Quotas on renewable energy storage (RES) for 2026–2029 as well as the 2025 RES auction schedule have been set by Resolution 119-p, Certain issues of conducting auctions for the allocation of renewable energy support quotas for 2025 and setting indicative forecasts of annual support quotas for 2026–2029 (the “Auction Quota Resolution”), which was approved by the Cabinet of Ministers of Ukraine on November 29, 2024.

The Auction Quota Resolution envisages 330 MW for RES support to be distributed in the following auctions:

The CMU also envisages indicative quotas in subsequent years, as follows:

Of course, the figures for 2026–2029 may be adjusted in the future, depending on the improvement of the distribution quotas for the respective years. We can’t exclude that there could be additional quotas for RES support even in 2025.

The Auction Quota Resolution envisages the following ceilings for bids at the auctions (these could be changed if there are any changes in the primary laws):

• Solar power plants or wind power plants – €0.08 per kWh
• Power plants with other types of eligible renewables – €0.12 per kWh

The auctions will be run by State Company “Guaranteed Buyer” (GB) 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 an unconditional and irrevocable bank guarantee €5 per kW of the capacity for which it is seeking support, as well as information on the participant’s ultimate beneficial owner, copies of documents on its managing authorities and information on affiliated persons.

Auction winners will be obliged to provide a bank guarantee of €15 per kW of the capacity and to commission the respective power plants within the following time limits:

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

Please note that, this year, GB ran pilot auctions to distribute quotas of support for solar, wind and other technologies. Unfortunately, solar and wind auctions did not attract sufficient developer attention and, as a result, didn’t take place. The auctions for other technologies were attended by developers of hydropower plants, with one company being awarded the auction price of €0.111 per kWh and is entitled to enter into a contract for difference with GB for 12 years after commissioning.

Given that the quotas for support of RES producers have been increased and most likely there will be an increased share of quotas to be distributed to one capital group (currently, it is 25 percent and plans are to increase it to 50 percent) and if certain conditions for doing business by RES producers are improved (improvement of the grid connection procedure and optimization of costs, simplified project development, resolution of debts accumulated in the power markets, etc.), we could expect to see more attendees at auctions in 2025.

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