Green Tariffs in Ukraine

Friday, November 19, 2021
Green Tariffs in Ukraine

What is the Green tariff and how to activate it?

The green tariff is a mechanism that allows you to sell surplus electricity obtained from alternative sources to the energy supply company under the resolution of the National Commission of Ukraine.

Why green tariffs are so important?

According to the Ukrainian law on electricity, business entities that produce electricity using renewable energy sources can sell it to the state at an inflated rate. This provision of the law is valid until 2030. It obliges the state, represented by the state-owned company, to buy back from the subjects all electricity generated from renewable sources at a green tariff. All tariffs are attached to the Euro currency and are recalculated every quarter according to the average Ukrainian National Bank exchange rate for the previous month.

Any company / legal entity has the opportunity to invest in the construction of a solar power plant on the territory of Ukraine and receive income from this, like from any other type of activity.

Currently, Ukraine has one of the highest green tariffs globally and exceeds the cost of electricity from the city grid by 4-5 times.

Green tariffs rate in Ukraine:

  • From January 01, 2017, to December 31, 2019 — 0.18 EUR / kWh;
  • From January 01, 2020 to December 31, 2024 — 0.16 EUR / kWh;
  • From 01 January 2025 to 31 December 2029 — 0.14 EUR / kWh.

The process of connecting a green tariff for legal entities:

  1. Development of a feasibility study;
  2. Addition of KVED Production and sale of electricity;
  3. Obtaining rights to a land plot with the designated purpose of energy land;
  4. Development of design documentation for the construction of a power plant;
  5. Construction and commissioning of power plants;
  6. Conclusion of an agreement with an energy supplier and obtaining a technical specification for connection;
  7. Development of design documentation for connection to the network;
  8. Construction and commissioning of electrical installations for engineering support;
  9. Obtaining a license for the production of electricity;
  10. Confirmation of the Ukrainian component;
  11. Connection of the green tariff;
  12. Membership in the wholesale electricity market;
  13. Contract for the sale of electricity;
  14. Sale of electricity at a green tariff.

Terms of validity of the green tariff in Ukraine

01.01.2030 is the period of tariff distribution for all entities that use wind, sun, etc., as a source of energy. The established green tariff is fixed and slightly jumps up or down only when the exchange rate changes.

You will be interested