Seminar of Sustainable Agribusiness Forum (SAF Ukraine) for business leaders in the agricultural sector.
April 26, 2018
Details: https://saf.org.ua/en/
2. Problems of the Biofuels Market of Ukraine
Absence of the mechanisms for
biofuels trading and for
contractors searching.
Necessity to balance supply and
demand.
Unreliability of biofuels supply.
Instable prices for biofuels.
No requirements for biofuels
quality (standards).
The lack of a market benchmark
for biofuel prices.
Complexity of the projects
payback assessment, both by
the developer and by the credit
institutions.
creation of a market mechanism for biofuels
trading (electronic trading system - ETS).
obligation for certain enterprises to trade
via ETS;
ensuring performance of obligations in ETS;
price lining due to the competition in the
ETS;
biofuels trading in the ETS on the basis of
quality classes;
reducing of the risks of bioenergy projects.
3. Baltpool Biomass Exchange
Biomass purchased in Baltpool Biomass Exchange
The main objective is to promote competition in the biomass market.
Trading is carried out through the e-commerce system (from October 2012).
National Commission for Energy Control and Prices issues a license for operator of the Exchange.
Regulated energy companies are obliged to buy solid biomass via Baltpool.
1%
15%
64%
86% 95%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50
100
150
200
250
300
350
400
2013 2014 2015 2016 2017
Biomass purchased in Baltpool, t. toe. Biomass purchased out of Baltpool, t. toe.
БМ на Baltpool, %
Thousand toe Share of biomass Exchange, %
4. Specific aspects of the biofuels ETS creation in Ukraine (1)
Biofuels electronic
trading system
Operator
State Agency of Energy
Efficiency and Energy
Saving of Ukraine
- ensures the operation
of the SET;
- does not have the
right to procure,
produce, transport,
supply and trade in
biofuels and/or
energy produced
using biofuels.
- approval prices for
operator's services;
- imposing
administrative fines
on the operator and
participants of the
ETS in case of
violation of their
obligations.
Threshold prices for the
operator's services are
based on the
methodology.
All types of biofuel are
traded
Biofuels must meet
quality standards
Antimonopoly Committee
of Ukraine
Competition Law
Controlling
5. Specific aspects of the biofuels ETS creation in Ukraine (2)
ETS operator is selected by the State Agency of Energy Efficiency
and Energy Saving of Ukraine on the basis of the tender.
Tender is carried out according to the specified criteria:
• fitting out with technical means, means of communication,
and software necessary for electronic trading;
• trading experience with biofuels or other energy sources;
• price of the operator's services and others.
6. Specific aspects of the biofuels ETS creation in Ukraine (3)
An annual increase of the mandatory
percentage for trading via ETS is
proposed.
Enterprises annually report to the
SAEE on compliance with mandatory
percentages.
Obligatory trading via ETS for:
Sellers of biofuels Buyers of biofuels
state and municipal
enterprises that produce
biofuels;
state and municipal enterprises that
procure biofuels;
business entities with «green» tariff
granted;
business entities that received a
stimulating tariff for heat energy from
RES in accordance with the Law of
Ukraine "On Heat Supply".
9. Road map for biofuel market introduction in Ukraine
Analysis of examples of
solid biomass trading
in Europe
July - August
2017
The analysis of
barriers in Ukrainian
legislation that
hampered the
development of the
biofuel market
August –
September 2017
Development of
package of primary
legislation
organizing solid
biofuels market
September -
November 2017
Support and legal
advocacy of the
legislative package
among state
authorities and
public
November 2017
– January 2018
Registration the draft
law in theVerkhovna
Rada
June 2018
Adoption of the
draft law at first
reading
September 2018
Adoption of the
Law
November 2018
Adoption of
regulations,
competitive
selection of ETS
operator
December 2018
March 2019 – start of the operation of electronic trading system
for biofuels in Ukraine.
