The first "green" tariffs for electricity generated at biogas power plants are in action in Ukraine

Until quite recently, the conventional wisdom among many were that biogas as one of the "green" energy sectors of Ukraine cannot develop because the construction of biogas power plants requires a significant investment, and under the "green" tariffs, which are set for electricity from biogas such projects are simply unprofitable.

Nevertheless, combined experience of the companies "LNK" and "EC NET" helps to eventually dispel these myths.

In 2011, "LNK" company initiated projects of construction of the power plants fired by biogas from solid domestic waste (SDW) landfill in Kyiv region. Once the biogas potential of the existing SDW landfills has been estimated, two sites were selected in Obukhiv and Boryspil districts.

Appreciating the need to obtain permits and perform other activities for operation of "LNK" company in the Wholesale Electricity Market of Ukraine, engineering company "EC NET", which is highly experienced in complex implementation of works in power energy field, have been involved to these projects.

For the first time not only for "LNK", but in Ukraine, the project of construction of the biogas power plant with capacity of 885 kW (first turn) on the SDW landfill in Obukhiv district was implemented.

"EC NET" company fulfilled complex support of construction and commissioning of the project, as well as all activities related to organization of the electricity sale in the Wholesale Electricity Market (WEM) by the "green" tariff. In addition, since there were no special coefficient for biogas, new tariff model has been developed. Due to this fact the "green" tariff for electricity in amount of 97.80 cop./kW•h was obtained as optimal solution for "LNK". Operation of "LNK" as a licensed producer is ensured by high-quality organization of works, therefore biogas power plant operates at the WEM under approved by NERC "green" tariff from April 2012.

The expected payback period of the first "LNK" project is about three years.

In December 2012, special coefficient 2.3 of the "green" tariff for biogas as one of the alternative energy sources was adopted at the legislative level.

Successful implementation of the first project, proven experience of "EC NET", and new higher "green" tariff for biogas were main incentives for financing of the second site of "LNK" in Boryspil district. Capacity of the power plant makes 1063 kW. "EC NET" company fulfilled all the necessary calculations and prepared the documents required to obtain the "green" tariff. Whereby, NERC approved for "LNK" the "green" tariff rate of 161.35 cop./kW•h. From May 2013, "LNK" sells electricity generated at the second power plant by the "green" tariff in WEM.

According to the evaluation prepared by "EC NET", payback period for second "LNK" project will be about a year at such tariff rate.

Today "LNK" company continues to explore new sites for construction of the biogas power plants at other SDW landfills. Projects are implemented at the initiative of U.S. investors. Their increasing interest in biogas projects in Ukraine is due to the successful works in this direction, as well as the acquisition of an experienced Ukrainian partner namely "EC NET" company.

Practice shows that experience of "EC NET" company is the basis of success of investment projects in energy. Also it saves time and money of the investors.