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NEW PROCEDURE FOR GT ESTABLISHMENT, REVIEW and TERMINATION

On 30 August 2019 National Energy and Utilities Regulatory Commission (NEURC) adopted the Resolution on Procedure for Establishment, Review and Termination of of “Green” Tariff for Electricity for Business Entities, Consumers, Including Energy Cooperatives and Households, Installations of Which Produce Electricity from Alternative Energy Sources (the “GT Procedure”). The GT Procedure is available in Ukrainian at the NEURC site at: http://www.nerc.gov.ua/?id=44040. 

The GT Procedure enters into force on the date following its official publication and replace the relevant current legislation.

The new GT Procedure aims at ensuring that the provisions of the NEURC Resolution No. 1421 “On Procedure for Establishment, Review and Termination of the“ Green” Tariff for Electricity for Business Entities and Private Households” from November 2, 2012 are compatible with the current legislation, namely the Law of Ukraine No. 2712-VIII " On Amendments to Certain Laws of Ukraine on Ensuring Competitive Conditions for Electricity Production from Renewable Energy Sources” from 05.22.2019

GT Procedure will Cover

RES Producers if:

• their power plants or parts thereof regardless of their capacity are commissioned by 1 January 2020;
• their power plants are commissioned after 1 January 2020 and in accordance with Article 9-1 of Alternative Energy Law such RES Producers are not obligated to participate in auctions;
• they have entered into agreement on sale and purchase of electricity under GT (the “Pre-PPA”) until 31 December 2019 in accordance with Article 71 of Law of Ukraine “On Electricity Market” and commissioned their solar power plants within 2 years from the date of the Pre-PPA or all other power plants, including wind farms, within 3 years from the date of the Pre-PPA.

RES Electricity Consumers.

List of Documents to be Submitted for Obtaining GT

The list of documents to be submitted for the purpose of obtaining GT has been modified, in particular RES Producers would not be required to submit calculation of cost of electricity production at a power plant which is quite cumbersome and creates a lot of obstacles and delays in practice. 

However, the following documents have been added to the list of documents required:

• general picture of the power plant (construction phase (start-up complex) in electronic form;
• a PPA under GT (with the date of its conclusion not later than two years from the date of commissioning (construction phases) of solar power plants, and three years for facilities producing electricity from other types of alternative sources of energy if generating capacity is put into operation after December 31, 2019;
• if the copy of the declaration on readiness for the exploitation of the power plant (construction phases (start-up complex)) does not contain the information on date and / or number of its registration number, it should be accompanied with the letter from State Architectural and Construction Inspectorate of Ukraine containing such information.

GT Procedure does not envisage any requirements as to public hearings for the purpose of the establishment of GT as provided by Alternative Energy Law

GT Procedure envisages the possibility for establishment of GT:

• for a new owner of the power plant with already established GT (the new owner shall submit the application and title documents);
• if the capacity of the power plant with established GT has been increased. In such case the RES Producer shall submit within 10 business days after the date of the registration of relevant declaration on readiness of the object for exploitation or certificate confirming compliance completed construction with the design and confirm its readiness for exploitation an application and all documents, which shall be submitted for the establishment of GT.

Incompliance of submitted documents with requirements of the GT Procedure and certain laws listed in GT Procedure, in particular with Alternative Energy Law, Law of Ukraine On Electricity Market, Law of Ukraine on Regulation of Urban Activity, Law of Ukraine on the Regulator, Code of Transmission System and Code of the Distribution System, will be an express ground for the Regulator to dismiss the application.

TERMINATION OF GT

GT Procedure envisages two additional grounds for termination of established GT:         

• failure to notify the Regulator in case of increase of the power plant capacity, and
• declaration of information in documents submitted to the Regulator for obtaining GT as false in accordance with the procedure envisaged by law.