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Factors influencing the bioenergy development*

Within BIO-PROM the Scientific Engineering Center "Biomass" has prepared factors influencing the bioenergy development in Ukraine:

SEC "Biomass" identified the following drivers and obstacles for the bioenergy development in Ukraine.

Drivers for bioenergy development in Ukraine are:

  • Lack of supply of natural gas from Russia (from June, 2014).
  • The high offered price for natural gas on Ukraine's border (∼380 $/1000 m3).
  • Adoption of the Resolution of the CMU №293 from July 9, 2014 "On stimulating the replacement of natural gas in heat supply".
  • Operation of Green Tariff for electricity generated from solid biomass (12.39 eurocents/kWh).
  • Within the Energy Community Ukraine committed to a binding share of renewable energy in the gross final energy consumption – 11% in 2020.
  • Establishment and active work of Bioenergy Association of Ukraine.

Obstacles for bioenergy development in Ukraine are:

  • Legal barriers to obtaining a "Green" Tariff for bioenergy: introduced incorrect definition of "biomass", introduced unjustified domestic content requirement, very low Green Tariff for power produced from biomass and biogas.
  • A negligible contribution of bioenergy to the energy balance of the country is planned in the draft updated Energy Strategy of Ukraine until 2030.
  • Ukraine continues subsidizing the internal prices of natural gas for the population and housing-communal sector.
  • The increasing complexity of design rules and construction of bioenergy units.

*Status: August 2014