The government has allowed distributed generation electricity producers to conclude direct contracts with consumers without mandatory auctions, announced Prime Minister Denys Shmyhal, reports UNN.
Electricity producers from distributed generation facilities will be able to conclude direct bilateral agreements with consumers without the mandatory requirement of conducting electronic sales auctions,
According to him, the corresponding decision adopted by the government is one of the results of the dialogue between the Ministry of Energy and business representatives in the field of gas generation.
The official named several practical results that the decision could lead to:
- an important step towards expanding the practice of so-called PPA contracts — long-term electricity purchase and sale agreements between a generating enterprise and a corporate consumer;
- PPA contracts make it possible to locate generation next to the enterprise that consumes the electricity. This guarantees continuous power supply even under security risks;
- businesses will receive a predictable electricity price and operational stability while simultaneously reducing the load on the overall power system.
"By encouraging private investment in the decentralized gas generation sector, Ukraine's new energy architecture with a high level of autonomy for regions, communities, and enterprises will be formed faster," Shmyhal is convinced.