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UKRAINE’S ENERGY FUTURE: A PATH TO SUSTAINABILITY OR FURTHER EPENDENCE?

“We welcome government's actions on explanation of rates formation for “green” tariff concerning production of biogas and landfill gas. We are calling to complete the tasks by implementation of “green tariff” for projects of gasification and generation of electricity from landfills”, - said Dave Young, Chairman of the Board EUEA, organizer of the Second European-Ukrainian Energy Day (Kyiv, May 31 – June 1) about the law about introduction of changes to the  article 17-1 of law “About Electricity”.

Victor Savkiv, General Manager, TIS Eco; Member of the Board, EUEA agreed: “Dozens of solid landfills in Ukraine will cease to be a source of atmospheric and territory pollution, and what is the most important will bring profit, biogas projects will became profitable”.

The draft law provides improving system of tariff formation on electricity, produced from biogas and its financial optimization. As was noted by expert, adoption of the law will give a start to appearance of new degasification systems across the country. “Development of landfill gas in Ukraine hampers because of absence of “green” tariff, that makes market less attractive for funding”, says Victor Savkiv.

His EUEA colleague suggests the Government to study the issue of “green” tariff for biomass in context of absence of amendments on inflation. “While wind will continue to blow and sun will shine during next 20 years, we cannot say the same about unchanging prices for biomass supply. Yes, we achieved significant progress in sphere of “green” tariff, but we have to bring it to a logical conclusion to develop the market”.

According to the experts almost 4% of Ukrainian territory occupied by different types of waste, it is almost 35 billion tons of garbage, also there is a big problem of its utilization at landfills. Today there is a number of alternative projects on waste treatment plants, such as collecting and converting of landfill gas into electricity, heat or steam, and even usage as automobile fuel. Such projects are actively operating in the U.S. and most European countries (Germany, Austria, Denmark, Sweden, Belgium). Thus till 2025 USA are palling to receive 29 billion kW/h of electricity annually from domestic gas and landfill waste. European leader of energy production from municipal solid waste is France, which employs about 130 plants for utilization of waste energy, which produce 3.34 billion kWh of electricity and 9.44 million Gcal of heat energy per year.

Typical project of landfill gas utilization of 0,5-1 MW facility reduces greenhouse gas emissions approximately equivalent to 10 thousand cars. To absorb such a quantity of gas it is necessary to plant a forest on an area of 15 thousand acres. Energy produced by the project will save about 125 thousand barrels of oil per year.

Taking into account the economical and environmental benefits of biogas initiatives, it is important that adoption of draft law in second reading would not delay. “Last year we were hoping on adoption of “green” tariff for biogas and investment boom around biogas project was quite high. Large foreign companies, specialized in LFG project seriously interested in Ukraine, new projects were planned. But when the law was not adopted, interest became much weaken. If the same will happen again, it will be extremely difficult to restore the confidence of investors”, - said V. Savkiv.

“Amendments to the law “About electroenergetics”, having quite positive meaning in a hole, also raises the question of control over the use of profits from the "green" tariff by NERC. Essential attractive of serious foreign investors requires adjusted elimination of excesses in this issues, that has to become subject of intense debate before the second reading of above-mentioned law. Also, taking into account developments of Commission on environmental investments, alternative and renewable energy sources of the Council of Entrepreneurs under the Cabinet of Ministers of Ukraine, is a necessary to increase the coefficient of “green” tariff for electricity produced from biogas, received from plant and animal origin biomass and also from organic part of waste up to 2,9. And for projects of degassing landfills with a capacity of power plant till 500 kW – up to 3,2, as the coefficient of 2,6 rise doubts the implementation of program of degassing the solid biological waste landfills in small towns”, - summed up Jörg Meißner, Project Director in Ukraine, HAASE Energietechnik AG, head of biogas working group, EUEA.

Based on the sharpness and urgency of the problem of energy efficiency and energy saving technologies in Ukraine, EUEA experts together with representatives of European Commission, Ukrainian Government, Secretariat of the Energy Community, business community and donor organizations will gather at the Second European-Ukrainian, an annual event in the field of energy efficiency and alternative energy, which will take place on May 31 – June 1 in the InterContinental Hotel (Kyiv). Under support of State Agency of Ukraine for Energy Efficiency and Energy saving. 

Organizers of the Event: European-Ukrainian Energy Agency (EUEA) and Conference House Company.

Despite the fact that previous year event was conducted for the first time, it gathered about 300 participants from more than 10 countries. It indicates the urgency of discussed issues and necessity of constant dialogue between main market players. 

Main subjects of this year event:

  • New energy strategy of Ukraine.
  • Accession of Energy Community what does it mean for business in Ukraine in short and long term prospects. 
  • Investment in energy efficiency: tools, examples in Ukraine and neighbor countries experience. 

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Speakers 2012

  • EnergyDay