Feed-in tariff is an economic mechanism aimed to promote the generation of electricity from renewable energy sources. The use of feed-in tariff usually involves the use of the following tools:
- Guaranteed access to the network;
- Long-term PPA;
- setting relatively high purchase prices that take into account the cost of renewable energy.
Regional or national energy suppliers are usually required to purchase electricity from renewable sources. In many countries, the purchase of electricity from renewable energy sources under long-term (15–25 years) contracts is guaranteed by the state.
As of 2009, feed-in tariffs were used in one form or another in 63 countries of the world, including Ukraine.
The Law of Ukraine “On Amending Certain Laws of Ukraine regarding the Determination of a Green Tariff” was adopted on September 25, 2008. The law provides for mandatory purchase of electricity.
The Law of Ukraine dated 04/06/2015, No. 514-VIII on the creation of competitive conditions for the production of "clean" energy. According to the current Law, the feed-in tariff is tied to the euro exchange rate until 2030, which allows to mitigate inflation risks. The requirement for a “local component” was also abolished and a surcharge on the tariff for the use of Ukrainian equipment was introduced. In general, feed-in tariffs in Ukraine today are among the largest in Europe. On July 11, 2019, amendments were made to Article 9-1 of the Law of Ukraine “On Alternative Sources of Energy”, which changed the rates for the purchase of electricity generated at PVP.
|Year of commissioning||Feed-in tariff||Maximum capacity of PPV to get a feed-in tariff (without participation in the auction)|
|2019||0,15 EUR without VAT||no limitations|
|2020||0,1126 EUR without VAT||up to 10 MW|
|2021||0,1126 EUR without VAT||up to 5 MW|