Government and Parliament are drafting a bill to remove duties and VAT on imports of all energy equipment: Prime Minister
Communications Department of the Secretariat of the CMU,
posted
07 June 2024
16:50
To improve the situation in the power system, the Government is working simultaneously from two sides: restoring and expanding generation and reducing consumption at the same time. This was stated by Prime Minister Denys Shmyhal.
"Regarding the restoration. Repairs are carried out 24/7. We involve the help of partners to the maximum extent possible. We have already accumulated EUR 500 million in the Energy Support Fund to purchase equipment," the Prime Minister said.
During a session on 7 June, the Government decided to raise another EUR 30 million from the German Development Bank (KfW). According to the Head of Government, the funding will be used to reconstruct one of the substations in Lviv region: "This will increase the resilience of our energy system and improve its integration with the European grid."
He added that this week Ukraine had also signed a memorandum with the European Bank for Reconstruction and Development to support Ukraine's energy sector in the amount of EUR 300 million.
As for the generation increase, the Government relies on a decentralised energy system. In particular, the Government is working with the Verkhovna Rada to prepare a draft law to remove customs duties and VAT on the import of all energy equipment and eliminate all customs formalities.
"We are preparing a programme of soft loans for the purchase of energy equipment for both individuals and businesses. We are scaling up gas generation. We are talking about gas turbine, gas piston and cogeneration units, as well as modular boiler houses. Simultaneously, we are increasing gas production. Over 5 months of this year, Naftogaz has launched 36 new wells and boosted production by 10%," said Denys Shmyhal.
The Government has also approved the Procedure for providing financial support to individuals who install alternative energy generating units in their households. The amount of compensation for installations with a capacity of up to 10 kW per household will be UAH 244,000. The maximum loan amount is UAH 480,000 for a period of 5 years.
