Ukraine should review mechanism for conducting RES auctions – Enlargement Package
Ukraine needs to review the mechanism for conducting auctions for renewable energy sources (RES) and focus on solving systemic problems in the electricity market.
The European Commission reached these conclusions in its annual report Enlargement Package, which was published in Brussels on November 4.
"Most of Ukraine’s renewable energy auctions failed to attract investors, indicating a need to recalibrate auction design and address systemic issues in the Ukrainian electricity market," the document notes.
In the coming period, Ukraine needs to increase alignment with the EU’s renewable legislation including full alignment with RED II Directive, and address key gaps, such as resolving the debt issue and simplifying permitting rules.
"In June 2025, Ukraine adopted a roadmap for the separation of the renewable energy surcharge from the tariff for electricity transmission services, and an action plan to implement it in 2025 and 2026. Alignment with EU sustainability and greenhouse gas emission criteria for biofuels, bioliquids and biomass remains incomplete. Regulatory progress on biomethane enabled the first biomethane exports to the EU in February 2025," the document notes.
On governance, Ukraine has put in place a monitoring framework for its national energy and climate plan (NECP) and, on 15 March 2025, timely submitted its first implementation report.
"Key challenges for implementing the NECP are limited funding, insufficient administrative and human resources, lack of data, restricted access to data, and weak coordination across government institutions," the document notes.
The NECP revision, taking into account the recommendations of the Energy Community Secretariat, is scheduled for the end of 2025.