Bio-TPP are preparing to capacity balancing market. And they ask not to lower their “green” tariff.

Electricity from biomass and biogas will not be cheaper than from the sun or wind, but it has a number of arguments in order to increase its state support and not to reduce the “green” tariff.

It was announced by Heorhy Heletukha, the Chairman of the Board of the Bioenergy Association of Ukraine, as part of the discussion on “How much does the production of “green” electricity in Ukraine cost”.

 He paid attention to the fact that bioenergy is a stable generation, which will not require maneuvering capacities for balancing, and, among other things, has a high potential for replacing natural gas.

“If there are sufficiently high prices in the balancing capacity market, the biomass and biogas power plants themselves will be able to participate in balancing. We are waiting with the interest for July, or when the capacity balancing market will start, and we also claim to be in this market”.

 According to him, support for the development of generation from biomass and biogas will create “virtually free” maneuverable power for the state, which then will be able to balance both the sun and the wind, but there have to be more of them than today.  

As it was reported, the Chairman of NPC “Ukrenergo” Vsevolod Kovalchuk stated that for the stable operation of the power system of Ukraine in the process of increasing the share of renewable energy, it is necessary to install 3 GW of gas or other maneuvering capacities. “The greater the share of biomass and biogas, the less these capacities will be needed”, Mr. Heletukha stressed.

“Unstimulation and unnatural distortion”

Today, according to words of the Сhairman of the Bioenergy Association, the sector of electricity production from biomass and biogas in Ukraine is “unnaturally lagging behind” the production of electricity from the sun and wind.

“If you look at the European Union, then biogeneration is a little more than solar generation, and in Ukraine, generation from the sun is 10 times higher than generation from biomass and biogas. It cannot be in approximately the same geographical location of Ukraine and the European Union of such large distortions... When the initial “green” tariffs were established, the sun was over-stimulated and the biomass was under-stimulated. This led to the fact that 80% of funds entering the market for “green” energy is received by solar generation. Now the position of the Bioenergy Association is to preserve the “green” tariff for bio-TPP:

“Our proposal is to fix the tariff that is being paid now – 12.3 eurocents and extend it until 2030 without a change. Actually, we are proposing this in the draft law”.

According to current legislation, a reduction in the “green” tariff is planned for 10% in 2020, and another 10% in 2025.

“In fact, we are one sector which asks for a tariff increase, while all other “green” sectors reduce the tariff. Therefore, now, despite this political situation, we are no longer asking for a raise. Now we are asking the tariff for biomass and biogas unchanged in the new draft law”.

In Ukraine, bioenergy occupies only 2% in the total basket of “green” capacities, and less than 5% in the production of renewable energy. The total number of biomass and biogas power plants in Ukraine is 40, their total capacity is 46 MW.

At the same time, wind energy in Ukraine takes 41% in production among the “green” power plants, while the share of installed wind capacity is only 24%, solar power plants with the highest installed capacity among renewable energy sources (61%) produce only 28%.



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