Ukraine approves pilot online auctions to distribute RES support quota for 2024

August 23, 2024

On August 13, 2024, the CMU adopted Resolution N 757-р On some issues of pilot auctions for the allocation of the support quota in 2024 (the "Auction Quota Resolution").

The Auction Quota Resolution envisages the following quotas for RES support to be distributed during the first pilot auctions:

• Solar power plants - 11 MW (to be located on the left bank of the Dniper river) at the auction planned for October 2024
• Wind power plants - 88 MW (across the entire territory of Ukraine) at the auction planned for November 2024
• Power plants with other types of eligible renewables -11 MW (across the entire territory of Ukraine) at the auction planned for November 2024

The Auction Quota Resolution envisages the following ceilings for bids at the auctions:

• Solar power plants - 9 eurocents per kWh
• Power plants with other types of eligible renewables - 12 eurocents per kWh

The auctions will be run by State Company "Guaranteed Buyer" on the Prozorro.Sale platform.

According to the Law of Ukraine On Alternative Energy Sources, in order to participate in the auction, a participant must submit an application accompanied by unconditional and irrevocable bank guarantee €5 per kW of the capacity for which it seeks to get support, as well as information on the ultimate beneficial owner, copies of documents on managing authorities of the participant, and information on affiliated persons.

Winners of the auctions will be obligated to provide a bank guarantee in the amount of €15 per kW of the capacity and to commission respective power plants within:

• 18 months for solar power plants
• 36 months for all other eligible powers plants

This information does not constitute legal advice and is merely the opinion of the author.