Recent legislation of Ukraine in RE and EE (accepted from July 2014 till now)
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Transcript of Recent legislation of Ukraine in RE and EE (accepted from July 2014 till now)
Recent legislation of Ukraine in RE and EE (accepted from July 2014 till now)
Georgiy Geletukha, PhD
Head of the Board, Bioenergy Association of Ukraine Advisor of MP Olexander Dombrovskiy, Head of interfraction deputy members
group “For Energy Independence of Ukraine” Advisor of Head of the National Agency for Energy Efficiency and Energy Saving
We are greening the energy!
Recent legislation of Ukraine in RE and EE (accepted from July 2014 till now)
1 The Decree of the CMU
# 293 dated
09/07/2014 “About
facilitation of natural
gas substitution in
heat supply sector”
It is recommended for The National
Commission for State Energy and
Public Utilities Regulation to establish
tariff for heat generation for non-gas
generation facilities on the level of the
0.9 equivalent tariff for “baseline”
natural gas heat generation facilities
for population utilities, and in case of
absence of such “baseline” tariff on the
level of average weighted tariff for
population. Also the local
municipalities should facilitate the
implementation of the investment
projects aimed on non-gas generation
equipment installation, including the
utilization of renewable energy
sources.
09/07/2014
Decision of Cabinet of Ministers N293 from 9 July 2014 р “On stimulation of natural gas replacement in heat supply sector”
913
314
851 900
587
10% 822
-508
UAH/Gcal
Wood cheeps
-598
Straw pellets Wood pellets Natural gas (population)
Natural gas (industry)
For compensation of difference in tariffs for heat supply from natural gas to population in DH systems
Government allocates at the moment 598 UAH/Gcal.
For fuels and energy (other than gas) Government will allocate 508 UAH/Gcal from 1 October 2014
according this decision.
Gas cost:
5 241,37 UAH/th. m3
Gas cost:
1 091,2 UAH/th.m3
Tariff of 1 Gcal of heat energy for population in DH systems:
2 The Decree of Cabinet
of Ministers of
Ukraine # 453 “On
the stimulation of
natural gas
substitution in heat
generation for
budget state and
regional
organizations” under
edition dated 10th of
September 2014
It is recommended for The National
Commission for State Energy and Public
Utilities Regulation to establish tariff for
heat generation for non-gas generation
facilities on the level of the equivalent
tariff for “baseline” natural gas heat
generation facilities for public sector,
and in case of absence of such
“baseline” tariff on the level of average
weighted tariff for public sector.
10/09/2014
Recent legislation of Ukraine in RE and EE (continue)
3 The Decree of Cabinet
of Ministers of
Ukraine # 491 dated
01/10/2014 “About
amendments to the
Order of state
budget funds usage
for energy efficiency
and energy saving
measures
implementation”
Introduction of the incentives for population
for energy efficiency technologies
implementation by means of
reimbursement of the share of
primary loan (“credit body”), taken
for non-gas boilers purchasing. The
reimbursement of the credit body is
preformed once at the level of 20 % on
loan sum, taken according to the single
credit agreement in the designated bank
office for boiler purchase but not
exceeding 5 000 UAH per single credit
agreement.
01/10/2014
Recent legislation of Ukraine in RE and EE (continue)
4 The CMU Decree #902
“About National
Action Plan on
Renewable Energy
Sources till 2020”
dated 01/10/2014
has been made
publicly available.
The key principal aim of the plan is to
achieve 11 % of RES in gross final
energy consumption till 2020. The
detailed road map on the achieving of
the targets is represented.
01/10/2014
Recent legislation of Ukraine in RE and EE (continue)
National Renewable Energy Action Plan till 2020 (approved by Government)
Indexes 2009 2014 2015 2016 2017 2018 2019 2020
RE – heat, % 3,4 6,5 7,1 8,0 8,8 9,7 10,8 12,2
including biomass, th. toe 1433 2280 2700 3100 3580 4050 4525 5000
RE – electricity, % 7,1 7,6 8,3 8,7 9,4 10,2 10,9 11,5
biomass, MWe, including:
solid
biogas
0 40
28
12
250
175
75
380
260
120
520
360
160
650
455
195
780
540
240
950
660
290
RE – transport fuels, % 1,5 4,1 5,0 6,5 7,5 8,2 9,0 10,0
Including biomass, th. toe 0 110 150 220 265 300 340 390
TOTAL share of RE in grass final
energy consumption, %
3,8 6,1 6,8 7,5 8,2 9,0 9,9 11,0
5000 mill toe = 6,25 bill m3/year
660 MWe, 90% as CHP, 1780 MWth, replacement of natural gas - 0,95 bill m3/year.
6,25 + 0,95 – 1,67 = 5,53 bill m3/year (objective for 2020).
5 The CMU Decree
#1014-r “About the
adoption of the plan
of short-term and
mid-term measures
with respect to
reduction of natural
gas consumption till
2017” dated
16/10/2014
The Decree foresees the implementation of
the number of complex measures on
facilitation of the natural gas
consumption reduction till 2017, namely
liberalization of loan conditions
(reimbursement of the share of sum of
credit for population for purchasing of
energy efficient equipment and RES-
based generation equipment),
mechanism of acceleration of
amortization of equipment which reduce
natural gas consumption, simplification
of order of transfer for concession,
leasing and privatization of heat
generation objects of communal
property, correction and approximation
of term “biomass” to the international
standards, etc.
16/10/2014
Recent legislation of Ukraine in RE and EE (continue)
The CMU Decree #1014-r “About the adoption of the plan of short-term and mid-term measures with respect to reduction of natural gas consumption till
2017” dated 16/10/2014 )
• Priority Stutus to projects replacing natural gas by other fuels and energy. • Premium for replacement of natural gas to companies installing heat
supply equipment on other fuels and energy (than gas) in DH and public sector.
• Reimbursement of part of the credits provided by banks to population for installing of heat supply equipment on other fuels and energy (than gas).
• Improvement of methodology for calculation of “self cost” and tariff for production of heat from other fuels and energy (than gas):
- use of express amortization; - establishment of IRR for such projects not less than 25%. • Simplification of concession, rentals and lifting of tabu for privatization of
objects in communal property. • Synchronization of term of “biomass” in Ukrainian legislation with EU
Directive 2009/28/EC. • Development of technical specifications for injection of biomethane in gas
pipe system of Ukraine. Development of stimulation for production and utilization of biomethane.
Plan for replacement and reduction of consumption of natural gas till 2017 (continue)
• Changes in Energy Strategy of Ukraine till 2030 in particular in the reduction of gas consumption and increase of renewable energy share.
• Approval of National Action Plan on Energy Efficiency till 2020 as part of Ukraine obligations before Energy Community.
• Improvement of state purchase procedure for long term obligations (up to 5 years) in the projects replacing natural gas by other fuels and energy.
• Simplification of land allocation procedure for the projects replacing natural gas by other fuels and energy.
• Reduction of terms and numbers of permits for the projects replacing natural gas by other fuels and energy.
• Improvements of the Laws “On heat supply” and “On nature monopolies”, introduction of stimulating tariffs system.
• Broad information company for energy efficiency and renewables for replacement of natural gas.
Barriers to development of bioenergy created by the Law of Ukraine “On Electricity”
Power from biomass sector is in very slow progress at the moment due to some barriers in legislation. As illustration, installed capacity of power stations on RE in Ukraine (January 2014): solar photovoltaic - 807 MW; wind - 480 MW; small hydro - 77 MW; bioenergy - 25 MW. Why?
• Incorrect/narrow definition of "biomass"; • Unrealistically high requirement for "local content" of equipment, materials and
services: 50% for power stations on biomass from 01.07.2014 and 50% for power stations on biogas from 01.01.2015; • Low GT coefficient for power generated from biomass and biogas. Draft LAW OF UKRAINE «On amendments to certain laws of Ukraine regarding the
incentives for power production from alternative energy sources» has been developed recently by SAEE. This draft law is mentioned as priority law in coalition agreement of new Ukrainian Parliament.
N* Electricity from biomass
Green tariff
(max), Eurocents/ kWh
1 Italy 28
2 Germany 22,67
3 Check Republic 19
4 Spain 17,16
5 Austria 14,98
Ukraine (2,7) 14,54
6 Bulgaria 13,04
7 Ukraine (2,3) 12,39
8 France 11,9
http://www.res-legal.de/en/search-for-support-scheme.html
Green (feed in) tariff for biomass and biogas in EU countries and Ukraine, Eurocents/kWh
N* Electricity from biogas
Green tariff
(max), Eurocents/ kWh
1 Germany 28,67
2 Italy 28
3 Bulgaria 22,14
4 Austria 18,5
5 Check Republic 17
Ukraine (3,0)* 16,16
6 Spain 14,11
7 Ukraine (2,3) 12,39
8 UK 10,36
Conclusions
1. A number of stimulating decisions are already accepted by Ukrainian Government for
development of EE, RE and replacement of natural gas.
2. Last 3 months are the most effective for improvements of legislation for stimulation of
EE, RE and natural gas replacement in the history of Ukraine.
3. Next steps in the same direction are needed yet and they are already under
preparation.
Thank you for your attention!
Georgiy Geletukha, PhD
tel: +380 44 332 9140 [email protected]
www.uabio.org