Month: August 2025

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 in the first reading. This document does not merely introduce technical amendments, but comprehensively modernises the renewables support system, adapting it to current challenges and European standards, and increases the efficiency and transparency of the competitive renewables support model.

The proposed changes create long-term and clear conditions for investors, stimulating not only the construction of new capacities, but also the introduction of innovative technologies for stabilising the power system.

Modernising support mechanisms and financial instruments

A key innovation is the extension of the auctions’ validity period until 31 December 2034, which gives investors confidence in the long-term prospects for the industry’s development. At the same time, there is a transition from the “contracts for difference” model to a market premium, which is a more flexible mechanism that better corresponds to the modern architecture of the electricity market.

Access to participation in the auctions is also significantly simplified. Now, in addition to the traditional bank guarantee, investors will be able to use alternative financial security in a special account of the Guaranteed Buyer. Importantly, the size of such security is significantly reduced, which lowers the financial barrier to entering projects and stimulates competition.

Stimulating energy storage technologies and system flexibility

The draft law places an emphasis on the development of the most promising directions. On the one hand, the minimum mandatory share of the quota for solar and wind stations is reduced to 5%, which makes the system more flexible. On the other hand, an incentive is introduced for building solar power plants with energy storage facilities: for them, the quota remains at the level of 10% and a higher maximum price offer is set at the level of 12 euro cents/kWh.

In addition, for the first time at the legislative level, a “cable pooling” mechanism is regulated, which allows energy storage facilities to be connected at the same point as generating facilities. These steps will contribute to increasing the stability and controllability of the power system, which is critically important amid the growing share of renewables.

Adapting to martial-law conditions and harmonising with EU norms

Understanding the challenges of today, the draft law proposes more realistic timelines for the implementation of projects. In particular, the deadlines for grid connection for renewables facilities (except solar power plants), the contracts for which were concluded during martial law, are extended to 42 months. The system for issuing and circulating guarantees of origin is also improved, reducing their redemption period to 12 months, which is another step towards the integration of the Ukrainian energy market with the European one.

UWEA welcomes the adoption of draft law No. 13219 as a basis and expresses its full support for its swiftest possible adoption as a whole. The proposed changes are timely and extremely necessary. They create transparent and attractive conditions for attracting billions in investment, will contribute to the decentralisation of the power system and the strengthening of Ukraine’s energy security.

UWEA welcomes the signing by the President of Ukraine, on 5 August 2025, of the Law of Ukraine “On Amendments to Certain Legislative Acts Regarding the Use of Land Plots for the Development of Digital Infrastructure” (draft law No. 9549).

This Law contains a number of critically important provisions for the development of infrastructure facilities, in particular in the field of renewable energy, and contributes to the further attraction of investment, the acceleration of wind farm construction and the strengthening of Ukraine’s energy security.

Key changes concerning wind energy:

1. Simplified access to land plots for linear infrastructure (power lines, cables, pipelines)

• The possibility of lease or the establishment of an easement without a tender – a significant reduction in the time for formalising the rights to use the land needed for the grid connection of wind farms.
• A minimum easement term of 5 years – ensuring stability for investors and grid operators.
• The use of forestry-designated land of up to 0.05 ha without changing its designated purpose – making it possible to quickly route power lines through forests to wind farms without lengthy bureaucracy.

 Significance for the industry: The deployment of grid infrastructure is one of the most vulnerable points in wind farm projects. The new rules will make it possible to speed up the processes and avoid delays related to land procedures.

2. The possibility of the compulsory expropriation of land for strategic facilities in Zakarpattia

• The expropriation of land in the Uzhhorod district of the Zakarpattia region is permitted for siting energy facilities, industrial parks and defence infrastructure.
• Compensation at three times the market value of the property, and in the case of a voluntary sale – an additional payment of +20%.
• Protection of state projects – until 2027, projects cannot be halted through court claims.

Significance for the industry: In regions with high wind potential, in particular Zakarpattia, the new rules create a priority for siting wind farms, contribute to the development of local infrastructure and ensure the continuity of the implementation of strategic projects.

3. Postponement of the deadlines for introducing new requirements for urban-planning documentation

Until 1 January 2028, it is permitted to:

• develop and approve urban-planning documentation without the new requirements regarding its structure;
• change coastal protective strips within settlements through detailed territory plans;
• determine the functional purpose of a territory by means of a detailed territory plan.

Significance for the industry: Many wind farm projects are already at the stage of approving detailed territory plans. The new deadlines make it possible to complete these procedures without the need to adapt to new, more complex requirements, which ensures legal certainty for developers and banks.

Why is this important for the market?

• Faster planning and construction of wind farms – less bureaucracy and faster grid connection.
• Attractiveness for investors – transparent rules, protected rights, adequate compensation for land expropriation.
• Legal certainty – existing projects can complete procedures under the old rules without the risk of delays.
• A signal of support for the industry – the authorities are demonstrating a strategic interest in the development of clean energy.

UWEA extends its sincere gratitude to the Parliament and the President of Ukraine for the adoption and signing of Draft Law No. 9549 and for supporting the development of wind energy and sustainable infrastructure. This Law is an example of state policy that takes into account the needs of the market and responds to the challenges of the times. We are convinced that further deregulation and modernisation of legislation will open up new opportunities for the development of the industry and for achieving Ukraine’s energy independence.