Green Tariff

On April 1, 2009, Verkhovna Rada (the Parliament) of Ukraine adopted amendments to the Law of Ukraine “On the Electric Power Industry”, thereby establishing green tariffs to stimulate generation of the electricity from alternative sources. The green tariff for wind power plants is based on the level of retail tariffs for consumers of voltage class II as of 1 January 2009, multiplied by the green tariff factor for electricity generated by WPP, that is: 0.5846 x 2.1 = 1.23 UAH/kWh. The Euro equivalent is established by recalculation the green tariff (1.23 UAH/kWh) with the official exchange rate of the National Bank of Ukraine as of 1 January 2009, that is: 1.23 / 10.8554 = 0.1131 €/kWh). The applicable green tariff is recalculated on a monthly basis by conversion of Euro equivalent using the actual exchange rate. However, the actual value of the green tariff cannot be less than 1.23 UAH/kWh.

The tariff is valid until 2030 for all the facilities put into operation before 2014. For those put into service after the mentioned date the factor will be reduced on the following scale:

 2014-1019 by 10%, 2019-2025 by 20%, and after 2025 by 30%.

In conformity with the Law of Ukraine on the electric power industry the entire electric power generated by wind power parks shall be paid for in full in the form of money, without any offsets of debt repayment on settlements for electricity supplied.

Green tariff is awarded upon submission to NERC of the list of documents specified in Resolution of NERC “On Approval of Order for Awarding, Review and Annulment of “Green” Tariffs for Economic Entities” in the wording as of 16.07.2009 № 828. However, it is applied only to those entities that obtained the license for production of electricity (par. 1.2. of the Order). Such license may be obtained only when the company is able to meet the list of requirements stipulated by NERC. Nova-Eco has already obtained the license, as well as a membership in WEM as a generating company and has a right to sell the generated electric power.

According to Article 17-1 of the Law on Electric Power Industry “…for the “green” tariff to be awarded for new generating units after 01.01.2012, the use of 30 percent of raw materials, materials, fixed assets, works and services of Ukrainian origin in construction of respective unit starting from 01.01.2014 - 50 percent is obligatory”.