The Ministry of Energy has developed a draft law on the launch of a transparent market for trade in solid biofuels

The Ministry of Energy and State Agency on Energy Efficiency, together with the Bioenergy Association of Ukraine, has developed a draft law on the development of a transparent market for trade in solid biofuels in Ukraine.

The goal is to create a legal framework for the implementation of a single electronic trading platform in solid biofuels (hereinafter - ETP) in Ukraine.

It is noted that the launch of this platform will increase the production and trade of solid biofuels, as well as establish transparent market prices for it.

In particular, the draft law provides for:

  • creation of a market mechanism for biofuel trade – the ETP;
  • imposing the obligation to gradually carry out trade in biofuels from the ETP to certain economic entities;
  • approval of requirements for the quality of biofuel, which is implemented through the ETP;
  • introduction of administrative liability for violation of requirements for trade in solid biofuels.

“The introduction of a single transparent biofuel trade market will make it possible to use the significant potential of domestic bioenergy to reduce the country's import dependence. Indeed, according to NJSC Naftogaz, gas imports to Ukraine amounted to 14.3 billion cubic meters in 2019,” the message says.

At the same time, Ukraine has significant resources to ensure the replacement of natural gas with local biofuels, in particular, this potential is due to:

  • energy crops - ≈ 20 billion m3;
  • agricultural waste - ≈ 9.3 billion m3.

As of today, this draft law has already been approved by the Ministry of Energy and will be processed with other central executive bodies.

Tags: The Cabinet of Ministers, gas, Naftogaz, renewable energy, tariffs, legislation, electricity, Top management, energy market, Biogas, feed-in tariff, import, ВИЭ, draft law, investments, investors, price, volumes, the State Agency on Energy Efficiency, ecology, energy sector, generation, Buslavets, The Ministry of Energy, economy, market, supplier, consumers

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