Elementum Energy Wins in Ukraine’s Wind Power Support Auction

Following an auction held by the state-owned enterprise Guaranteed Buyer, Elementum Energy secured the right to receive support for 57.6 MW of wind power capacity under its Danube project. The company's winning bid was 5.95 euro cents/kWh.

Competition increased significantly following changes to the auction rules. This year, nine companies competed for wind power support, compared with just one bidder last year.

A total of 93 bids representing more than 1.2 GW of capacity were submitted for a support quota of 700 MW. This means that the capacity seeking support exceeded the available quota by 1.7 times.

Winning bids ranged from 2.98 to 7.40 euro cents/kWh, against a maximum permitted price of 8 euro cents/kWh. The weighted-average price of the winning bids was 5.93 euro cents/kWh.

«Developing wind energy requires clear rules that allow businesses to plan projects years ahead. Wind farm investments typically have payback periods of 10–15 years. Support auctions are therefore one of the instruments that help reduce price risks and support investment decisions. Holding such auctions regularly, with sufficiently large capacity quotas, will help attract private investment in new power generation,», said Olga Rybachuk, Managing Director of Elementum Energy..

The auction results demonstrate that interest in wind energy investment grows when companies have the opportunity to compete for support under transparent rules. For Ukraine, this is an important step towards achieving the targets of the National Renewable Energy Action Plan, which envisages mobilising private capital to develop new wind power capacity by 2030.