On 28 May 2009, the green tariff procedure was amended by the National Energy Regulation Commission to comply with recent legislation to stimulate alternative energy usage.

The green tariff is a special price for electricity produced from alternative energy sources.

NERC will now set a minimum green tariff for each generating company, depending on the particular type of alternative energy source used.

The minimum tariff will be in euros, with the grivnya equivalent based on the official NBU exchange rate on 1 January 2009 (EUR 100 = UAH 1085,546).

Whenever the tariff is reviewed, it will be adjusted to mitigate exchange rate fluctuations since 1 January 2009.

Generating companies wishing to sell electricity from an alternative energy source under the green tariff must apply to NERC for approval. Their application must be supported by various documents, including:

  • calculation and proof of their power production costs
  • an explanation of the construction plan for their renewable energy generator
  • a copy of the technical conditions for connecting to the grid
  • the commissioning report for the completed construction project
  • (from 1 January 2012) a document confirming that at least 30% of the construction costs comprised raw materials, assets, works and services originating from Ukraine (this will rise to 50% from 1 January 2014)
  • (from 1 January 2011 for solar energy objects) a document confirming that that at least 30% of the construction costs comprised materials originating from Ukraine

NERC will decide whether or not to allow a business to sell its power under the green tariff within 30 days after all the requisite documents have been submitted.

Every company generating alternative energy must also report to NERC on a quarterly basis about its commercial activities relating to green energy production.

Law: Resolution of NERC "On Introduction of Amendments to the Procedure for Establishment, Review and Cancellation of the Green Tariff for Business Entities" dated 28 May 2009.

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The original publication date for this article was 02/06/2009.