Ukrainian Parliament adopted Draft Law No. 10183 amending feed-in tariff scheme of support

From our News Room:

The Ukrainian parliament adopted Draft Law of  Ukraine On Introduction of Changes to Law of Ukraine “On Power Industry” (concerning incentives  for production of electricity production from alternative energy sources) (Draft Law No. 10183).

Draft Law No. 10183 was submitted by people’s deputies Romanyuk M.P, Lyovochkin Y.V., and
Mirosnichenko Y.R.. on 04.07.2012 and was several times heard by the parliament. Now Draft Law
No. 10183 shall be submitted for Presidential signature. It cannot be excluded that the law may be
vetoed.

If signed by the President of Ukraine, the law will enter into force on April 1, 2013, except for
changes concerning local content requirement (effective since July 1, 2013) and “green” tariff for
households (effective since January 1, 2014)

The version of Draft Law No. 10183 prepared for the second hearing as of 19.11.2012 according to
the parliamentary website contemplates the following important changes.

As a result the green tariff will be lowered to  0.34 Euro/ kwh.

LOCAL CONTENT REQUIREMENTS (the “LCR”)

Under Draft Law No. 10183 GT scheme of support applies to electricity produced from alternative
energy sources on power plants which construction started after January 1, 2012, is established
subject to compliance with local content requirement determined by Power Industry Law. This
requirement does not apply to micro-, mini- and small hydro power plants as well as private
households installations. If all other power plants fail to comply with local content requirements, GT
is established at the level of wholesale price excluding any dotation certificates as of the previous
settlement period.
Local content is determined as the share of elements determined by Power Industry Law of
Ukrainian origin used in construction of the power plant.
For solar, wind and biomass power plants which construction started in 2012 or later, there are the
following local content requirements for the use of Ukrainian equipment, materials, works and
services during construction:

• if commissioned after July 1, 2013– not less than 30%;
• if commissioned after July 1, 2014– not less than 50%.

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