Feed-in tariff (“Green Tariffs”)

Updated: 19.12.2017

Author: Cristina Blajin

In Ukraine, the wholesale electricity market is obliged to buy the electricity generated by renewable energy plants at “green tariff” rates. The “green tariff” is granted to all RES technologies (up to a capacity of 10 MW in the case of hydro power). Additionally, the electricity produced from private households equipped with solar panels or wind turbines, both technologies having a capacity up to 30 kW, can also benefit from feed-in tariffs.

In January 2009, basic feed-in tariff rates were established by the National Electricity Regulatory Commission (NERC), which were calculated on the basis of electricity prices for retail consumers. These basic tariff rates are then multiplied by a technology specific co-efficient. To avoid currency fluctuations, the “green tariff” shall not fall below the rate calculated according to the exchange rate of 1 January 2009 (1 € = UAH 10.85).

Eligible technologies

In general, the feed-in tariff applies to all renewable energy sources (Art. 1 Law No. 555-IV and Art. 1 Electricity Act).
Local Equipment Premium: For installations commissioned between 1 July 2015 and 31 December 2024 using equipment of Ukrainian origin there is an additional premium to the “green tariff.” For installations using at least 30% of such equipment, the premium amounts to 5% of the tariff and for installations using at least 50% of such equipment – 10%.

Geothermal energy

Eligible

Solar energy

Eligible

Wind energy

Eligible

Hydro-power

Eligible up to a maximum capacity of 10 MW (General Provisions Art. 1 Electricity Act).

Biomass

Eligible

Biogas

Eligible

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 fixed at €ct 5.38 per kWh (UAH 0.5845 at the exchange rate from 01.01.2009) is multiplied by the applicable "green coefficient" (art. 17-1 Electricity Act). Green tariff = basic tariff * green coefficient To minimise the risk of underpayment due to exchange rate fluctuations, the basic tariff calculated in Ukranian Hryvnia (UAH) currency shall not fall below the tariff in UAH applicable on 01/01/2009 (UAH 1 = € 0.092) (1.6 NERC Decree No. 251). If, however, the tariff is lower, the currency exchange rate from 01.01.2009 shall be used to calculate the final payed green tariff (1.8 NERC Decree No. 251).

Wind energy

The “green coefficient” for:

 

  • power plants commissioned until 31.03.2013, with total installed capacity up to 600 kW, is 1.20
  • power plants commissioned until 31.03.2013, with total installed capacity between 600 kW and 2,000 kW, is 1.40
  • power plants commissioned until 31.03.2013, with total installed capacity over 2,000kW, is 2.10

The “green coefficient” for:

 

  • power plant units with installed capacity up to 600 kW, that are:

- commissioned from April 2013 until the end 2014 is 1.20

- commissioned from 2015 until the end of 2019 is 1.08

- commissioned from 2020 until the end of 2024 is 0.96

- commissioned from 2025 until the end of 2029 is 0.84

  • power plant units with installed capacity between 600 kW and 2,000 kW, that are:

- commissioned from 2013 the end of 2014 is 1.40

- commissioned from 2015 until the end of 2019 is 1.26

- commissioned from 2020 until the end of 2024 is 1.12

- commissioned from 2025 until the end of 2029 is 0.98

  • power plant units with installed capacity over 2,000 kW, that are:

- commissioned from April 2013 until the end of 2014 is 2.10

- commissioned from 2015 until the end of 2019 is 1.89

- commissioned from 2020 until the end of 2024 is 1.68

- commissioned from 2025 until the end of 2029 is 1.47

The “green coefficient” for:

 

  • power plants for private household with total installed capacity up to 30 kW, that are:

- commissioned from July 2015 until the end of 2019 is 2.16

- commissioned from 2020 until the end of 2024 is 1.94

- commissioned from 2025 until the end of 2029 is 1.73 (art. 17-1 Electricity Act).

This leads to following tariff rates for wind power plants commissioned from the beginning of 2015 until end of 2019:

 

  • with a capacity up to 600 kW: €ct 5.81 per kWh
  • with a capacity between 600 and 2,000 kW: €ct 6.78 per kWh
  • with a capacity over 2,000 kW: €ct 10.17 per kWh
  • private households (commissioned from July 2015 until end of 2019) with a capacity up to 30 kW: €ct 11.62 per kWh

 

 

 

Solar energy

The “green coefficient” for ground-mounted systems is: 2.79 from 2017 to 2019; 2.51 from 2020 to 2024 and 2.23 until the end of 2029.

The “green coefficient” for roof-top systems is: 3.04 from 2017 to 2019; 2.74 from 2020 to 2024 and 2.43 until the end of 2029.

The “green coefficient” for roof-top systems on private houses with a capacity up to 30 kW is: 3.36 from 2017 to 2019; 3.02 from 2020 to 2024 and 2.69 until the end of 2029 (art. 17-1 Electricity Act).

Until the end of 2017, this leads to following tariff rates for PV installations:

  • roof-top systems: €ct 16.3 per kWh
  • roof-top systems on private houses with a capacity up to 30 kW: €ct 18.0 per kWh
  • ground-mounted systems: €ct 15.0 per kWh

In addition, the energy regulatory authority NERC has established a coefficient of 1.8 for peak hours (NERC Decree No. 251).

Biogas

The “green coefficient” for biogas is 2.30 until the end of 2019; 2.07 from 2020 to 2024 and 1.84 until the end of 2029 (art. 17-1 Electricity Act).

Until the end of 2019, this leads to the tariff rate for biogas plants amounting to €ct 11.1 per kWh.

Hydro-power

The “green coefficient” is for:

 

  • micro-hydro-power plants (with a capacity of up to 200 kW) that are:

- commissioned until April 2013 is 2.16

- commissioned from April 2013 the end of 2014 is 3.60

- commissioned from 2015 until the end of 2019 is 3.24

- commissioned from 2020 until the end of 2024 is 2.92

- commissioned from 2025 until the end of 2029 is 2.59

  • mini-hydro-power plants (with a capacity between 200 kW and 1000 kW) that are:

- commissioned until April 2013 is 2.16

- commissioned from April 2013 the end of 2014 is 2.88

- commissioned from 2015 until the end of 2019 is 2.59

- commissioned from 2020 until the end of 2024 is 2.33

- commissioned from 2025 until the end of 2029 is 2.07

  • small hydro-power plants (with a capacity between 1 MW and 10 MW) that are:

- commissioned until the end of 2014 is 2.16

- commissioned from 2015 until the end of 2019 is 1.94

- commissioned from 2020 until the end of 2024 is 1.75

- commissioned from 2025 until the end of 2029 is 1.55

(art. 17-1 Electricity Act).

Biomass

The “green coefficient” for biomass is 2.30 until the end of 2019; 2.07 from 2020 to 2024 and 1.84 until the end of 2029 (art. 17-1 Electricity Act).

Until the end of 2019, this leads to the tariff rate for biomass plants amounting to €ct 11.1 per kWh.

Geothermal energy

The “green coefficient” for geothermal installations is 2.79 until the end of 2019; 2.51 from 2020 to 2024 and 2.23 until the end of 2029 (art. 17-1 Electricity Act).

Until the end of 2019, this leads to the tariff rate for biogas plants amounting to €ct 15.0 per kWh.

Procedure

Process flow

Generators must be accredited by NERC to qualify for the Feed-in Tariff. Electricity producers that wish to be accredited by NERC in order to sell electricity at the feed-in tariff rates must first comply with various conditions. The conditions include: 

  • obtaining an electricity generation licence, 
  • connecting to the grid,  
  • a signed electricity sales contract 

(Section II NERC Decree No. 251 in conjunction with art. 22 Law No. 663-VII)

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” in 2017, 2019 and 2024 (art. 17-1 Electricity Act).

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

State

The National Electricity Regulatory Commission (NERC) is responsible for distributing the financial support to the eligible RES plant operators. The law does not foresee a reallocation of these costs to the electricity consumers.