On August 1, 2023, JSC Market Operator and the UWEA representatives discussed trade in guarantees of origin of electricity generated from renewable energy sources (“GOs”).
Law of Ukraine “On Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine” No. 3220-IX (Law 3220-IX) enacted on July 27, 2023, has introduced GO mechanism in Ukraine. The newly implemented legislation provides for GOs to be traded in Ukraine and exported abroad.
To promote trading in GOs the Ministry of Energy of Ukraine will develop a procedure for determining the environmental value of electricity generated from RES.
During the meeting, JSC Market Operator shared their vision of the GO trading process and the advantages of its own trading platform (in accordance with Law 3220-IX, one of the GO trading platforms could be the Market Operator’s one).
Oleksandr Havva, the company’s CEO, emphasized that the proposed bidding format for the sale and purchase of GOs should be transparent for both sellers and buyers. One of the options could be an auction based on the intersection of supply and demand curves, similar to the one used in the day-ahead market.
Oleksandr Havva: “We offer 100% instant payment using escrow accounts. We guarantee transparency of the bidding process, convenient periods for purchasing guarantees of origin, and two types of pricing for the auction: at the ceiling price and at the price of the auction. Once the relevant law is implemented, we are ready to work.”
The UWEA welcomes the Market Operator’s commitment to prompt introducing a trading platform for GOs and expresses its readiness for further cooperation on designing the relevant policy in the RES industry.
