submitted for the 2nd reading by the Parliment in March.

See below the summary of the Draft Law version adopted during the 1st reading (both in Ukrainian and English).

Draft Law 8449D Summary 2018 12 05 Eng

Draft Law 8449D Summary 2018 12 05 Ukr

Ukrainian version of the Draft Law is available here.

New Renewable Energy Auctions Law Submitted to the Parliament

New version of the Draft Law introducing auctions for support of renewable energy projects approved yesterday by the Parliament Fuel and Energy Sector Committee was signed today by MPs and registered on 05 December 2018 with the Parliament under number 8449-D. See below relevant summary tables in English and Ukrainian.

Draft Law 8449D Summary 2018 12 05 Eng

Draft Law 8449D Summary 2018 12 05 Ukr

Ukrainian version of the Draft Law is available here.

Summary of Alternative Draft Laws on Renewable Energy Auctions

As of 25 June 2018, seven draft laws were registered by the Verkhovna Rada of Ukraine as alternative to the draft law “On Amendments to Certain Laws of Ukraine on the Development of Competitive Electricity Production from Alternative Energy Sources” (reg. No. 8449).

Main differences of the draft law and alternative draft laws are shown in attached files (Ukrainian and English versions).

IMEPOWER Alternative Draft Laws RES Auctions Summary 2018 06 26 Ukr

IMEPOWER Alternative Draft Laws RES Auctions Summary 2018 06 26 Eng

Summary of Draft Law on Renewable Energy Auctions

Draft Law introducing new support system for renewable energy projects in Ukraine has been registered with the Parliament on 07 June 2018 under registration number 8449.

New support system based on auctions will apply to the solar power plants with installed capacity exceeding 10 MW and wind power plants with installed capacity exceeding 20 MW. First auctions will be held in 2020, the Government will approve respective technology-specific quotas and auction conditions by 01 December 2019.

Auctions will be held by the Guaranteed Buyer, state-owned entity being part of new electricity market infrastructure. The Guaranteed Buyer will buy electricity from renewable energy producers under Power Purchase Agreement (PPA) and will compensate the difference between the electricity market price and the auction price via Contract for Difference (CFD). PPA and CFD will have 20 years term. Auction price will be fixed in EUR.

If solar and wind power plants mentioned above secure land titles, grid connection, construction permit and sign pre-PPA by 01 July 2019, they will be able to stay at existing feed-in (green) tariff system that expires at the end of 2029. They will have 3 years from date of pre-PPA signing to commission power plant and receive approval of the feed-in tariff set for the year of commissioning.

Other solar and wind power plants as well as other electricity producers from RES (biomass, biogas, small hydro, etc.) are exempted from auctions and will stay at the current feed-in tariff system unless it is their wish to take part in respective auctions to get 20 years support.

Feed-in tariff for solar power plants commissioned after 01 January 2020 will go down by 30% vs. 10% currently envisaged by the law. No changes in green tariffs for other RES producers compared to effective version of the Law on Alternative Energy Sources.

Detailed summary of the Draft Law is provided below in attached files (Ukrainian and English versions).

IMEPOWER Draft Law RES Auctions Summary 2018 07 06 Ukr

IMEPOWER Draft Law RES Auctions Summary 2018 07 06 Eng

Please contact us at office@imepower.com if you have any questions.