Support mechanisms for the alternative energy production in Ukraine
for Yuridicheskaya Practika

In terms of the share of alternative energy in its gross energy consumption, Ukraine remains considerably behind its national targets and compares poorly with other countries. The sector requires the state support and incentives to grow. The new Law of Ukraine “On the Electricity Market” incorporates the existing state support mechanism based on the feed-in tariff while adding new elements covering the responsibility of producers for imbalances; these are required to balance the power system. Meanwhile, new, market-based approaches and instruments are being introduced in other countries, such as auctions or contracts for difference. How mature is the Ukrainian market for introducing these advanced practices, and what is the outlook for the current state support system?

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