Oleksandra Gumeniuk - Director of EUEA took part at Sustainability Forum of EnC in Vienna

Vienna 04On 27th June 2019, Oleksandra Gumeniuk – Director of European-Ukrainian Energy Agency took part at Sustainability Forum  by Energy Community in Vienna, Austria. The Forum was devoted to urgent topics as Environmental Impact Assessment of Hydropower plants, distortion of the EU electricity market by direct and indirect subsidies to the coal industry, investment attractiveness to the decarbonized future, including renewable energy and other. Participants of the Forum in majority were representatives of Ministries of Energy from EU and contracting of EnC parties, NGOs, International financial institutions and business entities. It gave a great opportunity to have fruitful communication with energy market stakeholders.

All speakers regarding the hydro power plants and its risks and advantages in one voice emphasized the importance of the strategic plan of the water resources management and control of the proper way hydro power plants construction. It should be taken into account that small hydro power plants have doubled risk due to the small budget, there could be not qualified staff who actual implements the project. The majority discussed the problem of Balkan region rivers. Regarding Ukraine, the small hydro power plants are those,  with a capacity of up to 10 MW. But according to the current international classification of the UN norms, small hydroelectric power plants (HPPs) include hydroelectric power stations with capacity from 1 to 30 MW, to mini-HPP - from 100 to 1000 kW, to micro-HEPS - no more than 100 kW.

Today, the potential of hydropower of Ukraine is used by 60%, mainly due to the Dnipro cascade and other large hydroelectric plants. The remaining potential can be realized by installing new ones and rehabilitating the old capacities of small hydropower plants.

Hydropower accounts for 8% of the total installed capacity of the power generating facilities of Ukraine; new facilities can potentially be located in any region with small or large rivers. In Ukraine there are more than 22 thousand rivers, but only 110 of them are longer than 100 km.

At the same time, the Hydroenergy Development Program for the period up to 2026 and the Energy Strategy of Ukraine until 2035 will increase the installed capacity of hydropower and generation of this kind of electric power. In particular, the Program provides for the commissioning of additional 3.3 GW capacity, and the Energy Strategy - an increase in electricity generation from hydropower up to 13 GW.

One more very important presentation of the research by Mr. Janez Kopac was “Rocking the Boat: What is Keeping the Energy Community’s Coal Sector Afloat” – Analysis of direct and selected hidden subsidies to coal electricity production in the energy community contracting parties. The study revealed that, during 2015-2017, direct subsidies for electricity generation from coal were provided in all observed Contracting Parties. The total sum of direct subsidies during this period reached EUR 1,2 billion or around EUR 400 million annually on average. According the definition of WTO, The subsidies were classified into three categories: • fiscal support-type subsidies; • public finance support subsidies; and • State Owned Enterprises (SOE) investment support subsidies. The analysis showed that without the direct subsidies, the concerned power producers would directly or indirectly, through increased cost of coal, incur higher costs, annually reaching nearly EUR 400 million, and EUR 246 million in Ukraine alone. For instance, average direct subsidy to coal-based power generation in EUR/MWh during 2015-2017.: Bosnia and Herzegovina - 3,64, Kosovo - 2,93, North Macedonia - 1,23,  Montenegro - 0,70, Serbia - 3,87, Ukraine - 5,69.  the necessary investments in the cuare estimated at EUR 6 billion, of which EUR 5 billion are needed in Ukraine alone. To read the EnC fu;l study about it: https://www.energy-community.org/documents/studies.html

Taking an opportunity Mrs. Oleksandra Gumeniuk had also a chance to have a business breakfast with representative of Austrian Energy Agency, Mr. Rudolf Koestler, next day regarding European-Ukrainian Energy Agency further collaboration and common energy initiatives in energy efficiency sector. Another meeting Mrs. Gumeniuk arranged with Head of International Business of India Power – Mrs. Jennifer Vishnoi, where Oleksandra shared information about Ukrainian renewable energy  market development, its forecasting and invited Mrs. Vishnoi to upcoming EUEA roundtable on 23 July 2019 in Kyiv “Balancing of RES at Power System of Ukraine”

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