New Bill on Electricity Market

On 13 April 2017 the Ukrainian parliament adopted a bill No. 4493 On Electricity Market of Ukraine. The bill paves the way for the full implementation of the third EU energy package requirements in the national electricity sector. It also provides for two years transition period for implementing completely new for Ukraine market segments – day-ahead market (indicative market prices), intraday market, bilateral contracts market, balancing and ancillary services markets.

With respect to renewables, the Electricity Market Draft Law introduces responsibility of the respective producers for the hourly imbalances  at the day ahead market where they will sell electricity at “green” tariff. It is planned that the responsibility for solar and wind will be introduced gradually with increase by 10% annually starting with 2021 until 2030 with 20% tolerance for wind, 5% tolerance for small hydro as well as 10% tolerance for solar. It also envisages the possibility of signing preliminary PPA before construction when a producer of electricity from renewables has executed title documents in respective lands, obtained a construction permit and signed a grid connection agreement. 

The producers of electricity from renewables, which have commissioned their power plants before the bill entry into force, are exempt from liability for imbalances until 2030.
The Electricity Market Draft Law will enter into force after singing by President of Ukraine.