Feed-in tariff (“Green Tariffs”)
Updated: 24.01.2019
Author: Anna Pobłocka-Dirakis
In Ukraine, guaranteed buyer is obliged to buy the electricity generated by renewable energy plants at “green tariff” rates. The “green tariff” is granted to all RES technologies (Art. 9.1 Law No. 555-IV).
Eligible technologies
In general, the feed-in tariff applies to all renewable energy sources (Art. 9.1 Law No. 555-IV).
| Geothermal energy | Eligible is electricity produced by business entities (Art. 9.1 Law No. 555-IV). |
|---|---|
| Solar energy | Eligible is electricity from PV system, (ground-mounted and rooftop) produced both by business entities and private households (Art. 9.1 Law No. 555-IV). |
| Wind energy | Eligible is electricity produced both by business entities and private households (Art. 9.1 Law No. 555-IV). The Law does not differentiate between onshore and offshore wind power plants. |
| Hydro-power | Eligible is electricity produced by business entities. The hydro-power plant’s capacity may not exceed 10 MW (Art. 9.1 and 1 Law No. 555-IV). |
| Biomass | Eligible is electricity produced by business entities. Eligible is biomass as a non-biodegradable substance of organic origin, capable of biological decomposition in the form of products, waste and residues of forestry and agriculture (plant growing and livestock), fisheries and technologically related industries, as well as component industrial or household waste, capable of biological decomposition (Art. 9.1 Law No. 555-IV). |
| Biogas | Eligible is electricity produced by business entities. Eligible biogas produced from biomass as a result of biological decomposition, biogas produced by the forced gasification of biomass, biogas derived from designated areas or facilities where storage operations are carried out and / or dumping of waste generated from biomass as a component of industrial or household waste (Art. 9.1 Law No. 555-IV). |
Amount
The "green tariff" has two components: the basic tariff and the “green coefficient”. For calculating the final “green tariff”, the basic tariff, which is a retail tariff level for second-class consumers as of January 2009 fixed at UAH 0.5846 per kWh is multiplied by the green coefficient for electricity from specific sources (Art. 9.1 Law No. 555-IV). Green tariff = basic tariff * green coefficient The fixed minimum “green tariff” is established by transferring the "green tariff” as of 01.01.2009 to EUR at the official exchange rate of the National Bank of Ukraine on the specified date (Art. 9.1. Law No. 555-IV). The “green coefficients” for specific technologies are listed below.
| Wind energy | The “green coefficient” for wind power plants with total installed capacity up to 600 kW:
The “green coefficient” for wind power plants with total installed capacity between 600 kW and 2,000 kW:
The “green coefficient” for wind power plants with total installed capacity over 2,000kW:
The “green coefficients” for wind power plants consisting of wind power units with a single installed capacity not exceeding 600 kW:
The “green coefficients” for wind power plants consisting of wind power units with a single installed capacity between 600 kW and 2,000 kW:
The “green coefficients” for wind power plants consisting of wind power units with a single installed capacity over 2,000kW:
The “green coefficient” for wind power plants for private households with a capacity up to 30 kW:
(Art. 9.1 Law No. 555-IV). |
|---|---|
| Solar energy | The “green coefficients” for ground-mounted installations with a capacity up to 10 MW:
The “green coefficients” for ground-mounted installations with a capacity over 100 kW:
The “green coefficients” for rooftops and facades installations with a capacity over 100 kW:
The “green coefficients” for rooftops and facades installations with a capacity up to 100 kW:
The “green coefficients” for rooftops and facades installations:
The “green coefficient” for installations for private households with a capacity up to 30 kW:
(Art. 9.1 Law No. 555-IV). |
| Biogas | The “green coefficient” for biogas power plants:
(Art. 9.1 Law No. 555-IV). |
| Hydro-power | The “green coefficients” for micro-hydro-power plants (capacity up to 200 kW):
The “green coefficients” for mini-hydro-power plants (with a capacity between 200 kW and 1000 kW):
The “green coefficients” for small hydro-power plants (with a capacity between 1 MW and 10 MW):
(Art. 9.1 Law No. 555-IV). |
| Biomass | The “green coefficient” for biomass installations that are:
(art. 9.1 Law No. 555-IV). |
| Geothermal energy | The “green coefficients” for geothermal power plants:
(Art. 9.1 Law No. 555-IV). |
Procedure
Process flow | In order to benefit from the “green tariff”, the energy producer must:
(Art. 71, No. 3 Act on Market of Electric Energy) |
|---|---|
Competent authority | NERC is responsible for the management of the scheme, the modification of the tariffs, granting and distributing financial support to the eligible parties (Section II NERC Decree No. 251). |
Degression
“Green tariffs” will be decreased by reducing the “green coefficient” according to the date when a plant was put into operation (see “Amount”).
Eligibility period
"Green tariffs" are established for all renewable technologies commissioned until 1 January 2030 and are reviewed by the NERC on a quarterly basis with a guaranteed “minimum floor” set in EUR (Section I NERC Decree No. 251).
Distribution of costs
The costs of the “green tariff” are carried through a special target surcharge to the wholesale tariffs for electricity and heat and at the expense of the funds of enterprises, institutions, organizations, funds of the state and local budgets, voluntary contributions and other funds not prohibited by law (Art. Law No. 8 555-IV).
| State | The costs of the “green tariff” are partly covered through funds of the state and local budgets (Art. 8 Law No. 555-IV). |
|---|---|
| Consumers | The costs of the “green tariff” are partly covered through a special target surcharge to the wholesale tariffs for electricity and heat (Art. 8 Law No. 555-IV). |
