On 21 July 2020, the Parliament passed the law “On Amendments to Certain Laws of Ukraine on the Improvement of Support for the Production of Electricity from Alternative Energy Sources” (the “Law”). The Law came into force on 1 August 2020.

• The Law is based on the Memorandum of Understanding for the Resolution of Problematic Issues in the Renewable Energy Industry of Ukraine dated 10 June 2020. The Law reflects the arrangements reached by the Government and two associations of RES producers with respect to the restructuring (reduction) of the feed-in tariff support mechanism (the “FiT”)
• From the perspective of the investors and RES producers, terms of the Law may be viewed as follows:

• Stabilization clause for RES producers / investors Reduction of FiT rates without extension of the FiT validity period
• “Green” auctions to be launched in 2021 and the model of holding auctions is being improved
  
• Curtailment compensation mechanism
  
• Certain measures are envisaged to improve settlements with RES producers going forward
  
• GoU is instructed to develop law on mechanisms for settlement of the Guaranteed buyer’s historical debt (approx. UAH 16 billion as of July 2020)

• Reduction of FiT rates without extension of the FiT validity period
• Strengthening liability for imbalances