Biopower and CHP
Electricity from biomass is used to provide consumers with electricity.
Electricity from biomass is mainly produced at CHPs, TPPs and biogas complexes.
Current state
In Ukraine, as of 2018, the biomass used for electricity production is mainly wood biomass (chips, wood waste, firewood), as well as agricultural waste (straw, sunflower husk) and livestock waste (manure, manure).
The share of electricity from biomass amounted to about 2.2% of total renewable electricity in Ukraine and about 2% of Ukraine’s total final energy consumption in 2018.
Market for electricity generated from biomass at thermal power plants (TPPs) is Ukrainian wholesale electricity market. The entire amount of electricity produced from biomass, except for the own needs of TPPs, must be purchased by the state enterprise “Energorynok”.
Market perspectives
About 25% of biofuels in 2020-2050 will be used to produce electricity from solid biofuels and biogas. The amount of energy that will be produced will increase from 1 Mtoe in 2020 to 5.4 Mtoe in 2050.
The structure of biofuels use in Ukraine till 2050 (by the type of energy carrier produced). UABIO estimations
Tariffs for power from biomass
In Ukraine, there are two incentive mechanisms for electricity produced from biomass and biogas:
- “green” tariff
The tariff can be obtained by producers of electricity from biomass or biogas. The tariff is set until 2030 and is guaranteed by the state. - auction system
Projects on electricity produced from biomass and biogas participate in auctions by their choice. At the auction, the project receives a tariff for electricity from the state for 20 years. This means that the state undertakes to purchase electricity in the amount (W) and price (eurocents/kWh), determined at the auction, within 20 years after the auction.
In Ukraine, tariffs for electricity from biomass are regulated by the following documents:
It is necessary to implement a competitive model of stimulating electricity generation from renewable energy sources.
UABIO Position
UABIO proposals for development electricity generation from biomass in Ukraine
Electricity generated from biomass should be investment attractive. This requires:
- Increase the level of annual support quotas for bioenergy projects to at least 200 MW. This will attract investments to projects with more than 40MW capacity.
- Extend the validity of the “green” tariff for biomass and biogas projects till 2035. This will attract investments to those projects that are under development.
