Responsibilities in the Administration
Public administration
Fuel and Energy Complex Committee of the Verkhovna Rada
The Fuel and Energy Complex Committee operates within the framework of the Law of Ukraine «On Committees of Verkhovna Rada of Ukraine». The main responsibilities of the Committee are law drafting, organizational and control within the fuel and energy sector.
As part of its law drafting duties this Committee is responsible for considering any new legislation in the energy sector including renewable energy sources, for example the already adopted Green Tariff Law. It is also responsible for considering any changes to the Electricity Act or any other legislation governing the functioning of the electricity market. Control duties include analysis of energy law following a request by other state bodies, summarising and submitting recommendations to hearings of Verkhovna Rada.
Other Committees of the Verkhovna Rada deal with environmental protection, investment policy, technical standards and finance namely: Committee of Ecological Policy, Environmental Management and Chernobyl Accident Management; Economic Policy Committee, Committee on issues of financial and bank activities. These Committees have to be consulted in the process of developing new legislation related to technical and environmental requirements for electricity production from renewables and also to financing structures utilised, for example, through budget and special budget funds.
The Cabinet of Ministers of Ukraine (CMU)
The government of Ukraine determines targets and strategy for the development of electricity production from renewables within the overall energy strategy (for example the National Energy Strategy of Ukraine till 2030) and special programmes (for example the 1997 Program of State Support for the Development of Non-traditional and Renewable Energy Sources and Small Hydro and Thermal Power Plants, the 1997 Comprehensive Wind Farm Construction Programme approved by the Government).
Ministry of Fuel and Energy (MFE)
The Ministry of Fuel and Energy of Ukraine (MFE) is a central body of executive power, which activity is directed and coordinated by the Cabinet of Ministries of Ukraine. MFE is the main central executive authority, which ensures implementation of state policy in power energy, nuclear-industrial, coal-industrial and oil-and-gas complexes (further as fuel and energy complex - FEC).
Main tasks of MFE:
- state management of FEC;
- to provide implementation of state policy in FEC;
- to provide state energy security;
- to develop proposals concerning;
to participate in formation, management and improvement of fuel and energy resources market.
In the sphere of renewable energy sources the Ministry has responsibilities related to the provision of general principles in support of state policy, regulation and control. The MFE is in the process of establishing a dedicated Department for electricity production from renewables.
National Agency for Efficient Energy Resources Management (NAER)
The National Agency of Ukraine for Effective Energy Use (NAER) is a central executive authority with special status, whose activity is directed and coordinated by the Cabinet of Ministers of Ukraine. NAER is responsible for implementation of state policy on effective energy use and energy saving.
The main tasks of the Agency are the following:
- carrying out the integrated state policy in the sphere of the efficient use of energy resources and energy conservation;
- ensure the increase of a share of alternative fuels in the demand-and-supply balance;
- creating the system of monitoring of production, consumption, export and import of fuels;
- improvement of the system of metering and control of energy resources consumption;
- ensuring the functioning of the united system for setting the rates of specific consumption of energy resources in the sphere of public production.
The National Electricity Regulatory Commission (NERC)
Main tasks of NERC:
- to participate in formation and provision of implementation of uniform state policy concerning development and operation of wholesale electricity market, gas, oil and oil products markets;
- state regulation of activity of natural monopolies in power sector, fuel and gas complex (FEC), heating, if heat is produced at CHPs and plants, which use renewable energy sources;
- to promote competitiveness in the field of power production, power and gas supply, oil and gas production, storage and sale of gas, oil and oil products, in the field of heat supply, if heat is produced at CHPs and plants, which use RES;
- to provide price and tariff policy in power sector, FEC, and set tariffs for power and heat energy, produced at TPPs, NPPs, CHPs and plants, which use RES;
- to provide efficiency of goods markets operation;
to protect rights of electricity, heat, gas, oil and oil products consumers;
to develop and approve rules for power and gas use; - to coordinate activity of state authorities on issues of energy sources regulation;
- to grant licenses for power production in certain volumes, power transfer and supply, natural gas storage in certain volumes and supply, oil and oil products transfer; licensing of certain types of economical activity in sector of heat supply, if heat is produced at HPPs, CHPs and plants, which use RES; to grant licenses on power and heat, produced by CHP plants;
- to control holding the terms of licensed activity performance.
Actual work and opportunities
NERC is a central executive body with a special status, carrying out state regulation in the power sector. In the renewables sector, NERC’s authority includes the regulation of tariffs for electrical energy from renewable sources and of thermal energy generated at combined heat and power plants, and plants with the use of non-traditional and renewable sources of energy. NERC also has licensing authority for electricity production exceeding 5 MW. NERC is also responsible for monitoring the electricity market, approving market rules and changes in market rules (including technical aspects related to metering etc.) and all functions related to the network operators (implementation of the non-discriminatory regime through licensing, regulated connection and use of system arrangements and prices).
NERC can perform its usual activity regarding also production and consumption of power from renewables. In particular NERC can control respect for rights of producers and consumers of “green” power on Ukraine’s electricity market.
The Ministry of Environmental Protection
The Ministry of Environmental Protection is a specially empowered central executive authority on ecology and natural resources. The Ministry also functions as specially empowered central executive authority for hydro-meteorological and also topographic-geodesic and cartographic activity. Activity of the Ministry is directed and coordinated by the Cabinet of Ministers of Ukraine.
This Ministry is responsible for environmental protection, efficient use, restoration and protection of natural resources, state control of the use and protection of lands, environmental safety, reserve management and studies, waste management, formation, conservation and use of the ecological network, geological investigation and efficient use of subsoil areas, as well as topographic-geodesic and map-making activity. The Ministry is responsible for the administration of the State Environment Protection Fund. On September 12, 2005 President Yuschenko signed a Presidential Decree (No.1239/2005)21 which confirmed the appointment of the Ministry of Environmental Protection as coordinator of measures to implement the Kyoto Protocol
National Environmental Investment Agency of Ukraine (NEIA)
The National Environmental Investment Agency of Ukraine (hereinafter the Agency or NEIA) is the central executive body guided and coordinated by the Minister of Environmental Protection of Ukraine under the governance of the Cabinet of Ministers of Ukraine.
NEIA has the following main responsibilities:
- to participate in establishing and providing for the execution of the state national investment policy in the environmental protection sector area as well as and the state policy in the field of regulation of anthropogenic adverse negative impact on climate change;
- to execute the provisions set in the United Nations Framework Convention on Climate Change (955_044) and implement the mechanisms of the Kyoto Protocol including implementation of greenhouse gases (GHG) mitigation projects, attracting investments to the environmental protection;
- to establish and ensure the operation of the national system for the assessment of the GHG emissions and absorption.
According to its responsibilities and within its authority the NEIA shall perform the following:
- participate in the drafting of the State Budget of Ukraine, the State Program of the Economic and Social Development of Ukraine, the Action Program of the Cabinet of Ministers of Ukraine;
- prepare and submit to the Ministry of Environmental Protection of Ukraine proposals on:
- executing the requirements of the UN Framework Convention on Climate Change (955_044) and implementing the mechanisms of the Kyoto Protocol;
- develop the investment policy in the environmental protection area.
Ministry of Agrarian Policy of Ukraine (MAP)
Ministry of Agrarian Policy of Ukraine (MAP) is the central executive authority, whose activity is directed and coordinated by the Cabinet of Ministers of Ukraine. MAP is the main executive authority, who provides implementation of state agrarian policy, state food security and state management in agriculture, gardening, viticulture, food and processing industry, fish industry and complex development of rural territories.
Relating to the use of biomass, this Ministry is responsible for promoting the production of crops and agricultural waste products for energy purposes.
Actual work and opportunities
The Ministry defines Ukraine’s policy regarding biodiesel production, supervises and guides this process. MAP possesses valid data on all relevant points (rape planting area, rape productivity and harvest, number, location and capacity of biodiesel production plants etc.). Specialists of the Ministry developed State Program for Biodiesel Production (approved on 22.12.07) and now the Ministry is responsible for its implementation.
Council of National Security and Defence of Ukraine
This Council is interested in the development of electricity production from renewables because of the positive impact on energy security (reducing dependence from foreign sources).
State Committee of Forestry of Ukraine (SCF)
The State Committee of Forestry of Ukraine is a central executive authority on forestry, hunting sector and shooting (SCF), which activity is directed and coordinated by the Cabinet of Ministers of Ukraine through the Ministry of Environment. SCF introduces proposals to the Ministry of Environment about formation of state policy in the field of forestry and hunting sector, shooting and hunting dog breeding, provides their implementation and management, provides inter-sector coordination and functional regulation of issues of its competence.
Main tasks of SCF:
- insurance of the state policy implementation in the forestry and hunting spheres, and also conservation, protection, rational use and regeneration of forest resources, hunting animals, increasing of forest and hunting efficiency;
- carrying out of public management, regulation and control in the forest and hunting spheres, drafting and organizing of the general state, interstate and regional programs implementation in the sphere of protection, increasing production, rational use and regeneration of forests as well as participation in programs working out and implementation on use and regeneration of hunting animals, hunting development.
Actual work and opportunities:
The Committee watches over the use of boilers at forestry enterprises. It is important because about 1000 boilers at the enterprises were converted from coal and fuel oil to combustion of their own wood residues. The Committee may assist in correct estimation of wood and wood waste potential available for energy production in Ukraine.
The Ministry of Construction, Architecture, Housing and Communal Services (Ministry of Construction)
The Ministry oversees the so-called “small-scale energy” sector. This Ministry is responsible, in particular, for developing and implementing policy on district heating and other residential services. The Ministry was created in July 2005 from the State Committee for Construction and Architecture and the State Committee for Housing and Communal Services. The merging of the two committees into a single Ministry is intended to facilitate the implementation of energy-efficiency improvements in the housing stock.
Other Ministries
The interest/involvement of the Ministry of Economy, the Ministry of Finance, the Ministry of Labour and similar is related to issues such as development of national production capacities for renewable energy devices, structural and regional economic policy and employment and social policy, as well as implementation and monitoring of financial mechanisms for the promotion of renewable energy.
The Inter-ministerial Commission on Implementation of the UNFCCC
This Commission comprises vice-ministers, scientists, and public representatives and acts as a supervisory body for decisions related to the UNFCCC implementation.
Energy related organisations
Institute of Renewable Energy, NASU
This Institute is the specialised entity of the Ukrainian Academy of Science engaged in research and development of the whole range of renewable energy sources. The main areas of its activities are basic research associated with wind energy transformation and utilization; technologies and systems for bioenergy processes and utilization; basic research associated with transformation processes and utilization the energy of small rivers and seas; physical and engineering foundation for solar energy transformation processes; thermal-physic principles for geothermal energy transformation and utilization.
State scientific and research Institute of innovation technologies in power energy and energy saving
This Institute is a so called ministerial Institute (currently not clear whether it comes under the MFE or NAER) engaged in innovation project of wind, solar and biomass energy transformation and utilization; technologies and systems using heat pumps.
The National Institute of Strategic Studies (NISS)
NISS was established on 4 March 1992 as an academic entity under the President of Ukraine. NISS is a research institution with diverse and comprehensive programs of studies. It undertakes fundamental and applied studies which cover the following areas: national security and foreign policy, economic and social strategies, humanitarian policy, regional developments. Particular attention is focused on information policy and European studies. The basic task of NISS is to provide informational and analytical support to the activity of the President of Ukraine.
Main tasks of NISS:
- to conduct policy-relevant research and provides analytical prognosis and development strategies in all major areas of domestic and foreign policies;
- to formulate policy options and suggests research-based recommendations for the President of Ukraine;
- to provide analytical and administration support to Annual Addresses of the President of Ukraine to the Verkhovna Rada (Parliament);
- to evaluate Ukraine's opportunities and risks on regional and global levels;
- to make expert assessment of national policies, legislative acts and legal documents.
Actual work and opportunities
NISS could prepare detailed analytic prognosis on advantages of wider bioenergy development in Ukraine to be presented Ukrainian authorities on high level (the President and the Parliament).
SEC Biomass under the Institute for Thermophysics
This Centre is engaged in research and innovation projects in the sector of energy production from biomass (combustion, gasification, pyrolysis, anaerobic digestion, landfill gas extraction and utilization, liquid fuel production) and preparation of JI projects under Kyoto Protocol.
MAMA-86
This is an active and outspoken anti-nuclear NGO. It is a wide network of environmental non-governmental organisations. It was registered in January 2001 with the national status and currently unites 17 organisations from various regions of Ukraine. The activities of “MAMA-86” are aimed at creating conditions for transition of Ukraine to sustainable development with a special focus on addressing complex environmental challenges in the context of a transition economy and the enhanced role of the public in these processes. “MAMA-86” is engaged in active educational activities among the general public, which focus particularly on women through information collection and dissemination, on-going training as well as public and inter-sectoral debates, lobbying of government decisions in the interests of citizens. A special emphasis is placed on empowerment of women, children and youth, reinforcement of NGOs' role in considering such factors as environment/health protection and civil society rights in the course of developing Government plans, programmes and policies. To meet this objective, networking of related national and international information/education-oriented organizations is actively promoted, practice of public participation in decision-making is multiplied and grass root environment and health initiatives of female leaders are supported.
- NGO “Renewable Energy Agency” was created for support Renewables in Ukraine by INFORSE International Network (Secretariat in Denmark).
- The National Ecological Centre of Ukraine (NECU) was established in order to unite efforts of scientists, politicians, state officials and public for improvement of the environment as a base of existence and further development of the civic society in Ukraine. The mission of NECU is to work for the healthy environment and improvement of the quality of life of the Ukrainian population. Its activities are based on the maintenance of the state independence of Ukraine, on establishment of civic society on the basis of unification of achievements of the ecological and humanitarian science and best Christian traditions of the Ukrainian people.
Energy related funds and programmes
International financial organizations
The main sources of international financing in the energy sector of Ukraine are international financial organizations (IFO). First of all, the International Bank for Reconstruction and Development (IBRD), The European Bank for Reconstruction and Development (EBRD), Black Sea Bank for Trade and Development.
The International Bank for Reconstruction and Development
IBRD is a member of World Bank Group which is the greatest source of aid for development in the world. Ukraine became a member of the IBRD from 1992. Project’s portfolio of IBRD in Ukraine is aimed to support key directions of economic reforms including development of entrepreneurial activity and private sector, structural reform of basic fields of economy, reform of financial and banking sectors, social security programs, and environmental protection.
From 1993 IBRD supported realization of 7 projects in power sector of Ukraine by credits of $965.1 million (including 631 – power sector, 315.9 – coal sector, 18.3 – energy efficiency project).
The European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) together with IBRD is the largest investor in Ukraine (as of May, 31, 2005 EBRD was signed 67 projects in Ukraine for a total of 1.7 billion EURO). Bank grants aid in different spheres and fields, giving special consideration to financial sector and small and medium companies also. The priority directions for EBRD are agriculture and infrastructure, including transport, and also power supply and telecommunications.
EBRD attaches special importance to reform of power industry and implementation of high efficiency technologies. One of the key tasks of Bank is guaranteeing of nuclear safety. EBRD governs Chernobyl Fond “Ukryttya” which help to convert Chernobyl into safe and ecological stable zone.
As of 1993 EBRD supported realization of 9 projects for a total of investments 269.5 million EURO (including 174.4 – power industry, 75.8 – oil-and-gas sector and 19.3 – energy efficiency projects).
The Black Sea Bank for Trade and Development
The Black Sea Bank for Trade and Development (BBTD) is regional IFO the aim of which is assistance in economic development of member-countries, encouragement of regional integration and cooperation including assist in interregional trade.
Program of BBTD trade financing includes broad credits spectra with short-term and medium-term credits. Short-term credits include before export financing, reusable procurement credit, guarantee’s programs. Medium-term credits include single and reusable procurement credits and programs single/reusable refinancing of supplier.
Ukraine became a member of BBTD in 1998. Portfolio of BBTD in Ukraine is not big ($97.5 million) and has some completed and current projects in oil-and-gas sector with a total amount of $61 million.
The European Investment Bank
The European Investment Bank (EIB) is a financial institution of EU, the aim of which is assistance in integration, balanced development and economical and social consolidation of EU member-countries. Outside EU EIB realizes financial component of agreement in the frame of collaboration policy.
The European Investment Bank supports projects directed at improvement of infrastructure, particularly, energy sector. The framework agreement between Ukraine and EIB signed 14.06.05 and approved by Verkhovna Rada of Ukraine 07.02.06. The framework agreement has general character and has no sector priority. Possibility of EIB on financing projects in power sector one can estimates on the basis of overview EIB operations in countries of Central Europe during last 15 years.
