Ukraine: feed-in tariff rates for ground solar power plants remain reduced

On 22 December 2016 the Parliament adopted Draft Law No. 5129 “On Amendments to the Law of Ukraine “On Electricity”, registered on 15 September 2016 (the “Law”). The Law was duly approved by the Parliament and is now subject to the President’s signature. It is expected to come into force on 1 January 2017. 

The Ukrainian feed-in or “green” tariff is set by the National Commission on the State Regulation of the Energy and Public Utilities Sector (the “Regulator”) separately for each company that generates electricity from renewable energy sources with effect until 1 January 2030. The value of the green tariff differs according to the type of alternative energy source involved. The law provides that the green tariff is equal to the established retail tariff for households (known as “Class 2” consumers) multiplied by the green tariff index (GTI) established by law.  

In June 2015 the Parliament adopted Law No. 514-VIII, which provided for the establishment of reduced GTIs for on-the-ground solar power plants with installed power capacity of more than 10 MW, if commissioned prior to 1 July 2015, but only as a temporary measure applicable until 1 January 2017. Now the Law introduces the relevant GTIs on a permanent basis going forward, which means that the green tariff rates for ground solar power plants will remain unchanged and shall be as follows:

LAW: Draft Law “On Bringing Amendments to the Law of Ukraine “On Electricity” (with respect to “green” tariff rates for electricity generated from alternative energy sources)” adopted on 22 December 2016

Author:

Vitaliy Radchenko, Partner, Vitaliy.Radchenko@cms-cmck.com