Clean Energy Tool
Reliable, consistent and digestible information for investment in clean energy projects around the world.
Reliable, consistent and digestible information for investment in clean energy projects around the world.
Pilot online auctions
The State Enterprise Guaranteed Buyer has announced a series of pilot auctions to allocate support quotas for the construction of new renewable energy facilities.
The first auction was for an 11 MW quota for the construction of solar power plants (SPPs). The maximum price offer is 9 euro cents per 1 kWh. The auction took place on 31 October 2024.
The second pilot auction will support the construction of new capacities using other alternative energy sources (produced only by micro, mini, and small hydropower plants). The quota for this auction is also 11 MW, and the maximum price offer is 12 euro cents per 1 kWh. The auction will take place on 14 November 2024, with the deadline for applications being 13 November.
In addition, a third pilot auction is scheduled for autumn, to be held in November, to allocate a quota of 88 MW for the construction of wind power plants.
The first auctions of Guarantees of Origin
The first auction of Guarantees of Origin for electricity generated from renewable sources has taken place in Ukraine. The auction was joined by 12 Ukrainian companies that purchased 28,257 guarantees, which are equivalent to 28,257 MWh, that were offered by Ukrhydroenergo.
The price of one guarantee of origin remained at the level of the starting price of UAH 13/MWh. Overall, 56.5% of the proposed volume (28,257 MWh of 50,000 MWh) was sold.
Price caps
The NEURC has developed a draft resolution, "On Price Caps in the Day-Ahead Market, Intraday Market, and Balancing Market," which will repeal Resolution No. 949 of May 20, 2024, titled "On Price Caps in the Day-Ahead Market, Intraday Market, and Balancing Market."
The new draft resolution proposes a 23% increase in the maximum prices on DAM and IDM during the 11:00–17:00 time frame, raising them from UAH 5.6 thousand/MWh to UAH 6.9 thousand/MWh.
Price caps for other time periods will remain unchanged, in line with the NEURC’s proposal.
Electricity imports
In September 2024, Ukraine reduced its electricity imports by 7.5% compared to August, bringing the total to 438 thousand MWh. Imports decreased from all directions except Poland, from which 86.1 thousand MWh were imported—78% more than in August. Hungary continued to account for the largest share of electricity imports at 35%, followed by Slovakia with 24.5%. From Moldova, 16.5 thousand MWh were imported, some of which were reimports from Romania.
Compared to September 2023, electricity imports in September 2024 increased more than 18 times.
Coupling of Ukrainian and European electricity markets
In October, а draft law suggesting the creation of regulatory framework for the completion of the coupling of the Ukrainian and European electricity markets was proposed. The draft law defines key legal, organizational, and technical conditions for the integration of the day-ahead and intraday markets, as well as the roles, rights and responsibilities of the nominated electricity market operator (NEMO), which will facilitate market integration.
The draft law mandates that decisions made by the EU Agency for the Cooperation of Energy Regulators (ACER) will be binding on both the NEURC and market participants. It outlines the main conditions for the interconnection of the DAM/IDM markets, the functions and responsibilities of the NEMO, and the key roles of the central counterparty and trading agent.
The proposed legislation also includes provisions for interstate balancing, cross-border capacity exchange, and sharing of capacity reserves for frequency regulation. Additionally, it introduces the concept of energy poverty, ensuring protections for vulnerable energy consumers.
Moreover, the draft law specifies that the electricity market should not apply minimum or maximum price caps for electricity during trading and settlement across all time periods, including balancing and imbalance prices. However, technical price caps may be applied during balancing, day-ahead, and intraday trading in accordance with the provisions of the law.
Basic principles of the state climate policy
The Parliament has adopted a framework climate law outlining Ukraine's strategy to achieve climate neutrality. The law establishes a target for Ukraine to become climate neutral by 2050 and aims to reduce air pollution to 1990 levels by 2030, representing a 65% reduction.
Under the law, enterprise owners will be held responsible for greenhouse gas emissions and air pollution, while the state’s climate policy will be integrated into both the economy and post-war recovery efforts.
To support the implementation of state climate policies and encourage the public to take action to mitigate climate change, financial assistance may be provided in the form of grants, benefits, loans and subsidies.
The law aligns Ukraine’s climate legislation with its European integration commitments, as it was developed to harmonise national climate laws with the EU climate acquis. Moreover, its adoption is a key indicator of Ukraine's progress in implementing the Ukraine Facility Plan.
Funding for energy efficiency projects
Denmark will provide interest-free loans to Ukrainian communities for commercially unprofitable energy efficiency projects that cannot attract investors, as part of the Danida Business Finance programme established under the Framework Agreement between the governments of Ukraine and the Kingdom of Denmark.
This programme aims to address municipal infrastructure challenges by providing municipalities interest-free loans for up to 10 years. The minimum project value is €13.5 million, while the maximum is €100 million.
A key feature of this programme is that funds will be allocated exclusively for commercially unprofitable projects that struggle to secure investment. This includes initiatives in energy efficiency, renewable energy, heat supply, water supply, water treatment, and other critical sectors. Each municipality can receive an interest-free loan to implement its projects in accordance with the selection procedure requirements.
International support for Ukraine's energy sector
The United States Agency for International Development (USAID) has announced $825 million in support of Ukraine's energy sector this winter, almost double the amount invested by the US last year.
The Swedish government has also provided an additional €40 million to purchase equipment that will improve the energy supply situation in regions that are under constant military attack.
Biomethane exports have been unblocked
Ukrainian producers can now export biomethane to Europe, as the customs clearance procedure outlined in the Ministry of Finance of Ukraine's Order No. 380, "On Amendments to Certain Acts of the Ministry of Finance of Ukraine on Customs Matters" has officially come into effect. This important development enables biomethane producers to process their renewable gas through customs for transport via pipeline from Ukraine to the EU.
Ukraine's first biomethane now in gas transportation system
The first volume of biomethane has been delivered into the gas distribution network, this unique achievement for Ukraine's energy sector results from the collaboration between VITAGRO Group and gas distribution network specialists. The daily volume of gas supplied to the network is around 6,000 cubic metres.
VITAGRO will produce biomethane using both its own raw materials and those it will purchase, primarily livestock and crop waste.
Estimates provided by UABIO suggest that Ukraine could achieve an annual production and export volume of 80-100 million cubic metres of gas this year.
In addition, UM Liquid Gas is constructing a €6 million plant that will produce 11 million cubic metres of biomethane annually, while MHP Group is building two plants with a combined capacity of 35 million cubic metres per year.
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