Austrian Energy Day

111On 05 of March, Oleksandra Gumeniuk – Director of European-Ukrainian Energy Agency was invited to present last updates in renewable energy market of Ukraine for Austrian companies in hydro- , bio- and solar energy. The event was organized by Austrian Trae Department Advantage Austria in Kyiv. To download presentation of Oleksandra Gumeniuk.

Oleksandra Gumeniuk in her speech mentioned, that EUEA established in 2009 is an independent non-profit organization open to all stakeholders in the Ukrainian Energy Efficiency (EE) and Renewable Energy (RE) sectors who want to work constructively with like-minded members to contribute to the gainful and transparent development of these markets in Ukraine, through the promotion of fair and sustainable business practice, raising of public awareness of energy issues, and by influencing government energy policy.

Currently portfolio of EUEA members’ of renewable energy completed and under construction projects is about 1,5 GW. Having international recognition and being a voice of national and international investors EUEA makes its contribution in a long term basis to develop good policy in Ukraine in energy and business climate sectors.

At recent Board Meeting three working subgroups were established for Wind Energy, Solar Energy and Energy Efficiency which will strengthen professional capacity of EUEA members, among which are: Acciona, Avenston, Celynx AG, CES, D2Consult, DTEK, EMSOLT Investments, Eurocape, GOLAW, Greenworx, iC consulenten, IMEPOWER, Indian Solar, Scatec Solar, Smart Energy, Ukrwindinvestments.

EUEA took an active part in developing of the the Draft Law 8449-d concerning the Auction system for RES market. And on 27th February the Energy Committee of Ukrainian Parliament adopted the last version of the Draft Law for the second reading.

The final date for signing pre-PPA to stay on FiT

 31 December 2019 (rights in   land, obtain a construction   permit and sign a grid    connection agreement)

 Solar farm shall be commissioned within 2   years and wind farm within 3 years

FiT reduction from 2020

 -25% for solar with the   reduction by 2,5% each year   within the following 3 years

 - 10% for wind

 Bioenergy will not be reduced, but it will be   granted only for power plants commissioned   until 1 January 2022.

 Small hydro reduction by 10% starting with   2020

Simplified procedure (without obtaining the generation license)

  Solar and Wind installations of     households up to 50 kW if the   produced electricity is   purchased by distribution       companies

 all types of renewables installations with     capacity over 50 kW and up to 150 kW if the   produced electricity is purchased by     guaranteed buyer

The auctions will be mandatory starting with 2020

 for solar power plants more   than 1 MW and wind farms   more than 5 MW

  all other renewables which have reached   25%  in the total production of electricity from   renewables as a result of the previous year   and all other renewables may participate in   the  auctions on a voluntarily

Auctions will take place

 2 times a year

 Via platform of Prozorro

Term of the PPA as a result of the auctions

     20 years from the   commissioning date and           generation of the electricity to      the grid

  The first time quotas shall be established          by 1  December 2019

Qualification requirements

 Bank guarantees for   participants  to the auctions   EUR 5,000 per MW and       additional EUR 10,000 per MW      for a winner

  Technical Requirements:

 -the right to use/own the land;

 -executed grid connection agreement.

According to the information of State Agency of Energy Efficiency , at the beginning of 2019 totally in Ukraine there were 2 274 MW RES totally, of which: 51 MW biogas, 46 MW biomass, 99 MW small HPP, 157  MW Solar of Households, 1388 MW SPP, 533 MW WPP.

During 2018 legislation which promotes better business climate for Ukraine was developed and approved, such Laws as Law on privatization, which makes privatization more transparent for market players and small objects (lower than 250 mln UAH) now can be privatized at online public procurement platform Prozorro (https://prozorro.gov.ua/en), actually at this platform other public procurement are also being done, as auctions of land for mining of gas and oil as well as auctions on renewable energy are also going to be organized at this online platform.

Among other Laws for business climate development, Mrs. Gumeniuk mentioned Law on Supreme Anticorruption Court, Law on Financial Audit, Law on Currency (for currency market deregulation) , Law on Transparent Mining, New Bankruptcy Code, Law on LLC. Among Draft Laws which are under development and also have influence to “Doing Business” rating are Tax on Withdrawn Capital Draft Law and Concession Draft Law.

Also Oleksandra mentioned EUEA activities in energy efficiency sector, namely in Aviation infrastructure. To read more please follow the link: EE in Aviation

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