Ukrainian Parliament adopts bill to improve green auction mechanism
The Verkhovna Rada has passed on first reading a draft law to improve the mechanism for auctions distributing renewable energy quotas (so-called "green auctions"), MP Yaroslav Zhelezniak (the Holos parliamentary faction) announced.
According to his post on Telegram Thursday, 256 MPs voted in favor of bill No. 13219, On Amendments to Certain Laws of Ukraine to Improve Competitive Conditions for the Production of Electricity from Alternative Energy Sources, authored by Energy Committee Chair Andriy Gerus and a group of other MPs.
The bill, among other things, extends the auction system by five years – until December 31, 2034, instead of January 1, 2030 – and introduces a new support mechanism in the form of a clean premium (market premium mechanism) to replace contracts for difference.
It also introduces a new financial instrument to guarantee renewable energy project implementation in the form of financial security provided directly to the state-owned company Guaranteed Buyer as an alternative to a bank guarantee.
At the same time, the size of the bank guarantee or financial security required from auction winners before signing a contract with the Guaranteed Buyer is reduced from EUR 15/kW to EUR 10/kW. The level for participation remains at EUR 5/kW.
The bill also reduces the minimum mandatory quota share for each renewable energy type from 10% to 5% (for solar, wind, biomass, biogas, small hydropower, etc.).
As reported, green auctions were first launched in 2024 but ended in failure. The only result last year was the award of support for just 0.9 MW of small hydropower.
For 2025, the Cabinet set a total renewable energy support quota of 330 MW: 250 MW for wind, 33 MW for solar, and 47 MW for other alternative energy sources (excluding wind, solar, blast furnace and coking gases, limited to micro-, mini-, and small hydropower).
The first 2025 auction – for 33 MW of solar on March 13 – failed due to no participants, as did the April 4 auction for 100 MW of wind, and the May 12 auction for 47 MW of other RES (small hydro, bioenergy).
At the final scheduled 2025 auction – 150 MW of wind capacity from DTEK Tyligulska wind farm – 25 bids of 6 MW each were submitted. All passed qualification. As a result, DTEK Tyligulska wind farm secured support for 120 MW, since winners acquire the right to state support for 80% of the total capacity bid at auction, i.e. 120 MW.
The auction was held July 31. On the Prozorro.Sale platform it is currently pending publication of the closing protocol.
DTEK Tyligulska wind farm's bid price was EUR 0.0796/kWh, compared to the starting price of EUR 0.08/kWh.