THE ROLE OF THE “GREEN” TARIFF IN STIMULATING THE DEVELOPMENT OF BIOENERGY IN UKRAINE: ACHIEVEMENTS, LIMITATIONS AND UNREALIZED POTENTIAL
DOI:
https://doi.org/10.15407/econlaw.2024.03.003Keywords:
stimulation, renewable energy, biomass, biogas, biofuel, “green” tariff, sustainability criteria.Abstract
The main goal of this paper is to assess the role of the “green” tariff in stimulating the sustainable development of bioenergy in Ukraine, taking into account the achievements, legislative and other restrictions, as well as the unrealized potential of this means of state support in the context of martial law and the needs of post-war recovery. It is emphasized that the general weakening of the stimulating effect on renewable energy and the growing instability of state regulation in this area worsen the functional limitation of the current “green” tariff model, which has a weak correlation with the vectors of the Green Deal and the sustainable development goals. By taking into account the sustainability and greenhouse gas emissions saving criteria during the assessment of the admissibility of state aid for environmental protection, the “green” tariff could be transformed into an effective tool for supporting sustainable bioenergy with the harmonization of quantitative and qualitative components of tariff incentives. The scenario of intensive development of electricity generation using biomass and biogas requires additional privileges for the related category o electricity producers, in particular through a possible extension of the “green” tariff on mutually beneficial and reasonable terms. In this regard, the article discusses different approaches to the selective extension of the “green” tariff after 2029 for certain categories of producers and renewable energy facilities within the new (combined) incentive model. The paper also demonstrates some shortcomings of new tools to stimulate the production of electricity based on biomass, namely the auction for the distribution of support quota and the mechanism of the market premium. One of the shortcomings is the lack of a minimum share of the annual support quota for electricity facilities using biomass and biogas, which calls into question the prospects of the auction model in the context of bioenergy development.
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