Actual problems of innovative economy and law

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State Regulation and incentivization of bioenergy development: financial, tax, and legal instruments

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УДК: 338.242.2:620.92:502.174.3(477)

DOI: https://doi.org/10.36887/2524-0455-2025-6-12

Tsiupa Stepan,
Separate structural subdivision
"Ternopil Professional College" of Ternopil Ivan Puluj National Technical University,
https://orcid.org/0009-0003-0601-9589

Published: 27.11.25

The article provides a comprehensive analysis and systematization of state regulation instruments within Ukraine’s bioenergy sector during the 2022–2025 period. The research substantiates the fundamental transition of bioenergy from a niche environmental initiative to a strategic pillar of national energy security and generation decentralization under martial law. As of early 2026, it has been determined that the primary driver of the industry has been the adaptation of domestic legislation to European Union requirements, specifically the RED II and RED III Directives. The scientific novelty of the work lies in a detailed analysis of the transformation of financial and tax incentives. The study thoroughly examines the shift from a fixed “green” tariff to competitive market mechanisms, namely auctions for the allocation of support quotas. The author diagnoses the regulatory framework for the biomethane market, emphasizing the critical importance of Law No. 3613-IX, which introduced the “substitution” mechanism and unlocked the export potential of renewable gases. Attention is paid to the functioning of the Biomethane Registry and to the integration of the guarantees-of-origin system into the European Union Database (UDB). In an economic context, the effectiveness of tax incentives is evaluated, including VAT and import duty exemptions for energy equipment until 2029, which have reduced project capital expenditures by 20–25%. The role of the State Decarbonization Fund and the attraction of international assistance through USAID and Ukraine Facility programs is further analyzed. The practical significance of the study lies in identifying the strategic potential of biomethane (21.8 billion m³/year) to underpin Ukraine’s transformation into an EU energy hub. The conclusions emphasize that only the synergy of flawless legislative support, international investment, and technical integration with EU gas networks will enable the country to reach its 2030 renewable energy target of 27%, ensuring sustainable development and national energy independence.

Keywords: bioenergy, biomethane, state regulation, decarbonization, guarantees of origin, RED III, tax incentives, RES auctions, energy security, decentralized generation.

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The article was received 30.10.2025

Quote article, APA style

Tsiupa S. 30.10.2025. State Regulation and incentivization of bioenergy development: financial, tax, and legal instruments. Actual problems of innovative economy and law. 2025. №6. 52-55 pp. https://doi.org/10.36887/2524-0455-2025-6-12

Quote article, MLA style

Tsiupa S. State Regulation and incentivization of bioenergy development: financial, tax, and legal instruments. Actual problems of innovative economy and law. 30.10.2025. https://doi.org/10.36887/2524-0455-2025-6-12