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.
