Ukraine seeks to change the rules of the game for business and the public in the RES market

Ukraine plans to change electricity consumption rules for households and introduce new opportunities for self-generation. At least, this is stated in draft law No. 14271, which members of parliament passed in its first reading on April 28. 226 parliamentarians cast their votes in favor.

UNN examined what changes the document will bring to the daily lives of Ukrainians.

Details

It is currently known that the draft law changes the rules of the energy sector's operation and opens opportunities for citizens to participate in energy production. The main consequences involve new rights for consumers, changes in connections, and the development of alternative energy. However, the direct impact on household expenses will depend on further government decisions and market development.

In addition, the draft law defines new rules for the production, accounting, and use of energy from renewable sources. It also introduces new  requirements for emission reductions and sustainability criteria for biofuels.

New opportunities for households

The authors of the draft law introduce the concepts of the active consumer and energy communities. This means that citizens will be able to independently produce electricity, for example from solar panels; unite with other consumers for joint production and use of energy; and sell surplus electricity.

The authors of the draft law hope that  this will expand opportunities to reduce electricity costs, though it requires initial investment.

Changes in connections and permits

The update of licensing procedures for projects in the field of renewable energy is envisioned.

The main changes include:

• reduction of timeframes for obtaining permits;
• definition of special zones for the development of energy facilities;
• simplification of procedures for investors.

Once the president of Ukraine signs the law and it comes into force, Ukrainians will have the opportunity to  install private energy units faster. This is because fewer permits will be required. 

Impact on tariffs and the market

This will occur due to the establishment of new rules for supporting renewable energy in Ukraine. Mechanisms for joint projects with EU countries will also be in place, and the possibility of statistical energy transfers between states will emerge.

Taken together, the changes will affect the structure of traditional tariffs. A direct reduction in electricity prices due to this is unlikely. However, they create conditions for healthy competition in the electricity market, which may lead to an increase in favorable offers for businesses and the population from operators. 

How environmental requirements will affect electricity production 

As the initiators of the draft law note in the explanatory note, the document will introduce  mandatory sustainability criteria for fuel and energy from biomass. These include greenhouse gas emission controls, requirements for the origin of raw materials, and updated  land-use rules.

These norms will affect energy producers and may be reflected in the final cost of resources.

What will change in Ukraine in the field of heat supply

The draft law covers the sphere of heat and heat supply. It provides for the development of the use of renewable sources in heat supply systems, new energy accounting methodologies, and the integration of alternative sources into centralized systems.

For the population, this means a gradual change in heat sources, especially in large cities.

Government approves renewable energy development plan until 203013.08.24, 13:22 • 29998 views