The green tariff, or “green tariff”, is an economic tool introduced to support and develop renewable energy sources (RES), with the aim of guaranteed high stable income from the sale of electricity obtained from these sources. This productive structure is aimed at stimulating the production of green electricity.

What is a green tariff, what are its advantages and how does it help to improve the environment?

First of all, our defining characteristic will help to correctly understand what a green tariff is. The green tariff is a special mechanism that stimulates the production of electricity from renewable sources. It provides producers with an extremely high price for electricity produced not by traditional sources, but by renewable sources – sun, wind, water and biomass.

What is a green tariff can be understood by studying its history in an international context. Green tariffs were first introduced in the USA in the 1990s, later they were adopted in Europe, and finally in Ukraine. The green tariff was introduced in Ukraine in 2009 and is one of the highest in the world.

What is a green tariff can be understood based on its principle of operation. Here a self-reinforcing cycle arises: a high green tariff attracts investments in renewable energy sources, which, in turn, increases the production of ecological electricity, which ensures less dependence of the country on raw material reserves, and the climate becomes more comfortable to live in.
The use of the green tariff leads to sustainable overcoming of environmental challenges.

So what is a green tariff? It is an effective tool to combat global warming and climate change, a key element in the transition to renewable energy sources and a more sustainable economy.