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Ukraine promotes heat energy production from alternative energy resources

On 21 March 2017 the Parliament of Ukraine adopted the Draft Law No. 4334 "On amendments to Law of Ukraine "On Heat Supply" on stimulation of heat energy production from alternative energy sources" ("the Draft Law"). This Draft Law awaits for the signature by the President and its official publication.

The Draft Law provides for additional powers by local self-government bodies to set heat energy tariffs; and sets tariffs for heat energy produced from alternative energy sources used by population and organization financed from state and municipal budgets at the level of 90% of the existing tariff for heat produced from natural gas for the abovementioned categories of customers.

According to law-makers, the adoption of this Draft Law will contribute to:

Creation of favorable conditions for attraction of foreign and domestic investments; Decrease of gas dependence of the heat energy sector of Ukraine; Decrease of the cost of heat energy and tariffs for end consumers; and Creation of new jobs, in particular, in the fields of growing, harvesting and transportation of local types of fuel, production of required equipment, which will considerably increase the revenues of local budgets.

The Draft Law was developed in line with Directive No. 2009/28/EC on the promotion of the use of energy from renewable sources and with the National Action Plan for Renewable Energy for the period until 2020.

For further information please contact Asters' counsel Yaroslav Petrov.