The winter package of the EU: possibilities for Ukraine’s households

Abstract

This article studies the implications of the Fourth Energy Package and relevant EU Directives for households and explores their potential benefits in Ukraine. Understanding the effects of energy policies on the residential sector is crucial for promoting sustainability amidst global energy and climate challenges. Methods of descriptive legal studies and investment analysis are used to examine the primary EU legislation on renewable energy communities and citizens' groups, focusing on their applicability to homes and renewable energy cooperatives. The analysis of Ukraine's experiences with the adoption of green power and incentives have revealed challenges for small solar home installations operating without the feed-in tariff. Introducing net-billing makes projects unfeasible without such a tariff, and even selling electricity through aggregators on the intraday market does not help. Consequently, the payback period for small installations with batteries becomes unreasonably long (exceeding twenty-five years), while larger facilities have shorter payback terms (fifteen to seventeen years). These findings highlight the need for careful consideration of household green-power policies. Implementing the Fourth Energy Package in Ukraine requires measures to address the financial feasibility of small solar installations, particularly those lacking feed-in tariff support. Expanding legislative provisions to include consumers of green power, especially those in multi-apartment buildings, can enhance their participation in the electricity producers' market. Moreover, raising household electricity prices may be necessary to support sustainable energy practices. Overall, this study underscores the importance of evidence-based policymaking for successful power transitions in homes and the broader energy sector.