Speakers:
- Oleksandra Gumeniuk, EUEA Director;
- Yuri Kubrushko, EUEA Board Member, Managing Partner of IMEPOWER;
- Mykhaylo Chulkov, Director of EUROCAPE Ukraine;
- Olexiy Parkhomchuk, EUEA Board Member, Investments Director at IFU.
- Dmytro Syrykh, Acting Technical Director of the State Institution “Energy Efficiency Fund”;
- Serhiy Porovskyy, Energy Efficiency Financing and Policy Principal Expert for the Project, UNIDO;
- Valentyna Huch-Denysenko, EUEA Coordinator of EE projects.
The press briefing record: https://www.facebook.com/EUEA.UA/videos/2231025337037369
Organized by the European-Ukrainian Energy Agency.
For Ukraine, the green transition means reducing greenhouse gas and methane emissions, increasing energy efficiency, increasing the share of renewable energy sources, and ending deforestation. This is exactly what the joint statement following the 23rd Ukraine-European Union Summit, the COP26 Summit, the EU Summit, and the EU’s Eastern Partners says. The adopted in 2021 strategic documents are important for the Green Transition, such as the National Economic Strategy 2030, the Energy Security Strategy, the Second National Defined Contribution, and we expect a number of strategic documents, which are currently under development, namely the Energy Strategy of Ukraine until 2050, the Decarbonisation Plan and the Integrated National Energy and Climate Plan until 2030, National Renewable Energy Action Plan until 2030, Hydrogen Strategy of Ukraine until 2030.
Oleksandra Gumeniuk noted that currently 9.5 GW of clean energy generating stations have been built, including domestic SPPs, which by the way is more than 1 GW. Share of more than 30% of RES stations is owned by international companies from different parts of the world, and another 30% by small and medium-sized businesses in Ukraine.
At the same time, the largest consumers of electricity are more than 70% of the population and industry in Ukraine, and these areas have the greatest potential for energy efficiency. Summing up the year, we still have debts to renewable energy in the amount of UAH 12.3 billion, discrimination of payments, DTEK has not yet received funds for 2020 when UAH 16.3 bln were paid to all other renewable energy market participants, NEURC has approved a tariff lower by 25% compared to the proposed Ukrenergo, thus violating three international agreements, ignoring the warning of the international business community and international financial organizations. In 2021, we have two arbitration proceedings against Ukraine and an unfavorable investment climate. At the same time, Ukraine needs additional investments in balancing the system, in building new capacities, which will fail if such turbulence continues. On the positive side, NEURC certified NPC “Ukrenergo” in accordance with the recommendations of the Energy Community Secretariat. This is a key step towards the integration of Ukraine’s energy markets and the European Union. A more detailed overview of statistics and key events and documents of 2021 in the presentation: EUEA presentation_Press-Briefing Dec 24, 2021.
The results of the RES sector for 2021 and expectations for 2022 were outlined by Yuriy Kubrushko, EUEA Board Member, Managing Partner of IMEPOWER.
«2021 was a year of stabilization for the renewable energy sector (RES). On the positive side, the majority of the Guaranteed Buyer’s debt was paid to RES producers, but the debt of 2020 has not been paid in full, and we also have a deficit for 2021, moreover, the debt for the next 2022 is projected to accumulate due to the low level of the TSO transmission tariff. Another achievement in 2021 is the system of limiting the production of electricity by “NPC “Ukrenergo”, which means, stations that are connected to the operator will receive compensation for restrictions. The main task for the state for 2022 is to combine two trends together: the first concerns all statements of Ukraine in the international market on green transition, climate, decarbonisation, stabilization of the energy market, with the second – what is happening in the RES market in Ukraine, because it’s all connected” said the expert.
Then we had the opportunity to see an example of the successful cooperation of an international investor with the local community. Mykhailo Chulkov, Director of EuroCape Ukraine, presented the experience of putting the Zaporizhzhya WPP into operation. “The company started in Ukraine in 2009 with a large ambitious project of 500 MW, and the right dialogue with the united territorial community (UTC) helped to build the first phase of 98 MW Zaporizhzhya WPP, which became a successful project for all, because, in addition to paying rent payments, funds are allocated for social infrastructure and as a result, the company becomes a reliable partner for UTC. During the construction period, the number of jobs in the region increased, as 700 people worked at the site at the same time, сommunications with the agrarian have been established, a positive impact has been made on the rental market and the service sector. During the period of operation – the company has obligations to pay for social infrastructure. In EuroCape Ukraine there is a program “1000 euros per installed MW”, that is, we have to finance projects for 98 thousand euros after starting the commercial operation. At the moment, we have installed water towers, we are signing a contract for the reconstruction of the first-aid post, – said the director of the company.
Olexiy Parkhomchuk, EUEA Board Member, IFU Investment Director, noted the following: “We haven’t had any new investments this year and the previous year, and the situation on the RES market is one of the main reasons why this is happening. There are also no promising projects for next year, due to the fact that the IFU takes into account the indicators that Ukraine sends about the investment climate and how reliable it is to work here. IFU also works with financial institutions and analyzes possible investments for Ukrainian banks, it is important for us to have green investments in the portfolios of Ukrainian banks and whether they offer green finance products to the market and the client. I am glad that the Working Group on Green Finance has been established within the framework of EUEA, we hope that participants in this field will join the development of green financial instruments in Ukraine».
In the “Energy Efficiency” section, Valentyna Huch-Denysenko provided a brief overview of the Law “On Energy Efficiency”. Specifically, she mentioned that the law is not focusing on improving energy efficiency in residential buildings, the main focus of the law is to increase energy efficiency in the industrial sector and public buildings. At the same time, the state budget for 2022 provides UAH 2.6 billion for the Energy Efficiency Fund.
Dmytro Syrykh, a representative of the Energy Efficiency Fund, mentioned that about 855 home-owner associations (HOAs) applied to the Energy Efficiency Fund. Mr. Syrykh also noted that the Fund’s specialists are currently working on creating a one-stop-shop system in advising HOAs on the full cycle of applying to the Fund and implementation of energy efficiency measures.
Serhiy Porovskyy highlighted the importance of improving energy efficiency in the industry. He also described available resources and tools implemented by the UNIDO project to support the energy management system in the industry.
As part of the successful cooperation of the European-Ukrainian Energy Agency with UNIDO, the launch of a pilot project of the All-Ukrainian Award “Pacesetters of Energy Management” was presented, which will provide a reward of 7.5 to 15 thousand dollars to companies that have implemented an energy management system. Details and conditions of participation in the project for companies on the EUEA website in the “Award” section.
During 2021 European-Ukrainian Energy Agency, as the business association uniting the biggest foreign investors in the renewable energy sector, who totally invested more than 3,5 bln EUR, sent over 40 letters to high-level policymakers as Cabinet of Ministers, Prime Minister, President and its Office, NEURC, arranged more than 50 meetings, round tables and conferences attracting attention to valuable to RES market players topics and developing the policy dialogue. Not always it was easy, but we hope that soon the current settlements on USD 200 mln will be fully done to all RES market players without discrimination in accordance with legislation and Memorandum of Understanding signed between RES associations and the Government of Ukraine on June 10, 2020.
We invite companies to become members of the European-Ukrainian Energy Agency and speak together on behalf of the industry in one voice, this applies to all our areas as RES, EE, Green Hydrogen and Green Finance.
