For stimulating development of renewable energy in Ukraine are:
1. Establishment of a “green” tariff for electric energy produced from alternative sources
The Law of Ukraine “On Alternative Energy Sources” provides for the establishment of a “green” tariff to stimulate the production of electricity from alternative energy sources (except blast furnace and coke gases, and with the use of hydropower – produced only by micro-, mini- and small hydropower plants).
“Green” tariff means a special tariff at which the electricity generated by electric power facilities, in particular at the commissioned construction stages of electric power plants (start-up facilities) that use alternative energy sources (and only electricity generated by micro, mini and small hydroelectric power plants if hydro energy is used) is purchased.
“Green” tariff has been set for each business entity producing electricity from alternative energy sources, for each type of alternative energy and each electric power facility or each stage of a power plant construction (start-up complex).
“Green” tariff for electricity produced by generating installations of private households, consumers, including energy cooperatives, shall be set for each type of alternative energy source and for combined wind and solar generating systems.
“Green” tariff for electricity is set considering the coefficient of the “green” tariff which is determined depending on the commissioning date of the facility stages/start-up complexes. The specific coefficients are defined in the Law “On Alternative Energy Sources”.
Support for the producers of electricity from alternative energy sources, which according to the auction results have acquired the right to support shall be provided by a guarantee of the purchase of all electricity supplied by such producers at the auction price, taking into account the premium for compliance with the level of use of the equipment produced in Ukraine, by virtue of the concluded electricity sale contracts between the guaranteed buyer and the business entity, which according to the auction results acquired the right to support.
2. Tax and customs incentives are also available for green energy producers in Ukraine can use
VAT exemption on import of goods that are used for own production and if identical goods with similar quality indicators are not produced in Ukraine, namely:
- equipment that works on renewable energy sources, energy-saving equipment and materials, means of measurement, control and management of consumption of fuel and energy resources, equipment and materials for the production of alternative types of fuel or for the production of energy from renewable energy sources;
- materials, equipment, components used for production of the following:
– equipment that works on renewable energy sources;
materials, raw materials, equipment and components that will be used in the production of alternative types of fuel or the production of energy from renewable energy sources;
– energy-saving equipment and materials, products, operation of which ensures savings and rational use of fuel and energy resources;
– means of measuring, controlling and managing the consumption of fuel and energy resources.
The list of such goods is established by the Cabinet of Ministers of Ukraine.
Exemption from customs duties for import of technical and transport vehicles, including self-propelled agricultural machines that run on biofuel and are classified according to the codes UCT ZED, defined by Article 7 of the Law of Ukraine “On Alternative Fuels”, if such goods are not produced in Ukraine. The procedure for importing specified technical and transport vehicles, including self-propelled agricultural machines, is determined by the Cabinet of Ministers of Ukraine.