Green Auctions in Ukraine in 2025: How the First One Went and What to Expect from the Next.

The company 'Guaranteed Buyer' announced a new auction for 47 MW for other energy sources. Remember that an auction for 100 MW for wind energy is planned for April.

The Ministry of Energy reported that the conduct of auctions for the distribution of support quotas is a success (only one winner - LLC 'Waterstrum' with 900 kW of HPP). However, this year there is not much interest in this support mechanism, indicating problems for investors. There is a large debt to renewable energy producers for the green tariff, exceeding UAH 20 billion. The mechanisms for insurance against military risks are not functioning.

Law No. 4213-IX of January 14, 2025, provides for an increase in the annual quota for participation in the auctions. Now, a business entity can receive no more than 50% of the annual support quota, instead of 25% as before.

The Situation in Europe

European governments allocated a record 36.8 GW in auctions for wind energy in 2024, which is 35% more than in 2023. The new capacities amounted to 16.4 GW, of which 12.9 GW are in the European Union. Southeast Europe increased capacity by 1.76 GW, of which 1.31 GW belongs to Turkey.

In Europe, financing is already being attracted even for hydrogen projects. The second auction of the European Hydrogen Bank received 61 applications for projects in 11 EU countries, requesting over €4.8 billion in grant support, which exceeds the available budget by 4 times. Revenue from the EU Emissions Trading System is used to support the production of renewable hydrogen through the Innovation Fund.

The problem for investors in the renewable energy sector in Ukraine remains the high level of distrust in state support instruments, the debt crisis, regulatory instability, and overall political circumstances. Additional stimulation mechanisms for 'green' investors with less government involvement are being considered.