{"id":22269,"date":"2026-03-13T13:11:45","date_gmt":"2026-03-13T11:11:45","guid":{"rendered":"https:\/\/aseu.org.ua\/?p=22269"},"modified":"2026-03-24T11:47:31","modified_gmt":"2026-03-24T09:47:31","slug":"five-rules-changed-by-law-no-4777-ix-for-the-energy-market","status":"publish","type":"post","link":"https:\/\/aseu.org.ua\/en\/five-rules-changed-by-law-no-4777-ix-for-the-energy-market\/","title":{"rendered":"Five Rules Changed by Law No. 4777-IX for the Energy Market"},"content":{"rendered":"

Ivan Balytskyi, Chair of the Legal Committee of the Solar Energy Association of Ukraine (SEAU) and partner of SEAU\u2019s chief legal advisor \u2013 the law firm Sokolovskyi & Partners, outlined the key changes for the energy market introduced by Law No. 4777-IX in an op-ed for the media outlet Energoreforma.<\/strong><\/em><\/p>\n

The <\/span>Verkhovna Rada of Ukraine<\/b> adopted Law No. 4777-IX on <\/span>10 February 2026<\/b>, and it entered into force on <\/span>11 March 2026<\/b>. The legislation simultaneously serves as a crisis-response tool and a strategic roadmap. It introduces <\/span>five key changes<\/b> affecting renewable energy producers, industrial consumers, and other market participants.<\/span><\/p>\n

Background<\/i><\/strong><\/p>\n

Law No. 4777-IX amends <\/span>15 legislative acts<\/b> and affects almost every participant in the electricity market \u2013 from owners of residential solar installations to the transmission system operator. Despite its lengthy official title \u2013 <\/span>\u201cOn Improving the Functioning of Energy Markets, Competitive Conditions for Electricity Generation from Renewable Energy Sources, and Strengthening Energy Resilience\u201d<\/span><\/i> \u2013 its essence can be summarized in several key provisions.<\/span><\/p>\n

RES Auctions Extended Until 2034 \u2013 with Real Financial Instruments<\/b><\/h5>\n

The first major change is the <\/span>extension of the renewable energy auction support horizon from 2029 to 2034<\/b>. For the market, this is not a cosmetic adjustment: the development cycle of large renewable projects in Ukraine often takes several years.<\/span><\/p>\n

If the support horizon were limited to 2029, banks would be unlikely to finance projects launched in 2026. The new timeline restores <\/span>predictability for project financing<\/b>.<\/span><\/p>\n

In parallel, the law obliges the <\/span>Cabinet of Ministers of Ukraine<\/b> to set an annual support quota by <\/span>1 December each year<\/b> and publish a <\/span>four-year indicative forecast<\/b>\u2014a so-called <\/span>\u201cvisible corridor\u201d<\/span><\/i> system already tested in the EU.<\/span><\/p>\n

One participant or a group with the same ultimate beneficiary <\/span>may not receive more than 50% of the annual quota<\/b>.<\/span><\/p>\n

Another important element is the introduction of <\/span>escrow accounts<\/b> as a full-fledged alternative to bank guarantees. Companies may deposit a guarantee contribution (\u20ac5\/kW for auction participation and \u20ac10\/kW for contract performance) into a blocked escrow account without requiring a credit line.<\/span><\/p>\n

Escrow conditions are equivalent to bank guarantees, giving the <\/span>Guaranteed Buyer<\/b> the same rights of claim. In the context of wartime financial stress and reduced credit limits for many energy companies, this mechanism opens the door to auctions for investors who previously hesitated.<\/span><\/p>\n

Support horizon until 2034 + escrow accounts as an alternative to bank guarantees = a significantly lower entry barrier for new renewable investors.<\/p><\/blockquote>\n

Solar Power Plants with Energy Storage Become a Priority<\/b><\/h5>\n

For the first time, the law introduces <\/span>PV + energy storage systems (PV+BESS)<\/b> as a separate auction category with a <\/span>minimum quota of 10% of the annual support volume<\/b> \u2013 twice as much as for standalone solar or wind projects (each allocated 5%).<\/span><\/p>\n

The storage requirements are strict:<\/span><\/p>\n