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RECOMMENDATIONS FOR AN EFFICIENT AND EFFECTIVE AUCTION DESIGN IN UKRAINE

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Vasilios Anatolitis

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RECOMMENDATIONS FOR AN EFFICIENT AND EFFECTIVE AUCTION DESIGN IN UKRAINE

  1. 1. © AURES II Vasilios Anatolitis, Kiev, 21.02.2019 RECOMMENDATIONS FOR AN EFFICIENT AND EFFECTIVE AUCTION DESIGN IN UKRAINE
  2. 2. © AURES II Page 2 AGENDA  About us  Auction design elements in the Law (well done, it’s perfect)  Volume setting procedure  Minimum thresholds  Medium-sized auctions
  3. 3. © AURES II Page 3 About us  AURES II – a research project under the Horizon2020 framework of the European Commission  11 research institutions and policy consultancies  Project focuses on the analysis, design and implementation of renewable energy auctions Ukraine case cooperation:  Detailed recommendations on the Draft Law No. 8449-D (Renewable Energy Auctions Law) and in line with Joint Donor’s Letter  with Berlin Economics and Dixi Group  worked together with the Energy Committee of the Parliament
  4. 4. © AURES II Page 4 Auction design elements in the Law – simple design (at least until 2025)  One-stage price bidding  Sealed-bid  Pay-as-bid award  Bidders offering the lowest price will be awarded the subsidy (price only)  Fixed support period  PPA for the whole support period with fixed strike price (= auctioned level of support)  Technology-specific  Location-neutral (except Chernobyl) / no wind-offshore auctions yet  Ceiling prices  Penalties for delays/ infringements  Pre-qualification requirements for participation  Qualification stage of the projects after bids are opened  Support should be stated in EUR
  5. 5. © AURES II Page 5 Volume setting procedure  Technology-specific volumes  Solar PV, wind onshore, Chernobyl region, biomass, biogas, small hydro, geothermal  Cabinet of Ministers prepares Five Year Plan in each December  Flexibility  Investor confidence  Annual revision with the following provisions  1st year: Fixed auction volume  2nd and 3rd year: Deviation of up to 20%  4th and 5th year: To the discretion of the Cabinet of Ministers  Public reports on previous auctions results  Market studies on RES potential
  6. 6. © AURES II Page 6 Minimum thresholds  in 2020  Solar PV: > 10 MW  Wind onshore: > 20 MW  Other RES: > 10 MW  in 2021 and 2022  Solar PV: > 5 MW  Wind onshore: > 20 MW  Other RES: > 5 MW  from 01 January 2023  Solar PV: > 1 MW  Wind onshore: > 3 MW  Other RES: > 1 MW  Lower thresholds from 01.01.2020 to increase competition  Solar PV: 1 MW  Wind onshore: 3 MW (or 3 turbines)  other RES: 1 MW  No 15% trigger rule for RES technologies  all RES go to auctions  Clear definition of a single project  Distance  Split into stages allowed
  7. 7. © AURES II Page 7 Medium-sized auctions  No participation for RES projects under the thresholds  Heterogenous bidding groups  higher cost!  Medium-sized auctions to introduce competition in the segments  Solar PV: 1-5 MW  Wind onshore: 1-20 MW
  8. 8. © AURES II Page 8 Contact details Vasilios Anatolitis AURES II Project Coordinator Fraunhofer Institute for Systems and Innovation Research ISI Breslauer Straße 48 | 76139 Karlsruhe | Germany Phone +49 721 6809-281 | Fax +49 721 6809-272 vasilios.anatolitis@isi.fraunhofer.de

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