The Ukrainian government has approved a major reform for the renewable energy market by adopting a Roadmap to separate the “green tariff” surcharge from the electricity transmission tariff. The implementation plan covers the period 2025-2026.
Background
Until now, compensation under the “green tariff” — Ukraine’s mechanism for supporting renewable energy producers — was paid through Ukrenergo’s transmission tariff, significantly increasing the financial burden on the national grid operator.
According to experts, these renewable energy payments accounted for up to two-thirds of the transmission tariff cost.
What Will Change?
- Green tariff payments will no longer be part of Ukrenergo’s transmission tariff.
- A dedicated compensation mechanism will be created for financing renewable energy.
- This decoupling aims to simplify the tariff structure, improve transparency, and ensure a fairer market environment for all participants.
Why This Matters
For companies investing in renewable generation — including solar PV and small hydropower — the reform provides a more predictable and transparent framework, reducing regulatory risk and supporting financial stability in the renewable energy sector.The changes are also expected to reduce the cost burden on electricity consumers, making the transition to clean energy more balanced and sustainable.
