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Venue: State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE), Kiev

October 4, 2016 in SAEE chaired by Sergei Savchuk Chairman held a meeting on the finalization of the bill to encourage the production of heat from alternative sources (reg. №4334 of 03.30.2016) and its preparation for the second reading in the Verkhovna Rada of Ukraine.

The discussion of the changes to the draft law was attended by the assistants of People's Deputies of Ukraine, representatives of NKREKP, direction of USAID project 'Municipal Energy Reform in Ukraine', the Club of Mayors, Bioenergy Association of Ukraine in the person of the Head of the Board George Geletukha and the Head of the Supervisory Board Vladimir Maistrishin, the Committee of energy independence of Ukraine , the Ukrainian Association of renewable energy, the Supreme Council of energy Auditors and energy Managers of Ukraine Agro-energy company «SALIX energy» and other experts in thermal energy market.

Opening the meeting, Sergey Savchuk congratulated all those present on the long-awaited adoption of the Bill by Verkhovna Rada of Ukraine on the basis of the first reading. Understanding the importance of the draft Law, 242 deputies voted for it.

'Bill aims to stimulate production of heat from alternative energy sources. It will be one more tool for gas consumption replacement, particularly in the municipal energy sector. Therefore today, before cold season, it is impossible to hesitate, it is necessary to take active position and to examine question of modification of the Bill between the first and the second readings', Chairman noted.

The key provision of the Bill is the establishment of tariffs for heat generated from renewable energy sources on the level of 90% of the current tariff for gas heating for the needs of public institutions and the population.

'By this draft law we enable the investor who will produce heat from other, besides gas, fuels, to return his investments on a guaranteed rate. He will clearly know his rate and will be able to consider expenditures, payback time and profitability of the project beforehand', The chief of management of replacement of traditional fuels SAEE Yury Shafarenko emphasized, presenting situations of the draft law. He noted as well that the Bill will be important for consumers, too. Indeed, the heat produced 'not from gas', will be at least 10% cheaper.

Active attitude in the discussion took Diana Korsakaitė, the head of USAID project 'Municipal Energy reform in Ukraine.'

During the discussion, the decision on the need for the changes to the Bill was taken, in particular with regard to the establishment of tariffs for thermal energy from alternative sources for companies that do not have the tariff for gas heating at 90 percent of the weighted average tariff for thermal energy from the gas in the region.

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