Guaranteed Buyer to sell renewable electricity under bilateral contracts

The Ministry of Energy of Ukraine announced that SE Guaranteed Buyer will sell renewable electricity under bilateral contracts.

Such a decision will help improve the financial situation of the enterprise and increase the level of settlements with producers of renewable electricity.

The Cabinet of Ministers has adopted a resolution “On Amendments to the Procedure on Holding Electronic Auctions for the Sale of Electricity under Bilateral contracts”.

“The Ministry of Energy has developed a document to improve the financial situation of SE Guaranteed Buyer and other participants in the electricity market. This is one of the non-tariff methods of resolving the crisis in the renewable energy market. We expect the level of payments for renewable electricity will increase with the help of the resolution,” Acting Minister of Energy Olha Buslavets said.

The resolution defines the procedure of electronic auctions for the sale of electricity produced from renewable sources, including the timing of their holding, the timing, and the volume of electricity supplies.

Key changes proposed by the draft resolution:

  • providing SE Guaranteed Buyer with the opportunity to sell renewable electricity under bilateral contracts on conditions that will not lead to an increase in the TSO tariff;
  •  reduction of excess supply of electricity in the day-ahead market and stabilization of pricing in this market segment;
  • decrease in the volume of electricity, which the enterprise is forced to sell in the balancing market with a significant discount and some delay in payment;
  • improving the level of settlements with producers according to FIT;
  • providing an opportunity for responsible consumers to switch to renewable electricity.

The right of SE Guaranteed Buyer to sell electricity produced from renewables, under bilateral contracts, at electronic auctions is provided for by the Law of Ukraine No.810-IX.

The Ministry of Energy will hold an auction committee aimed at making appropriate changes to the regulations to implement the resolution.

Tags: renewable energy, feed-in tariff, electricity market, Guaranteed buyer, debt, auctions, Buslavets

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