Ukraine improves the (RES) Renewable Power Purchase Agreement
03 October 20171469
To recap, in September, the NEURC together with the EBRD and IFC adopted changes to the Renewable Power Purchase Agreement (PPA).
PPA is an agreement between an electricity producer from RES and SE Energorynok, which has to purchase all electricity from renewable energy sources at a "green" tariff.
The new changes, in particular, include the following:
- The PPA shall be in effect until January 1, 2030: before the modification, the standard PPA did not determine its term and was usually executed for 1 year and then extended annually.
- Extended concept and list of force majeure situations.
- More options for settlement of disputes.
- Preliminary conclusion of the PPA. From now on, it can be executed before starting the construction and commissioning of the power plant.
- Transfer of the PPA rights. The amended PPA provides that the producer of electricity from renewable energy sources may use funds received from Energorynok as a financial instrument to secure creditors' rights. The only requirement for transfer of the rights is written consent of the other party to the PPA to accept such transfer of the rights.
Amendments to the PPA were adopted by Resolution No. 1118 "On Approving Amendments to the Standard Power Purchase Agreement between State Enterprise Energorynok and a Business Entity Using Electricity from Renewable Energy Sources".