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LEGISLATIVE CHANGES WITH REGARD TO GENERATION OF ELECTRICITY FROM ALTERNATIVE ENERGY SOURCES
DLA Piper Ukraine, Kyiv, Ukraine, Friday, December 14, 2012
On 29 November 2012, President of Ukraine signed the Law No. 5485-VI "On Amendments to the Law of Ukraine “On Power Generation” ("the Law"). Most of the changes introduced by this Law relate to legal regulation of generation of electricity from alternative sources.
Please find below the summary of most essential amendments to be introduced by the Law:
§ Introduction of definitions of micro, mini and small power station, wind power unit, wind power station and power station construction phase.
§ The definition of biomass is explained in detail, and biogas is recognized as an alternative energy source. Biogas power producers will be eligible for the "green" tariff upon Law coming into force.
§ Electricity generated at combined heat and power plants forming parts of energy suppliers may be sold by them independently for the consumption at the area designated for their licensed activities.
§ Private households are allowed to produce and sell electricity produced from solar radiation by power generating units without a relevant license if the installed capacity of such units does not exceed 10 kW.
§ Obligation to confirm the origin of electricity from alternative sources is assigned to power producers.
§ If different "green" tariff rates are applied at electric power facilities including commissioned power station construction phases (start-up facilities) the commercial accounting of the power generated should be done separately for each stage (start-up facility) and/or installation subject to a separate "green" tariff rates.
§ Starting 1 April 2013, the "green" tariff rate for wind power plants will be set out depending on the capacity of individual wind power generator.
§ Gradual decrease of the "green" tariff rates is established for different categories of alternative electricity facilities starting 1 April 2013 and through 31 December 2029.
§ The local content requirements applicable to electric power facilities were substantially extended and refined. In particular, the Law demands particular elements of power facilities to have the local content portions and establishes particular percentage of value of such local content in each of such elements.
The Law will come into force on 1 April 2013 but some of its provisions will be deemed in effect from 1 July 2013 and 1 January 2014. In particular provisions of the Law on local content requirement will come into force on 1 July 2013.
