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green tarif in Ukraine

green tarif in Ukraine

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  • 1. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine
  • 2. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine LEGAL FRAMEWORK Ukraine is aiming to adapt the national law in this area to the EU Directive on the promotion of electricity from renewable energy sources in the internal electricity market (2001/77/EU) Effective national laws governing the renewable energy sector of Ukraine: • Law of Ukraine “On Alternative Sources of Energy” • Law of Ukraine “On Alternative Types of Fuel” • Law of Ukraine “On Electric Energy Industry” • Law of Ukraine “On Energy Saving” • Law of Ukraine “On Joint Production of the Heat and Electric Energy (Cogeneration) and Utilization of the Waste Energy Potential”, etc. GRISCHENKO & PARTNERS 2 LAW AND PATENT OFFICE
  • 3. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine LEGAL FRAMEWORK Existing mechanisms to encourage development of the alternative energy sector:  Application of a “Green” (privileged) tariff to the electric power produced from alternative sources  Binding of the wholesale electricity market by a law to purchase the total volume of the electric power produced from alternative sources  Establishment of a state energy saving fund (declarative)  Tax and customs privileges  State subsidies (declarative) GRISCHENKO & PARTNERS 3 LAW AND PATENT OFFICE
  • 4. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine APPLICATION OF “GREEN TARIFF” De jure, a “Green Tariff” can be applied in relation to the energy produced from the following sources: - solar power - wind power - geothermal power - wave and tidal power - hydropower - power of biomass - organic waste gas - sewage station gas - biogas - methane from degasification of coal deposits - transformation of the waste energy potential of technological processes GRISCHENKO & PARTNERS 4 LAW AND PATENT OFFICE
  • 5. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine APPLICATION OF “GREEN TARIFF” However, the Law of Ukraine “On Electric Energy Industry” prescribes a mechanism of setting privileged tariffs only in relation to the electric power produced from the following sources: - solar power - wind power - geothermal power - wave and tidal power - hydropower - power of biomass - organic waste gas - sewage station gas - biogas - methane from degasification of coal deposits - transformation of the waste energy potential of technological processes GRISCHENKO & PARTNERS 5 LAW AND PATENT OFFICE
  • 6. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine APPLICATION OF “GREEN TARIFF” Consequently: In practice, a privileged “Green Tariff” may only be prescribed for the electric energy generated by the following sources: • solar power • wind power • hydropower of the hydroelectric mini- power plants • floral biomass GRISCHENKO & PARTNERS 6 LAW AND PATENT OFFICE
  • 7. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine APPLICATION OF “GREEN TARIFF” The “Green Tariff” may be prescribed if:  the eclectic power Producer uses alternative power sources only. In case the technology of eclectic power production is based on the simultaneous use of traditional types of fuel, the “Green Tariff” may not be applied  not less than 30% - since January 1, 2012 - and not less than 50% - since January 1, 2014 – of the cost of the materials, raw materials, assets, works and services involved in construction of electric power generating facilities are of Ukrainian origin  there are available finished energy generating facilities, as connected to the network. Conformity of the facilities to the project documents, requirements of the state standards, construction standards and rules to be witnessed by an appropriate Certificate The “Green Tariff” is prescribed until January 1, 2030. GRISCHENKO & PARTNERS 7 LAW AND PATENT OFFICE
  • 8. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (A) To apply to the National Electric Power Regulation Committee of Ukraine (NEPRC) for a license to produce electric energy (B) To file in NEPRC a request for a “Green Tariff” to be prescribed (C) To become a member at the Wholesale Electricity Market GRISCHENKO & PARTNERS 8 LAW AND PATENT OFFICE
  • 9. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (A) To apply to the National Electric Power Regulation Committee of Ukraine for a license to produce electric energy GRISCHENKO & PARTNERS 9 LAW AND PATENT OFFICE
  • 10. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (A) Issue of a license to produce electric energy Regulations provide that in order to produce eclectic power the Producers shall obtain a license in case:  they own or use equipment generating power from alternative sources of the capacity of not less than 10 megawatt, or  they intend to sell the electric power produced through the Wholesale Electricity Market GRISCHENKO & PARTNERS 10 LAW AND PATENT OFFICE
  • 11. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (A) Issue of a license to produce electric energy De jure, the electric power produced from the alternative sources may be sold: - either to State Enterprise “Energorynok” through the Wholesale Electricity Market, or - directly to the consumer. However, due to high cost of “green” energy and to conflicts of Ukrainian laws, practically the Producers have to sell the energy through the Wholesale Electricity Market GRISCHENKO & PARTNERS 11 LAW AND PATENT OFFICE
  • 12. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (A) Issue of a license to produce electric energy Consequently: In practice, before filing in NEPRC a request for a “Green Tariff” to be prescribed the Producer is obliged to obtain from NEPRC a license to produce electric power from the alternative sources. GRISCHENKO & PARTNERS 12 LAW AND PATENT OFFICE
  • 13. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (B) To file in NEPRC a request for a “Green Tariff” to be prescribed GRISCHENKO & PARTNERS 13 LAW AND PATENT OFFICE
  • 14. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (B) Prescription of the “Green Tariff” It is in the competence of NEPRC to prescribe the “Green Tariff” The applicant shall submit the documents specified by an applicable Regulation of NEPRC. The documents shall be considered by NEPRC within 30 days and a resolution shall be adopted by a meeting of NEPRC within subsequent 15 days. If a “Green Tariff” is prescribed, the Producer shall submit quarterly reports to NEPRC. Currently, the Producer may dispose of the profit realized from the sale of electric energy at its sole discretion. GRISCHENKO & PARTNERS 14 LAW AND PATENT OFFICE
  • 15. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (C) To become a member at the Wholesale Electricity Market GRISCHENKO & PARTNERS 15 LAW AND PATENT OFFICE
  • 16. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine CASE: STEPS REQUIRED TO PRESCRIBE THE “GREEN TARIFF” (C) Joining the Wholesale Electricity Market The Producer shall submit to the Board of the Wholesale Electricity Market an application with the required documents attached. Within 30 days, a meeting of the Board of the Wholesale Electricity Market shall decide whether to admit a new member. According to the Law, State Enterprise “Energorynok” is obliged to purchase at the Wholesale Electricity Market all the electric power generated from the alternative sources GRISCHENKO & PARTNERS 16 LAW AND PATENT OFFICE
  • 17. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine STATISTIC As of the end of 2009, the “Green Tariff” was prescribed for: Type of the alternative power source Wind Power Stations Hydroelectric Mini- Power Plants 5 14 GRISCHENKO & PARTNERS 17 LAW AND PATENT OFFICE
  • 18. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine STATISTIC As of the end of 2009, the Register of the facilities applying alternative power sources comprised 42 companies, specifically: • 7 facilities applying wind power • 4 facilities applying power of biomass • 2 facilities applying the waste energy potential of technological processes • 1 facility applying mining gas • 1 facility applying visbreaking GRISCHENKO & PARTNERS 18 LAW AND PATENT OFFICE
  • 19. Application of “Green Tariff” as an instrument of development of the renewable energy sector in Ukraine Thank you for your attention! GRISCHENKO & PARTNERS 19 LAW AND PATENT OFFICE
  • 20.  Kyiv office 37-41 Artema Street, 3rd Floor Kyiv, Ukraine, 04053 Telephone: +38 (044) 490 37 07 Fax: +38 (044) 490 37 09 E-mail: adm@gp.ua GRISCHENKO & PARTNERS 20 LAW AND PATENT OFFICE