State Agency on Energy Efficiency and Energy Saving of Ukraine. State policy on renewable energy in Ukraine
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1 State Agency on Energy Efficiency and Energy Saving of Ukraine State policy on renewable energy in Ukraine Speaker: Igor Kovalov Deputy of the Head of Renewable Energy Development Department 1
2 2 TOTAL SUPPLY OF PRIMARY ENERGY ktoe
3 total Produced ,0 GWh Imported 1 908,6 GWh Consumed, including losses ,6 GWh Exported 6 097,0 GWh * data of State Statistics Committee
4 4
5 5 Total average theoretical potential 98,0 *, Mtce * Institute of renewable energy NAS of Ukraine
6 6 Tax incentives providing to enterprises (Tax Code of Ukraine, Laws of Ukraine On energy saving, On alternative fuels, On gas (methane) of coal deposits, On Single Customs Tariff, On Value Added Tax, etc) Usage of green tariff for electricity produced from renewable energy sources (Law of Ukraine On Electricity )
7 7 1. According to paragraph of Article 276 of the Tax Code of Ukraine tax on the land plots which is allocated for facilities building that generate electricity from renewable energy, is charged at the rate of 25 percent of the fixed tax 2. According to subparagraph b) of paragraph of Article 311 electricity that is produced from renewable energy sources is exempted from payment of fee with supplement to the current tariff for electricity and heat 3. According to paragraph 15 of subsection 4 of Section XX of the Tax Code of Ukraine, temporarily, till 1 January 2020, is exempted from taxation: producers of biofuel profits which is derived from sale of biofuel; profits of enterprises that are derived from simultaneous production of electricity and thermal energy and/or thermal energy from biofuel; profit of enterprises which produce technics and equipment that are defined with Article 7 of the Law of Ukraine "On alternative fuels" for production and reconstruction of technical equipment and vehicles, including self-propelled agricultural machinery and power plants with biological fuel consumption and is derived from sale of these technics and equipment 4. According to subparagraph b) of paragraph 17 of subsection 4 of section XX of the Tax Code of Ukraine profits of enterprises which derive from sale of electricity generated from renewable energy sources are exempted from tax from 1 January 2011 for 10 years 5. According to the Law of Ukraine "On gas (methane) of coal deposits" temporarily till 1 January 2020 profits of enterprises which are derived from production and use of gas (methane) of coal deposits are exempted from tax
8 8 The Tax Code of Ukraine defines the specific taxation of enterprises incomes which are derived with introduction of equipment that use renewable energy sources, namely : According to paragraph of Article 158 of the Tax Code of Ukraine 80 percent of enterprises profits which are derived from sale goods on Ukraine's customs territory by the list established by the Cabinet of Ministers of Ukraine : equipment that use renewable energy; materials, raw materials, equipment and components which will be used to produce energy from renewable energy sources; energy efficient equipment, energy efficient materials and products which provide saving and efficient use of energy resources; instrumentation of measurement, control and management of energy resources consumption; equipment for alternative fuels production.
9 9 Operations are temporarily exempted from paying value added tax till 1 January 2019 in the manner prescribed in Paragraph 2 of Subsection 2 of Section XX of the Tax Code of Ukraine: Delivery of technics, devices and equipment which are defined with Article 7 of the Law of Ukraine "On alternative fuels" in Ukraine; Import by codes of Commodity Classification, which are defined with Article 7 of the Law of Ukraine "On alternative fuels", technics and equipment that are used to reconstruction of existing and construction of new enterprises for biofuel production and also manufacture and reconstruction of technical equipment and vehicles in order to use biofuel if such equipment is not produced and does not have analogues in Ukraine
10 10 The provisions of the Laws provides: Green tariff approved by the National Electricity Regulatory Commission of Ukraine for electricity produced by the entity for energy facilities that use alternative energy. Green tariff is calculated on the basis of the highest retail tariff for industrial consumers on 01/01/2009 in euro equivalent, multiplied by from 0,8 to 4,8: 1,2 - for electricity generated from wind power (capacity not exceeding 600 kw); 1,4 - for electricity generated from wind (capacity over 600 kw but not exceeding 2000 kw); 2,1 for electricity generated from wind power (capacity exceeding 2000 kw); 2,3 - for electricity produced from biomass; 4,8 - for electricity generated from solar ground power facilities; for electricity generated from solar energy facilities that are installed on the roofs of houses and buildings (capacity exceeding 100 kw); 4,4 for electricity generated from solar energy facilities that are installed on the roofs of houses and buildings (capacity not exceeding 100 kw); 0,8 - for electricity generated by small hydropower plants.
11 11 Green tariff for enterprises which produce electricity from biomass is calculated on the basis of the retail tariff for industrial consumers of II voltage on 01/01/2009 in euro equivalent, multiplied by 2,3 Enterprise Region Installed capacity, MW "Green" tariff, UAH/ kwh (without VAT) JSC Kirovogradoliya Kirovograd 1,7 1,34 Co.Ltd Smilaenerhopromtrans Cherkassy 2,5 1,34
12 12 Goals of the State Program Energy balance structure of Ukraine optimization by achieving at least 10 % of the share of energy produced from renewable energy sources and alternative fuels in 2015, by means of reduction of imported fossil fuels and their replacement with other kinds of energy resources, including produced from the alternative energy resources and secondary energy resources *the Program is approved by resolution of the Cabinet of Ministers of Ukraine 243 of 1 March, 2010; the Program was supplemented with issue of renewable energy development and is approved by resolution of the Cabinet of Ministers of Ukraine N 447 of 27 April 2011
13 13 Area of renewable energy development Total amount of renewable energy facilities Installed capacity, MW total installed in 2010 Electricity production in 2010, GWh 1 Wind energy 5 76, ,171 2 Solar energy 2 2,5 2,5 0,508 3 Small hydro power 24 63, ,515 4 Bioenergy, including 2 4,2 2,5 0,002 electricity from biogas electricity from biomass 2 4,2 2,5 0,002 Total , ,196
14 14 Area of renewable energy development Total amount of renewable energy facilities Installed capacity, MW total installed in 2011 Electricity production in 2011, GWh 1 Wind energy ,415 69,840 88,984 2 Solar energy , ,689 30,042 3 Small hydro power 73 70,816 2, ,463 4 Bioenergy, including 3 4,85-10,376 electricity from biogas 1 0,65-0,774 electricity from biomass 2 4,2-9,602 Total , , ,865
15 15
16 16
17 17 The activities of the State Target Economic Program for Energy Efficiency and the Development of Energy Production from Renewable Energy Sources and Alternative Fuels from 2010 to 2015 include partially replacing oil products by Biodiesel production: 10 kt in kt in 2015 From 2011 till 2015 it is planned to produce 80 kt of biodiesel Bioethanol production: 120 kt in kt in 2015 From 2011 till 2015 it is planned to produce 600 kt of bioethanol This production will enable to replace part of oil products (gasoline and diesel fuel) in the amount of 1.21 Mtce during years
18 18 The State Agency in accordance with the Statute draws the certificates of affiliation to alternative fuels and also provides maintenance of the Register of Alternative Fuels The Registry of Alternative Fuels involves: 90 manufacturers of solid fuel (pellets, granules); 9 manufacturers of liquid fuel (biodiesel); 54 manufacturers of liquid mixed fuel, including 46 manufacturers of fuel based on bioethanol and 8 manufacturers of fuel based on biodiesel. 652 tons of solid biofuel (pellets and briquettes) and 27 tons of motor fuel based on bioethanol was produced in Ukraine in 2011
19 19
20 20 THANK YOU FOR YOUR ATTENTION! Speaker: Igor Kovalyov Deputy of the Head of Renewable Energy Development Department
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