The President of Ukraine signed the Law “On Measures Aimed at Repaying Debts Formed on the Wholesale Electricity Market”, No. 719-XI, which was adopted by the Verkhovna Rada of Ukraine on June 17, 2020.
The law defines the legal, economic and organizational principles related to the repayment of debts formed on the wholesale electricity market of Ukraine. The purpose of this Law is the full repayment of debts incurred on the wholesale electricity market of Ukraine.
Link to the Law: https://cutt.ly/Ysne8Jr
On July 31, 2020, the President of Ukraine signed the Law No. 810-IX “On amendments to certain laws of Ukraine as to enhanced support for the electricity production from alternative energy sources”, which the Verkhovna Rada of Ukraine adopted on July 21, 2020.
The Law came into force on August 1, 2020, after its official publication in the Voice of Ukraine.
Link to the Law: https://cutt.ly/ZdUMBDe
On July 21, 2020, the Verkhovna Rada of Ukraine adopted in the second reading the Draft Law “On amendments to certain laws of Ukraine as to enhanced support for the electricity production from alternative energy sources” No. 3658.
The Draft Law received a total of 288 votes in favor.
In general the Draft Law was approved in line with the Memorandum of understanding. However unfortunately the amendment about +2 years for the Solar Projects, which had the reduction of 15% of FIT was not supported by the Parliament. Gerus’ amendment 1203 was supported by Members of the Parliament in majority. This amendment touches partly the Stabilization clause in the Law “On the regime of foreign investment”.
Summary of these and more other amendments prepared by IMEPOWER – EUEA Energy Adviser 2020, is attached: Draft Law 3658 Summary Eng v8
The good news are that the cut-off date for solar is extended by 31 October 2020, with the reduction of FIT by 2,5% and for solar projects it is possible to continue construction under Pre-PPAs from 01 November 2020 till 31 March 2021 with the FIT reduction 30%. The share of the annual quota for one beneficiary will stay the same as according to the current legislation = 25%. In addition, not less than 20% of FIT compensation will come from the State Budget (this is new and currently State Budget doesn’t spend a penny for the FIT and RES sector).
Official documents on this Draft Law you may find at the website of the Parliament: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=69138
The Committee of the Verkhovna Rada on issues of environmental policy and nature management discussed the national greenhouse gas emission allowance trading system
On July 23, 2020, the Committee of the Verkhovna Rada on issues of environmental policy and nature management held a round table during which People’s Deputies, together with experts and government officials, discussed problematic issues of environmental policy, including trade in greenhouse gas emission allowances.
It was noted that there are two tools for setting carbon prices – the emissions trading system or emission taxes. In particular, the trading system operates in the European Union. An effective system requires an emission limit, a strong administrative system for allocating quotas, and an effective monitoring system.
Read more: https://cutt.ly/xsALS5n
Ministry of Energy of Ukraine
The Ministry of Energy and the National Bank discussed measures that will help meet the terms of the Memorandum with RES investors
Full implementation of the Memorandum of Understanding between the Government and investors in the RES sector will stabilize the industry and easily restructure loans granted by state-owned banks for the construction of renewable energy facilities. This was discussed at a meeting with the participation of the Chairman of the National Bank of Ukraine Kyryl Shevchenko, Acting Minister of Energy Olga Buslavets, heads of state banks and RES investors, July 22, 2020.
The participants of the meeting noted that the adoption of the Draft Law №3658 opens the way to find effective tools that will allow all parties – both borrowers and banks – to maintain financial stability, extending, if necessary, the repayment period of loans.
At the same time, the key condition for successful restructuring is a guarantee of timely payment for electricity already sold at a reduced rate, as well as the fulfillment of the schedule of repayment of existing debt.
It was noted that the current payment for electricity, starting next month, will be provided primarily by the transmission tariff, which from August 1, 2020, in accordance with the decision of the NEURC, will be 240.23 UAH / MWh. It will be possible to repay the previous debt with the help of non-tariff methods, including the attraction of credit funds of European banks on preferential terms.
Read more: https://cutt.ly/KsSp4DL
Ukraine continues to participate in the Eastern Europe Energy Efficiency and Environment Partnership
On July 23, 2020, Acting Minister of Energy of Ukraine Olga Buslavets signed an Agreement on the contribution between Ukraine and the EBRD on Ukraine’s participation in the Eastern Europe Energy Efficiency and Environment Partnership (E5P). The signing of the Agreement will allow Ukraine to continue participating in the E5P.
The agreement provides a contribution of 10 million euros to the E5P, which will provide access to financial support in the form of grants and technical assistance for energy efficiency and environmental improvement projects, which should result in significant reductions in electricity consumption, reduction of carbon dioxide emissions and other greenhouse gases.
Ukraine’s participation in the preliminary phase of the E5P upon payment of a contribution of 10 million euros allowed to attract funding for the implementation of 22 projects with a total value of over 516 million euros.
The E5P is a €220 million multi-donor fund initiated during the Swedish Presidency of the European Union in 2009 to encourage municipal investments in energy efficiency and environmental projects in the Eastern Partnership region. Initially active in Ukraine, in 2014 the fund formally extended its activities to Armenia, Georgia and Moldova, Belarus joined in 2017, and Azerbaijan in 2019.
The E5P merges financial contributions from the European Union and a group of 23 nations, including countries which are benefiting from the fund. The contributions are used as grants to support municipal sector projects. The projects approved for implementation in Ukraine have shown that the E5P grants can leverage on average investment volumes that are five times the size of the committed grants. The grant allocations are flexible and recognise priorities of each recipient country with the overall aim to reduce energy use, pollution and greenhouse gas emissions. The fund also supports policy dialogue and regulatory reform.
The EBRD acts as the fund manager of E5P providing administrative support to manage the fund on behalf of all the stakeholders.
Read more: https://ukraine.e5p.eu/
Tariff for electricity transmission services of Ukrenergo will increase from August 1, 2020
On July 11, 2020, at its meeting, the National Commission for State Regulation of Energy and Utilities revised the tariff for electricity transmission services and the tariff for services from the dispatching (operational and technological) department of NPC “Ukrenergo”.
From 01.08.2020 the tariff for electricity transmission services will be 240.23 UAH / MWh; the tariff for dispatching (operational and technological) management services will be UAH 24.75/ MWh (excluding value added tax).
This tariff was approved taking into account the comments of industrial consumers and with the expectation that in the near future the Cabinet of Ministers of Ukraine and the Verkhovna Rada of Ukraine will take a number of measures to reduce the burden on the tariff.
The calculation of the tariff for electricity transmission services took into account the implementation of measures set out in the Memorandum of Understanding on the settlement of problematic issues in the field of renewable energy in Ukraine, as well as measures of the Anti-Crisis Energy Headquarters.
This level of tariff for electricity transmission services was adopted to ensure integrated, balanced operation of NPC “Ukrenergo”, Guaranteed Buyer , NNEGC “ENERGOATOM”, PJSC “Ukrhydroenergo” and prompt settlement of problematic issues in the electricity sector.
More information at the link: https://cutt.ly/ipM2Xcr
The Regulator has approved the Instruction on submission and publication of data on the electricity market
On July 15, 2020, the National Commission for State Regulation of Energy and Utilities adopted a resolution “On approval of the Instruction on submission and publication of data on the electricity market“.
The development and approval of this Instruction completes the process of legal provision of transposition and implementation of Regulation (EU) № 543/2013 of 14.06.2013 on the provision and publication of data on electricity markets (Regulation № 543). Regulation № 543 provides for the publication of electricity market fundamental data on the ENTSO-E (Electricity Market Fundamental Information Platform – EMFIP) and is mandatory for implementation by the Contracting Parties to the Energy Community, including Ukraine.
More details: https://cutt.ly/xsSc2Yl
Ukrenergo has published the Instruction on submission and publication of data on the electricity market approved by the Regulator
Pursuant to the Resolution of the National Commission for State Regulation of Energy and Utilities No. 1388 of July 15, 2020, Ukrenergo published the Instruction on submission and publication of data on the electricity market agreed by the Regulator, which ensures compliance with European standards, in particular Regulation (EU) No. 543/2013 of June 14, 2013.
This Instruction specifies:
detailed description of data and form of its presentation;
requirements for means and formats of data transmission;
data transmission methods;
requirements for primary data owners and data providers (the company that directly submits data from the primary data owner to the ENTSO-E transparency platform);
the form of the agreement on data transfer to the ENTSO-E transparency platform between NEC Ukrenergo, the owner of the primary data and the data provider.
Read more: https://cutt.ly/VsSWidf
The Guaranteed buyer makes payments to electricity producers
The Guaranteed buyer continues to pay for the purchased electricity. So, last week, electricity producers were paid a total of more than UAH 1.05 billion.
In particular, the company paid over UAH 762 million to producers of electricity from renewable sources. Funds are transferred for marketable products in March. The level of settlements for the specified period is 27%.
Read more: https://cutt.ly/SdIuZ8i