biofuels exchange uabio

At present, the market of biomass for energy is underdeveloped in Ukraine. That has a negative influence on implementing new bioenergy projects and therefore on involving biomass into energy balance of the country. In particular, now there are no dedicated trade platforms such as exchange or auction for the wood fuel intended for bioenergy installations that makes it difficult to arrange stable procurement. Uncertain situation has formed regarding the market of agro-biomass for energy. There are no dedicated trade platforms for selling and purchasing baled straw, maize stalks and other types of biomass of agricultural origin. It is obvious that Ukrainian biofuel market urgently needs the development and reorganization.

Position Paper N 18 by the Bioenergy Association of Ukraine covers issues related to the creation of the competitive biofuel market in Ukraine. The Paper includes consideration of the rules for unprocessed wood trade auctions in Ukraine and analysis of European biomass exchange practice. A prospective model for establishing biofuel exchange in Ukraine is suggested.

The Paper is available in:

English
Ukrainian

ua parlamentOn March, 21, 2017 Verhovna Rada of Ukraine adopted Draft Law 4334 on stimulation of heat energy production from RES. 238 deputies of Ukraine voted for this decision. Bioenergy Assosiation of Ukraine took an active part in development the Law. 

"Law provides a systematic institutional instrument that will replace expensive imported gas to Ukrainian alternative fuels.  Ukraine has enough resources, in particular, about 100 000 tons of agricultural raw materials annually. There is a significant untapped potential for energy crops cultivation in Ukraine as well", - said Alexander Dombrowski,  acting Chairman of the Committee on Fuel and Energy Complex of Verhovna Rada of Ukraine.

Implementation of this Law will have the following positive effects: 

- providing investors with guarantees on investments return in the heat production from alternative sources;

- reduction of gas import to over 3 billion m3 per year and savings in the economy at least $ 600 million;

- reduce of heat energy production costs and tariffs for end consumers;

- an increasing a number of new jobs, particularly through the development of new productions for growing, harvesting and transport of local fuels, equipment production, which will significantly increase revenues to local budgets.

"Parliament adopted decision in favor of energy independence of Ukraine. The Law is a response to the energy challenges that are facing the country. It is absolutely patriotic and economically beneficial to everyone: government, business, and most importantly to citizens", - commented the decision Chairman of SAEE Sergei Savchuk.

general meeting 2017 3general meeting 2017 1general meeting 2017 2 February 28, 2017, Bioenergy Association of Ukraine (UABio) held a general open meeting during which presented the report for 2016, plans of the Association for 2017 and discussed a number of urgent issues that require regulation for bioenergy development in Ukraine.

The general meeting was attended by current and potential members of UABio, representatives of executive authorities, including the Chairman of the State Agency for Energy Efficiency and Energy Saving of Ukraine Sergiy Savchuk, Director of the SAEE Department on Technical Energy Efficiency Regulation Yevgen Mahlovanyy, Head of the Division on Substitution of traditional fuels Yuriy Shafarenko, NKREKP representatives, representatives of commercial companies, public organizations and the press.

During the General open meeting, a Concept of the introduction of competition in the district heating of Ukraine and a Concept of biofuels market (stock exchange) in Ukraine were presented. Presentations were accompanied by active discussion.

Head of the Bioenergy Association of Ukraine Georgiy Geletukha presented a report of UABio activities in 2016, as well as plans for 2017 and recommended new members.

Presentations:

 Annual UABio Report 2016 (in Ukrainian) - Georgiy Geletukha, Head of the Board of UABio

Concept of introduction a competition in district heating in Ukraine (in Ukrainian) - Georgiy Geletukha, Head of the Board of UABio

Creation of the competitive biofuels market in Ukraine (in Ukrainian) - Tetiana Zheliezna, member of Auditing Committee of UABio

UABio plans for 2017 (in Ukrainian) - Georgiy Geletukha, Head of the Board of UABio

concerning solving problem of energy dependency of ukraineBioenergy Association of Ukraine and other civil society organizations that work in the field of energy and consistently advocate for the introduction of economic reforms in the sector, addressed to the President of Ukraine Petro Poroshenko, Prime Minister Vladimir Groisman and leaders of factions of the parliamentary majority a statement to address the problems of energy dependence Ukraine.

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Bioenergy association of Ukraine appealed to the Vice-prime minister  Gennadiy Zubko on the necessity of correcting the Concept for the implementation of the state policy in the heat supply sector, introduce to public discussion on January 31, 2017. UABio experts looked through and analyzed the document and agree with the topicality and necessity of the problem issues, risen in the Concept. The proposed Concept is generally positive for the existing heat supply system, since foresees, in particular, the following:

  • review and improvement of the tariff policy, the introduction of incentive regulation;
  • improvement of payment discipline on payment for centralized heating and hot water supply;
  • improving the system of payments between the subjects in this area, including the subsidies;
  • simplification of the procedures for investment projects;
  • reconstruction and modernization of heat supply systems at all stages of the process;
  • improvement of information management software for municipal district heating companies and automation of technological processes;
  • encourage investment in energy saving;
  • development of cogeneration.

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elektrosetiBioenergy Association of Ukraine appealed to the President of Ukraine Petro Poroshenko concerning unjustified high tariff, approved by the NKREKP decree “On approval of figures of cost-per-unit of a non-standard connection of power plants to electricity grids for 2017”.

Results of comparison of the situation with the connection of power plants on RES in EU countries and Ukraine show that almost all EU countries create preferences to producers of RES electricity, including connection to the grids.

Particularly, EU Directive 2009/28/ECcommitts provision of a priority guarantied access to power grids for electricity producers from renewable sources.

A number of countries remit RES power producers from connection payment. In particular, connection to the grid for RES power producers in Austria, Denmark, and Germany is free of charge. The same principle is in force in Poland for power producers from RES with a capacity less than 5 MW.

Some EU countries and EU candidates have a practice of payment for connection to the grid, but at a significantly lower level, than approved in Ukraine. For example, in Makedonia fee for the connection to the grid of a capacity up to 400 kW amounts from 34.5€/kW to 64.9 €/kW. The cost of connection power plants to the grid in Lithuania for capacities 100-500 kW is 57.01 euro/kW, that is 4 times cheaper than NKREKP approved in Ukraine (200 euro/kW).

Bioenergy association of Ukraine considers that setting of such a high level of tariff for non-standard connection, approved by NKREKP, is inappropriate. UABio demands to reconsider connection tariffs for their significant reduction. UABio holds that payment for the non-standard connection of power plants to power grids should be equal for all oblenergo in Ukraine and don not exceed a level of 50 EUR/kW (1500 UAH/kW).

Read the UABio Letter to the President of Ukraine Petro Poroshenko concerning the NKREKP setting of the unjustified high tariff for connection of RES power plants to electricity grids (in Ukrainian)

uabioconf 2017 organizers support enDear professionals and enthusiasts of bioenergy! International Conference "BIOMASS FOR ENERGY 2017" invites to participate and offers advantages of early registration. In 2017 the conference will be held on 19-20 September in the heart of the capital city of Ukraine, Kyiv, in a historic building of the Great Conference Hall of the National Academy of Sciences of Ukraine.

International Conference "BIOMASS FOR ENERGY 2017" annually brings together national and international bioenergy professionals to discuss the most pressing issues of the sector and exchange experiences. Global trends of bioenergy, implemented pilot projects, advanced equipment, financial support for projects - all these topics will be discussed within the sections of the conference:

  • Strategy, policy issues, financing;
  • Electricity generation and heat production from solid biofuels;
  • Biomass resources and pre-treatment;
  • Biogas production and use.
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graz declarationEurope has a specific responsibility to lead the way to a fossil free society. Technologies, know how, experience, capital, potential and positive examples are available as on no other continent. With a successful climate policy Europe could urge other continents to follow the European Example. Without European leadership no other continent will take the lead to implement COP 21 targets in time and the race against uncontrolled global warming will be lost globally. Given this background decision makers are urged to act accordingly.

Taking the opportunity of the the 5th Central European Biomass Conference held in Graz on January 18th, major biomass associations decided to unit and signed the `Declaration of Graz` as a guideline for the development of bioenergy in Europe towards 2030.

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geletukha cebc2017Head of the Board of the Bioenergy Association of Ukraine Georgiy Geletukha took part in the 5th Central European Biomass Conference, on the 18th to 20th in Graz, Austria.

The Conference gathered more than 1000 participants, and Programme contained 156 speeches within such conference events as Pellet Day, Biogas Day, World Bioenergy Day, BIOENERGY 2020+ Day and excursions to bioenergy facilities.

The 5th Central European Biomass Conference focused its efforts for 2017 particularly on the following aspects:

  • Sustainability at regional and national scale and sustainability considerations for different value chains;
  • Biomass-combustion-based grids and hybrid systems and lowest-emission biomass combustion systems;
  • Advanced technologies for the realization of a biobased economy;
  • Policies, markets, and consumer attitudes;
  • Heat and electricity from biomass;
  • Fuel characterization and quality assurance.

Presentation of Georgiy Geletukha at the 2nd Central European Pellet Day: "Analysis of Ukrainian biomass pellets market"
Presentation of Georgiy Geletukha at World Bioenergy Day: "Development and prospects of bioenergy in Ukraine"

district heatingWhy Ukraine lags behind in the establishment of fair competition in the district heating, as it is done in Europe. More on the issue read in the article "Disrict Heating" published in the analytical magazine "Housing and communal services of Ukraine".

Of course, a role played by the fact that until recently there were price distortions in tariffs for thermal energy for different types of consumers due to the subsidized price of natural gas. As a result, tariffs for the population, whose share in the consumption of heat in district heating systems is in some villages up to 85-90%, were so low, that do not encourage the potential producers of thermal energy from other (except natural gas) fuels and energy to participate in it. Now the situation has changed as a result of the alignment of prices for natural gas for different categories of consumers.

Але існує ще низка причин. Cфера комунального теплопостачання сформувалася ще в радянський час як монополія з виробництва, транспортування та постачання теплової енергії. І досі комунальні підприємства теплопостачання не мають достатніх економічних чи законодавчих стимулів до участі у формуванні конкурентного ринку централізованого теплопостачання. Та й потенційні незалежні виробники теплової енергії насправді обмежені в доступі до теплових мереж.

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