Feed-in tariff (“Green Tariffs”)

Updated: 26.01.2017

Author: Michał Gulczyński

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).

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. Additionally, there is a peak time co-efficient for PV and hydropower.

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 launched 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. The basic tariff (UAH 0.5845 per kWh, €ct 5.38 per kWh) is multiplied by the applicable "green coefficient" (art. 17-1 Electricity Act).
To minimise the risk of underpayment due to exchange rate fluctuations, the basic tariff shall not fall below the tariff in Euros applicable on 01/01/2009 (UAH 1 = € 0.092) (1.6 NERC Decree No. 251). All amounts in Euro have therefore been calculated according to this exchange rate.

Wind energy

The “green coefficient” is for wind power plants:

  • with a capacity up to 600 kW: 1.08 until the end of 2019; 0.96 from 2020 to 2024 and 0.84 until the end of 2029
  • with a capacity between 600 and 2,000 kW: 1.26 until the end of 2019; 1.12 from 2020 to 2024 and 0.98 until the end of 2029
  • with a capacity over 2,000 kW: 1.89 until the end of 2019; 1.68 from 2020 to 2024 and 1.47 until the end of 2029 (art. 17-1 Electricity Act).

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

  • with a capacity up to 600 kW: €ct 5.8 per kWh
  • with a capacity between 600 and 2,000 kW: €ct 6.8 per kWh
  • with a capacity over 2,000 kW: €ct 10.2 per kWh

The “green coefficient” for installations of private households with a capacity of up to 30 kW is: 2.16 until the end of 2019; 1.94 from 2020 to 2024 and 1.73 until the end of 2029 (art. 17-1 Electricity Act).

This leads to the tariff rate amounting to €ct 11.6 until the end of 2019.

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): 3.24 until the end of 2019; 2.92 from 2020 to 2024 and 2.59 until the end of 2029
  • mini-hydro-power plants (with a capacity between 200 kW and 1000 kW): 2.59 until the end of 2019; 2.33 from 2020 to 2024 and 2.07 until the end of 2029
  • small hydro-power plants (with a capacity between 1 MW and 10 MW): 1.94 until the end of 2019; 1.75 from 2020 to 2024 and 1.55 until the end of 2029 (art. 17-1 Electricity Act).

This leads to following tariff rates until the end of 2019 for:

  • micro-hydro-power plants equal to €ct 17.4 per kWh
  • mini-hydro-power plants equal to €ct 13.9 per kWh
  • small hydro-power plants equal to €ct 10.4 per kWh

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).

Wind energy

The “green coefficient” is for wind power plants:

  • with a capacity of up to 600 kW: 1.08 until the end of 2019; 0.96 from 2020 to 2024 and 0.84 until the end of 2029
  • with a capacity between 600 and 2,000 kW: 1.26 until the end of 2019; 1.12 from 2020 to 2024 and 0.98 until the end of 2029
  • with a capacity of over 2,000 kW: 1.89 until the end of 2019; 1.68 from 2020 to 2024 and 1.47 until the end of 2029 (art. 17-1 Electricity Act).

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 of 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).

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).

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).

Hydro-power

The “green coefficient” is for:

  • micro-hydro-power plants (with a capacity of up to 200 kW): 3.24 until the end of 2019; 2.92 from 2020 to 2024 and 2.59 until the end of 2029
  • mini-hydro-power plants (with a capacity between 200 kW and 1000 kW): 2.59 until the end of 2019; 2.33 from 2020 to 2024 and 2.07 until the end of 2029
  • small hydro-power plants (with a capacity between 1 MW and 10 MW): 1.94 until the end of 2019; 1.75 from 2020 to 2024 and 1.55 until the end of 2029 (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).

Eligibility period

Green tariffs are established for all eligible technologies until 1 January 2030 and are reviewed by the NERC on a monthly 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.