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