LAW OF UKRAINE

of February 20, 2003 No. 555-IV

About alternative energy sources

This Law determines legal, economic, ecological and organizational basis of use of alternative energy sources and assistance to expansion of their use in fuel and energy complex.

Section I. General provisions

Article 1. Determination of terms

In this Law the stated below terms are used in the following value:

the administrator of electronic trading system - the legal entity responsible for the ensuring functioning of electronic trading system determined by the Cabinet of Ministers of Ukraine;

aero thermal energy – the energy which is saved up in the form of heat energy in air environment;

alternative power engineering – the sphere of power providing development of electrical, heat and mechanical energy from alternative energy sources;

alternative energy sources - renewable energy resources which treat energy solar, wind, geothermal, hydrothermal, aero thermal, energy of waves and inflows, hydraulic power, energy of biomass, gas from organic waste, gas of sewer treatment plants, biogases, and secondary energy resources to which the domain and coked gases, gas methane of decontamination of coal fields, transformations of waste power potential of engineering procedures belong;

auction for distribution of quota of support (auction) - method of determination of subjects of managing which acquire the right to support in production of electrical energy from alternative energy sources (except the domain and coked gases, and with hydraulic power use - made only micro - mini-and small hydroelectric power stations);

the auction price - the price of 1 kilowatt hour of electrical energy offered by the company which is determined by the winner of auction for distribution of quota of support;

production of elements of the equipment of power generation facility - the activities connected with production which include accomplishment of sufficient level of production and technological operations by results of which the classification code of goods according to UKT foreign trade activities at the level of any of the first four signs changes at the same time the transactions performed in production process shall not be simple assembly transactions according to the customs legislation;

renewable energy resources - renewable inexhaustible power sources, namely energy solar, wind, aero thermal, geothermal, hydrothermal, energy of waves and inflows, hydraulic power, energy of biomass, gas from organic waste, gas of sewer treatment plants, biogases;

the wind power plant group of wind electrical units or separate wind electroinstallation, the equipment and constructions located in certain territory which are functionally connected among themselves and constitute the single complex intended for production of electrical energy by transformation of kinetic energy of wind to electrical energy;

wind electroinstallation – the electrical unit turning kinetic energy of wind into electrical energy;

the guarantee of origin of the electrical energy made from renewable energy resources - the electronic document created on the basis of data from the register of guarantees of origin of the electrical energy made from renewable energy resources which confirms that certain quantity of electrical energy is made from renewable energy resources confirms its ecological value and certifies the rights connected with positive effect from production of electrical energy from renewable energy resources;

geothermal power – the energy which is saved up in the form of heat energy under firm layer of the land surface;

hydrothermal energy – the energy which is saved up in the form of heat energy in surface water;

the ecological value of the electrical energy made from renewable energy resources (ecological value) - amount of emissions of greenhouse gases which was prevented due to production 1 Mvt*ch electrical energy from renewable energy resources;

electronic trading system - the two-level information and telecommunication system consisting of the central database and electronic platforms which interact via the interface of programming of appendices provided in the form of code with open access and determining functionality of electronic trading system. The electronic trading system provides possibility of creation, placement, promulgation and exchange of information and the documents in electronic form necessary for holding the auction electronically;

the electronic platform - the hardware and software functioning on the Internet, connected to the central database and providing to the customer of auction, persons who intend to participate in auction, participants opportunity to use services of electronic trading system with automatic exchange of information about process of holding electronic auctions;

energy cooperative - the legal entity created according to the Law of Ukraine "About cooperation" or the Law of Ukraine "About consumer cooperation" for implementation of economic activity on production, procurement or transportation of fuel and energy resources and storages of energy for provision of other services for the purpose of requirements satisfaction of his members or territorial community, and also for the purpose of profit earning according to the legislation;

the energy made from alternative sources - electrical, heat and mechanical energy which is developed on objects of alternative power engineering and can act as the products intended for purchase and sale;

"green" rate - the specific tariff on which the electrical energy made on power generation facilities, in particular on the queues of construction of power plants put into operation (start-up complexes) from alternative energy sources is bought (and with hydraulic power use - only micro - mini-and small hydroelectric power stations);

the small hydroelectric power station - the power plant developing electrical energy due to use of hydraulic power which installed capacity constitutes more than 1 MW, but does not exceed 10 MW;

the mechanism of market award - incentive system of production of electrical energy from alternative energy sources on which the guaranteed buyer pays to subjects of managing which establishes "green" rate, and to subjects of managing which by results of auction acquired the right to support, difference between the size of "green" rate or the auction price taking into account the allowance to he (she) and the estimated price determined according to the procedure, established by the Law of Ukraine "About the market of electrical energy";

the self-production mechanism - the scheme of support of active consumers intended for own consumption of electrical energy on which there is settlement of cost of amount of leave of electrical energy in power network the generating installations of such consumers and costs of amount of selection of electrical energy by them from power network, taking into account the cost of services in transfer and/or distribution of electrical energy;

microhydroelectric power station - the power plant developing electrical energy due to use of hydraulic power which installed capacity does not exceed 200 kW;

the minihydroelectric power station - the power plant developing electrical energy due to use of hydraulic power which installed capacity constitutes more than 200 kW, but does not exceed 1 MW;

National certain contribution - obligations of Ukraine on global response to climate change which consist in implementation of actions for goal achievement, certain Framework convention of the United Nations on climate change and the Parisian agreement;

objects of alternative power engineering - the power generating and other equipment developing energy due to use of alternative energy sources which share constitutes at least 50 percent from installed capacity of all power sources involved on object;

the address of guarantees of origin of the electrical energy made from renewable energy resources - transactions, the rights to guarantees of origin of the electrical energy made from renewable energy resources, and the rights following under civil agreements, under the external economic agreements (contracts) and also on transactions on transfer and/or distribution of guarantees of origin of the electrical energy made from renewable energy resources according to the legislation connected with transition;

the operator of an electronic trading platform - the legal entity having the right to use electronic platform and acting according to the agreement signed with the administrator of electronic trading system;

positive effect from production of electrical energy from renewable sources of energy forming of share of national certain contribution of Ukraine on reducing amounts of emissions of greenhouse gases;

the register of guarantees of origin of the electrical energy made from renewable energy resources - the electronic system providing forming of guarantee of origin of the electrical energy made from renewable energy resources, accounting of data on issue, turnover and repayment of guarantees of origin of the electrical energy made from renewable energy resources and also provision of information on them;

the annual quota of support of the subjects of managing developing electrical energy from alternative energy sources, - amount of capacity of the power generation facilities developing electrical energy from alternative energy sources (except the domain and coked gases, and with hydraulic power use - made only micro, pass - and small hydroelectric power stations), is offered in the corresponding year to distribution at auction by results of which subjects of managing acquire the right to support;

the sphere of alternative energy sources - the field of activity connected with use of alternative energy sources for production, supply, transportation, storage, the transfer and energy consumption made from alternative sources;

the central database - set technical and software as a part of databases and the module of auction providing possibility of holding the auction electronically and guaranteeing equal information access to participants of electronic auction;

the queue of construction of the electric station group of electrical units or separate installation, the equipment and constructions located in certain territory which are functionally connected among themselves and constitute the single complex intended for production of electrical energy that according to the project documentation on construction is part of power generation facility. The queue of construction of power plant can consist of start-up complexes.

The terms "administrator of commercial accounting", "electric power producer", "consumer", "the guaranteed buyer of electrical energy (the guaranteed buyer)", "electrosupplier", "operator of system of transfer", "operator of the market", "system of transfer of electrical energy", "system of distribution of electrical energy", "active consumer", "consumer", "straight line", "supplier of universal services", "residential customer", "small nebytovy consumer", "active consumer" are used in this law in the values given in the Law of Ukraine "About the market of electrical energy". The term "the final beneficial owner (controller) "is used in this law in the value given in the Law of Ukraine "About prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction". The term "control" is used in this law in the value given in the Law of Ukraine "About protection of the economic competition". The term "electronic document" is used in this law in the value given in the Law of Ukraine "About electronic documents and electronic document management". The terms "emissions of greenhouse gases", "greenhouse gases" are used in this law in the values given in the Law of Ukraine "About bases of monitoring, the reporting and verification of emissions of greenhouse gases".

Article 2. Legislation of Ukraine on alternative energy sources

The legislation of Ukraine on alternative energy sources is based on the Constitution of Ukraine and consists of this Law and other regulatory legal acts governing the relations in this sphere.

Article 3. The basic principles of state policy in the sphere of alternative energy sources

The basic principles of state policy in the sphere of alternative energy sources are:

increasing production and energy consumptions, made from alternative sources, for the purpose of economical expenditure of traditional fuel and energy resources and reduction of dependence of Ukraine on their import by restructuring of production and rational energy consumption due to increase in share of the energy made from alternative sources;

observance of ecological safety due to reduction of negative impact on state of environment during creation and operation of objects of alternative power engineering, and also by the transfer, transportation, supply, storage and energy consumption made from alternative sources;

respect for safety for health of the person on objects of alternative power engineering at all production phases, and also by the transfer, transportation, supply, storage and energy consumption made from alternative sources;

scientific and technical ensuring development of alternative power engineering, promoting and implementation of scientific and technical achievements in this sphere, training of the corresponding specialists in the highest and average educational institutions;

compliance with law by all subjects of the relations connected with production, storage, transportation, supply, the transfer and energy consumption made from alternative sources;

observance of conditions of rational consumption and economy of the energy made from alternative sources;

attraction of domestic and foreign investments and support of entrepreneurship in the sphere of alternative energy sources, including by development and implementation of nation-wide and local development programs of alternative power engineering.

Section II. Public administration and regulation in the sphere of alternative energy sources

Article 4. Public administration in the sphere of alternative energy sources

The Verkhovna Rada of Ukraine determines the main directions of state policy in the sphere of alternative energy sources and performs legislative regulation of the relations in it.

The Cabinet of Ministers of Ukraine and other authorized bodies of the executive authority within the powers determined by the law realize state policy in the field of alternative energy sources and exercise control of it.

Public administration in the sphere of alternative energy sources provides:

development of nation-wide, industry and local programs in the sphere of alternative energy sources, and also their scientific, scientific and technical and financial and economic support, development and accomplishment of tasks of the appropriate nation-wide target scientific and scientific and technical programs;

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