On September 16, the press center of the Interfax-Ukraine news agency hosted a press conference of the Global 100% RE Ukraine platform on “Green Tasks for Parliament”.
We publish the main theses from the speech of the UABIO Head of the Board Georgii Geletukha.
The heating season 2021–2022 is under threat. We will remind, we already addressed in this occasion to the National Security and Defense Council. There are extremely high risks of providing Ukrainian consumers with natural gas and thermal energy at affordable prices in the heating season of 2021-2022, as well as in the future.
- The price at European gas hubs yesterday exceeded $ 930 / 1,000 m3 — the highest figure in history. The price of gas in Ukraine in October exceeded 31 thousand UAH / 1000 m3.
- Risk of Russian gas transit termination through the territory of Ukraine after 2024.
- A gradual increase in the cost of CO2 will also increase the cost of natural gas. The cost of CO2 in the EU has already exceeded 60 euros per tonne of CO2 eq.
- Forecasts of the cost increase of thermal energy in DH: for the population — by more than 40%, for commercial and budgetary organizations — by 2.5-3 times in the next heating season.
- Trends in decarbonization, according to which new projects for the production and consumption of natural gas will not be a priority, at least in the EU.
In our opinion, it is possible to significantly reduce the negative impact of these factors due to the large-scale development of bioenergy, in particular the production of thermal energy from biomass. Bioenergy in Ukraine already replaces 4.2 billion m3 of gas per year and this figure may increase to 20 billion m3 / year. However, this requires overcoming barriers to the development of the sector.
RES is not a problem, RES is a way to solve problems in energy and ecology of Ukraine!Georgii Geletukha
UABIO distinguishes a number of unresolved legal barriers to the further development of the bioenergy sector and proposes to consider ways to overcome them. Therefore, we remind you of the barriers to the development of bioenergy in Ukraine and possible ways to overcome them.
Lack of mechanisms to stimulate the production and consumption of biomethane
How to solve the problem?
Adopt the developed draft law and bylaws. The draft law N 5464 of 05.05.2021 was supported in the first reading on September 10, 2021.
- Introduce a definition of the term “biomethane”.
- Introduce a system of guarantees of biomethane origin.
- Create a Register of production and consumption of biomethane.
Lack of incentives for the production and consumption of liquid biofuels and biogas/biomethane in transport
- To approve the draft Law “On Amendments to Certain Legislative Acts of Ukraine Concerning the Mandatory Use of Liquid Biofuels (Biocomponents) in the Transport Industry” (№ 3356 of April 17, 2020. It was supported by the Verkhovna Rada in the first reading).
- Develop and adopt a draft law of Ukraine on the consumption of biomethane in transport sector.
The necessity for mandatory state registration of the digestate from biogas plants as organic fertilizer
- Remove the requirement of mandatory state registration for the digestate, specified in the Law of Ukraine “On Pesticides and Agrochemicals” (adopt the draft law № 5039 of 15.07.2021. The draft law was supported by the profile committee on September 8, 2021).
- Develop and approve a national digestate standard for its use as an organic fertilizer or soil improver.
Lack of state support for growing energy crops
- Provide state support to companies growing energy crops (adopt developed draft laws and bylaws. Draft laws are registered in the Verkhovna Rada — №5227 from 12.03.2021 and №5228 from 12.03.2021).
Underdevelopment of the solid biofuel market
- Introduce an e-commerce system for solid biofuels through electronic auctions to ensure the quality of biofuels in the system (adopt the draft law and bylaws. The draft law — in the Ministry of Energy).
Difficulties for producers of thermal energy from biomass with connection to thermal networks of DH
- Introduce a competitive thermal energy market.
- Ensure non-discriminatory access of independent producers to DH heating networks.
- Introduce tenders for the thermal energy purchase from independent producers (adopt the developed draft law and bylaws. The draft law — in the State Agency for Energy Efficiency).
The necessity to pay a tax on CO2 emissions for boiler houses, CHPs, TPPs on biomass
- Exempt biofuel combustion plants from paying CO2 emissions tax (adopt the developed draft law and bylaws. The draft law is in the Ministry of Energy).
We ask the Verkhovna Rada of Ukraine to support the bioenergy sector and remove legal barriers!