The XXI century is deservedly considered the Age of Alternative Energy. Mineral resources of our planet are not limitless and our environment simply requires the so-called, "green" technologies. Alternative energy production is becoming a priority for many countries, and Ukraine is not an exception. For instance, according to the information in the National Report by the State Agency for Energy Efficiency and Conservation of Ukraine on implementation of public policies on energy efficiency, the percentage of renewable energy sources in global consumption is 14%, and in electricity - 19%.

Ukraine cannot yet demonstrate such impressive results, but currently, at the state level, a series of measures, that are designed to bring alternative energy market to a qualitatively new level, are being planned.

For example, there are several national programs aimed to increase the share of alternative fuels up to 20% from the total fuel consumption by 2020.

First of all, this is due to the limited natural resources and the global trends on the energy market. And secondly, the Chernobyl nuclear technological disaster has forever made ​​the Ukrainians particularly attentive to the environmental safety.

The most interesting and promising for Ukraine are the bioenergetics technologies. This is due to the country's almost limitless land resources, which will allow producing of significant amounts of cheap biofuels. And there is a great market for them as well. In addition, the legislation of Ukraine provides for significant benefits and preferences for the players on that market.

The most significant regulations governing this industry are the Act of Ukraine "On Electric Power Industry", No. 575/97-VR, dated 16 October, 1997, the Act of Ukraine "On Alternative Energy Sources", No. 555-IV, dated 20 February, 2003, as well as the Act of Ukraine "On Alternative Fuels", No. 1391-XIV, dated 14 January, 2000. The latter Act adds to the list of alternative energy sources such sources as biomass and biogas. Thus, the bioenergetics technologies are subject to all the preferences provided by this Act and other related regulations.

The most effective methods to stimulate the production and the use of alternative energy sources are tax preferences and exemptions. According to the Tax Code of Ukraine, 80% of profits of enterprises that sell installations for production of alternative fuels are not subject to the corporate income tax.

Moreover, imports of raw materials and equipment that operates on biofuels, or which will be used for production of alternative fuels or energy, are exempt from VAT. Also, temporally, until 2019, imports to Ukraine of machinery and equipment used for reconstructing and construction of biofuel production plants, if such biofuel is not produced or does not have analogues in Ukraine, are VAT-exempt as well. Until 2020 profits of biofuel producers derived from sale of biofuels, as well as income derived from simultaneous production of electricity and thermal energy, and/or production of thermal energy using biofuels, are also tax-exempt.

It was a revolutionary innovation on the Ukrainian market of electric power to introduce the so-called "green tariff" – a special tariff for purchasing power produced from alternative energy sources. The essence of the "green tariff" is that the Ukrainian regulator of the energy market (National Commission on Regulating of Electric Power Industry of Ukraine) has set a special tariff that is higher than the one set for electric energy produced from traditional energy sources. The wholesale energy market, represented by the State Enterprise "Energorynok", is obliged to purchase electric power from the producers to which the "green tariff" is applied. Amendments of great importance, dated 03.06.2011, to the Act of Ukraine "On Electric Power Industry" prescribe that the state is obliged to purchase the total amount of power produced using alternative energy sources. This way the state attracts investments into the bioenergetics industry and provides all the investors with a guaranteed market for their product.

The "green tariff" rates are established for each business entity that produces electric power using alternative energy sources, each type of alternative energy, and each object of electroenergetics.

An important provision of the Act of Ukraine "On Electric Power Industry" states that the enterprises involved in transportation and distribution of electricity cannot refuse to transport electricity produced from alternative energy sources. This means that producers of biofuels and alternative energy have a secure market and will not experience any problems with ample amounts of electricity to transport.

All of these preferences are aimed primarily at attracting foreign investment to the Ukrainian economy. After all, production of biomass energy in European countries has been very successful because it is an effective and inexpensive way to solve the energy problem.

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