How do I get a licence for a heat activity from alternative energy sources?


In the conditions of a significant rise in the price of traditional fuels for business entities of various forms of ownership, the issue of transition to obtaining thermal energy from all possible alternative sources becomes more and more relevant.

However, it should be remembered that all economic activities related to the production, supply and transportation of thermal energy from alternative sources are subject to licensing. 

Licenses, as a rule, are obtained for production, supply and transportation of thermal energy. There is a different type of license for each of the activities, but those entrepreneurs who are going to work with thermal energy on an industrial scale, may need several licenses. 

It will all depend on the situation and your plans for doing business – our lawyers will help you figure out which type or types of licenses will best suit your business plans.

This type of economic activity is interesting because it allows business entities to provide heat and hot water to facilities of any infrastructure, and most importantly – at much lower expenditures for the owners of such facilities (Customers) relative to the cost of similar supplies of heat and hot water produced from traditional sources (natural gas, etc.).

What challenges do entrepreneurs face when dealing with thermal energy from alternative sources?

As practice shows, despite the fact that many business entities already produce heat energy from alternative sources, they have not yet obtained a license for this type of economic activity. Why does this happen? 

Everything is quite obvious. When purchasing heat-generating equipment, many do not know what equipment is subject to registration with the authorities of the State Construction Committee, and what permits must be obtained to operate it freely. 

It is also not always clear what qualifications people working on this equipment must have – “boiler plant operators”, what health and safety requirements must be met in order to produce and supply heat, as well as how to properly equip the heat production places. 

Placing the so-called “modular boiler facilities”, many people do not know what documents they need to obtain, draw up on the land to exclude the forced dismantling of such boiler facilities, and at the most inopportune time at that. 

And the main thing: for a large number of people engaged in the production of thermal energy, the question remains open as to whether it is necessary to obtain a license for thermal energy, and if yes – what kind of license. 

In fact, there are answers to these questions and they can be given quite quickly by practitioners who repeatedly encounter them.  Our experts, having a significant experience in the licensing of activities related to thermal energy, can quickly determine for each individual business entity who and what kind of license for thermal energy must obtain, what a specific amount and nature of the documents must be prepared and submitted to the licensing authority.

For example, let’s consider the issue of placing heat-generating equipment. 

Let’s assume that you have placed equipment, which is not yet working for its intended purpose in functioning buildings, structures, (usually these are “existing boiler facilities”). In this case, you need to select the property on the electronic platform in the PROZORRO.SALE section, which is on the balance sheet of a certain landlord, if it is already included in the relevant list, and then:

  1. Create a facility application;

  2. Fill in the electronic fields and complete the application with documents in accordance with the law, the scope of which is determined based on the type of the initiating application;

  3. Provide in the agreed application the Consent to the collection and processing of personal data;

  4. Participate in the auction by paying the guarantee and registration fees before doing so;

  5. Approve the minutes of the auction results and notify the electronic platform;

  6. Receive the minutes, approve and publish it in the system;

  7. Sign the lease agreement and acceptance certificate and publish them on the platform.

If you are faced with the land issue for the placement of, for example, modular boiler facilities, there are two possible solutions:

  • By executing agreements on land servitudes with their registration;

  • By passing land auctions at electronic trading platforms and concluding land lease agreements.

We can help you solve all the issues that stand between you and the permits you need.

Procedure for obtaining a license to carry on activities with thermal energy in Ukraine

One of the most obvious advantages of doing business with this type of energy is that licensees, after they have obtained a license, can immediately conclude agreements with Customers without going through additional registration procedures and approvals (registration on platforms, obtaining codes, inclusion in the market, etc.).

One of the key questions at the beginning of business activities, oddly enough, is where exactly to apply for a license. 

The fact is that NERC Resolution No. 308 of 22.03.2017 established separate authorities responsible for issuing licenses, depending on the nature of the entity’s activities. Thus, the NERC itself will act as the licensing authority if:

  • The company is going to conduct activities related to the production of thermal energy (except for the production of thermal energy at combined heat and power plants, cogeneration plants and installations using non-conventional or renewable energy sources);

  • The declared volume (actual volume according to the reports) of heat energy production in the next (previous) calendar year will exceed (exceeded) 170 thousand

  • A business entity, licensed to supply heat energy, provided consumers with heat energy metering devices as of August 01, 2017 by more than 70%, as of January 01, 2018 - by more than 90%. 

In all other cases, the license is issued by the regional and Kyiv City State Administration.

Please note! A license for heat energy increases the possibility of winning tenders and increases the competitiveness of any company. On the other hand, the absence of a license when actually conducting this type of activity can lead to administrative liability.

Having obtained a license for activities related to thermal energy, the licensee should understand that it is obliged to ensure the fulfillment of a number of both organizational and technological requirements: 

  • ensure accounting of heat energy supplied by the licensee from generating sources, using metering devices; 

  • availability of heat generating units, which must belong to him by right of ownership or be in the use or other legal regime, etc.

To obtain a license for activities with thermal energy, our lawyers:

  • Consult on the procedure of obtaining a license for activities with thermal energy from alternative sources, as well as advice the Client about the particular license or block of licenses it needs;

  • Request the necessary documents from the Client in accordance with the licensing regulations;

  • Check and analyze the documents provided by the Client;

  • Complete all the necessary applications and sheets for obtaining a license for thermal energy;

  • Submit the documents to the licensing authority and protect the Client’s interests.

Obtaining this license on their own is much more difficult for licensees, since this process without knowledge of the specifics of preparing technical documentation can lead to an increase in the time required to process documents, or to their return.

Incorrect execution of documents during their initial submission may lead to a refusal of the licensing authority.

Don’t run unnecessary risks. Put your business in the hands of professionals.

Do you need expert assistance with your heat business startup? Don’t hesitate to contact us! We will not only get you the license you need, but also answer all your questions about your business activity.

Didn’t find an answer to your question?

Everything about the License for Heat Energy Production here.

Everything about the License for Heat Energy Supply here.

Publication date: 15/06/2021

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