Cabinet simplifies investor participation in "green" auctions

The Cabinet of Ministers on August 13 updated the rules for conducting auctions for the distribution of support quotas for renewable energy projects. The "green" auctions planned for autumn are to be held under the new procedure.

The main change is the ability to choose an alternative to a bank guarantee. Participants will be able to provide financial security directly to the state enterprise "Guaranteed Buyer".

The government also decided to reduce the size of bank guarantees required to participate in auctions. The Cabinet explained that this would reduce the financial burden on investors and allow them to direct more funds directly to the construction of new generation capacities.

Another change concerns the connection of future power plants to the energy system. Investors will have longer periods to confirm the possibility of connecting facilities to the electrical grid.

"Green" auctions are used to distribute state support among new projects of solar, wind, and other renewable generation. The updated procedure is designed to make business participation more flexible and reduce the amount of funds companies have to reserve before construction begins.

First Deputy Prime Minister - Minister of Energy Denys Shmyhal stated that attracting investment in new generation should increase electricity production in Ukraine and strengthen the resilience of the energy system amid Russian attacks.

Based on materials from: Cabinet of Ministers of Ukraine