The Ukrainian Agri Council welcomes the adoption in the second reading of the draft law No. 9011-d "On Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine". The document was adopted by the Verkhovna Rada of Ukraine on June 30, 2023. The document was voted in favor by 279 MPs.

The UAC supported this document at all stages of its development and consideration in the Parliament. The law will enable electricity consumers, including agricultural producers, to become active participants in the electricity market and increase their energy security and the country’s as a whole.

Among other things, to encourage small producers of electricity from renewable sources, the law provides for a mechanism for self-production and introduces the concept of "active consumer."

"An active consumer means a consumer who not only consumes electricity produced from alternative sources but also produces it and/or carries out energy storage activities and/or sells surplus produced and/or stored electricity. The self-generation mechanism is a system of support for active consumers and provides for offsetting the cost of electricity supplied to the grid by the generating facilities of such consumers and the cost of electricity withdrawn from the grid, taking into account the cost of electricity transmission and/or distribution services (the so-called Net billing system). The activities of an active consumer in the production, storage and sale of electricity through the mechanism of self-production do not require a license," the UAC experts explain.

Electricity consumers, including producers of renewable electricity, will be able to sell their surplus generation to the grid. After mutual settlements, the producer pays the difference if he has produced less electricity than consumed. Conversely, the buyer will pay the difference if the producer transmitted more electricity to the grid than it consumed.

The draft law is currently being prepared for submission to the President of Ukraine for signature.

Monday, 3 July 2023

 

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