Development and construction of wind projects is a long and complex process, so many investors will be very careful to assess the risks. However, given the validity of the technical conditions for grid connection for wind projects ending at the end of 2022, most of them will no longer have enough time to be commissioned. According to them, their implementation will maintain the growth rate of renewable capacities in the near term.

The Ministry claims it to be this low due to the presence of 5 GW of signed prePPA contracts. The total quota for wind projects is 150 MW.Or they were ignored, which indicates the preservation of a high risk for the stable operation of the grid in the near future. Therefore, either these problems are not as critical as the authorities claim. The grid operator proposed not to hold auctions for solar and wind power at all in the next 2 years, arguing that they have problems with balancing the grid, which we have seen since the end of last year. The fact that the offers of NPC Ukrenergo (grid operator) are radically different is also alarming. Calculations of the impact of these new capacities on the financial and technical condition of the energy market are not publicly available. At the same time, it is not clear on what factors this choice was based. The Ministry of Energy took as a basis the proposal of the State Agency for Energy Efficiency.There are several important вЂњtreasonousвЂќ points regarding quotas. Therefore, from this point of view, the launch of auctions is definitely a plus.ДЇor the first year of auctions, which are planned to be held starting in June, the following quotas are offered: This provides a basis for considering investment opportunities in principle. The first thing is the predictability of the market and the clear position of the state and major stakeholders. вЂќДЇor the investor, specific payback figures are not the most important. But despite everything, we are moving forward and launching a mechanism that will help renewable energy not to stop its development in Ukraine. The launch of this mechanism gives a very important message to investors and creditors: вЂњYes, we have done a lot of unnecessary things in the Ukrainian electricity industry lately. At the same time, remembering that we will be able to completely call this a victory only after the successful holding of the first auction in June next year. Whatever the process, the very fact of launching the 'green' auctions is already wonderful.

As a result, more investors 'dropped out' of the Ukrainian market than should have. Everyone was waiting for auctions to adjust their business strategies.Д«ut we have the result - the process is delayed for more than a year. The transition to the new mechanism, as expected, caused investors to be wary and to reduce the growth rate of new capacity. Even then, the authorities spoke loudly about the crisis in the electricity market, which was partly caused by the rapid growth of RES in the system.ДЄs a partial solution - lowering the cost of RES for the energy market due to the competitiveness aspect of the auctions. The first 'green' auction was to take place in April this year, which was clearly defined by the bill adopted in 2019. Let's try to understand the pros and cons of this fact. Opinions of energy market participants, as usual, have been divided.

On December 3, the Ministry of Energy of Ukraine presented its plans for auctions for the distribution of quotas to support RES projects.

Aplus auctions