Bioenergy projects on the verge of closure due to debts of the “Guaranteed Buyer”. If the problem of non-payment is not solved in the near future, bioenergy projects will be forced to stop their work.
Stopping bioenergy projects will lead to negative environmental and social problems:
- Disruption of the next heating season of CHPs running on biomass (for example, in Smila, Cherkasy region);
- New large-scale forest fires that may occur due to an increase in the amount of logging waste that will remain in forests in the event of a shutdown of solid biomass power plants that burn them;
- Fires and greenhouse gas emissions of methane in solid waste landfills, due to the shutdown of biogas collection and utilization systems from landfills;
- Uncontrolled release of manure, pulp, bards into the environment, on which biogas plants operate, and which are quite hazardous waste;
- Accumulation of unprocessed animal waste (manure, litter), which will worsen the sanitary and epidemiological situation in the area and lead to increased emissions of greenhouse gases (methane and nitrous oxide).
During the last three months, the level of payment of the State Enterprise “Guaranteed Buyer” to producers of electricity from biomass and biogas for the supplied electricity averaged about 5% per month. This level of payment for projects is critical, as the fuel/raw material component of biomass and biogas projects is about 60%.
Bioenergy projects are in a discriminatory position, compared to other producers of electricity from renewable sources (RES), which receive energy from “free” wind, sun, water.UABIO
At the same time, in 2019, 89% of payments under the “green” tariff were received by solar and wind power plants, at the station on biomass and biogas accounted for only 7% of payments.
What UABIO offers:
- Repay the debt of the State Enterprise “Guaranteed Buyer” to producers of electricity from biomass and biogas as soon as possible;
- Consider separating payments to biomass and biogas plants that operate on Ukrainian raw materials 24/7 and do not require additional balancing from solar power plants that have the greatest impact on debt;
- Ensure priority of calculations for RES facilities that produce electricity from biomass and biogas;
- To include a representative of the Bioenergy Association of Ukraine, a member of the UABIO Board Sergiy Savchuk in the working group on the preparation of a Memorandum between the Ukrainian authorities and RES producers on the restructuring of “green” tariffs.
A letter from UABIO members to the Prime Minister of Ukraine Denys Shmygal was also sent to the Acting Minister of Energy and Environmental Protection of Ukraine Olha Buslavets, Chairman of the Verkhovna Rada Committee on Energy and Housing Andriy Gerus, Director of the Guaranteed Buyer Konstantin Petrykovets, Chairman of the National Commission for State Regulation of Energy and Utilities Valery Tarasyuk.
Position of the UABIO is prepared, discussed and agreed upon by the members of the UABIO, which produce more than 50% of all energy from biomass and biogas in Ukraine.