Green tariff

Green tariff

What is a “green” tariff?

Following the Law of Ukraine No. 555-IV “On Alternative Energy Sources” dated February 20, 2003, Article 1 “green” tariff is a special tariff at which electricity produced at electric power facilities is purchased, in particular at the commissioned phases of the construction of power plants (start-up complexes), from alternative energy sources (and with the use of hydropower – only micro-, mini- and small hydroelectric power plants). The “green” tariff is set for each business entity that produces electricity from alternative energy sources.

Who sets the “green” tariff?

The “green” tariff is established by the National Commission, which carries out state regulation in the fields of energy and utilities for each business entity that produces electricity from alternative energy sources.

How is the “green” tariff for biogas calculated?

The “green” tariff for economic entities that produce electricity from biogas is set at the level of the retail tariff for consumers of the second voltage class for January 2009, multiplied by the coefficient of the “green” tariff for electricity. Following the Law of Ukraine No. 555-IV “On Alternative Energy Sources” dated 20.02.2003, Article 91 and Resolution of the NKREKP No. 1817 dated 30.08.2019. for electricity produced from biogas, the green tariff coefficient is set at 2.30 until December 31, 2029.

The fixed minimum size of the “green” tariff for business entities, consumers of electrical energy, including energy cooperatives and private households (Fmin, euros per 1 kW • h, excluding VAT) is calculated by this formula:

Фmin = Тсп.IIкл.01.01.2009   * КЗТ / Є01.01.2009 , (1)

Тсп.IIкл.01.01.2009 – the retail tariff for consumers of the second voltage class as of January 2009 is 58,46 kopecks without VAT per 1 кВт•год.

КЗТ – green tariff coefficient.

Є01.01.2009 – hryvnia to euro exchange rate officially established by the National Bank of Ukraine as of January 01, 2009, UAH 1,085.546 per 100 euros.

An example of calculating the minimum size of the “green” tariff for biogas.

Фmin = 58.46 kopecks without VAT * 2.30 / 1085.546 uan = 0.1240 euro-cents за 1 kW•h.

About the increase to the “green” tariff

For commission power facilities that produce electricity from alternative energy sources from July 1, 2015, to December 31, 2024, a premium is set to the “green” tariff, the auction price for compliance with the level of use of Ukrainian-made equipment.

The premium for compliance with the level of use of Ukrainian-made equipment is fixed.

Amount of the premium to the “green tariff», % Level of use of Ukrainian-made equipment, %
5 30 and more, but not less than 50
10 50 and more, but not less than 70
20 70 and more

The maximum amount of the premium for compliance with the level of use of Ukrainian-made equipment for electric power facilities that produce electricity from alternative energy sources, in the auction price upon reaching six years of operation of the corresponding electric power facility, should be no more than 10 %.

The level of use of Ukrainian-made equipment at biogas plant facilities is determined as the sum of the corresponding specific percentage indicators of equipment elements. If there are several identical pieces of equipment at the respective power facility (queue/start-up complex), the specific percentage of such piece of equipment is considered when calculating the level of use of Ukrainian equipment only if each of these identical elements is of Ukrainian origin.

Equipment items specific percentage, %
Steel structures / reinforced concrete / steel structures from which
the gas generator is built (gas tank / anaerobic digestion reactor / gasifier, etc.)
35
Biomass preparation and feeding mixers and engines for them 10
Gas expansion joints / blowers 5
Equipment for filtering or cleaning gases 15
Cogeneration units (modules) / generator sets with piston engine with spark ignition 35
Together on the object 100

Завдяки виготовленню та застосуванню технологічного устаткування  українського виробництва від AC GROUP, розмір надбавки до “зеленого” тарифу   складає 10%, тобто 0,1363 євро-центів за кВт*год без ПДВ.

The cost of the electricity produced by a biogas plant with a capacity of 1 MW

Period Fixed rate / € Surcharge 10% / €
day 2 974 3 271
month 89 220 98 136
year 1 070 640 1 177 632
years 5 353 200 5 888 160

Note: the fixed minimum size of the “green” tariff in 2030 is 0.1239 euro-cents per kWh, excluding VAT.

The procedure and procedure for obtaining the allowance can be provided by specialists.

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