Authorization
On October 24, 2013, the Parliament of Ukraine adopted the Draft Law of Ukraine № 0916 of 12.12.2012 "On the Basis of the Electricity Market Functioning in Ukraine" in the second reading (hereinafter referred to as - the “Law”). The Law is the result of a long-term work on preparation for the transition of the energy market of Ukraine into the European Community generally accepted principles. The Law aims at liberalizing the electricity market model of Ukraine and creating an effective competitive electricity market including the essential requirements of the EU legislation.
"The Ukrainian Wind Energy Association (UWEA), in general, welcomes the adoption of the Law by the Parliament of Ukraine. The Association is pleased that the comments of UWEA regarding provisions of the Draft Law on assuming a liability on producers of electricity from alternative energy sources for imbalances and on introduction of additional permits for construction of new power plants have been at least partly taken into account by the legislators, - said Andriy Konechenkov, the Chairman of UWEA. - In particular, the Draft Law prepared for the second reading as amended on August 1, 2013, stipulated introduction of the compensation provided by the producer of electricity from wind with established "green " tariff, for the imbalances on his part. This approach does not comply with the current state guarantees on the production and sale of electricity produced from wind being provided by the provisions of the current legislation on "green" tariffs (Article 17-1 of the Law of Ukraine "On Electrical Power Industry")”.
Members of UWEA actively participated in working on the proposals and comments relative to the Draft Law No 0916, specially MC " Wind Parks of Ukraine", and Law Firms " Asters " and " Danevych ."
According to Andriy Sergienko, deputy director general of the MC "Wind Parks of Ukraine" , "The adopted Law is a logical and predictable action of our state on its way to the European integration; we hope that due to this Law the electricity market will be liberalized, which is positive for investors, the market actors. We support the provisions of the adopted Law and we believe that the Government of Ukraine has demonstrated the stability of the state course for economic development, in particular by means of maintaining the state policy concerning the support of the development of "alternative" energy in general, and in particular, wind energy. The stability of the state course is an important point for both Ukrainian and foreign business. For us it is a signal that the development of wind energy is important for Ukraine and we are on the right way.
Maksym Sysoiev, Counsel, attorney-at-law , head of the energy practice of the law firm " Danevych " believes that " in comparison with the Draft Law as of 01.08.2013 , the Draft Law, prepared for the second reading as of 10.23.2013 and which was subsequently adopted, contains a number of positive changes for wind energy, which have been adopted, including through the efforts of UWEA and its members . " In addition, according to the Law the cost of electricity, which has not been supplied by the producer under the " green" tariff as a result of executing the command of a system operator to reduce electricity output will be reimbursed for this producer under " green" tariff , unless the commands have been provided in the case of systemic constraints that resulted from force majeure. "This additional guarantee will reduce potential risks to wind farms related to activity of the system operator ," – emphasizes Maksym Sysoiev .
Yaroslav Petrov, attorney-at-law, an expert on energy projects of the law firm "Asters ": " It is very important that together with members of UWEA we managed to defend the interests of investors who intend to implement projects on the production of electricity from wind energy. Removal of the provisions on liability of producers of electricity from wind and solar energy for imbalance is a very positive step."
UWEA expresses special gratitude to the European Wind Energy Association for its information support and consultancies related to the functioning of the electricity markets in the EU countries.
www.uwea.com.ua
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