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The Ukrainian Energy Transition Forum is taking place in London on April 20 with the official support of the Embassy of Ukraine in the UK and the Ukrainian Hydrogen Council.
Organized by Strategy Council. Sponsors - INTEGRITES and Simmons & Simmons.
Please find an overview of the Forum and register today here. |
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Ukraine resumed the exportation of electricity after the first massive russian missile attack on Ukrainian energy infrastructure on October 11, 2022
Starting from April 10, 2023, Ukraine exports electricity to Moldova and Poland. Volumes of exported electricity are rather modest, i.e. export to Poland has started with 75WM, export to Moldova does not exceed 300 MW. Volumes are expected to increase in coming weeks.
The resuming of export has become possible after the restoration of Ukrainian energy infrastructure and the occurrence of capacity surplus due to an increase in generation and decrease of energy consumption. |
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The Government approved the Priority Action Plan for 2023
On March 14, the Cabinet of Ministers of Ukraine approved the Government Priority Action Plan for 2023.
The Plan consists of more than 500 tasks in 15 directions. Energy security is one of these directions.
In this direction, the Government is going to:
- implement full-fledged market unification of the electricity market of Ukraine and Europe
- increase the Ukraine-EU transborder transmission capacity, ensure pursuing the "Green Deal”
- develop the hydrogen energy
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The President signed the Law on development of high-efficient cogeneration in Ukraine
On March 17, the President of Ukraine signed the Law "On Amendments to the Law of Ukraine "On Combined Heat and Power Production (Cogeneration) and Use of Waste Energy Potential" regarding the Development of Highly-Efficient Cogeneration".
It transposes the Directive 2012/27/EU on energy efficiency into Ukrainian legislation, in particular:
- the mechanism for qualifying cogeneration units with the qualification of high-efficiency cogeneration under the Directive; and
- the guarantees of origin for electricity generated by high-efficiency cogeneration units.
The State Agency on Energy Efficiency and Energy Saving will develop the respective Methodology, qualify for high-efficiency cogeneration and issue guarantees of origin.
In general, the implementation of the Law will facilitate:
- reorganization of existing inefficient cogeneration plants into high-efficient combined heat & power plants
- increase in fuel efficiency, reduction in energy consumption and reduction in greenhouse gas emissions
- strengthening the power system flexibility
- fulfilment of international obligations assumed by Ukraine under the Energy Community Treaty and the EU Association Agreement
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The Government approves the draft law to promote sustainable development of Ukraine's energy infrastructure
- the concepts of "projects of national interest in the energy sector", "projects of common interest of the Energy Community", and "projects of mutual interest"
- procedure and criteria for selecting such projects
- the possibility and procedure for cross-border distribution of investment costs for projects of common interest of the Energy Community between the countries with the most positive impact from implementation
The draft law has been approved as compliant with the EU legislation by the Energy Community Secretariat.
After the approval by the respective Verkhovna Rada committee, the draft law will be considered at the Parliament's plenary session.
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Ukraine and the Energy Community signed a memorandum of understanding to create incentives for renewable energy and green energy development
During the meeting between the Government of Ukraine and a delegation from the Energy Community Secretariat on March 15, the sides signed the Memorandum of Understanding about the cooperation in rebuilding Ukraine's energy sector. |
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The Memorandum stipulates support for projects which are crucial for the construction and reconstruction of Ukraine's energy infrastructure, as well as support for the restoration of alternative energy facilities. In addition, the parties will cooperate in preparing lawsuits against russia to claim compensation for damage done to the energy infrastructure.
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The Energy Community presented the Report on the adaptation of Ukrainian legislation to the European Union
On March 15, Artur Lorkowski, Director of the Energy Community Secretariat, presented the 2022 Annual Energy Community Report.
The Report reflects the main activities and the most important achievements of Ukraine as a member state of the Energy Community, in the adaptation of the national legislation to the European one.
" Despite the challenges that the war has brought to Ukraine's energy sector, progress in adapting legislation has continued at the required pace. We have concluded that Ukraine has made progress in several areas: electricity, energy efficiency, renewable energy, and gas supply security," said the Director of the Secretariat.
The synchronization between Ukrainian and EU systems was named the biggest achievement of the past year. In fact, during the war, Ukraine was able to maintain electricity flows with the EU power system. In the summer, exports to the EU and Moldova were launched.
Artur Lorkowski emphasized that Ukraine has also fulfilled its transit obligations for gas supplies to Europe.
" The situation with the functioning of the GTS Operator, which was certified earlier, remains a challenge. The Secretariat recommends paying more attention to it. Changes should be made to its structure and corporate governance - the current intermediary, Main Gas Pipelines of Ukraine LLC, should be eliminated. The financial condition of the operator is also a matter of concern," he said.
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G7 Advisory Council starts working on the corporatization of Energoatom
On March 14, the Minister of Energy Herman Galushchenko hosted the kick-off meeting of the working group on supporting the corporatization of the State Enterprise NNEGC Energoatom in the framework of the International High-Level Advisory Council.
The working group was formed on the initiative of Minister Galushchenko with the support of European Commissioner for Energy Kadri Simson, US Secretary of Energy Jennifer Granholm and chairpersons of energy departments from leading countries. It includes the best experts from the G7 and representatives of international organizations.
Earlier this year, on February 6, the Parliament adopted the Law on the Joint Stock Company "National Nuclear Energy Generating Company "Energoatom". This enactment complies with the international commitments to bring the management of state-owned enterprises in line with the best international corporate governance standards.
The Law defines the procedure for the transformation of NNEGC Energoatom into a joint stock company. It includes, in particular, inventory and evaluation of all corporate assets (with the exception of assets located on the territories occupied by the russian federation), the introduction of the moratorium for the sale of nuclear assets as the means of enforcement of judgments etc. |
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The European Union will transfer 5,700 solar panels to Ukraine
The Minister of Energy of Ukraine, Herman Galushchenko, reported that Italy’s ENEL, one of the largest energy companies in the world, donates 5,700 units of 350W solar photovoltaic systems to Ukraine.
They will arrive by the summer of 2023 and will become the first stage of the EU initiative that European Commission President Ursula von der Leyen announced during her February visit to Kyiv. |
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NEURC published a draft resolution on imbalances for RES and invites stakeholders to provide feedback
On March 13, the NEURC published the draft amendments to the Procedure for purchasing electricity produced under the feed-in tariff. The amendments introduce a new formula for calculating the payment from Ukrenergo (national TSO) for the Guaranteed Buyer’s services for the increase of the share of electricity generated from renewable sources. This payment reimburses the latter for the difference between the amount payable at the feed-in tariff and the price of electricity sold by the Guaranteed Buyer at the day-ahead and intraday markets.
The formula proposed by the NEURC is based on a minimum value between the actual supply at the feed-in tariff and the volume of electricity sold by the Guaranteed Buyer. It does not include the difference between:
- the value of electricity purchased by the Guaranteed Buyer under the feed-in tariff; and
- the income of the Guaranteed Buyer from the sale of the purchased electricity under bilateral contracts, day-ahead, intraday and balancing markets.
Ukrainian Wind Energy Association (UWEA), jointly with other associations of the RES producers, criticized the formula and stated that this NEURC’s amendment would deprive the Guaranteed Buyer of funds for settlements with RES and lead to the accumulation of the company’s debts.
The discussion on these amendments continues. All stakeholders are welcome to submit their feedback. |
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The Guaranteed Buyer reports on payments under the feed-in tariff
RES producers received 57,9% of February payments under the feed-in tariff, as was stated in the recent Guaranteed Buyer’s report. Since the beginning of 2023, the total amount of payments to them reached UAH 3.3 billion.
Other insights of the report include:
- As of February 28, Ukrenergo owed the Guaranteed Buyer UAH 14.1 billion.
- As of March, the Guaranteed Buyer had managed to pay only 53.3% of the amount owed to the renewable energy producers for electricity supplied under the feed-in tariff.
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Tilihulska wind farm in Mykolaiv region commissioned
DTEK Group has constructed the first phase of the Tylihulska wind farm (114 MW out of the total 500 MW capacity planned for the facility). It is located on the shore of Tylihul Estuary which separates Odesa and Mykolaiv regions in southern Ukraine.
Despite russia’s full-scale war against Ukraine, the company has managed to install 19 wind turbines and plans to launch power generation this spring.
“DTEK is building new energy facilities because we believe in the victory of Ukraine. And we are sending a signal to international partners that it is possible to invest in Ukraine today, without waiting till the end of the war,” Maksym Timchenko, CEO of DTEK said. |
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EY Ukraine assessed the costs of CBAM for Ukrainian exporters
According to Forbes Ukraine, EY's analytics estimated the potential impact of the Carbon Border Adjustment Mechanism on electricity, fertilizer, and steel producers. The study shows:
- Ukrainian metallurgy (which mainly uses the blast furnace-converter method) could pay from €20-40 per tonne more than their rivals in the EU
- Ukrainian exporters of fertilizers, ammonia and other chemicals could pay an additional €5-15 per tonne (considering the results of 2021, the costs for this industry will vary in the range of €4-12 million per year)
- Ukrainian cement producers could pay €6-8 per tonne more than their EU-based competitors (CBAM certificates could cost this industry €6-8 million annually)
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Ukraine introduces "on-pipe" emissions monitoring for industrial enterprises
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Ukraine is going to design a plan for Velykomostivska mine closure by the end of 2023, backed by the support from the Government of Germany
On March 22, the deputy of the Minister of Energy of Ukraine, Yaroslav Demchenkov, announced the creation of a Fund for the Fair Transformation of Ukraine's Coal Regions. This Fund will provide the ability to deploy financial contributions for the implementation of projects, including the physical closure of coal mines.
As one of the pilot projects, the Ministry of Energy launched the development of the plan for the Velykomostivska mine closure in Chervonohrad (Lviv region) by the end of this year. The project can become an example of an integrated approach to the development of the territory. It involves the creation of an industrial park in Chervonohrad and measures to improve energy efficiency and economic diversification.
The project is supported by GIZ Ukraine (Deutsche Gesellschaft für Internationale Zusammenarbeit) within the "Support for Structural Change in the Coal Regions of Ukraine" project funded by the German Government. |
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