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Ukraine adopts law to stimulate renewable heat production

The Verhovna Rada of Ukraine has adopted Draft Law 4334 on stimulation of heat energy production from renewable energy sources in a bid to reduce dependence on imported fossil gas.

Forest biomass instead of fossil gas, Sergiy Savchuk (centre) Chairman of SAEE attended the recent Nordic Baltic Bioenergy conference in Finland.

Forest biomass instead of fossil gas, Sergiy Savchuk (centre) Chairman of SAEE with colleagues attended the recent Nordic Baltic Bioenergy conference in Finland.

On March, 21, the Ukrainian Parliament (Верхо́вна Ра́да Украї́ни – Verhovna Rada of Ukraine) adopted Draft Law 4334 on stimulation of heat energy production from renewable energy sources (RES). According to Bioenergy Association of Ukraine (UABio), that took an active role in developing the draft proposal, 238 out of 423 deputies voted in favour of its adoption.

– The Law provides a systematic institutional instrument that will replace expensive imported gas to Ukrainian alternative fuels. Ukraine has enough resources, in particular, about 100 000 tonnes of agricultural raw materials annually. There is a significant untapped potential for energy crops cultivation in Ukraine as well, said Alexander Dombrowski, acting Chairman of the Committee on Fuel and Energy Complex of Verhovna Rada of Ukraine.

According to UABio, implementation of this Law will have the following positive effects:

  • provide investors with guarantees on return on investments into heat production from alternative sources;
  • reduce fossil gas imports by over 3 billion Nm3 per annum with estimated savings to the economy by at least US$ 600 million;
  • reduce heat energy production costs and tariffs for end consumers;
  • increase the number of new jobs, particularly through the development of new production capacity for growing, harvesting, and transport of local fuels, equipment production, which will significantly increase revenues to local budgets

– Parliament has adopted a decision in favour of energy independence of Ukraine. The Law is a response to the energy challenges that are facing the country. It is absolutely patriotic and economically beneficial to everyone: government, business, and most importantly to citizens, said Sergei Savchuk, Chairman of State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE) in a comment.

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