The launch of green auctions brings Ukraine closer to European standards in energy – expert.

The launch of green auctions by the Ukrainian energy system

Stanislav Ignatiev, head of the Ukrainian Renewable Energy Association, said that the launch of green auctions in Ukraine will help accelerate the construction of new energy capacities and bring the country closer to European standards for the development of renewable energy.

The auction system brings us closer to European market rules and standards, particularly "green" distributed generation, the expert said.

Currently, the state is preparing a pilot auction, where it plans to attract investments of about 100 MW. It is expected that all advantages and disadvantages will be taken into account at this auction, and in the future Ukraine will hold auctions to establish larger quotas for new renewable energy capacities.

However, Ignatiev emphasizes the need to work out financing sources and provide guarantees for investors who want to start new projects in the field of renewable energy. Such measures should avoid a repeat of the situation with existing investors' debt collection.

It is necessary to clarify who will bear these obligations and to what extent state bodies or state enterprises, such as Ukrenergo or the Guaranteed Buyer, will be able to resolve this general issue about the auction incentive tariffs, the expert added.

It is worth noting that green auctions will replace the "green" tariff, which will cease to apply to renewable energy enterprises in 2030.

According to estimates by the European Bank for Reconstruction and Development, the planned start of green auctions in Ukraine may prove ineffective due to the large debts of SE "Guaranteed Buyer" for electricity produced in the country from renewable sources.

The state enterprise "Guaranteed Buyer" is in debt to investors in green energy stations to the amount of about 16 billion hryvnias, and "Ukrenergo" owes another 29 billion hryvnias due to an insufficient tariff for electricity transmission, which hinders full settlement for the services to increase the share of energy from renewable sources.