On May 31 – June 1, 2011 2nd European-Ukrainian Energy Daytook place.
In the frames of the event the Head of Delegation of the European Union to Ukraine, Ambassador Jose Manuel Pinto Teixeira said that shift to the low carbon economy, requires large political will. The ambassador reminded that according to the European Energy Strategy till 2020 the increase of energy efficiency in Europe will allow to decrease annual payments on electric power up to 200 billion Euro. «In order to secure strong energy market in the future, Ukraine must execute the obligations within the framework of the Energy Community Treaty, join the Extractives Industries Transparency Initiative, and certainly increase energy efficiency by introduction of mechanisms aimed at the sector of energy consumption. The New Energy Strategy of Ukraine needs a new energy policy», — the Head of Delegation of EU commented.
Representatives of local authorities also agree with the European colleague. Thus, government will stimulate energy efficiency with consumers’ price motivation, Deputy Minister of energy and coal industry Vladimir Makuha stated. According to him, this process is already ongoing in all key sectors of Ukrainian energy. Apart from price optimization, the broad attraction of investment is planned. In the field of electric energy - privatization of generating and distribution companies, cancelation of cross-subsidization and a new model of energy market are planned. Also amendments to the Energy Strategy of Ukraine, which was adopted in 2006 and remains in force till 2030 are in process.
Nikolay Pashkevych, Head of the State Agency of Ukraine for Energy Efficiency and Energy Saving spoke about the upcoming activities and plans in regards to the Energy Strategy. «By autumn, hopefully, we will be able to present a «road map» which would show the key areas that must be modernized to accept investments in the green electric energy to a full extent », — Pashkevych promised. So, according to the official, the Ukrainian energy system is not quite ready for big amount of renewable energy to function in it, additional investments for grid development are needed.
The EBRD Director in Ukraine, André Küüsvek marked that in order to promote the level of investment attractiveness of the Ukrainian market of «green» technologies, it is necessary to develop the tariff methodology of complete compensation of investment expenses, conduct reforms of the energy market, taking into account bilateral contracts with the purpose of necessary competition and, certainly, actively develop projects and technologies on alternative energy production. Today EBRD already works with such projects, 37 applications on financing of wind, small hydroenergy and bioenergy projects have been received by the bank. Mr. Küüsvek also pointed out that for stimulation of alternative energy projects it is necessary to abolish the “30% local content” rule in the cost of projects. «In a long-term perspective for Ukraine it is not so important who is the investor or percentage of equipment produced at the internal market, what is important - the offer and availability of choice», — a banker said.
«I am absolutely sure that Ukraine can save energy and improve its competitiveness », — the Ambassador of Sweden to Ukraine Stefan Gullgren continued. The diplomat shared Swedish experience of energy market reform, which took 20 years to reduce essentially the use of traditional sources in favor of alternative energy. The ambassador concluded with recommendations for our country in three priorities: to make energy-saving the main priority at higher political level; to focus on implementation of already existing legislation and bring amendments when necessary in order to stimulate energy efficiency; and finally to ascertain that legislation is shaped to create concrete mechanisms that will help to form the trust of investors. As it is known, Sweden initiated establishment of the fund in amount of 100 million Euro for financing of energy saving infrastructure projects in Ukrainian cities. The fund is administered by EBRD and unfortunately its usage is impossible so far because of the existing legislation.
«For example, today we face a very concrete issue with Budgetary Code of Ukraine which does not allow us to use 100 million Euro collected», — the Ambassador explains.
Now international investors have some doubts in regard to Ukraine, reliability of its partnership, fears related to transparency of the market. The Head of the International Secretariat of Extractive Industries Transparency Initiative (ЕІТІ) Jonas Moberg declared that Ukraine must independently determine the depth of application of international standards of transparency: «Initiative must have the Ukrainian measuring, it cannot be imposed». ЕІТІ standards today are implemented in 35 countries of the world, as the standard of openness and transparency.
International experts continuously talked about the crucial necessity of transparency of energy market. Thus, this criteria is also viewed as a key priority reforming the energy industry by the Senior Economist of the World Bank Astrid Manroth. She pointed out that the World Bank’s strategy in the energy sector in Ukraine sees energy efficiency as a strategic priority, along with the increase of transparency (including implementation of standards of EITI) and improvement of efficiency of the management of the sector.
The Chairman of the EUEA Board Dave Young supported the colleague and explained that in case Ukraine will manage to open her own internal market and provide so much needed «transparency», wonderful perspectives will be opened, including possibility to export energy to Europe.
Wolfram Rehbock, Senior Partner of the law company Arzinger, EUEA Board Member spoke about the possibilities and problems during the integration of Ukraine to the Energy Community. As Mr. Rehbock specified «problems create possibilities», therefore the level of competition, which will grow after entering of Ukraine into Energy Community, will result in work efficiency, new technologies, stimulation of favorable investment climate and the best prices, that in turn will fix the competitiveness of domestic economy. “The market must be opened for foreign investments. Expansion of network and joining of new players will give Ukraine a possibility to export «green» energy», — Wolfram Rehbock declared.
During the second day of Conference, namely a panel discussion, devoted to the questions of «green» projects financing, Regional Manager of the International Finance Corporation Elena Voloshina declared that the Ukrainian companies underestimate potential of energy efficiency by 45%. During the session international financiers and bankers shared experience of their countries, spoke about the implemented bank products, financial methods in the segment of investing in the projects of alternative energy sources.
About the examples of such projects it was possible to hear during two parallel sections - Case studies, devoted to the energy efficiency in the sectors of construction and communal services and projects in the sphere of alternative energy sources. Interesting projects were presented by the Director General of the company Tis Eco, EUEA Board Member Victor Savkiv (landfill biogas); Dr. Johann Harter, Executive Director of the company Activ Solar (solar energy); Yuriy Davydov, CEO, Creativ Group (production of pellets); Eberhard Nacke, Head of Product Strategy and Biomass Technology, CLAAS Germany (biogas in agriculture); Nikolay Troitsky, General Director, Saint-Gobain Ukraine, EUEA Board Member (sustainable buildings reconstruction); Alexandr Mazurchak, First Deputy of the Head of Kiev City Administration (projects of energy efficiency in Kiev); Zinoviy Fitel, Deputy-Mayor of Ivano-Frankovsk (complex solution for district heating) and many others.
About 250 participants were present at the Second European-Ukrainian Energy Day - experts, top-managers of the leading companies, representatives of specialized noncommercial organizations, authorities bodies, donors organizations and other from 13 countries of the world (Austria, Bulgaria, Czech Republic, Israel, Norway, Great Britain, Germany, Sweden, Greece, Latvia, Turkey, Poland, Russia), and about 70 journalists from local and international mass media.
Organizers of the conference - Association “European-Ukrainian Energy Agency” and Conference House would like to thank the State Agency of Ukraine for Energy Efficiency and Energy Saving which supported the conference.
Official partner of the event were System Capital Management.
Partners - Universal Bank, Saint-Gobain Construction Products Ukraine, Arzinger law firm and Alfa Laval.
Section partners for “Financing bioenergy projects in Ukraine” were LandesBank Berlin AG and German Agency for Renewable Resources (FNR).
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Mrs. Violeta Kogalniceanu
Mrs. Gabriela Cretu
Mr. Ihor Bohatyriov
Mrs. Nataliya Yemchenko
Mr. Wolfram Rehbock
Dr. K.-F. Hirschhäuser
Dr. Heinz Strubenhoff & A Kuznetsova
Dr. Andrej Stanev
Dr. Andreas Täuber
Mr. Arnas Bräutigam
Mr. Arnas Bräutigam
Dipl. Ing. Wolfgang Gomernik
Mr. Andy Kuzich
Mr. Arnulf Damerau
Mr. Dominique Menu
Mr. Eberhard Nacke
Mr. Gunnar Bark
Mr. Kimal Yusupov
Mr. Knut Richter
Mr. Nikolai Troitsky
Mrs. Elena Kholodova
Mr. Torsten Schmidtke
Mr. Victor Savkiv
Mrs. Julia Shevchuk
Mr. Volodymyr Udovychenko
Mr. Yuriy Davydov
Mr. Zeki Onder
Mr. Zinoviy Fitel
Mrs. Marta Cagonova
Mrs. Darya Revina