Changes To The Local Content Requirement For Renewable Energy Projects

On 8 December 2011, the President signed an amendment to Art. 17-1 of the Law on Power Industry (the "Law"), aimed to give a better understanding of the impact of a so called 'local content requirement' on renewable energy projects.

The local content requirement (the "LCR") was introduced in 2009 along with the Ukrainian feed-in tariff system (the "Green Tariff") to ensure that production and sale of electricity produced from alternative energy sources under the preferential price is also beneficial for national manufacturers of goods, equipment and various service providers. The LCR makes producers of electricity from renewable energy sources eligible for the Green Tariff only if a certain share of materials, works and/or services of Ukrainian origin is used to construct a power plant.