On 1 April 2026, the Government of Ukraine issued Order “On certain issues regarding the conduct of auctions for the allocation of renewable energy support quotas for 2026 and the establishment of indicative forecast figures for annual support quotas for 2027–2029” No. 298-r (the “Order”).
The Order establishes terms and conditions for renewable energy (“RE”) auctions for the current year and sets targets up to 2029.
1. Quota allocation and price caps for 2026
This year’s auctions will take place in June 2026 in accordance with the Procedure for conducting auctions for the allocation of support quotas, updated at the end of 2025 and approved by Resolution of the Government of Ukraine “On the introduction of competitive conditions for stimulating the production of electricity from alternative energy sources” No. 1175, dated 27 December 2019. The following volumes and price caps were established:
| Type of generation | Quota for 2026 | Maximum price (euro cents/kWh) |
| Wind (“WPP”) | 250 MW | 8.0 |
| Solar (“SES”) (only the Left Bank of Ukraine) | 33 MW | 8.0 |
| Other types of renewable energy sources (“RES”) (biomass, biogas, small-scale hydropower) | 47 MW | 12.0 |
2. Quota forecasts for 2027–2029
To facilitate long-term investment planning, the Government of Ukraine set indicative targets for future quotas:
| Year | Total quota | WPP | SES | Other types of RES |
| For 2027: | 340 MW | 250 MW | 34 MW | 56 MW |
| For 2028: | 350 MW | 250 MW | 35 MW | 65 MW |
| For 2029: | 375 MW | 270 MW | 38 MW | 67 MW |
3. Non-compliance with current legislation
Delay in approving the annual support quota and auction schedule
Under current legislation, the deadline for approving annual support quotas and the auction schedule is set at 1 December of the year preceding the reference year. This provision was introduced by Law of Ukraine “On Amendments to Certain Laws of Ukraine Regarding the Restoration and “Green” Transformation of Ukraine’s Energy System” No. 3220-IX, dated 30 June 2024, and subsequently updated by Law of Ukraine“On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of the Functioning of Energy Markets, Competitive Conditions for the Production of Electricity from Alternative Energy Sources, and the Strengthening of Energy Resilience” No. 4777-IX, dated 10 February 2026.
Inconsistency of quota levels with current legislation
The proposed allocation of quotas does not fully comply with the requirements of current legislation. Article 9(3) of the Law of Ukraine “On Alternative Energy Sources” No. 555-IV, dated 20 February 2003 (the “Law”) sets minimum allocation thresholds for specific types of generation as follows:
- SPP: not less than 5%
- SPP with energy storage systems (ESS) provided that the established technical requirements are met: not less than 10%
- WPP: not less than 5%
- Other types of RES: not less than 5%
Thus, allocating only 10% of the total volume for solar generation at the auction in June 2026 without setting aside a separate volume for solar power plants with ESS creates a shortfall of 5% relative to the minimum permissible level specified by the Law.
Practical significance. The Order serves as the legal basis for announcing this year’s first auctions to support RES. For market players, this is a signal to immediately review projects for compliance with the updated criteria and assess their bankability, taking into account the price caps.
Additional notes
For further information on the topic please contact senior partner Glib Bondar or managing associate Olena Sichkovska-Chornobyl, or by telephone +380 44 591-3355 or via e-mail.
