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LAW OF UKRAINE

of February 20, 2003 No. 555-IV

About alternative energy sources

(as amended on 20-09-2019)

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:

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

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;

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

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

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

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

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

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

renewable energy resources - renewable not fossil 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;

wind power station - the 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 which will transform kinetic energy of wind to electrical energy;

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 provisions of the customs legislation;

guarantee of origin of electrical energy - the document issued by the subject authorized by the Cabinet of Ministers of Ukraine on request of the electric power producer who confirms that the share or certain quantity of electrical energy are made from renewable energy resources (and with hydraulic power use - only micro, mini-and small hydroelectric power stations);

"green" rate - the specific tariff on which the electrical energy made on power generation facilities, including 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);

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

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

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

queue of construction of power plant - the 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 which 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 administrator of electronic trading system - the legal entity determined by the Cabinet of Ministers of Ukraine according to the law responsible for ensuring functioning of electronic trading system;

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

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

the 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 is provided in the form of code with open access and determines functionality of electronic trading system. The electronic trading system provides possibility of creation, placement, the publication 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 which is connected to the central database and provides to the customer of auction, persons who have intention to participate in auction, participants opportunity to use services of electronic trading system with automatic exchange of information concerning process of holding electronic auctions;

energy cooperative - the legal entity based 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 also 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 requirements of the legislation;

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

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

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

The terms "electric power producer", "consumer", "the guaranteed buyer of electrical energy (the guaranteed buyer)", "operator of system of transfer" are used in this Law in the values given in the Law of Ukraine "About the market of electrical energy". The term "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".

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.

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