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Support schemes – Energy Country Profile

Support schemes

Feed-in-tariffs

  • 2009 feed-in-tariffs were introduced in Ukraine. It is a so-called “green” tariff, consisting of two factors – a basic tariff and a green coefficient. The price for kWh is defined by the basic tariff multiplied by a specific "green coefficient", which is defined in the Electricity Act. The tariff ranges between 5 c/kWh (wind) to 19c/kWh (solar). To avoid exchange rate problems they are set in euros. Electricity providers are obliged to buy electricity produced from renewable energies.
  • Since 2015 this also includes household with solar and wind facilities.

Support mechanisms

  • Renewable energy development in Ukraine started in 1996, but it took until 2005 to develope the Energy Strategy of Ukraine until 2030.
  • The Energy Community Ministerial Council of 18.10.2012 (M.Budva) approved the decision by Ukraine to implement the Directive 2009/28/EC concerning incentives for energy produced from renewable sources. The said decision for Ukraine determined the rate of energy produced from renewable sources in final energy consumption in 2020 at 11%.
  • In 2013, the Government renewed the energy strategy of Ukraine adapting it to the requirements of international obligations, including the Directive 2009/28/EC, but the strategy does not include the use of renewable energy for heating and cooling and transport as required by the Directive .
  • In 2014 Ukraine adopted the Action Plan for the implementation of the Directive 2009/28/EC on the promotion of the use of energy produced from renewable sources.

The Implementation of the action plan will provide:

1. Adaptation of Ukraine in the field of renewable energy to the EU legislation, in particular:

  • development of technical requirements for the production and use of biofuels and bioliquids;
  • development of sustainability criteria for liquid and gaseous fuels produced from biomass;
  • development of a list of areas of the country that are classified according to the International Nomenclature of territorial units (NUTS)

2. Will increase the consumption of energy produced from renewable sources by:

  • measures to promote the production and use of renewable and alternative fuels;
  • developing recommendations for the optimal combination of renewable and traditional energy sources;
  • providing training specialists for the installation of power equipment that runs on renewable energy and alternative fuels.

Feed-in tariffs

Ukraine introduced feed-in tariffs in 2009. Feed-in tariffs are expressed in EUR at a fixed exchange rate in order to protect power producers from exchange rate volatility. Tariffs were revised downward further to an amendment that entered into force on 1 April 2013 and again in 2015.

Biofuels

Ukraine intends to increase the production of  bioethanol and biodiesel to reach levels of 0,32 Mtoe and 0,07 Mote, respectively, by 2020. Ukraine's 2016 target was to reach a biofuel share of 7% in the fuel blend.

Last update: 09 2019