Energy News Digest | June 2025

Resolution №638: Internal control and administrative procedures in the Ministry of Energy

On June 4, 2025, the Cabinet of Ministers adopted Resolution №638, which introduced amendments to the Regulation on the Ministry of Energy. Specifically, provisions were added regarding the establishment and operation of internal control and internal audit functions within the Ministry itself and at subordinated enterprises (where the state shareholding exceeds 50%). Furthermore, the Ministry of Energy’s orders were brought into compliance with the Law “On Administrative Procedure” by establishing that administrative acts of the Ministry shall be issued and enter into force in accordance with the procedures prescribed by said law. These amendments strengthen the management system and transparency within the agency and its structures, enhancing the accountability of state energy companies and institutions.

Draft Law №13219: Enhancing competition in renewable electricity generation

On May 22, 2025, the Committee on Energy Affairs recommended that the Verkhovna Rada include in its agenda and adopt as a basis Draft Law №13219 “On Amendments to Certain Laws of Ukraine Concerning the Improvement of Competitive Conditions for Electricity Generation from Alternative Sources.” This draft law provides for the enhancement of “green” auction procedures and renewable energy generation support (including amendments to formulas and guarantees for producers in the balancing market) with the objective of increasing competition in the renewable energy sector. The initiative is aimed at stimulating investment in solar, wind, and other alternative power plants by simplifying auction participation conditions and reducing administrative barriers.

Resolution №796: Price caps and renewable energy funding adjustments

On May 27, 2025, the National Energy and Utilities Regulatory Commission (NEURC) adopted Resolution №796 “On Price Limits in the Day-Ahead Market, Intraday Market, and Balancing Market.” This decision establishes maximum tariffs in short-term electricity markets, thereby stabilizing price formation in cases of sharp demand fluctuations. During the session, amendments were also made to the budget estimate of the state enterprise “Guaranteed Buyer” for 2025, redistributing financing for “green” generation support in accordance with updated requirements. Additionally, the Commission established the cost of the “Guaranteed Buyer” service for April 2025, taking into account the increased share of renewable energy sources, reflecting actual volumes of “green” generation and compensations paid.

Draft Law №13258: Improving energy efficiency and ESCO mechanisms

On June 4, 2025, the Committee on Energy Affairs recommended that the Verkhovna Rada consider in first reading Draft Law №13258 “On Amendments to the Law of Ukraine “On Energy Efficiency.” The document, initiated by Members of Parliament, is aimed at improving state policy on energy efficiency and thermal modernization (including expansion of ESCO mechanisms, provision of financial incentives, etc.). The recommendation to include the draft law in the agenda indicates parliamentarians intention to expedite consideration of issues related to improving energy efficiency in industry and the public sector.