{"id":16742,"date":"2012-07-09T13:15:09","date_gmt":"2012-07-09T10:15:09","guid":{"rendered":"https:\/\/euea-energyagency.org\/english-category\/news\/market-news\/on-wednesday-july-4-the-verkhovna-rada-of-ukraine-adopted-at-the-first-reading-the-law-no-10183-on-amendments-to-the-law-of-ukraine-on-electric-power-industry-on-promotion-of-electricity-gene"},"modified":"2012-07-09T13:15:09","modified_gmt":"2012-07-09T10:15:09","slug":"on-wednesday-july-4-the-verkhovna-rada-of-ukraine-adopted-at-the-first-reading-the-law-no-10183-on-amendments-to-the-law-of-ukraine-on-electric-power-industry-on-promotion-of-electricity-generation-fr","status":"publish","type":"post","link":"https:\/\/euea-energyagency.org\/en\/news\/market-news\/on-wednesday-july-4-the-verkhovna-rada-of-ukraine-adopted-at-the-first-reading-the-law-no-10183-on-amendments-to-the-law-of-ukraine-on-electric-power-industry-on-promotion-of-electricity-generation-fr\/","title":{"rendered":"On Wednesday, July 4, the Verkhovna Rada of Ukraine adopted at the first reading the Law No. 10183 \u201cOn Amendments to the Law of Ukraine \u201cOn Electric Power Industry\u201d (on promotion of electricity generation from biogas)"},"content":{"rendered":"

\"news\"Comments to the draft law prepared by EUEA member company Arzinger law firm<\/em><\/strong><\/p>\n

On Wednesday, July 4, the Verkhovna Rada of Ukraine adopted at the first reading the Law No. 10183 \u201cOn Amendments to the Law of Ukraine \u201cOn Electric Power Industry\u201d (on promotion of electricity generation from biogas).<\/p>\n

The draft law envisages 2.7 coefficient for the electricity produced from biogas derived from biomass of plant or animal origin and 3.0 coefficient \u2013 for the electricity produced from domestic waste.<\/p>\n

It also provides for decrease of the coefficients for the solar energy:<\/p>\n

– surface power facilities – 3.5 (4.8 \u2013 as currently applied);
– power facilities fixed on roofs, rated capacity \u02c3 100 KW \u2013 3.6 (4.6 \u2013 as currently applied);
– power facilities fixed on roofs, rated capacity \u02c2 100 KW, objects fixed on facades \u2013 3.7 (4.4 \u2013 as currently applied).<\/p>\n

The document introduces differentiation of small hydro power stations in accordance with their installed capacity and provides for the increase of the coefficients for the electricity produced by small hydro power plants (1.2 \u2013 as currently applied):<\/p>\n

– micro hydro power station (installed capacity < 200 kW) – 2.0;
– mini hydro power station (installed capacity > 200 kW, < 1MW) \u2013 1.6;
– small hydro power station (installed capacity > 1MW) \u2013 1.2.<\/p>\n

Taking into account state guarantees for stability of conditions of carrying out investment activity and the general principle, stipulated in the Constitution, that laws and other regulatory legal acts shall have no retroactive force, the legislator shall clearly stipulate that such amendments in coefficients shall not be applied to the objects, construction of which had begun before this draft law came into effect.<\/p>\n

In addition, the definition of biomass for the purposes of \u201cgreen\u201d tariff establishment according to the draft law comprises bio-degradable matter with both plant and animal origin.<\/p>\n

Important innovation stipulated by the document is the \u201cgreen\u201d tariff for individuals. The document states:<\/p>\n

\u201cFor the electricity, produced from the solar energy by the power facilities fixed on roofs of the private houses, rated capacity < 16 kW, in volumes exceeding consumption by such households, the \u201cgreen\u201d tariff shall be awarded. Production of such electricity may be carried out without the proper license. NERC shall define the order of purchase of such electricity (which shall be done by energy supply companies) and payments for it.\u201d<\/p>\n

The \u201clocal content\u201d requirement has been also amended.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\n

 <\/b><\/p>\n

THE LOCAL CONTENT REQUIREMENT<\/b><\/p>\n

 <\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Current version of the Law \u201cOn <\/b>Electric Power Industry<\/b> \u201d<\/b><\/p>\n<\/td>\n

\n

Draft Law <\/b>No. 10183<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Local content requirement \u2013 share of feedstock, materials, fixed assets, works and services of Ukrainian origin in the cost of construction of respective electrical power facilities producing electricity with use of alternative energy sources<\/p>\n<\/td>\n

\n

Local content requirement \u2013 share of hardware<\/i><\/b>, feedstock, works and services of Ukrainian origin in the cost of power industry object\u2019s construction.<\/p>\n<\/td>\n<\/tr>\n

\n

15% for the objects construction of which to be completed before 01.01.2013<\/p>\n<\/td>\n

\n

_<\/p>\n<\/td>\n<\/tr>\n

\n

30% for the objects being commissioned after 01.01.2013<\/p>\n<\/td>\n

\n

for the objects producing electricity from solar and wind energy<\/i><\/b> being commissioned after 01.01.2013<\/p>\n<\/td>\n

\n

for the objects producing electricity from biomass, biogas and for small hydro power stations <\/i><\/b>being commissioned after 01.01.2013<\/p>\n<\/td>\n<\/tr>\n

\n

                     30%<\/p>\n<\/td>\n

\n

                        <\/i><\/b>_<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

50% for the objects being commissioned after 01.01.2014<\/p>\n<\/td>\n

\n

50% for the objects producing electricity from solar and wind energy<\/i><\/b> being commissioned after 01.01.2014<\/p>\n<\/td>\n

\n

50% for the objects producing electricity from biomass, biogas<\/i><\/b><\/a><\/i><\/b>[1]<\/b><\/a> and for small hydro power stations<\/i><\/b> being commissioned after 01.01.2015<\/i><\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Additional  solar module requirement in hardware:<\/p>\n

commissioned after 01.01.2013 – 30%;<\/p>\n

commissioned after 01.01.2014 – 50%.<\/p>\n<\/td>\n

\n

_<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n


<\/p>\n
\n
\n

[1]<\/a> On the basis of literal interpretation of the draft law\u2019s text, the legislator doesn\u2019t foresee the local content requirement for the objects, producing electricity from domestic waste. But taking into account that the final product of domestic waste\u2019s processing is also biogas, we assume that the local content requirement is applied to the objects producing electricity from domestic waste as well as to the objects, producing electricity from biogas derived from biomass of plant or animal origin.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

Considering that the biogas sector can implement up to 70% of the local content requirement, it appears illogical as to why these regulations take affect merely 2015.<\/p>\n

Should the Law be adopted at the second reading and consequently signed by the President, it would come into effect on 01.01.2013.<\/p>\n","protected":false},"excerpt":{"rendered":"

Comments to the draft law prepared by EUEA member company Arzinger law firm On Wednesday, July 4, the Verkhovna Rada […]<\/p>\n","protected":false},"author":132,"featured_media":15356,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[125],"tags":[],"class_list":["post-16742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-news"],"acf":[],"yoast_head":"\nOn Wednesday, July 4, the Verkhovna Rada of Ukraine adopted at the first reading the Law No. 10183 \u201cOn Amendments to the Law of Ukraine \u201cOn Electric Power Industry\u201d (on promotion of electricity generation from biogas) - 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