Please be informed that on 2 April 2020 during first online meeting with Prime Minister Denys Shmyhal and Ihor Petrashko, Minister for Development of Economy, Trade, and Agriculture with the Board of Directors, management and members of the American Chamber of Commerce in Ukraine (general information about the meeting the English is available at https://www.kmu.gov.ua/en/news/premyer-ministr-denis-shmigal-proviv-pershu-onlajn-zustrich-z-predstavnikami-amerikanskoyi-torgovelnoyi-palati-v-ukrayini).
During the online meeting the Prime Minister informed that the negotiations with investors in the renewable energy sector had been resumed and there had been already a meeting with major investors. The Prime Minister intends in the nearest future to sign the Memorandum of Understanding with the industry (major players) that will serve as a basis for the draft law to be submitted to the Ukrainian Parliament. Tentatively, the process for discussions and submission of the draft law to the parliament may take 4-6 weeks.
Also, PrJSC “NPC “Ukrenergo” on 31 March 2020 resumed daily auctions for ancillary services after changes in the Rules of the Market (Resolution of National Commission On State Regulation in the Sphere of Energy and Utilities (the “Regulator”) No. 307 dated 14 Marc 2018) and Methodology on formation of Prices on Ancillary Services (Resolution of Regulator No. 635 dated 26 April 2019). Information in Ukrainian is available at https://ua.energy/media/pres-tsentr/pres-relizy/ukrenergo-vidnovylo-auktsiony-na-dopposlugy-pislya-zminy-metodyky-formuvannya-tsiny/.
Please note that the current caps for:
Resumption of auctions could be interested for possible investors in battery energy storages, gas peakers or similar technologies because the need of relevant services to the system well exceeds 1 GW and might grow. At the same, time PrJSC “NPC “Ukrenergo” on 2 April 2020 also announced that long term auctions for 2020 has been cancelled for 2020 in order to avoid additional financial burden for consumers (information in Ukrainian is available at https://ua.energy/novyj-rynok-e-e/dopomizhni-poslugy/auktsiony-na-dopomizhni-poslugy-2020-j-rik/#1584341184703-b621e360-122e). At the same time, the operator expects that new players will enter into the market closer to the end of the year.
Maksym Sysoiev,
Counsel at Dentons
