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