The Parliament of Ukraine has recently amended the Law “On Electric Power Industry” No. 575-97-BP, dated 16 October 1997 (the “Law”), by introducing into Article 17(1) of the Law, an additional State guarantee of renewable energy off-take. This amendment has been perceived by industry experts as another preparatory step towards sector reform, bilateral contracts and balancing the electricity market. The Law is now awaiting the President’s signature and will become effective on the day after its official publication.
This so-called “stabilisation clause” provides that the State shall guarantee that for the whole duration of the feed-in tariffs (i.e. until 2030), there will always be legislation in place which provides for: a mandatory off-take obligation that would apply feed-in tariffs to all volumes of the electricity generated from eligible renewable energy sources; and full and timely monetary settlements for such electricity, as per procedure established by the law.