Ukraine’s government has introduced a global standard for stimulating the construction of new green energy facilities.

The Cabinet of Ministers approved a resolution that improves the auction model for selling green electricity. Instead of a fixed tariff, a contract-for-difference mechanism has been introduced that will allow the winners of auctions to distribute renewable energy support quotas. This is a new global standard for stimulating the construction of new renewable energy facilities.

According to the resolution, the conditions for participation in auctions are simplified for RES investors. Now, the availability of a plot of land and the necessary technical conditions to connect to the network will be optional when submitting applications. Flexibility has also been added in the ability to conduct auctions with energy storage facilities on designated land plots or structures.

The term of validity of the contract concluded by the auction winner with the guaranteed buyer is shortened from an inflated 20 years to an acceptable European length of 12 years.