Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?

Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?

28.05.2017 Analytics

LET’S GO GREEN

2016 has set two opposing energy records. According to the International Energy Agency (IEA), oil production has fallen to a minimum level over the past 70 years. Mining companies continue to reduce costs associated with low oil prices. Mining has dropped to 2,4 billion barrels in 2016, compared with the average indicator of the last 15 years at 9 billion barrels annually. On the other hand, the renewable energy sector showed its largest annual growth. Today the world annually increases the power of renewable energy several times more than adds capacity from all kinds of fossil fuel sources in combination. By the end of 2015, the capacity of renewable sources has already allowed to provide 23,7% of the world’s electricity needs. According to IEA forecasts, this index will be 37% by 2040.

Significant changes have taken place in the structure of electricity sources over the past 10 years. The percentage of combustible and atomic sources is gradually decreasing now, and renewable one is constantly rising.

TOGETHER IS MORE EFFECTIVE 

Technical, economic and market transformations in the electricity sector continue to accelerate all over the world and many countries There are large-scale transformational shifts on the way to a complete transition to renewable energy in Europe. For the sake of it, companies and states even go for temporary losses abandoning old sources for the transition to new ones, which are more efficient and more environmentally friendly.

In 2011, Ukraine joined the Energy Community of Southwest Europe by acquiring the status of Contracting Party. Within the framework of its membership, Ukraine will continue to improve the efficiency of functioning of internal energy markets through the implementation of relevant EU legislation.

In 2015 within the UNO Framework Convention on Climate Change, the replacement of the Kyoto Protocol was followed by adoption of a new agreement- the Paris Treaty. It will start operating from 2020. It has to be fatified by at least 55 states, with greenhouse gas emissions of at least 55% of the world’s total.  Unlike the Kyoto Protocol, the Paris Climatic Agreement provides that commitments of reducing harmful emissions into the atmosphere have to be assumed by all states, regardless of the degree of their economic development. The Paris treaty imposes new obligations on Ukraine to reduce greenhouse gas emissions. The foregoing cannot but influence on the development of the energy sector as a whole, since it is the largest source of emissions. The energy efficiency and renewable energy sources will play a crucial role in this.

UKRAINIAN CHOISE AND THE “GREEN” TARIFF

In light of course on comprehensive European integration, Ukraine is joining the world community by the actual actions of encouraging legal and natural persons to produce and consume energy from “green” sources. Over the past two years, electricity generation from such sources has substantially increased. In 2016, 120 MW of new facilities for “green” energy objects were put into operation. In general, as for the beginning of 2017 in Ukraine, the capacity of renewable energy facilities is 1.1 GW (According to the State Agency for Energy Efficiency and Energy Conservation of Ukraine). Last year such objects produced more than 1.7 billion kWh.

Companies that produce energy from renewable sources are stimulated by the state as much as possible. The “green” tariff is not only one of the largest in Europe but also has a legislative binding to the euro. In fact, the essence of the “green” tariff is reduced to the next: the state guarantees the purchase of electricity from alternative sources at the “green” tariff until January 1st, 2030. The tariff is calculated for each object by the coefficient and, in general, for objects that will be put into operation by the end of 2019, it is

For the first time the idea of preferential tariffs had been implemented in the Unated States in the distant 1978 as a reaction to the energy crisis and in order to combat large-scale air pollution. The first law to promote energy conservation and the development of renewable energy sources has appeared there. In the 1990s Germany joined adopting a law obliging suppliers to buy electricity from renewable sources for a fixed fee.

In 2008 the Law “On Amendments to some Laws of Ukraine on Establishing a Green Tariff” was adopted in Ukraine. It is this time that serves as a benchmark for the deployment of companies producing so-called “clean” energy in the country. Small sources of hydroelectric power (with installed capacity up to 10 MW), wind, solar and power plants that use biomass as fuel were equated with such sources.

In 2015, another incentive Law was adopted, which abolished the requirement for a local component, introduced an increase of 5% and 10% to the tariff for the use of Ukrainian production equipment, increased tariff for biomass and biogas electricity generation.

The percentage of electricity generated from renewable sources in the structure of all sources in Ukraine is gradually increasing and is about 3%. Not much, but it is a good start.

According to the Ukrainian Association of Renewable Energy, the map of the location of renewable energy objects of the Association’s members is as follows:

The alternative energy in practice is one of the few industries in which investors continue to invest. The cost of equipment for solar power stations is gradually decreasing and new technologies in this area continue their implementation. For example, in 2016 in Dnipropetrovsk region the first tracker solar power station in Eastern Europe was launched. There are modules with a motion functions, which follow the movement of the sun on its panels. The movement of batteries allows to produce 50% more energy than conventional stationary installations. The solar power station “Solar Park Pidgorodne” is completely built at the expense of domestic investments. Businessmen spent almost UAH 20 million on the third turn. This station serves about 27 thousand households during the year. Not in last turn it was due to the support of the local authorities, which helped businesses to overcome the difficulties and as a result, investors continue to invest.

FUTURE BEGINS TODAY

It is undoubtedly that “green” energy, like any other has its advantages and disadvantages, but compared to other sources, the benefits are significantly higher. The renewable sources are getting cheaper and gain momentum even faster than it was predicted by reputable global analytical agencies. Their indicators are breaking records every year. The energy future of the planet is in renewable energy.

Other articles

  • The Ministry of Justice won the lawsuit over the sale of Prominvestbank
    News

    The Ministry of Justice won the lawsuit over the sale of Prominvestbank

    The Kyiv Court of Appeal denied to Russia’s Vnesheconombank (VEB) in recognition of the decision of the arbitrator of the Arbitration Institute of the Stockholm Chamber of Commerce, which, at the request of VEB, the Ministry of Justice of Ukraine was obliged to stop the forced sale of 99.77% of Prominvestbank shares. The court agreed […]

  • The losses of Ukrainian farmers due to the drought were estimated at 118 billion
    News

    The losses of Ukrainian farmers due to the drought were estimated at 118 billion

    Ukrainian farmers may lose up to 118 billion hryvnias this year due to drought and frost. This was reported by the press service of the Agrarian Union of Ukraine. “This year, even the critically affected regions (Odessa, Mykolaiv, Kherson, Zaporizhia regions), despite the promises of the state, did not receive a single penny of assistance,” […]

  • IPO Snowflake may become one of the most popular in 2020
    News

    IPO Snowflake may become one of the most popular in 2020

    IPO Snowflake, which will take place on the NYSE, will be held at the higher price than announced in early September. On Monday, according to SEC applications, Snowflake, a company that makes storage software, raised its projected stock price to $ 100- $ 110, while the market valuation of the company could grow to $ […]

  • Visa and Vsi. Svoi have launched “Her business”, a contest to support Ukrainian women entrepreneurs
    News

    Visa and Vsi. Svoi have launched “Her business”, a contest to support Ukrainian women entrepreneurs

    The professional jury will select three winners who will receive UAH 100,000 for the development of their own businesses. The first-place winner will present products in her own “corner” in one of the two Vsi. Svoi stores on Khreshchatyk. All three winners will present their products at the online platform vsisvoi.ua and will receive mentor sessions […]

  • Microsoft will build two large data centers in New Zealand
    News

    Microsoft will build two large data centers in New Zealand

    The American corporation Microsoft has received permission from the New Zealand Department of Foreign Investment to build data centers in Auckland. This is stated in a statement issued by the agency on Wednesday. “New Zealand subsidiaries of Microsoft Corporation received management’s approval of foreign investments to purchase business assets, including various land, to further creation […]

  • The global M&A market in 2020 is approaching to $ 2 trillion
    News

    The global M&A market in 2020 is approaching to $ 2 trillion

    According to the Investor`s news, in 2020, the volume of transactions worldwide mergers and acquisitions (M & A) totaled $ 1.97 trillion. The publication noted that major transactions between IT-companies account for almost one fifth of the total. According to the global data provider and stock market infrastructure Refinitiv, the volume of the deals of […]

  • Wizz Air has canceled about 20 routes from Ukraine till March 2021
    News

    Wizz Air has canceled about 20 routes from Ukraine till March 2021

    Hungarian airline Wizz Air reduces the number of flights from Ukraine in the winter flight schedule. This was reported by lowcostavia. Dozens of flights from Ukraine were reduced – 12 routes are canceled by March 2021, even more destinations are temporarily suspended until the end of October. Flights from all cities of Ukraine have changed. […]

  • Oracle becomes a №1 candidate of buying the TikTok after the company rejected for Microsoft
    News

    Oracle becomes a №1 candidate of buying the TikTok after the company rejected for Microsoft

    Microsoft`s shares fell slightly on Monday before the opening of trading due to the news of the failure the deal of buying the popular application TikTok in Chinese ByteDance. Through the support of the deal by President Donald Trump, Shares of Oracle, which is considered №1 candidate of buying TikTok increased by 10% before the […]

Read also

Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

The world’s biggest tobacco companies sued the British government

Four world’s biggest enterprises who  producing tobacco products – British American Tobacco, Imperial Tobacco, Philip Morris International and Japan Tobacco International appealed this week to the court against the government, where they are opposed to the introduction of a new law in Britain banning branded a pack of cigarettes. According to the law, which will […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

The UAE has exceeded the quota for oil production

In August, oil production in the UAE rose to 2.69 million barrels per day, while under the OPEC + agreement the quota is 2.59 million barrels. This was announced on Tuesday, September 1, Minister of Energy Suhail al-Mazrui. Exceeding the quota of 100 thousand barrels per day was caused, according to the official, by increased […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

The AMCU allowed the NAP II Holdings to buy more than 50% of the shares in two agricultural companies

Recently, the Antimonopoly Committee of Ukraine allowed the company NAP II Holdings B.V. (Netherlands), controlled by  the NCH Capital (USA) to acquire more than 50% of the shares of two agricultural enterprises in the Khmelnitskyi region. This is stated on the AMCU  website. The permission granted for the purchase of the  shares of the companies […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Ukrzoloto opens the store in Poland

Ukrzoloto opens the  jewelry store under the brand “Golden Place” in Wroclaw (Poland). “For placing  the store the company chose a location in the largest shopping center in Wroclaw –“Aleja Bielany” , – says a member of the board of the “Ukrzoloto” Andrei Zhuk. Over 30 thousand jewelry brands: SoVa, Roberto Bravo, Kimberli, Golden Silver, […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Cargill investment project for $ 100 million is blocked

The investment project of the company with US capital Cargill of about $ 90-100 million is blocked. Alexander Kramarenko, the chief editor of the “Money” magazine, told about this in his blog “By what Ukraine scares foreign investors”. “Delta Bank and Cargill”. Cargill is an agricultural business with a century and a half of history, […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Moody’s improves Outlook for the banking system of Ukraine

Moody’s improved the forecast for Ukraine’s banking system to stable from negative, according to the website of the credit Agency. Today, analysts’ opinions have changed. Experts believe that the work of Ukraine’s recovery after a deep recession in recent times has yielded results and stabilized the situation in the country. This conclusion is made in […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

US regulators fined BMW for $ 40 million

Structure of BMW in the USA is accused by regulatory authorities in violation of Federal safety regulations, and the late withdrawal that  do not comply with statutory safety systems. Mini Cooper cars, which are produced  by BMW, failed  the crash test; the cars were not relevant  minimum safety standards.  The company had to warn its […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Ukrainian businessmen urged officials to raise the salaries of Ukrainians

Top managers of Ukrainian business are in no haste to predict the trends in the development of Ukrainian economy in 2017. Exactly about it reported the president of EEMEA Jacobs Douwe Egberts Taras Lukachuk on Thursday, January 26 on General meeting of European Business Association: Business climate in Ukraine, a global review (Ukraine’s Business Climate-Global […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

“Agroprosperis” invested about $ 50 million in the elevator business

During the past 5 years was invested about $ 10 million per year in the construction and modernization of the elevators of “Agroprosperis”. This was told by the CEO of the NCH Agribusiness Investment Fund – “Agroprosperis” Group of companies, Igor Osmachko in an interview to the Liga.Business. “For the moment, the structure of the […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

What can attract Arab companies on the Ukrainian market?

In Ukraine it may soon be a new bank, whose founders will be the Arab leaders of business – community. About this initiative, which sounded Ukrainian-Arab Business Council, informs UNIAN source. This proposal of Council was strongly supported by the authorized persons of the National Bank and the Cabinet. The ofmeeting of business circles of […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

The Tesa company sold shares to Investbank

The Tesa company (LLC) sold shares of Investbank to Alexey Kotovskyi. There was a requirement of the National Bank ownership structure. This was announced on the bank’s website. At the moment Alex Kotovskij owns 41.2% of the share capital of the bank. The financial institutions report says that the National Bank held an additional issue […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Buffett’s company increased a quarterly net profit to 87%

The investment company of billionaire Warren Buffett’s Berkshire Hathaway in the II quarter 2020 net income increased due to higher cost of investment after the rise of stock markets and the collapse in the first quarter due to coronavirus pandemic. During the reporting period the company received $ 26.3 billion in net profit to $ […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

“Oschadbank” wants to charge back $ 100 million to the concern “Stirol”

The state bank “Oschadbank” plans  to recover in court more than $ 100 million from the largest producer of mineral fertilizers in Ukraine – “Stirol” concern. It is reported by UNIAN with reference to the Unified State Register of court decisions. The question is about $ 100 million debt of the concern, that is the […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Siemens buys Mentor Graphics in the closest time

The German Siemens AG corporation reported about the acquisition of the American producer Mentor Graphics. The transaction is estimated at $4,5 billion: the price of one share constitutes $37,25. Mentor Graphics main activities are: designing of cable systems, printed circuit boards, functional verification, development of the built-in software etc. The company merger is directed, first […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Insurance Group TAS, which was owned Tihipko sold to a Cyprus company

The National Committee of state regulation of the financial services allowed the Cypriot company Bailican Ltd. establish control over the Insurance Company “TAS” and Insurance Group “TAS”. The National Committee of state regulation of the financial services, July 12, according to the order number 1667, allowed to a Cypriot company Bailican Ltd. indirectly acquire 99.9559% […]

Next
Ukrainian choice and «green tariff»: what awaits the energy market in the coming years?
News

Arcelor Mittal has avoided a fine of 72 million UAH

The Supreme Commercial Court of Ukraine overturned the decision on the recovery of a fine in the amount of 72.7 million UAH to PJSC Arcelor Mittal Kryvyi Rih. This information was reported by the representatives of the Ukrainian industrial complex on December 20th. According to a statement, prosecutors claim was rejected, and the previous decision […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com