Zelensky signed the law on green recovery in the energy sector. What will this bring to the industry?

President Volodymyr Zelensky has signed law No. 3220-IX On Green Transformation of the Energy System (formerly – bill No. 9011-d).

This comprehensive document, aimed at the development of small distributed generation and the improvement of conditions for supporting alternative energy sources, introduces changes to 18 laws. It covers many aspects of the functioning and development of Ukraine's energy markets and also provides innovations for household and non-household consumers.

What new does this document introduce into Ukrainian energy? Among the initiatives of the law are:

• introduction of certificates of origin of energy from renewable sources (alternative generation and biomethane);
• export of energy from renewable sources;
• feed-in-premium model: creating conditions for auctions for the allocation of quotas for supporting commercial projects for the construction of new generating capacities;
• the right for RES producers to independently sell their electricity on the market;
• Net Billing option for households: the ability for consumers to install their own power generation objects, and unused excess electricity to be fed back into the grid at market prices.

What was the state of the Ukrainian green generation going into the war period? Prior to the great war, installed RES capacity in Ukraine amounted to over 10 GW. According to the SE Guaranteed Buyer, following the full-scale russian aggression, this figure has been reduced to 6,500 MW since a number of RES facilities found themselves in occupied territories, in regions where active fighting continues, and on front-line territories.

"In 2021, the share of RES, including hydroelectric power stations, in the energy balance was 13.8%. We plan to double this figure by 2030. This will require attracting at least $10 billion in investments," reported Oleksandr Martyniuk, Director General of the Directorate of Energy Complex and Electric Power Market Development of the Ministry of Energy.

Energy Minister Herman Halushchenko previously reported that the green transformation would be one of the key issues of Ukraine's post-war recovery. Among the country's ambitious plans are the construction of 7.1 GW of new renewable generation capacities using market-based incentive models, 750 MW of energy storage capacities, and 10 GW of hydrogen exports.

Where will domestic green energy rebound after victory? At the Ukraine Recovery Conference-2023, held in London in late June, the Minister of Energy Herman Haluschenko and Deputy Head of the Office of the President Rostyslav Shurma presented ambitious plans for the post-war reconstruction of domestic energy and its export potential, which would facilitate integration with EU energy markets.

The discussion was about Ukraine's potential by 2050 to increase its wind generation capacity to 140 GW, solar power to 94 GW, energy storage to 38 GW, nuclear power generation to 30 GW, CHP and bioenergy capacities to 18 GW, and hydrogeneration to 9 GW.

Overall, investment opportunities for new energy capacities amount to $383 billion. Specifically, for wind generation – $134 billion, for solar – $62 billion, for hydrogen technologies – $72 billion, for energy storage – $25 billion, for nuclear power generation – $80 billion, for transmission systems – $5 billion, and for hydro power – $4.5 billion.

Apart from generating electricity from the sun and wind, there is significant potential in the production of renewable gases – biomethane and green hydrogen, which can become an important component of the energy transformation of Ukraine and the European Union.

"Law 9011-d is the most revolutionary in Ukrainian energy legislation in recent years. Now we will monitor its implementation and respond to possible challenges," said its initiator – lawyer and MP Andriy Zhupanin (Servant of the People parliamentary group).