Ukraine adopts legislation on energy efficiency, biomethane and cogeneration

Energy Efficiency Law

On 21 October 2021, the Parliament of Ukraine adopted the bill "On Energy Efficiency" No. 4507 dated 17 December 2020 ("Energy Efficiency Law"). The Energy Efficiency Law is awaiting signature by the President of Ukraine and its official publication.

The Energy Efficiency Law defines the mechanisms to help the central and local governments in increasing energy savings in the production, transportation, transmission, distribution, supply and consumption of energy. The Energy Efficiency Law is aimed at efficient use of fuel and energy resources in Ukraine, rational use of funds from the state and local budgets, which are used to compensate for the costs related to the use of energy resources.

The Energy Efficiency Law:

  • defines the requirements for the ecodesign of products related to energy consumption
  • introduces intelligent metering and energy saving systems in the buildings of central executive authorities
  • regulates energy audit activities, defining the procedure and specifics of the qualifications of energy auditors, and procedures for conducting energy audits

Biomethane Law

On 21 October 2021, the Parliament of Ukraine adopted the bill "On Alternative Fuels" on the development of biomethane production No. 5464 dated 5 May 2021 ("Biomethane Law"). The Biomethane Law is expected to be signed by the President of Ukraine and its officially published.

The Biomethane Law defines the concept of "biomethane", introduces a mechanism for verification of biomethane, which will verify the performance of biogas for compliance with natural gas standards, etc.

The Biomethane Law opens the way to biomethane production in Ukraine on an industrial scale. It can be injected into the gas transmission or gas distribution system, and the producer of purified biogas will be considered as an independent producer of natural gas in the unregulated segment.

Cogeneration Bill

On 21 October 2021, the Parliament of Ukraine adopted as a basis the bill No. 4527 dated 21 December 2020 on amendments to the Law of Ukraine "On Combined Heat and Power (Cogeneration) and Use of Waste Energy Potential" for the development of high-efficiency cogeneration ("Bill").

The Bill promotes the restructuring of existing heat generating facilities into highly efficient combined heat and power plants. The Bill stipulates that the high-efficiency cogeneration should be determined by energy savings obtained from cogeneration, instead of separate production of heat and electricity.

The Bill will help reduce fuel consumption for heat and electricity, i.e. energy costs, and at the same time reduce greenhouse gas emissions and harmful substances into the environment.

These regulations have been developed to perform the Association Agreement between the European Union, its Member States and Ukraine.

For further information, please contact Asters’ Partner Yaroslav Petrov and Associate Olena Sichkovska-Chornobyl.  

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