Oleksandr Dombrovskyi

Acting Chairman of the Verkhovna Rada

of Ukraine Committee

on Fuel and Energy Complex,

Nuclear Policy and Nuclear Safety

Verkhovna Rada’s draft law on support to

renewable energy development

Basic energy legislation in compliance with the Third Energy Package

1) The Law on Natural Gas Market was adopted in April 2015

2) The Law on Energyand Public UtilitiesRegulator was adoptedon 22 September 2016

3) The ElectricityMarket Law wasadopted in April 2017

VERKHOVNA RADA OF UKRAINEVERKHOVNA RADA OF UKRAINEVERKHOVNA RADA OF UKRAINE

Ukrainian Parliament adopted the Law ratifying the COP 21 Paris in July

2016.

It was earlier than in:

VERKHOVNA RADA OF UKRAINE

Ukrainian Parliament adopted the Law of Ukraine’sjoining the Statute of the International Renewable EnergyAgency (IRENA) on December 2017.

Ukraine has become a member of IRENA on February 242018.

VERKHOVNA RADA OF UKRAINE

INSTALLED CAPACITY OF RENEWABLE ENERGY OBJECTS WORKING UNDER THE "GREEN" TARIFF

2014 2015 2016 2017 Q ІІІ 2018

411 432 531742

1097

0,1 217

51

121

426 426438

465

522

80 87

90

95

96

35 35

39

39

44

15 17

20

34

45

SPP SPP Households WPP Small HPP Biomass Biogas

From the beginning of 2015, 958 MW were introduced and around € 910 mln were invested.

967 999

1 135

1 426

1 925

Solar (ground based)56%

Solar (roof based)

1%

Solar (households)

6%

Wind27%

Small HPP5%

Biomass2%

Biogas3%

Share of Renewable Energy objects working under the “green” tariff (%)

(as of 01.10.2018)

The total capacity of power plants operating under the "green" tariff is 1925 MW

It's been 10 years since the introduction of a system offeed-in tariffs in Ukraine.On June 7, 2018, a Draft Law on Amendments to CertainLaws of Ukraine on Ensuring Competitive Conditionsfor the Production of Electricity from AlternativeEnergy (No. 8,449) was registered, aiming at introducing asystem of support for renewable energy projects basedon auctions.There were 7 alternative bills registered (8449-1, 8449-2,8449-3, 8449-4, 8449-5, 8449-6, 8449-7).In general, 56people's deputies of Ukraine submitted their proposals.On December 4, at a meeting of the Energy Committee, theMembers of Parliament recommended to the VerkhovnaRada of Ukraine to adopt the draft law in the first reading.On this Thursday, the draft law is expected to be considered bythe Verkhovna Rada.

VERKHOVNA RADA OF UKRAINE

Position in the Clean Energy for All Europeans Package:

Support schemes must be cost-effective and marketoriented

Provisions of the Ukrainian Draft Law on RES № 8449-d:

The new Draft Law introducing auctions for support ofrenewable energy projects.

Low price is the criterion to select successful bidders.Auction frequency: 2 times a year with deadlines on or before 01

April and 01 October.Quotas shall be set annually for 5 years.Auction platform – “Prozorro” electronic auction platform.

Position in the Clean Energy for All Europeans Package:

Provide long-term certainty for investors and a competitiveEuropean market for renewables

Provisions of the Ukrainian Draft Law on RES № 8449-d:

Date of the new support scheme introduction - 01 January 2020.Support for the successful bidder 20 years.Final date to sign a pre-PPA to complete the launched RES

projects using the “green” tariff scheme (regardless of the projectsize) - 31 December 2019.

Position in the Clean Energy for All Europeans Package:

Renewable energy can be produced from a variety of sources, such as wind, solar, hydro, tidal, geothermal and biomass

Provisions of the Ukrainian Draft Law on RES № 8449-d:

The following projects are obliged to participate in auctions:in 2020 – WPPs with the installed capacity > 20 MW and all other RES types with

the installed capacity > 10 MWin 2021 and 2022 – WPPs with the installed capacity > 20 MW and all other RES

types with the installed capacity > 5 MWfrom 01 January 2023 – WPPs (or one wind turbine) with the installed capacity > 3

MW and all other RES types with the installed capacity > 1 MWEntities to participate in auctions on a voluntary basis - All RES types

Position in the Clean Energy for All Europeans Package:

Leads to lower energy bills for households and business

Provisions of the Ukrainian Draft Law on RES № 8449-d:

“Green” tariffs for SPPs, WPPs:Decrease for SPPs in 2020 is 25% with a further decrease by

2.5% annually during 3 years.Decrease for WPPs in 2020 according to the wording of the

current law is 10% with a further decrease by 1.5% annually during3 years.

Position in the Clean Energy for All Europeans Package:

- Allows households, communities and business to becomeclean energy producers; - Provide consumers with affordable, clean and secure energy

Provisions of the Ukrainian Draft Law on RES № 8449-d:

Simplified procedure for the “green” tariff (without obtaining an electricity generation license) shall cover the following:

- wind, solar – for the consumers with up to 50 kW generating facilities (currently, it is 30 kW for households).

- solar for the consumers with the generating facilities with a capacity exceeding 50 kW but not exceeding 500 kW, subject to placement of facilities on roofs, facades of capital buildings, structures.

The Clean Energy for All Europeans Package

The Ukrainian Draft Law on RES № 8449-d

Willattract new investors,

bringing with them new jobs, new economic activities,

and new financing

It’s time to invest in

VERKHOVNA RADA OF UKRAINE

Oleksandr Dombrovskyi

Acting Chairman of the Committee

on Fuel and Energy Complex,

Nuclear Policy and Nuclear Safety