Authorization
On 21 August 2025, the Verkhovna Rada of Ukraine took a decisive step towards strengthening energy independence and accelerating the green transition by adopting Draft Law No. 13219 at its first reading. This document introduces more than just technical amendments; it comprehensively modernizes the RES support system, adapting “green” auctions to current challenges and European standards, while enhancing the efficiency and transparency of the competitive support model for RES.
The proposed changes create long-term, predictable conditions for investors, stimulating not only the construction of new capacities but also the implementation of innovative technologies to stabilize the energy system.
Modernization of Support Mechanisms and Financial Instruments
A key innovation is the extension of the auction period until 31 December 2034, providing investors with long-term confidence in the industry’s development prospects. Concurrently, there is a shift from the “Contract for Difference” (CfD) model to a market premium, a more flexible mechanism better suited to the modern electricity market design.
Access to auctions is also significantly simplified. In addition to the traditional bank guarantee, investors can now use alternative financial security through a special account with the Guaranteed Buyer. Crucially, the amount of this security is substantially reduced, which lowers the financial barrier to entry for projects and stimulates competition.
Incentivizing Energy Storage and System Flexibility
The draft law emphasizes the development of the most promising technologies. On one hand, the minimum mandatory quota for solar and wind power plants is reduced to 5%, making the system more flexible. On the other, an incentive is introduced for the construction of solar power plants with energy storage units: for these projects, the quota remains at 10%, and a higher maximum bid price of 12 EUR cents/kWh is established.
Furthermore, the "cable pooling" mechanism is being regulated at the legislative level for the first time, allowing energy storage units to be connected at the same point as generating facilities. These steps will enhance the stability and controllability of the energy system, which is critical as the share of RES continues to grow.
Adaptation to Martial Law and Harmonization with EU Norms
Recognizing the current challenges, the draft law proposes more realistic project implementation timelines. Specifically, the grid connection deadlines for RES projects (excluding solar) with contracts concluded during martial law are extended to 42 months. The system for issuing and circulating GO is also being improved, reducing their redemption period to 12 months – another step toward integrating Ukraine's energy market with that of the EU.
UWEA Position
The UWEA welcomes the adoption of Draft Law No. 13219 in its first reading and expresses full support for its swiftest possible final adoption. The proposed changes are both timely and essential. They create transparent and attractive conditions for attracting billions in investment, will contribute to the decentralization of the energy system, and will strengthen Ukraine's energy security
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