Members of the Bioenergy Association of Ukraine propose to introduce specialized auctions for biomass purchase.
- Full text of UABIO’s letter № 538 on the creation of specialized auctions for companies producing electricity from biomass (in Ukrainian).
Due to rising prices for natural gas and other fossil fuels, the UABIO team is overseeing higher prices for biomass in the market.
In particular, there was a sharp rise in prices for firewood and wood chips from both private suppliers and auctions: by about 350%. These dynamics to rising prices may stop the bioenergy projects’ work. Given that the level of payment of the State Enterprise “Guaranteed Buyer” to producers of electricity from biomass for electricity released is on average about 74% in 2021, the situation is critical. As only the fuel / raw material component of these projects is about 60%.
In this regard, the Association addressed the Head of the National Securities and Stock Market Commission of Ukraine, the Head of the State Agency of Forest Resources of Ukraine, the CEO of the Limited liability company Ukrainian Energy Exchange (LLC UEEX) with a proposal to introduce specialized auctions for biomass. This will ensure a stable supply of biomass to bioenergy facilities under conditions of fair competition and at an economically reasonable price.
The 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.