2026

February 2026

1. In February 2026, the Verkhovna Rada adopted Law No. 4777-IX on improving the functioning of energy markets. The law introduces a comprehensive model for supporting renewable energy through the Feed-in-Premium (FiP) mechanism, extends “green” auctions through 2034, and creates conditions for the development of energy storage systems and hybrid projects. The law also reduces the requirements for bank guarantees for auction participants, which should facilitate investors’ access to the market.
2. In 2026, the operating principles of the Ukraine Renewable Energy Risk Mitigation Mechanism (URMM) were clarified; its first phase is expected to cover approximately 1 GW of new renewable energy capacity. The URMM will operate on a model similar to contracts for difference (CfD): competitive auctions will determine a guaranteed minimum price for renewable energy projects. If the market price is lower, producers will receive compensation; if it is higher, a portion of the revenue will be returned to the mechanism’s fund. The support period is planned to last approximately 15 years.
3. The State Agency for Energy Efficiency and Energy Conservation of Ukraine has launched a biomethane registry—a digital system for tracking “green” gas from production to consumption or export. From now on, all biomethane transactions will be recorded in a single database, and guarantees of origin can be issued and transferred online. The registry was developed in accordance with the requirements of the EU Renewable Energy Directives (RED II and RED III) regarding guarantees of origin for renewable gases, as well as Ukrainian legislation.

March 2026

1. Law No. 4777-IX enters into force (adopted by the Verkhovna Rada on February 10, signed by the President on March 9, effective as of March 11, 2026; certain provisions apply retroactively as of January 1, 2026). This is a comprehensive reform of the renewable energy market and the energy market as a whole.
   Key changes under this law:
   Renewable energy support auctions have been extended until December 31, 2034 (the previous timeframe was significantly shorter). The Cabinet of Ministers may now set additional quotas and adjust the auction schedule throughout the year, while forecast targets are set only through 2029.
   The structure of the annual quota has been changed: at least 5% for solar without energy storage systems (ESS), at least 10% for solar with ESS, at least 5% for wind, and at least 5% for other renewables. Technical requirements have been established for hybrid solar power plants with energy storage (storage capacity ≥80% of generation capacity, capacity ≥2 kWh per 1 kW) and a price cap of 12 eurocents/kWh.
   The support model has been changed from a “contract for difference” to a unilateral market premium: the producer no longer reimburses the difference to the Guaranteed Buyer if the market price is higher than the auction price, but the Guaranteed Buyer continues to compensate for the difference if the price is lower.
   The financial conditions for participating in auctions have been eased (an alternative to a bank guarantee is a cash deposit of 5 euros/kW; the contract performance guarantee has been reduced to 10 euros/kW).
   “Flexible grid connection” has been introduced (connection with power restrictions without waiting for grid modernisation), and the single-point-of-connection regime has been expanded—now also for
   Construction deadlines for facilities under wartime contracts have been extended (for non-solar renewable energy sources—up to 42 months). Starting in 2026, a mandatory biofuel blend in gasoline will be introduced. The exemption regarding the minimum sales volume on the “day-ahead” market for electricity importers has been extended until April 1, 2026.

April 2026

1. At its meeting, the Cabinet of Ministers of Ukraine approved the Program for the Development of Biomethane Production for the period up to 2035 and the Action Plan for its implementation, in which the Ministry of Energy is one of the main implementing agencies.
2. April 7, 2026 The Verkhovna Rada adopted Law of Ukraine No. 4834-IX “On Amendments to Certain Laws of Ukraine Regarding the Implementation of European Union Legislation on Energy Market Integration, Enhancing Security of Supply, and Competitiveness in the Energy Sector.” The law implements a significant portion of the EU’s Electricity Integration Package and establishes the legal framework for integrating the Ukrainian electricity market into the EU’s internal market (market coupling). The document creates the legal framework for merging the Ukrainian electricity market with the EU market, specifically the integration of the “day-ahead” market and the intraday market. The law also provides for the development of aggregation, demand response, and energy communities, as well as the removal of the electricity price cap starting in May 2027. This is expected to improve the conditions for integrating renewable energy sources into the European energy space, create conditions for full-scale electricity imports and exports, and reduce the risks of generation curtailment for solar and wind power plants.
3. In April 2026, the Verkhovna Rada supported Bill No. 14271 on the implementation of EU legislation in the field of renewable energy (RED II / RED III). The document provides for the harmonisation of Ukrainian rules supporting renewable energy with European legislation, clarifies the mechanisms for operating energy communities, and adapts permitting procedures to EU standards. The bill provides for the introduction of guarantees of origin for electricity, the simplification of procedures for developing renewable energy projects, and the improvement of mechanisms for self-consumption and energy storage. The bill is part of Ukraine’s European integration course in the energy sector.

May 2026

1. The NEURC published a draft resolution that provides for an increase in Ukrenergo’s electricity transmission tariff from 742.91 to 903.53 UAH/MWh (+21.6%), and for “green” metallurgy—from 378.49 to 535.97 UAH/MWh (+42%). The revision is due to a decrease in projected electricity transmission and supply volumes, the rise in the euro exchange rate, and increased costs—particularly to cover technical losses (from 11 to 15 billion UAH) and the service of reducing the load on renewable energy sources.
2. The Cabinet of Ministers of Ukraine has updated the rules for conducting auctions that determine support for new renewable energy projects and has increased the support volume for 2026. The relevant changes were incorporated into the government’s decree dated April 1, 2026, the ministry notes. The Cabinet of Ministers has more than tripled the annual renewable energy support quota for 2026—from 330 MW to 1 GW—specifically by raising the quota for wind power plants from 250 to 700 MW and, for the first time, introducing a separate quota of 100 MW for solar power projects with energy storage systems. At the same time, support auctions have been postponed to September 2026, and the indicative quotas for 2027–2030 have been revised upward slightly.
3. Ukrainian communities have already commissioned over 200 MW of gas-fired generation as part of their energy resilience plans (13.3% of the planned 1.5 GW).
4. The regulator adopted a resolution to convert capacity on interstate gas interconnections from volume units to energy units (MWh/day) and introduced a mechanism to recalculate natural gas transmission tariffs accordingly, without changing their actual level.
5. The NEURC approved the draft resolution “On Approval of Amendments to Certain NEURC Resolutions,” developed in accordance with Ukrainian Laws No. 4777-IX and No. 4825-IX.
   The document provides for updates to the Rules of the Retail Electricity Market and the Procedure for the Sale and Metering of Electricity Generated by Active Consumers. In particular, it clarifies the concept of “authorised capacity” and introduces a distinction between guaranteed and non-guaranteed capacity. The draft also expands the possibilities for backup power supply to consumer facilities using electricity from renewable energy sources.
   The NEURC has approved a comprehensive Action Plan for implementing Law No. 4834-IX on the integration of the energy markets of Ukraine and the EU. The plan provides for over 200 regulatory measures necessary to implement the market coupling mechanism, establish the NEMO, integrate balancing markets, develop flexibility mechanisms, and harmonise electricity market operating rules with the EU acquis.

June 2026

1. At its meetings on June 16 and 30, the NEURC adopted a series of resolutions: amendments to the Rules of the Retail Electricity Market; the establishment of “green” electricity tariffs for private household power generation facilities; adjustments to the cost of the service ensuring the share of electricity generation from alternative sources, provided by universal service providers; amendments to the 2026 investment programs of distribution system operators (Sumyoblenergo, Khmelnytskyoblenergo, and DTEK Kyiv Regional Power Grids); sanctions/orders against Kharkivoblenergo and Kirovohradoblenergo for violating licensing conditions for electricity distribution.
2. As of June 1, 2026, new tariffs for electricity distribution services (NEURC) took effect.

2025

1. Law of Ukraine No. 4213-IX was adopted with the aim of improving the investment attractiveness of the renewable energy sector, stimulating the installation of renewable energy generating facilities by private households and enterprises, extending the validity of technical conditions, simplifying financial payment terms and technical connection requirements, and reducing barriers to the implementation of RES
2. The market premium mechanism has been operationalised in practice through the adoption of procedures for determining, on a monthly basis, the cost of services purchased by the state-owned enterprise “Guaranteed Buyer” and the cost of services to increase the share of electricity production from alternative energy sources. and the rules for the purchase/sale, and the accounting, of electricity by active consumers have been stabilised. As a reminder, the market premium mechanism is a system for stimulating the production of electricity from alternative energy sources, under which a guaranteed buyer pays entities that have been granted a “green” tariff and to business entities that have acquired the right to support as a result of an auction, the difference between the green tariff or auction price, taking into account the surcharge to it, and the calculated price determined in accordance with the procedure established by the Law of Ukraine “On the Electricity Market.”
3. The Cabinet of Ministers has approved a roadmap for the phased separation of the renewable energy surcharge from the electricity transmission tariff. This is the first systematic step towards a transparent model for financing green generation. Until January 1, 2030, support for existing renewable energy producers will remain part of the transmission tariff, but from July 1, 2026, new participants, in particular the winners of “green” auctions, will receive payment through a separate surcharge. The mechanism is administered by the transmission system operator, which collects funds and transfers them to the Guaranteed Buyer and universal service providers for settlements with producers.
4. The first reading of the draft Law of Ukraine “On Amendments to Certain Laws Regarding the Implementation of EU Legislation in the Field of RES” has been adopted, which provides for the harmonization of terminology and rules for supporting RES with EU law, clarification of national targets for the share of RES, and standardisation of licensing procedures for RES projects in accordance with EU requirements.
5. Mandatory registration, monitoring, and reporting of greenhouse gas emissions (MRV) has been reinstated after being temporarily suspended due to martial law.
6. The adopted NEEC reflects Ukraine’s commitment to achieve ~27% renewable energy and reduce methane emissions by 30% by 2030.
7. The Ukraine Renewable Energy Risk Mitigation Mechanism (URMM) has been developed, on which the EUEA worked together with the UEA, GDU, EBRD, and the European Commission, is designed to ensure stable incomes for renewable energy producers and attract up to €1.5 billion in private investment to create 1–1.4 GW of new capacity, wind farms, and solar power plants, most likely in combination with energy storage facilities. The URMM provides for competitive auctions and the introduction of a stabilization price: if the market price is lower than the reference price, producers receive compensation; if it is higher, part of the income is returned to the fund, creating a financial buffer for possible future payments. The mechanism is designed for 15 years and is intended to ensure stability during the war and recovery. The mechanism is being implemented in cooperation with the International Finance Corporation (IFC) and the World Bank. Funds will pass through an independent administrator that is reputable and donor-supported. The URMM is scheduled to launch in the second half of 2026.
8. The European Commission has announced the launch of a European flagship fund to support Ukraine’s reconstruction. The initiative is being implemented jointly with France, Germany, Italy, and Poland, with the participation of leading European development banks: the European Investment Bank, France’s Proparco, Germany’s KfW (Kreditanstalt für Wiederaufbau), Italy’s CDP (Cassa Depositi e Prestiti), and Poland’s BGK (Bank Gospodarstwa Krajowego). The fund aims to mobilize up to €500 million by 2026 to support Ukraine’s economy through private investment. An initial contribution of €220 million is provided as “catalytic capital” to reduce investor risk.
9. A digital register of renewable energy facilities has been launched in Ukraine. The register contains an interactive map with up-to-date information on renewable energy facilities: type of generation, year of commissioning, installed capacity, location, and operating status.
10. On July 1, 2025, Ukraine officially began a phased transition to the European 230/400 V voltage standard. The new standard complies with European Union regulations (EN 50160) and is intended to ensure the stable operation of household appliances, reduce technical losses in networks, increase energy efficiency, and facilitate the integration of distributed generation. The transition will contribute to the harmonisation of Ukrainian energy practices with those of the European Union, which is part of the commitments under the Association Agreement with the European Union.