The Cabinet of Ministers of Ukraine has set an additional annual support quota for renewable energy producers for 2024 in the amount of 110 MW. The relevant decree was adopted at a Government session following a proposal by the Ministry of Energy of Ukraine.

"In the online auction system Prozorro.Sale, pilot green auctions for the distribution of the support quota for electricity producers from alternative sources will start in autumn. First of all, this will ensure the transparency of this process. Second, it will facilitate the transition to a new model of renewable energy support and attract investment in this sector of the economy. Investors will receive long-term guaranteed support, which will allow them to attract credit resources, create jobs and new generating capacities to support Ukrainian businesses," said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.

"Given the enormous scale of damage to our generating capacities by the russians - 9 GW of manoeuvring capacity - the development of distributed generation is one of the most important priorities. And renewable energy facilities can play a significant role in increasing the volume of generation in our power system," said Minister of Energy of Ukraine German Galushchenko.

The additional annual quota for renewable energy support is distributed as follows: SPPs - 11 MW, wind farms - 88 MW, other types (biomass, biogas, small hydropower plants) - 11 MW.

The maximum price offers of the auction participants were 9 euro cents/kWh for SPPs and WPPs, and 12 euro cents/kWh for other types of renewable energy.

According to the schedule, the pilot auctions for the allocation of the support quota are due to be held in October-November this year under the procedure set out in the Procedure for Holding Auctions for the Allocation of the Support Quota approved by the Cabinet of Ministers of Ukraine dated 27.12.2019 No. 1175.

The auctions will be held in the electronic trading system administered by ProZorro.Sale JSC, with access to it provided by operators of authorised electronic platforms. The organiser of the auctions is SE Guaranteed Buyer.

"To implement the requirements of the Law and the Order, a separate auction module was created and launched in the ProZorro.Sale system, providing for the distribution of the approved support quota among the auction participants on the basis of the "lowest price to the highest" principle, thus ensuring the lowest possible prices for renewable electricity. The technical implementation was carried out with the support of the USAID Energy Security Project, and the system is ready to launch lots in accordance with the current order," said Serhii But, CEO of Prozorro.Sale.

It is expected that the first power generation facilities commissioned as a result of the pilot auctions will start supplying electricity to the grid in 2025.

It is worth noting that pilot auctions with relatively small quota volumes are a common global practice, and the mechanism itself is provided for in the Law of Ukraine "On Alternative Energy Sources".

Holding pilot auctions in 2024 under the additional annual support quota is a preparation for future auctions under the annual support quota, thus helping to attract investment in the construction of new generating capacities in the power system.