The Ministry of Energy in Ukraine has drafted a new law to set up an auction scheme for large-scale renewables. The new regulations have been introduced to provide technology-neutral, feed-in-premium payments to renewable energy plant operators, in addition to the wholesale electricity price under contracts for difference. The new scheme has been made to replace the existing expired feed-in tariff scheme in Ukraine. Over the past several years, the scheme has been the principal driver for the solar energy sector in the country.
In December 2020, the Ukrainian Ministry of Energy announced its plans of holding auctions for 155 MW of new solar capacity in 2021, followed by 170 MW in 2022, 180 MW in 2023, 190 MW in 2024, and 200 MW in 2025. According to the International Renewable Energy Agency (IRENA), Ukraine had 7.33 GW of installed solar capacity by the end of 2020. Around 1.39 GW of new PV capacity was deployed in the country over the last year.
In early 2021, UAE-based Masdar owned by Mubadala Investment Company, and Ukraine’s leading private power producer, DTEK have signed a strategic agreement to explore potential clean energy investments in Ukraine. This was a trilateral MoU between Mubadala, Masdar, and DTEK. Other MoUs were also signed with various Ukrainian government and private entities.