June 12 (Renewables Now) - The Ukrainian government will be reviewing a draft law envisaging the introduction of competitive auctions aimed at promoting renewable energy generation in the country.
The Verkhovna Rada, the unicameral parliament of the country, has registered bill 8449, prepared by members of five committees, proposing amendments to particular laws intended to ensure competitive conditions in the renewables sector. The changes are planned to be introduced from July 1, 2019, the Ukrainian Wind Energy Association announced on Friday.
The bill calls for mandatory auctions for solar projects of over 10 MW, and for wind projects of 20 MW or bigger. They will be held until 2029 in two rounds per year, ending in May and October, respectively.
Minimum tariffs in the auctions are to be set by the Cabinet of Ministers of Ukraine, while the ceiling tariffs will not be higher than the green tariff rate under the country’s current mechanism for supporting renewables.
Winners in the auctions will be awarded 20-year power purchase agreements (PPAs) with a guaranteed buyer and will be required to complete their projects over a period of three years.
The first auction in 2019 is expected to be for solar power in the Chernobyl area, the association said, citing Ukrainian MP Lev Pidlisetsky.
Meanwhile, the green tariff system will remain unchanged for already constructed and operational wind and solar parks, as well as for investors who sign PPAs before July 1, 2019. From 2020 onwards, the green tariff rate for solar is planned to drop by 30%, according to the bill.