President

The Regulations on the Council of Experts on Energy Security have been approved

The Presidential Decree approved the Regulations on the Council of Experts on Energy Security. Oleksiy Danilov, Secretary of the National Security and Defense Council of Ukraine, has been appointed Chairman of the Council of Experts on Energy Security.

The Council of Experts on Energy Security will be the highest advisory body for the Head of State and the National Security and Defense Council of Ukraine on energy issues.

Among the main tasks of the Council of Experts on Energy Security are analysis of the state and forecasting of trends in the development of the fuel and energy sector; analysis of the regulation of fuel and energy markets; analysis of draft regulations on the functioning of the fuel and energy sector; preparation of a proposal within the competence.

Read more: https://bit.ly/2XmPLLh

 

Parliament

Effective laws

The Verkhovna Rada of Ukraine adopted Law №2386 “On Measures Aimed at Repaying Debts Formed on the Wholesale Electricity Market”.

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. Thus, the Law introduces the following mechanisms for debt repayment: – mutual settlements; – repayment (write-off) of debt; – assignment of the right of claim or replacement of the party in the obligation; – establishment of a target surcharge to the tariff for electricity distribution by local electricity networks to distribution system operators.

Read more: https://cutt.ly/UoGSDcZ

 

Registered bills

3657 (registered on June 15, 2020) Bill on amendments to the Law of Ukraine “On the Electricity Market”.

On June 19, 2020 Verkhovna Rada of Ukraine voted in favor of shortening the deadlines for submitting alternative bills to the Bill on amendments to the Law of Ukraine “On the Electricity Market”.

3658 (registered on June 15, 2020) Bill on amendments to certain laws of Ukraine as to enhanced support for the electricity production from alternative energy sources.

On June 19, 2020 the Verkhovna Rada of Ukraine voted in favor of shortening the deadlines for submitting alternative bills to the Bill on amendments to certain laws of Ukraine as to enhanced support for the electricity production from alternative energy sources.

On June 25, 2020 the Committee on Energy and Utilities of the Verkhovna Rada of Ukraine at its meeting considered bill 3658 of 15.06.2020, submitted by the Cabinet of Ministers of Ukraine and bill 3658-1 of 23.06.2020, submitted by the People’s Deputy of Ukraine Gerus A.M.

Following the discussion, the Committee decided to recommend to the Verkhovna Rada of Ukraine to adopt a government bill  3658 of 15.06.2020 in the first reading as a basis. It can be recalled that a review of the approved bill № 3658 is available on our website at the following link: https://cutt.ly/Gi8XYw0

On July 3, 2020 the Verkhovna Rada of Ukraine adopted in the first reading the Government Bill 3658 “On amendments to certain laws of Ukraine as to enhanced support for the electricity production from alternative energy sources”.

Read more: https://cutt.ly/UoG8F36

 

Government

On June 10, 2020, the Cabinet of Ministers of Ukraine signed a Memorandum of Understanding for Resolving of the Problematic Issues in the Renewable Power Industry of Ukraine (the “Memorandum of Understanding”).

The “Memorandum of Understanding” was signed by: Prime Minister of Ukraine Denis Shmygal, Acting Minister of Energy and Environmental Protection of Ukraine Olga Buslavets, officials of the European-Ukrainian Energy Agency and the Ukrainian Wind Energy Association.

The “Memorandum of Understanding” stipulates that RES producers accept the terms of voluntary restructuring of “feed-in” tariffs, which implies their reduction. In particular, for all electricity facilities that produce solar energy, tariffs are expected to be reduced by 15%, and for facilities that generate electricity from wind energy – by 7.5%.

For its part, the Ukrainian authorities are committed to taking all measures to ensure the timely and ongoing payment of the Guaranteed Buyer and the repayment of existing debts to RES producers who have accepted the terms of the restructuring.

The Ukrainian authorities are also committed to setting and approving annual quotas in support of “green” energy and ensuring that auctions are held to allocate such quotas.

In addition, according to the “Memorandum of Understanding”, the responsibility of RES producers for unbalanced electricity production is increasing. RES producers also accept the terms of limiting the commissioning of new facilities at “feed-in” tariff. Thus, from August 1 this year, new solar power plants with a capacity of more than 1 MW will be able to be commissioned with state support only by participating in auctions.

Read more: https://cutt.ly/woG1grQ

 

Ministry of Energy of Ukraine

The state of implementation of anti-crisis measures in the energy sector

The Ministry of Energy reported on the implementation of the decisions of the Anti-Crisis Energy Headquarters.

The mechanisms of assignment of special responsibilities have been improved and amendments to the resolutions of the Cabinet of Ministers of Ukraine regulating the auction for electricity produced by nuclear power plants have been adopted.

– For NNEGC “Energoatom”, 5% was released for the opportunity to sell at special auctions.

– The order of the Cabinet of Ministers of Ukraine for ensuring priority use of domestic coal by thermal generation is accepted.

A Memorandum of Understanding was signed with RES producers and investors.

Fulfillment of the document will save the power system as a whole about UAH 6.5 billion annually and more than EUR 2 billion for the entire support period.

– Two bills have been prepared.

The first one implements the provisions of the Memorandum, improves the auction model, which is already provided by current legislation on the support of RES.

The second bill amends the Law on the Electricity Market.

Read more: https://cutt.ly/Ui9J36Q

 

NEURC

Increasing of the TSO tariff 

In the meeting on 17th June 2020, National Commission for State Regulation of Energy and Utilities supported the signing of a Memorandum of Understanding between the Government of Ukraine and investors with warnings regarding the need to raise the TSO tariff. How will increasing of the TSO tariff impact final price of electricity is described in our website.

Ukrenergo, in turn, emphasizes the need to implement as soon as possible the measures developed by the Anti-Crisis energy headquarters to resolve the crisis in the electricity market. This can limit the forced increase in the tariff for electricity transmission services in August-December 2020.

Read more: https://cutt.ly/noJpgJq

 

Draft Procedure for investigation of violations of legislation on functioning of electricity and natural gas markets approved

On June 24, 2020, the Committee on Energy and Utilities approved a draft resolution “On approval of the Procedure for investigation of violations of legislation on the functioning of electricity and natural gas markets” (Procedure).

Approval of the Procedure is the first step towards the implementation of the powers granted to the Regulator by paragraph 22-1 of the first part of Article 17 of the Law of Ukraine “On the Committee on Energy and Utilities” to investigate violations of the functioning of the electricity and natural gas markets.

This Procedure will be published on the NEURC website for comments and suggestions from stakeholders, which will be considered in open discussions of the draft resolution.

Read more: https://cutt.ly/Ai9KvDO

 

UKRENERGO

To minimize the tariff for electricity transmission services, it is necessary to change the current mechanism of assignment of special responsibilities

The tariff for electricity transmission services can be revised only together with the change of the mechanism of assignment of special responsibilities, reduction of the “green” tariff, in accordance with the provisions of the Memorandum with RES producers, and implementation of other measures developed by the Anti-Crisis Energy Headquarters. This was stated by Volodymyr Kudrytskyi, Acting Chairman of the Board of NPC “Ukrenergo” at a meeting of the NPC “Ukrenergo”.

He emphasized that the revision of the transmission tariff is not a wish of the system operator, but a consequence of the deficits that have been accumulated in the electricity market today, and the shortcomings of the existing mechanism of assignment of special responsibilities. One third of the increase will be used to cover the “green” tariff in August-December 2020, the rest – to compensate for debts to the “Guaranteed Buyer” for the first half of 2020, as well as to cover its deficit due to the implementation of assignment of special responsibilities for the sale of electricity for the needs of the population.

Read more: https://cutt.ly/oi9KDel

 

NPC “Ukrenergo has announced the procedure for connecting to the RES limitation control system

Ukrenergo has developed a procedure for connection to the RES limitation control system. It is published on the company’s corporate website in the “Single Window (Joining)” section.

All information on the implementation of the RES limitation control system, in particular, instructions, technical requirements and questionnaires are posted on the NPC “Ukrenergo” website in the “Single Window (Joining)” section in the “RES limitation control system” tab.

Read more: https://cutt.ly/ei9ZDGf

 

Guaranteed buyer

Guaranteed buyer pays to generation

On June 30, 2020, the state enterprise “Guaranteed Buyer” paid for the purchased electricity in the total amount of UAH 446 million.

Payments under the “feed-in” tariff

In particular, UAH 150 million was paid to producers of electricity from renewable sources. Payment was made as payment for marketable products in March. A total of UAH 900 million was paid during this period. The level of payment is 21%.

Read more: https://cutt.ly/moHJTUd

 

International Community

International community and representatives of almost 120 foreign and Ukrainian companies-owners of solar power plants address with the letters on energy security and development of renewable energy in Ukraine, in particular to support some amendments to Bill 3658 (regarding renewable energy), and maintain the investment climate in the energy sector of Ukraine.

Read more: https://cutt.ly/6oJs5v1