Economy

Poroshenko signs bill introducing 'green' auctions

Ukrainian President Petro Poroshenko has signed a bill amending some Ukrainian laws regarding the provision of competition for generation of alternative electricity (2712-VIII dated April 25, 2019), foreseeing the introduction of "green" auctions, according to a posting on the website of the Verkhovna Rada.

As reported, the Verkhovna Rada at a plenary session on Thursday passed bill No. 8449-d on green auctions for investors in renewable energy.

Under the legislative act the system of state support for alternative energy facilities in the form of a feed-in tariff for electricity supply is replaced by an auction system, under which the investor who offered the lowest tariff for electricity produced by the facility will receive state support.

The introduction of "green" auctions is a strong recommendation of the European community for the introduction of a predictable and fair pricing mechanism for electricity generated from renewable energy sources. This is a condition for the resumption of lending to green projects by international financial institutions.

The bill envisages the launch of auctions from July 1, 2019. The pilot auction should be held no later than December 31, 2019, and the ProZorro electronic trading system is proposed to be the platform for the auctions.

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