UABIO calls on NEURC to pay off electricity producers using biomass and biogas

The Ukrainian Bioenergy Association has appealed to the National Energy and Utilities Regulatory Commission to settle payments to electricity producers under the “green” tariff using biomass and biogas as fuel.

The Association posted a statement on its Facebook page.

According to the statement, the level of payments by SE Guaranteed Buyer to electricity producers using biomass and biogas in April 2024 was about 70%, and in the first decade of May 2024 – about 40%.

The level of settlements has deteriorated due to the expiration of the Order of the Ministry of Energy of Ukraine “On Payments to Producers at the Green Tariff”. This could lead to a complete shutdown of electricity production for several reasons.

This makes it impossible to pay for the delivery of fuel (70-80% of the feed-in tariff) and to finance the procurement of raw materials and their year-round storage, other technological processes, as well as to keep a high number of staff.

At the same time, biomass electricity producers still pay illogical carbon tax and unified social contribution for employees.

In the case of a forced shutdown, companies will suffer significant losses, disrupting raw material procurement channels and tax payment deadlines. There is also a threat of losing a significant number of jobs. For example, biogas plants will take 4 to 6 months to resume operations.

To avoid this, the Association calls for amendments to the Resolution of the National Energy and Utilities Regulatory Commission No. 332 “On Ensuring the Stable Functioning of the Electricity Market, including the Financial Condition of Electricity Market Participants for the Period of Martial Law in Ukraine” dated 25.02.2022.