The Ukrainian Government adopted Resolution No. 298-р dated 1 April 2026 approving quotas and schedules for auctions for allocating support quotas (i.e. “green” auctions) for 2026.
Key parameters of “green” auctions
RE technology | Power facility location | Maximum price offer (euro cents per 1 kWh) | Period of auction | Quota, MW |
solar energy | territory east of the Dnipro River* | 8 | June 2026 | 33 |
wind energy | whole territory of Ukraine* | 8 | 250 | |
other RES types (biomass, biogas, hydropower (generated solely by micro, mini, and small HPPs)) | whole territory Ukraine* | 12 | 47 |
*Excluding territories of active hostilities, territories of active hostilities where state electronic information resources function, or territories of Ukraine temporarily occupied by the Russian Federation, with such locations included in the list of territories as approved by the Ministry for Development detailing where hostilities are (or were) being conducted or which are temporarily occupied by the Russian Federation, including territories for which the date of cessation of hostilities or temporary occupation has not been determined.
Note that the “green” auction winner must enter into a service agreement under the market premium mechanism (the Agreement). As communicated by KPMG in Ukraine previously, the type of support for the relevant auction winner has recently been revised from the former Contract for Difference (CfD) mechanism to the latest “clean” market premium model.
The Agreement stipulates the “green” auction winner’s obligation to commission and connect the power facility to the transmission or distribution system. In the case of SPPs, this term is within 1.5 years from the date of Agreement execution. For other RES facilities (e.g. WPPs, applicable HPPs, and biogas and biomass power plants) the term has been extended to 3.5 years (if said Agreement is concluded during the period of martial law in Ukraine).
“Green” auctions will be held based on the Prozorro.Sale electronic trading system. The Guaranteed Buyer State Enterprise (SE Guaranteed Buyer) is responsible for organising “green” auctions.
The Ukrainian Government has also revised the indicative annual RES support quotas for 2027–2029.
The total indicative quotas have been reduced to:
- 340 MW in 2027 (down from 350 MW)
- 350 MW in 2028 (down from 375 MW)
- 375 MW in 2029 (down from 400 MW)
Key changes by technology include:
Furthermore, the Ukrainian Government adopted Resolution No. 436 dated 1 April 2026 amending the procedure for conducting tenders for the construction of generation capacity and the implementation of demand response measures. The updated procedure provides for:
- introducing a new market premium model as an incentive mechanism for these types of tenders
- organising tenders based on regional lots, defining specific territories and the required additional capacity
- amendments related to qualification and financial criteria for the participants.
Despite these developments, however, auction quotas remain relatively low across all technologies and unchanged compared to 2025 levels (with particularly limited allocations for solar). It remains to be seen whether such volumes will be sufficient to attract investor interest, especially in light of the recent changes to the support structure, including transitioning to a pure market premium model.
As for developments related to tenders to construct generation capacity, recent amendments are likely to further reinforce this model, with the introduction of a market premium model and regionalising tenders may improve the bankability and targeting of projects. Based on recent practice and typical flexibility requirements set in the tender documentation, such tenders are expected to continue favouring highly flexible generation.
