Stimulation of renewable energy in Ukraine is carried out by fixing, at the legislative level, the so-called "green" tariff, a guaranteed state obligation to buy produced "green" electricity from its producers, as well as by establishing a significant number of additional benefits for producers of such electricity.
The "green" tariff is a special tariff for the purchase of electricity produced at electric power facilities, in particular, at the commissioned phases of the construction of power plants (start-up complexes), from alternative energy sources (as for hydropower, the "green" tariff applies only to hydroelectric power plants power up to 10 MW).
Both industrial enterprises and private households can benefit from the “green” tariff.
At the same time, a "green" tariff is set for each business entity that produces electricity from alternative energy sources, for each type of alternative energy, for each power facility or for each stage of construction of a power plant (start-up complex).
The “green” tariff for electricity produced by generating units of private households is also set separately for each type of alternative energy.
The "green" tariff is fixed at the legislative level in euros until December 31, 2029. NEURCU carries out a quarterly recalculation of the "green" tariff into the national currency of Ukraine based on the average official rate of the National Bank of Ukraine. The “green” tariff applies to all generated electricity, except for electricity generated for own needs.
The size of the "green" tariff depends on the date of commissioning of the electric power facility, including the stage of construction of a power plant (start-up complex), which generates electricity from alternative energy sources.
Usage of alternative energy
The use of Ukrainian-made equipment by investors is stimulated by establishing an appropriate premium to the "green" tariff (for the entire period of its validity), provided that the power facilities are put into operation by December 31, 2024.
For example, if Ukrainian equipment is used at a level of at least 30%, the premium to the “green” tariff will be 5%. If Ukrainian-made equipment is used at the level of at least 50%, the premium to the “green” tariff will be 10%.
The level of use of Ukrainian-made equipment at power facilities producing electricity from alternative sources is determined as the sum of the corresponding specific percentage indicators of individual equipment elements. The Law of Ukraine "On Alternative Energy Sources" contains an exhaustive list of equipment elements for each type of alternative energy, when using which a surcharge may be applied to the "green" tariff. The Ukrainian origin of the equipment is confirmed by a corresponding certificate issued by the Ukrainian Chamber of Commerce and Industry.
However, it should be noted that such a surcharge to the “green” tariff is not applied to the electricity facilities of private households.
It should be noted that producers of electricity from alternative sources are in a more favorable position compared to other market participants for the following reasons:
- a “green” tariff has been set to stimulate this sector;
- availability of a guaranteed buyer for the purchase of electricity produced from alternative energy sources, who is obliged to redeem all electrical energy produced from alternative energy sources that is sold to the guaranteed buyer;
- the number of state bodies exercising control over activities in the field of renewable energy has decreased due to the less hazardous conditions of electricity production.