To the draft law 3364 “On amendments to some laws of Ukraine (regarding the settlement of the crisis of non-payments on the electric energy market and certification issues of the transmission system operator)” 04.04.2020 three alternative draft laws were registered:
– 3364-1, introduced by Parliament Members Zhupanin and Gerus.
Amendments to the original draft law: the central executive authority, which implements the state policy in the field of supervision (control) in the field of electricity, gives the Regulator a conclusion on the priority of technical solutions for the development of transmission system and distribution systems, provided by the projects of investment programs of the transmission system operator and distribution system operators; The regulator approves, but not agreed, the Plan for the development of the transmission system for the next 10 years, developed by the TSO; and DSO development plans.
Read more: https://bit.ly/2yswz4R
– 3364-2, introduced by Parliament Members Efimov and Moroz.
Amendments to the original draft law: an authorized person for compliance – an individual or legal entity; ISO separation model definitions.
Read more: https://bit.ly/3b0DGil
– 3364-3, introduced by Parliament Members Камельчуком, Шипайлом та Горобцем.
Amendments to the original draft law: an authorized person for compliance – an individual or legal entity; ISO separation model definitions in the powers of the central executive authority, which ensures the formation and implementation of state policy in the electricity sector, they leave the approval of the development plan for the transmission system for the next 10 years and a report on the assessment of the adequacy of generating capacities.
Read more: https://bit.ly/3dhN8j0
Prime Minister chaired the first meeting of the Crisis Energy Staff
On Wednesday, April 29, the Cabinet of Ministers summoned the first meeting of the Anti-Crisis Energy Staff chaired by Prime Minister of Ukraine Denys Shmyhal.
The meeting gathered the leaders of the Ministry of Energy, National Energy and Utilities Regulatory Commission (NEURC), Energoatom, Ukrhydroenergo, the Guaranteed Buyer SE, MPs, and all key market players. In total, the Anti-Crisis Staff comprises 32 members.
At the meeting, a set of steps needed to overcome the crisis in the energy sector of our country was proposed.
Among them, as a solution to the situation in the RES sector, it is proposed to conclude a memorandum with investors on the reduction of the “green tariff”, to stop the construction of new solar and wind generating facilities under the “green” tariff system and to switch to the auction system.
It was also suggested that the transmission system operator be entitled to free restrictions on “green” generation for a specified number of hours in order to increase the flexibility of the grid and increase, including, the share of generation by nuclear power plants.
Read more: https://bit.ly/2yip4xD
The Prime Minister held a meeting of the Economic Development Council
Leading economists, government officials, and chairmen of the Verkhovna Rada Committees discussed the stages of quarantine withdrawal and business support measures.
Read more: https://bit.ly/2YwH9lZ
Ministry of Energy
“Urgent and comprehensive solution to energy problems is a national security issue,” Olga Buslovets in an interview with Inter TV.
“As for the” green tariff “. In the near future, under the Prime Minister’s chairmanship, we will definitely gather investors and be ready to reach the end of these negotiations, to sign a memorandum that will then form the basis of the law that we will propose to our MPs.
What will be there? Of course, this is a reduction in green tariff, a mandatory financial liability for imbalances. We need to stop the new construction of “sun” and “wind” at a “green tariff” today and move to an auction model of support, which was adopted last year by legislation and has shown itself very well in other countries.”
Read more: https://bit.ly/3ffthCR
USAID will provide expert assistance to the Ministry of Energy in improving the PSO mechanism and the conditions for supporting the production of electricity from renewable sources.
The parties agreed to continue close cooperation within the working groups that will soon be set up at the Ministry to enforce the decisions of the Anti-Crisis Energy Staff.
Read more: https://bit.ly/2Yx104H
Ministry of Energy negotiates with EBRD on financial support for energy companies in crisis
The Managing Director of the EBRD for Eastern Europe and the Caucasus, Matteo Patrone, assured that the Bank is ready to engage in mediation with RES producers and is ready to provide financial support to Ukraine for overcoming the energy crisis.
Read more: https://bit.ly/2KYJhuX
Updated Projected Electricity Balance
On 28 April 2020, the Ministry of Energy and Environmental Protection approved a new version of the Projected Electricity Balance for 2020 (or New Electricity Balance).
New Electricity Balance contains actual indicators achieved in January–March 2020, expectations for April 2020, and projections for May–December 2020.
Especially for European-Ukrainian Energy Agency IMEPOWER prepared Brief Review of New Projected Electricity Balance for 2020: https://bit.ly/2W0KJTY.
On April 29, 2020, the NEURC approved amendments to the regulatory framework on the introduction of incentive regulation for Distribution System Operators.
These changes include, in particular:
possibility of transition of Distribution System Operators to incentive regulation from the beginning of the year;
regulatory rate of return on the “old” regulatory asset base – 1.0%, on the “new” regulatory asset base – 15.0%;
improvement of formulas for calculation of depreciation, asset base, profit on asset base, and more.
The approved draft regulation was published on the Regulator’s official website for the purpose of receiving comments and proposals.
Read more: https://bit.ly/35sYbTI
NPC Ukrenergo publishes its Audited financial statement 2019
Ukrenergo’s primary activity income quadrupled in 2019 (up to UAH 26.3 billion) due to the components of the new electricity market. In particular, income from electricity transmission in the reporting period amounted to UAH 16.6 billion (UAH 10 billion more compared to 2018). This amount includes the funds allocated for the performance of special obligations amounted to UAH 6.57 billion (offset for the feed-in tariff).
At the same time, Ukrenergo’s net profit 2019 amounts to UAH 1.86 billion (comparing to UAH 2.6 billion in2018). The decrease of the indicator was due to the low level of settlements by market participants for Ukrenergo’s services.
Read more: https://bit.ly/3ftyas2
Published the information on balancing the Power System on April 27 – May 3, 2020
During the week of April 27-May 3, average daily electricity consumption remained relatively low on weekdays – 353 million kWh, and further reduced to 326 million kWh in weekends and holidays (May 1-3); load schedule irregularities (the difference between the nighttime minimum of 11-12 GW and the highest peak of evening consumption of 15.5-16.5 GW) increased from 4 GW to 5 GW.
There is still a large electricity surplus in the electricity market, which is largely created by the Guaranteed Buyer SE and NNEGC Energoatom. During the last week, the daily volumes of this unsold end-user electricity ranged from 50 million kWh to 31.5 million kWh. All of it was implemented in a balancing market.
Read more: https://bit.ly/2YuUgEp
The results of the state-owned enterprise “Guaranteed Buyer” for the first quarter of 2020: 2138 GWh of “green” energy was purchased at the “green” tariff, for which UAH 4,4 billion was paid. (The cost of “green” energy only in March amounted to 4.2 billion UAH.).
Read more: https://bit.ly/3dk3g3r
NEURC at the meeting dated 04/29/2020 approved the size of the cost of services to ensure an increase in the share of electricity production from alternative energy sources provided by the state-owned company Guaranteed Buyer in March 2020 – UAH 3,12 billion. In March, the Guaranteed Buyer purchased 949,758 MWh of electricity from renewable energy sources (RES). Its total cost is about UAH 4,2 billion.
Read more: https://bit.ly/2KVnDHU
Published information about the financial debts of Ukrenergo to the Guaranteed Buyer
As of April 30, 2020, the debt of JSC NEC Ukrenergo to the State-guaranteed Guaranteed Buyer is UAH 10.9 billion, of which UAH 9.7 billion is for services to increase the share of electricity from alternative sources, and 1.2 billion UAH – for electricity sold by the company in the balancing market.
Read more: https://bit.ly/2ytQPmF
Published NBU’s quarterly Inflation Report dated April 2020
Inflation in 2020 will accelerate, but will not breach the 5% ± 1 pp target range. Consumer prices will be up 6% for the year. Due to quarantine restrictions to combat the pandemic and the global crisis, the Ukrainian economy in 2020 will decline by 5.0%, but will return to the growth of about 4% in the following years. The biggest shock will hit the Ukrainian economy in Q2 2020. In April through June, the economy will decline by 11%.
Read more: https://bit.ly/2zdJqb5
Recall that the Board of the National Bank of Ukraine has decided to cut the key policy rate to 8%. The continued monetary easing aims to support the economy during the period of pandemic and quarantine.
Energy Community Secretariat
Secretariat to host first live panel webinar on electricity storage investment
A virtual panel webinar, hosted by the Secretariat, will bring together key actors involved in energy storage investments in the Energy Community on 19 May. Policies to decarbonize the energy sector have led to a continuous increase in renewable power generation technologies, triggering the need for a more intense discussion and action on electricity storage in order to permit greater system flexibility. The four webinar panelists will offer insights into the various aspects of storage from technologies to their range of system services, costs, and regulatory treatment.
Read more: https://bit.ly/3b3SE7l