Participation in the "green tariff" of a legal entity: what needs to be done
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In the current climate of heightened focus on sustainable development and environmental concerns, the shift towards renewable energy sources is not only pertinent but also a strategically crucial move for Ukrainian enterprises. One of the pivotal tools that facilitates the growth of green energy and the mitigation of adverse impacts on the environment is participation in the "green tariff." For businesses, this presents extensive opportunities for both economic advancement and establishing themselves as entities committed to ensuring stability and ecological responsibility.
However, how exactly can business participants transition to the "green tariff," and what steps must they take to secure it? In this article, we will delve into the critical aspects and necessary measures that legal entities should bear in mind when entering the realm of "green tariff" participation
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How to become a participant in the electricity business in Ukraine?
Where should you start if you have nothing yet but aspire to profit from alternative sources of electricity?
Equipment Selection. You should begin by deciding on the installations and their power capacity. Determine how much electricity your enterprise needs and how much you are prepared to sell. For instance, as of 2023, you can connect to the green tariff for installations with a capacity of up to 1 MW (for solar energy). However, in some regional electric companies, it's stated that there are no orders for capacities under 150 kW. So, it's highly likely that you'll need to increase your capacity. Therefore, the most optimal capacity range at the moment is between 150 kW and 1 MW.
Location of Installations. Typically, these are installed on rooftops or land plots. However, not every rooftop is suitable for solar panels. To be more precise, it's possible on almost any rooftop, but not all of them will have the optimal sun exposure angle, which means their installation may not be cost-effective. Specialists use satellite technology to assess this.
If the panels are to be installed in open fields, the angle of inclination must be appropriate. Nevertheless, this becomes the responsibility of the experts who will carry out the installation. As for the land plots themselves, they must be designated as "energy lands." In simple terms, you cannot connect to the green tariff if the land is designated for agricultural use. Therefore, if you own a land plot with any designation other than "energy land," you must first change its designation.
The development of technical documentation, technical specifications (TS), the techno-economic assessment (TEA), and commissioning of the project. This is perhaps one of the most intricate aspects of the work, as it requires specialists who are well-versed in the field to describe and calculate. It's a highly individualized task, involving graphical representations of the project's location, a comprehensive description of the work, and the justification for the project's economic viability. The connection of electrical installations is the responsibility of electric transmission organizations. Therefore, it's during the preparatory stages that the largest number of specialists and organizations are involved.
Obtaining a license from the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) for electricity production. Documents must be submitted exclusively in electronic format through the personal account on the Ministry of Economy's website. It's worth noting that the company must have an electronic digital key at this point. If, by that time, you have all the previously mentioned documentation in order, obtaining the license should not pose significant challenges. It is sufficient to accurately complete the application and provide the required information.
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The approval of the green tariff by the NCSREPU is also managed by the NCSREPU. To accomplish this, a specific set of documents must be submitted, including:
- An information note containing company details and equipment information (such as capacity and address).
- Cost calculations for electricity production, cost justifications, and cost estimates.
- A copy of the construction declaration.
- A copy of the technical specifications (TS).
- A copy of the construction completion declaration (certificate).
- Documents verifying the Ukrainian component.
Becoming part of the electricity market. This is a complex, multi-stage process that involves various entities such as regional power companies (oblenegro), the Market Operator, and the Ukrainian Energy Exchange. Some documents can be submitted electronically, while others require physical submission along with accompanying copies. Typically, this phase takes approximately three weeks or a month.
If your company is ready to embrace renewable energy and take advantage of the green tariff, we are here to be your dependable partners throughout this journey. Our team of experts will offer comprehensive support, from the registration of your company to integration into the energy system and securing the necessary licenses.
So, if you're interested in profiting from "green" electricity but lack a clear strategy and are uncertain about where to begin, we'll start by developing a roadmap:
- Evaluating what you can expect based on the technical characteristics of your existing installations.
- Outlining the necessary steps to improve results or ensure success, particularly if your equipment or its potential installation location is less than ideal.
Once the plan is agreed upon, we will:
- Acquiring the required license from the NCSREPU.
- Connecting you to the green tariff through the NCSREPU.
- Integrating you into the electricity market.
We also offer pre-established solutions, such as companies with an Electricity Supply License, allowing you to promptly establish your presence in the Ukrainian energy sector.