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Amendments to the Law on Feed in Tariffs in Ukraine


On June 4, 2015, the Ukrainian parliament adopted the Draft Law No. 2010-d (amending scheme of feed-in tariffs in Ukraine) as approved at hearings of the parliamentary committee of Ukraine April 22, 2015.

Both products and waste will be considered as biomass for the purpose of feed-in tariff (“green” tariff). Presently, only waste could qualify to this end and energy crops as well as products of other industries could not be eligible to feed-in tariff.

Households are eligible to feed-in tariff if total power capacity of their installations using solar and/or wind energy does not exceed 30 kW.

Solar tariffs per kWh:

Starting with 01.06.2015 feed-in tariff would be 17 eurocents, for those power plants installed in 2016 – 16 eurocents and in 2017-2019  – 15 eurocents;

Special feed-in tariff is contemplated for rooftop or facades installations, namely for those power plants installed in 2016 - 18 eurocents, in 2016 -17,2 eurocents and in 2017-2019  – 16,3 eurocent;

Households up to 30 kW will also receive special rates of the feed-in tariff receive tariff, namely for those power plants installed in 2016 - 20 eurocents, in 2016 -19 eurocents and in 2017-2019  – 18 eurocent.

Wind tariffs per kWh:

Tariffs would be at the current rate conte mplated by Power Industry Law (about 10,2 eurocents for turbines with unit capacity more than 2 MW) for wind farms commissioned till 2019 inclusively;

Tariff for households wind installations up to 30 kW will be 11,6 eurocents for wind farms commissioned till 2019 inclusively.

Small hydro tariffs per kWh:

Tariffs will remain at the level of tariffs contemplated by the effective legislation (from 10,5 to 17,5 eurocents) for power plants commissioned till 2019 inclusively.

Bioenergy tariffs per kWh:

Both biomass and biogas tariffs at the rate of 12,4 eurocents for power plants commissioned till 2019 inclusively.

Geothermal tariff per kWh:

It was agreed to establish 15 eurocents for geothermal energy for power plants commissioned till 2019 inclusively.

Volume for electricity to be purchased:

for commercial producers - it would be amount of produced electricity minus electricity necessary for operation of respective power plants;< /font>

for households – it would be the difference between electricity produced and electricity consumed by a respective household.

Link of the tariff to EUR/UAH exchange rate. 

Feed-in tariffs in UAH will be established quarterly at the last meeting of the regulator during the respective quarter based on the average EUR/UAH exchange rate during last 30 days preceding the meeting.

There will be no EUR/UAH exchange rate link of feed-in tariff for power plants commissioned starting with 2025.

Households will be also protected against devaluation of the Ukrainian currency similar to commercial producers.

Mandatory local content requirement is cancelled.

Premium for the use of locally produced equipment could be 5% for 30% and 10% for 50% of local component. It will not apply for power plants commissioned starting with 2025. The premium will not apply to households. The Law provides the list of equipment which could qualify for the purpose of premium.

Inclusion of power plants with more than 5 MW power capacity into Plan for Development of Unified Energy System of Ukraine for 10 years is no longer a prerequisite for receiving feed-in tariff.

There will be a special procedure elaborated by the regulator to buy all electricity under f eed-in tariff.

Rules for preferred connection to the grid at costs of the grid owner is cancelled.

The issue with payment to solar plants installed till 01.07.2015 with high solar tariffs is resolved by  establishing a temporarily r educed feed-in tariff:

If commissioned by 31.03.2013 per kWh – 26 eurocents;

If commissioned from 1.04.2013 till 31.12.2014  – 19 eurocents;

If commissioned from 01.01.2015 till 30.06.2015 – 17 eurocents.

 

 


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