Parliament adopts amendments aimed at improving the competitive auction and market premium framework for renewable energy projects
February 2026
On February 10, 2026, the Verkhovna Rada of Ukraine enacted, in its final reading, the Law of Ukraine "On Improving the Competitive Model for Supporting the Production of Electricity from Renewable Energy Sources" (the "Law"). This legislative development represents a pivotal advancement for investors, developers, and stakeholders engaged in Ukraine’s renewable energy sector. The Law was adopted with the express purpose of addressing structural inefficiencies within the existing auction and market premium framework, and enhancing the overall effectiveness of the renewable energy support system. It directly responds to concerns raised by market participants following the initial auction rounds, which attracted limited interest and failed to generate the anticipated level of competition.
The initial draft of the Law was published in April 2025. At that time, our firm provided a comprehensive overview of the proposed amendments and their potential implications for market participants in our previous legal alert, available here.
In summary, the final adopted version largely confirms the policy direction and structural changes set out in the draft. However, several significant refinements and clarifications have been introduced. Below, we outline the principal elements that have been confirmed, as well as the key adjustments of particular relevance to market participants.
Renewable Energy Auctions: Principal Confirmed Elements and Adjustments
1. Duration of the Auction Framework
The auction regime has been extended until December 31, 2034, thereby providing greater long-term visibility for market participants compared to the previous expiration date of 2029.
2. Support Mechanism
The Law clarifies the scope of the feed-in premium support mechanism by stipulating that support is granted for electricity generated from renewable energy sources. Notably, electricity produced from solar energy is eligible for support only if generated between 4:00 AM and 11:00 PM from April 1 to October 31, and between 6:00 AM and 9:00 PM from November 1 to March 31. Electricity supplied from an energy storage facility forming part of the respective generation asset is excluded from eligibility.
3. Minimum Support Quota Shares for Renewable Energy
The minimum quota has been reduced from 10% to 5%, with a separate minimum share of 10% established for solar projects combined with energy storage systems.
4. Auction and Performance Securities
The Law introduces increased flexibility and reduces the financial burden for participants:
Auction security: a bank guarantee or security deposit (€5 per kW)
Performance security: reduced to €10 per kW (previously €15 per kW)
5. Documentary Confirmation
The Law extends the deadline for submitting land title documents and grid connection agreements from six to twelve months. Additionally, project developers may now provide a capacity reservation agreement as an alternative to a full grid connection agreement.
Updated Framework for Guarantees of Origin
The Law also streamlines the regulatory framework governing guarantees of origin (GOs), including provisions regarding their validity period, transfer to the Guaranteed Buyer for supported projects, and recognition of foreign GOs based on the principle of reciprocity.
The adopted Law is anticipated to bolster stakeholder confidence and ensure closer alignment with international standards and broader European energy policy objectives. By establishing a more resilient and adaptable support framework, Ukraine is now better equipped to navigate the complexities of transitioning to sustainable energy within a challenging geopolitical context.
For more comprehensive information regarding forthcoming changes to the auction framework and guarantees of origin, please refer to our previous legal alert available at link.
Dr. Oleksiy Feliv
Managing Partner