green tarif in Ukraine

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.
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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)
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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
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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
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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
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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.
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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
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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
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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
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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
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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.
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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
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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.
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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
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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
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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
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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
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19. Application of “Green Tariff” as an instrument of development of the
renewable energy sector in Ukraine
Thank you for your attention!
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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
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