According to UABio work plan for 2019-2020, the process of preparation the proposals for a regulatory act on providing state support and stimulating the cultivation of energy crops in Ukraine has been started. UABio experts have already analyzed international experience, appeal to all active market participants with experience in the cultivation and use of energy crops, with a request to provide their own assessment of existing barriers to such activities, structured answers of market participants and hold a working meeting on November 5.
We hold a working meeting on November 5 with active market participants with experience in the cultivation and use of energy crops in order to take into account the opinion of Ukrainian market participants and develop real proposals for state support. Among participants: LLC "Salix Energy", LLC "Yugenergopromtrans", LLC "Energy willow", LLC "Ecosolum", Institute of Bioenergy Crops and Sugar Beet of NAAS of Ukraine, LLC "Intubus". The participants of the meeting provided their own assessment of the existing barriers in the market and proposals for stimulating the cultivation of energy crops in Ukraine.
In particular, they discussed the need to introduce into the legislation the definition of the term "energy crops", as well as to create an appropriate number of Classifier of Economic Types of Activities and simplify the procedure for registration of plant varieties and certification of planting material for varieties of energy crops that already have a relevant certificate in EU countries.
Market participants also agreed that reducing the minimum mandatory lease term for agricultural land to 7 years is a significant barrier for energy producers. The cultivation life of such crops is more than 20 years and the shorter lease term makes such projects economically unprofitable. The participants agreed with the proposal that the lease term for low-productive and degraded agricultural land for the purpose of state and communal ownership of energy crops should be at least 20 years, and the maximum rent for such land during energy crops cultivation should be reduced from 12% of regulatory monetary value up to 3-6%.
Among the proposals considered to stimulate the cultivation of energy crops, the participants supported the proposal to provide support in 2-3 stages, but after confirming the viability of plantation.
Based on the results of the discussed and agreed issues, the UABio experts will prepare proposals for a legislative act on providing state support and stimulating the cultivation of energy crops in Ukraine for transfer to the State Agency of Energy Efficiency and Energy Savings of Ukraine.