The Chairman of the EUEA Board Dave Young states that changes in the law might theoretically lead to the increase in the number of installations that will generate biogas (from ferments to the biogas collection from landfills) and qualify for the “green” tariff. However, there are still unresolved questions. “Would it remove all the problems – it’s a matter of time, because there are no vivid examples of such projects implementation in Ukraine. We see that there is an obvious desire, but as with many things in Ukraine, how long this process would last for and which result it would lead to remains unknown. This is a positive step overall” – Dave Young said.

Indeed, not all the amendments and suggestions planned were adopted. “The coefficient for the installations up to 500 kW was expected to be more. So if it was 3.0-3.2 instead of 2.6, then it would be possible to solve the problem of polygons drainage in small towns. In general, even such result opens up a significant market for the investors who have been monitoring the situation in Ukraine for a long time” – said Elena Rybak. The expert also notes that the next step in the “green” tariff law improvement should be its adaptation to the inflation level. “Nowadays, it is difficult to predict how attractive it would be as the cost of the electricity production increases in spite of the minimized currency risks due to the euro pegging. We shouldn’t also forget about still complicated procedural aspects associated with the network connection and compensation costs, and the “local content” question for solar and wind power objects”, – she states.

Some of the legal technicalities of the adopted law are explained by Wolfram Rehbock, Senior Partner of Arzinger law firm, Member of the EUEA Board. The new definition to the concept of biomass is given, it becomes wider. “In general, the expanding fact of the biomass definition for the “green” tariff award is positive, but in terms of legislative technique it would be logical for the relevant definitions of biomass and biogas to be given in a special law “On alternative energy sources” instead of producing a lot of different terms in different laws” – says lawyer – “The project envisages the “green” tariff establishment also in the case when the manufacturer partially uses conventional fuels. In this case, the share of alternative energy sources must be at least 50% and the “green” tariff would only apply to that electricity, which was produced using the alternative sources”.

REFERENCE:
On October 6th, 2011 the Parliament of Ukraine adopted the draft law number 8028 which introduces amendments to the Law of Ukraine “On electric power industry” as to the establishment of a “green” tariff for electric power produced from biomass and biogas.
The law is based on clear establishment of the procedure for “green” tariff calculation for electric power from biogas. Pursuant to the draft law there are following coefficients:
 
  • 2,7 – for electric power produced from biogas derived from biomass of plant and/or animal origin as well as from organic waste;
  • 2,6 – for electric power produced from landfill biogas or biogas from pulp at electric power plants with maximum aggregate designed total capacity during the whole operation period not exceeding 500 kW;
  • 2,4 – for electric power produced from landfill biogas or biogas from pulp at electric power plants with maximum aggregate designed total capacity during the whole operation period equal to or exceeding 500 kW but not exceeding 2000 kW;
  • 2,0 – for electric power produced from landfill biogas or biogas from pulp at electric power plants with maximum aggregate designed total capacity during the whole operation period equal to or exceeding 2000 kW.
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