Ukraine

The tariffs in the Ukraine are determined by the National Commission for Regulation of Electroenergetics, individually for each company, depending on the type of alternative energy it uses.

To avoid exchange risk, Ukraine's renewable tariffs provide a minimum tariff denominated in Euros based on the official exchange rate by the National Bank of Ukraine on January 1, 2009.

Tax breaks

Tax breaks have been introduced in order to motivate companies to generate electricity from alternative sources of energy, for installations started after January 1, 2012.

Corporate Income Tax Exemption

Until January 1, 2020, the profit received by companies from the simultaneous generation with the use of biofuels of electricity and heat energy or of heat energy is exempt from corporate income tax. 80% of the profit from the sale of raw materials, equipment and components, which were produced by a company and which will be used in the generation of energy from alternative sources of energy, are also exempt from corporate income tax. This profit must then be directed by the company for the increase of its production volumes. The company may enjoy this exemption for a period of five years.

VAT/Custom Duties Exemption

Import of the following items to Ukraine is exempt from the Ukrainian custom duties and VAT, provided that such items will be used by a tax payer for their own production and identical goods are not already produced in Ukraine:
• equipment and materials, which will be used for the generation of energy from alternative sources of energy; and
• raw materials, equipment and components, which will be used in the generation of energy from alternative sources of energy.

The tariffs, which went into effect on Earth Day April 22, 2009, apply through 2030.