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Legal aspects of implementation of  projects under  “green” tariff NUCC MEETING 19.01.2012 Borys Danevych, attorney-at-Law,  Partner at PARITET law firm
Content ,[object Object],[object Object],[object Object],[object Object]
Potential ,[object Object],Types of renewable energy sources  Annual energy potential Theoretically  possible Technically achievable billion kWh million  tce billion kWh million  tce Wind Power 270.0 97.2 41.7 15.0 Small Hydro Power 12.5 4.5 8.3 3.0 Biomass 407.0 50.0 162.8 20.0
Actual statistics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
1. Incentives for development of projects under GT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
2. Minimal fixed GT rates Type of energy Power station capacity and other factors influencing the rate of GT Rate of the tariff (€ / kW) Wind less 600 kW* 0,0646 600-2000 kW* 0,0754 more 2000 kW* 0,1131 Solar energy     Power plants on ground surface 0,4653 Power plants on the roofs of buildings with  power capacity exceeding 100 kW   0,4459 Power plants on the roofs of buildings with  power capacity of up to 100 kW 0,4265 Biomass Should be at least partially of plant origin to be eligible 0,1239 Small hydropower plants not more than 10000 kW 0,0775
2. Rates of “green” for other alternative energy sources  ,[object Object],[object Object],[object Object]
2. Coverage of minimal  fixed GT rate for biomass *Under Draft Law No. 8028 of 28.01.2011 all types of biomass expected to have the same legal status in terms of eligibility but not biogas and gasification processes Types of biomass (biogas) Process of electricity generation Eligibility to minimal fixed GT Biomass of plant or at least partially of plant origin* Steam turbine process Yes Gasification  and other processes where biomass is  not used directly as a fuel No Biomass of animal origin* Any processes No Biogas, including landfill gas, waste gas similar biogases  Any processes No
2. Change/Decrease of GT in the future ,[object Object],2014 –  by  10% 2019 –  by  20% 2024 –  by  30% ,[object Object]
[object Object],[object Object],[object Object],2. Change/Decrease of GT in the future
3. Ukrainian content requirement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
4. Approval of GT ,[object Object],[object Object],[object Object],[object Object],GOOD NEWS!   No Approval Fee
Conditions for  Implementation of GT Projects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conditions for  Implementation of GT Projects Connection of cogeneration power plants Set up of a company (charter shall provide that the company produces electricity)  Acquisition of rights in land Construction   Registration of ownership Registration of leases  Registration of easements and superficies  Change of designated purpose  License for electricity production  Joining WEM and Signing WEM Agreement Conclusion of agreement with Energorynok GT approval by NERC Sale of electricity at GT Tax and customs duties breaks Exemption from import VAT and customs duties 25% of required land tax Maximal annual lease payments – 3% of appraisal value Exemption from corporate profit tax till 2011 Receipt of initial data Receipt of technical conditions  Development of project documentation Examination of PD, if necessary Registration of declaration re preparatory works, if necessary  Registration of declaration re beginning of construction Receipt of permission r e construction works Issue of Certificate on readiness for exploitation Registration of declaration on readiness Registration of ownership  Connection to the grid  Connection of certain types of wind farms Connection of other power plants
[object Object],[object Object],[object Object],[object Object],[object Object],PARITET law firm
Thank you for your attention !

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Paritet presentation gt_ renewable energy projects_nucc

  • 1. Legal aspects of implementation of projects under “green” tariff NUCC MEETING 19.01.2012 Borys Danevych, attorney-at-Law, Partner at PARITET law firm
  • 2.
  • 3.
  • 4.
  • 5.
  • 6. 2. Minimal fixed GT rates Type of energy Power station capacity and other factors influencing the rate of GT Rate of the tariff (€ / kW) Wind less 600 kW* 0,0646 600-2000 kW* 0,0754 more 2000 kW* 0,1131 Solar energy     Power plants on ground surface 0,4653 Power plants on the roofs of buildings with power capacity exceeding 100 kW   0,4459 Power plants on the roofs of buildings with power capacity of up to 100 kW 0,4265 Biomass Should be at least partially of plant origin to be eligible 0,1239 Small hydropower plants not more than 10000 kW 0,0775
  • 7.
  • 8. 2. Coverage of minimal fixed GT rate for biomass *Under Draft Law No. 8028 of 28.01.2011 all types of biomass expected to have the same legal status in terms of eligibility but not biogas and gasification processes Types of biomass (biogas) Process of electricity generation Eligibility to minimal fixed GT Biomass of plant or at least partially of plant origin* Steam turbine process Yes Gasification and other processes where biomass is not used directly as a fuel No Biomass of animal origin* Any processes No Biogas, including landfill gas, waste gas similar biogases Any processes No
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. Conditions for Implementation of GT Projects Connection of cogeneration power plants Set up of a company (charter shall provide that the company produces electricity) Acquisition of rights in land Construction Registration of ownership Registration of leases Registration of easements and superficies Change of designated purpose License for electricity production Joining WEM and Signing WEM Agreement Conclusion of agreement with Energorynok GT approval by NERC Sale of electricity at GT Tax and customs duties breaks Exemption from import VAT and customs duties 25% of required land tax Maximal annual lease payments – 3% of appraisal value Exemption from corporate profit tax till 2011 Receipt of initial data Receipt of technical conditions Development of project documentation Examination of PD, if necessary Registration of declaration re preparatory works, if necessary Registration of declaration re beginning of construction Receipt of permission r e construction works Issue of Certificate on readiness for exploitation Registration of declaration on readiness Registration of ownership Connection to the grid Connection of certain types of wind farms Connection of other power plants
  • 15.
  • 16. Thank you for your attention !