Presentation of alternate energy projects in Beijing: legal issues


In order to develop Ukrainian-Chinese cooperation in the field of alternative energy, in early March 2019, a large-scale presentation of Ukrainian projects in the field of solar energy was held in Beijing.

Leaders and employees of the "Silk Link" Association, representatives of leading banks in the field of green energy, in particular, Ukrgasbank and Industrial Bank, investment companies and Agroindustrial Holding outlined opportunities and prospects for investments in the energy of the future. A legal participant from Ukraine was the Group of Companies "Ty i Pravo" Lenivsky Group".

From the side of the Celestial Empire, more than 50 leading Chinese alternative energy companies, investors, creditors, EPC contractors and business associations took part in the event.

Opening the presentation of Ukrainian projects at the Embassy of Ukraine to the PRC, Ambassador Extraordinary and Plenipotentiary of Ukraine to the People's Republic of China Oleg Demin noted that one of the most urgent and promising issues for Ukrainian-Chinese cooperation currently is alternative energy sector.


"It is clear why we are gathered here in Beijing, the Embassy of Ukraine in China - because China today is number one in the field of solar energy. Second, the reform is carried out in Ukraine in the energy sector have opened new opportunities for global players in Ukraine ", - he Ambassador said.

It should be noted that only in 2018 Ukraine installed more than 813 MW of new capacities that produce electricity from renewable sources. This is three times more than it was built in 2017. Net energy investments last year amounted to 730 million euros.


Alternative energy will continue to grow in the coming years, while the most dynamic growth is predicted to the solar power industry. This was undertaken by Taras Golub, CEO of the "Silk Link" Association.

taras holub

"One of the basic strategic tasks for Ukraine is to reduce the consumption of natural gas. In this regard, the task is to increase the amount of renewable energy. According to the National Renewable Energy Action Plan, in accordance with Directive 2009/28 / EC, it is necessary to increase the amount of renewable energy to 11 percent and this task should be completed by 2020 ", -  Taras Golub said.

Legislative changes for this purpose are now being actively implemented in Ukraine. So in February last year, Ukraine officially became a full member of the International Agency for Renewable Energy Sources (IRENA). In 2018, the Verkhovna Rada also adopted a number of important changes to simplify land legislation, create tax preferences, introduce new and modernize existing mechanisms for supporting producers of electricity from renewable sources, changes in land use regulations, as it was pointed out by Sokolova Ksenia, a representative of the company "Ty i Pravo" Lenivskyi Group, during the round table at the Ukrainian House in Beijing.

IMG 2624

In particular, in the first reading, the bill No. 8449-d was approved, which improves the conditions of development for distributed generation: all consumers (households and legal entities) will be able to produce electricity at installations with a capacity of up to 500 kw and sell them at a green tariff without obtaining licenses and passing other regulatory procedures.

In addition, from 2020 a new mechanism for state support of industrial producers of electricity from alternative sources - price auctions will work. The starting price for them will be the "green" tariff, which is valid at the time of their conducting. The participant, who will offer the lowest price, will have the right to conclude a power purchase agreement (PPA) with a subsidiary "Guaranteed buyer" of Energorynok for 20 years.

ukrdim pekin

Already from 2020, participation in auctions will be the only way of obtaining state support for wind farms with a capacity of more than 20 MW and other types of generation more than 10 MW. In 2021-2022, these thresholds will decrease to 10 MW and 5 MW, respectively, and from 2023 to 3 MW and 1 MW. As of 2018, the share of SES and WEU exceeded 15% of the total sales of renewable energy, therefore, it is now obligatory for them to participate in auctions. Other electricity generators from alternative sources may participate in auctions voluntarily.

Such a legislative initiative is a long-term one. Yes, auctions will be held until 2030. In order to ensure competition during their conduct, the maximum amount of quotas that can be sold should not exceed the total number of applications of participants, and one participant (or several participants with a general beneficiary) will not be able to receive more than 25% of the annual quota.

Electricity producers from alternative sources for which participation in auctions is not mandatory will be able to receive a "green" tariff by 2030. True, the green tariff rates for SES, which will be put into operation from 2020, will be reduced by 25% compared with the current legislation. It is worth noting that electricity producers who already have a green tariff or who sign an appropriate PPA or pre-PPA by the end of 2019 will keep the "green" tariff on existing conditions by 2030.


Another step forward for the development of green energy in Ukraine was the bill No. 9260, which was adopted by the Verkhovna Rada on November 23, 2018.

According to the law, facilities for the production of electricity from renewable energy sources can be placed on lands of special purpose "land of industry, transport, communications, energy, defense and other purposes." It should be noted, that earlier, for the construction of the power plant it was necessary to change the intended use of land for the placement, construction, operation and maintenance of buildings and facilities of energy generating enterprises. As a rule, the procedure for changing the purpose of land occupied several months, requiring the development and approval of a detailed plan of territories, holding public hearings and involving local authorities. Consequently, innovations reduce the time costs and investors' corruption risks.

Also, this law introduced amendments to p. 64 of the Transitional Provisions of the Tax Code of Ukraine. According to the changes, from January 1, 2019 and until December 31, 2021, import of equipment for alternative energy such as wind turbines, solar photovoltaic modules, transformers and inverters is exempted from VAT. This means that alternative energy equipment imported from abroad will be 20% cheaper. Certainly, such an innovation will increase the attractiveness of investments in alternative energy of Ukraine.

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