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Legal Framework and state support mechanisms

Current state support mechanisms to develop bioenergy in Ukraine

The State Agency for Energy Efficiency and Energy Saving of Ukraine provided BIO-PROM with current information on the state support mechanisms facilitating the development of the bioenergy as well as further renewables sector in the country.

In recent years, Ukraine holds a balanced state policy on the development of renewable energy, a key element of which is the adoption of legislation that stimulates its development, including:

  • Law of Ukraine "On Energy Saving";
  • Law of Ukraine "On Electric Power Industry";
  • Law of Ukraine "On Alternative Fuels";
  • Law of Ukraine "On Alternative Energy Sources";
  • Decree of the Cabinet of Ministers of Ukraine of 01.03.2010 № 243 "On approval of the State Target Economic Program on energy efficiency and the development of energy production from renewable energy sources and alternative fuels for 2010-2015;
  • Decree of the Cabinet of Ministers of Ukraine from 05.10.04 № 1307 "On the procedure for issuing certificates of belonging to an alternative fuel";
  • Decree of the Cabinet of Ministers of Ukraine from 24.07.13 № 1071 "On approval of the Energy Strategy of Ukraine till 2030" 

The main two instruments to stimulate growth and attract investment in renewable energy in Ukraine are:

(1) Establishment of "green" tariff for electricity generated from alternative sources

On April 1, 2009 "green" tariffs and their values for electricity produced from renewable energy sources were established in the Law of Ukraine "On Amending the Law of Ukraine" On Electricity "to stimulate the use of alternative energy sources“. "Green" tariff approved by the National Electricity Regulatory Commission of Ukraine (NERC) for each entity that produces electricity using alternative energy sources for each type of alternative energy and power for each object.

(2) Provision of customs and tax exemptions

The features of the Tax Code of Corporate Income Tax received in relation to the conduct of economic activity in the field of renewable energy, namely:

1. In accordance with § 197.16 of Article 197 of the Tax Code of Ukraine and Article 19 of the Law of Ukraine "On Unified Customs Tariff" established customs and tax preferences for import into the customs territory of Ukraine of energy saving equipment, equipment and materials, including:

  • equipment that runs on renewable energy sources, energy-efficient equipment and materials, methods of measurement, control and management of energy resources, equipment and materials for the production of alternative fuels or to produce energy from renewable energy sources;
  • materials, equipment, components used to manufacture equipment that runs on renewable energy.

2. Tax on land (within and outside settlements) available to accommodate energy facilities that produce electricity from renewable energy sources, collected 25% of the established tax.

3. Electricity generated from renewable sources is exempt from paying the fee as a surcharge to the tariff for electricity and heat.

4. Temporarily, until January 1, 2020, shall be exempted from taxation:

  • Profit producers of biofuels derived from the sale of biofuels;
  • Profits, resulting from their activities on the simultaneous production of electricity and heat and / or heat generation from biofuels;
  • Income machinery manufacturers, equipment specified in Article 7 of the Law of Ukraine "On Alternative Fuels" for manufacturing and industrial reconstruction and vehicles including self-propelled agricultural machines and power plants that consume biological fuels derived from the sale of that equipment, equipment and facilities that were developed in Ukraine.

5. Temporarily, until January 1, 2020, shall be exempt from taxation profits, resulting from their economic activity from the extraction and use of natural gas (methane) of coal deposits that follows the Law of Ukraine "On gas (methane) of coal deposits".

6. A period of 10 years starting from January 1, 2011, shall be exempt from taxation profits of the industry electricity from sale of electricity produced from renewable energy sources.

7. Exempt from taxation 80% enterprise income received from the sale of the customs territory of Ukraine of goods of own production in a list established by the Resolution of the Cabinet of Ministers of Ukraine:

  • Equipment that runs on renewable energy sources;
  • Energy efficient equipment and materials, products, operation ensures saving and rational use of energy resources;
  • Equipment for the production of alternative fuels.

Legal Framework

Below you can find important legal documents concerning bioenergy in Ukraine.

  • Law of Ukraine "On combined heat and power (cogeneration) and Waste Energy Potential" edition from 01.01.2014
    Link: (ua)
  • Law of Ukraine "On Alternative Energy Sources" of No.555-15 from 20.02.2003, last edition from 21.10.2008.
    Link: (ua)
  • Law of Ukraine "On Alternative Types of Fuel" of No.1391-XIV from 14.01.2000, last edition from 21.07.2012.
    Link: (ua)
  • Law of Ukraine "On Electric Power Industry" of No. 575/97-BP from 16.10.1997, last edition from 01.07.2013.
    Link: (ua)
  • Law of Ukraine "On Amendments to the Law of Ukraine "On Electricity" concerning stimulation of power generation from alternative energy sources" No 5485-VI of 20.11.2012.
    Link: (ua)
  • Resolution of the Cabinet of Ministers of Ukraine "About approval of the State target economic program of the energy efficiency and development of the sphere of production of energy carriers from renewable energy resources and alternative types of fuel for 2010-2015" No 243-2010-п, current edition of 01.10.2013.
    Link: (ua)
  • Resolution of the National Electricity Regulatory Commission of Ukraine "On Approval the Procedure of calculating tariffs for electricity and heat produced by CHPP, TPP, NPP and cogeneration plants and by installations with use of nonconventional or renewable energy sources No896 of 12.10.2005 (current edition).
    Link: (ua)
  • Tax Code of Ukraine from 02.12.2010 of No. 2755-VI (Last edition from 13.11.2013)
    Link: (ua)
  • Ordinance of the Cabinet of Ministers of Ukraine "On Approval the Concept of the State target research and technology development programme of production and use of biological fuels" No276-2009-p of 12.02.2009.
    Link: (ua)
  • Resolution of the Cabinet of Ministers of Ukraine "On Approval of the Procedure for import into the customs territory of Ukraine appliances, equipment, technics and vehicles used for the development of production and consumption of biofuels» No 581 from 18.05.2011.
    Link: (ua)
  • Resolution of the Cabinet of Ministers of Ukraine "Issue on energy saving materials, equipment and components import into the customs territory of Ukraine» No 444 dated 14.05.2008.
    Link: (ua)
  • Resolution of the Cabinet of Ministers of Ukraine "On approval of the list of own produced goods, which 80 percent of the profits from the sale at the customs territory of Ukraine shall be exempt from taxation» No 1005 from 28.09.2011.
    Link: (ua)
  • Order of the SAEE "On approval of the inclusion into the State Register of enterprises, institutions and organizations involved in the development, implementation and application of energy saving measures and energy efficiency» No 49 from 01.04.2008.
    Link: (ua)
  • Law of Ukraine "On Waste" No 187/98-вр of 05.03.1998, current edition from 18.11.2012
    Link: (ua)

Further documents can be found on website of the "State Agency on Energy Efficiency and Energy Saving of Ukraine" (ua).