The European Bank for reconstruction and development (EBRD) plans to allocate $2 million to $4 million in the development of the infrastructure of the auctions, while promoting the development of renewable energy sources (RES).

EBRD will invest up to $4 million in infrastructure auctions of "green" energy

This was announced by Deputy Director of EBRD in Ukraine Marina Petrov, Biznestsentr reports with reference to Interfax-Ukraine.

"This is the money that we are now asking donors to make a quality auction," – said Petrov.

She explained that poor quality auctions may not be perceived by market participants.

"It is very important (at auction) to balance interests to get the highest quality result," – said the Deputy Director of EBRD in Ukraine.

She stressed that the auctions must be transparent, clear and properly legally registered.

See also: renewable energy sources accounted for 9% of tariff revenue, – NKREKU

According to her, the Bank in the transition of Ukraine to the auctions to encourage renewable energy is willing to share experience in conducting similar auctions in countries that were pioneers in the organization of such events. Petrov said that the same or similar mechanisms of auctions operating in Turkey, Poland, Bulgaria, Jordan, Egypt, and Armenia.

Petrov noted that the funds provided under the approved banks in July this year, the program USELF-III EUR250 million to support private projects in renewable energy in Ukraine.

The EBRD representative added that question at the market also causes who will be the balancing player. According to Petrov, the Bank jointly with USAID is working on how to ensure the creation of a market for balancing capacity and invest in more mobile part of the system – batteries, gas turbines.

"That's the theme of next year", – said Petrov.

Overall, she assessed the situation in the RES market as a "fast sprint" – to have time to invest, while there are current terms of the "green" tariff.

"We have many investors who look at investments in this and next year. We have very few investors, who are preparing projects in 2020-2021 years. We see that there will be a big decline," – said the representative of the EBRD.

In this regard, he called for the adoption of the law on "green" auctions before the end of this year.

Petrov also noted that in Ukraine there is great potential for the development of other sectors of renewable energy – first and foremost, bioenergy, and small hydro.

"We do a separate study of the resource base for renewable bio-energy: Ukraine has a huge potential still untapped. We must look forward, to think what new tools we will be able to stimulate the sector", – said the representative of the Bank.

According to her, the current terms of "green" tariff for bioenergy projects is not enough, since beginning work on the project until its launch in this sector requires a minimum of five years.

As reported, the EBRD supports the development of renewable energy in Ukraine in the framework of USELF programme since 2009, however, the validity of the previous program ended on 30 June 2018. For the duration of the program the Bank has financed projects totalling over 100 million euros to Finance projects with a total capacity of over 150 MW of various renewable energy technologies.

In Parliament currently was 8 different draft laws on amendments to the incentive scheme for renewable energy development, including "green" auctions.

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