Board Member of the "Bioenergy Association of Ukraine" Konstantin Bogatov in an interview to a web-magazine "Business" described real problems of alternative heat sector that currently do not allow Ukraine to implement its full potential of alternative fuel.
Today, despite many loud statements and public interest there is still a major problem in the difference between the declaration and the reality of what is happening in the sector of alternative heating.
Alternative heat currently has the main problem - a tariff issue. Today, a tariff is formed according to the principle "cost plus", when the profit amounts the cost price plus 6%. At a cost of capital of 15%, these conditions do not allow to pay back the cost of capital and it becomes very profitable to increase the cost. While this system will exist, there will be no changes in the country.
Another problem is access to the consumer. The main consumers of gas are large municipal heat supply enterprises. They are monopolists that keep consumers, and if an alternative producer wants to reach the consumers and sell them alternative heat, he needs to pass through the municipal heat supply enterprise, which is not very much interested in this. It is their legislation and they do not intend to share their market because preference is given to those who offer cheaper.
Titanic efforts of two years have done a lot. Currently, several fundamental laws are prepared. If they pass and the Cabinet will write the instructions, we will make a significant leap towards energy efficiency.