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NEW BILL ON ELECTRICITY MARKET

On 13 April 2017 the Ukrainian parliament adopted a bill No. 4493 On Electricity Market of Ukraine. The bill paves the way for the full implementation of the third EU energy package requirements in the national electricity sector. It also provides for two years transition period for implementing completely new for Ukraine market segments – day-ahead market (indicative market prices), intraday market, bilateral contracts market, balancing and ancillary services markets.

With respect to renewables, the Electricity Market Draft Law introduces responsibility of the respective producers for the hourly imbalances at the day ahead market where they will sell electricity at “green” tariff. It is planned that the responsibility for solar and wind will be introduced gradually with increase by 10% annually starting with 2021 until 2030 with 20% tolerance for wind, 5% tolerance for small hydro as well as 10% tolerance for solar. It also envisages the possibility of signing preliminary PPA before construction when a producer of electricity from renewables has executed title documents in respective lands, obtained a construction permit and signed a grid connection agreement. 

The producers of electricity from renewables, which have commissioned their power plants before the bill entry into force, are exempt from liability for imbalances until 2030.The Electricity Market Draft Law will enter into force after singing by President of Ukraine.

Link: 

http://uwea.com.ua/ua/news/entry/novyi-zakon-o-rynke-elektricheskoj-energii/

 

NEW WIND TURBINES IN KHERSON REGION

19.03.2017 The Danish company Vestas is to deliver 12 turbines totaling 41.4MW to Vindkraft Tavriya LLC for the Novotroitska wind farm  located in Novotroitsk district. Delivery and commissioning of V126 3.45MW machines are planned for the third quarter of 2017. The deal also includes a VestasOnline® Business SCADA solution.

As previously reported, the Group of companies Vindkraft plans to build two wind farms - Novotroitska and Overyanivska with a total installed capacity of 140 MW in the Kherson region by the end of 2018 (http://uwea.com.ua/ru/news/entry/ukrgazbank-nachal-finansirovanie-stroitelstva-novotroickoj-ves-na-hersonsch/)

Vindkraft Ukraina LLC is a Ukrainian based wind power development and investment company. It has 31 MW of wind power assets in operation in Kherson region including Novorossisk WPP, Berehova WPP and Stavki WPP.

For more information read: 

http://uwea.com.ua/en/news/entry/novye-ves-v-hersonskoj-oblasti/

 

CLEAR ENERGY LLC HAS COMMISSIONED BIOMASS-FIRED POWER PLANT IN KORYUKIVKA TOWN

18.10.2016 Biomass-fired power plant with total installed capacity of 3.5 MW has been commissioned in Koryukivka town, Chernigiv region. The CHP will ensure uninterrupted power supply during peak-load periods and will be able to supply to the grid about 20 million kWh/year.

The project was implemented by the Ukrainian Company “Clear Energy” LLC. The Company obtained a license from NEURC – the National Energy and Utilities Regulatory Commission (Resolution № 1194  dated 30.06.2016) for the right to produce electricity.  By Resolution № 1677 dated 29.09.2016, the NKREKP approved the “green” tariff for “Clear Energy” LLC equal to 364,63 kop/kWh without VAT for electricity generated from biomass. 

 

 

CHANGES BY REGIONAL DEVELOPMENT MINISTRY OF DSTU B V.1.2 N-16 ON ASSESSMENT OF CATEGORY OF COMPLEXITY FOR CONSTRUCTION OBJECTS

06.06.2014 According to the Bioenergy Association of Ukraine a highly-expected change from the Ministry of Regional Development in DSTU B V.1.2 N-16 determining the complexity of construction projects took place. It is supposed to eliminate the requirement in p.a.2, the assignment of objects with high environmental hazards to 5 category of complexity by default starting from 01.07.2014, the Category will be determined by calculation, and biofuel boilers can be designed as belonging to 3 category of complexity, which greatly simplifies the design, coordination, and administration of facilities in operation.

For more information read:

www.uabio.org/en/news/uabio-news/1773-min-region-5-cat-abolition

 

NINTH POSITION PAPER OF UABIO

27.05.2014 Ninth position paper of UABio "State of the art and prospects for bioenergy development in Ukraine" was published by Bioenergy Association of Ukraine.

Position Paper N 9 covers state of the art, existing barriers and prospects for bioenergy development in Ukraine. The Paper shows opportunity, importance and urgency of biomass use as a fuel. Realistic targets for the bioenergy sector development in Ukraine are suggested. To a great extent, Position Paper N 9 uses and compiles results of Position Papers 1-8, and suggests an integral conception of the sector development on their basis.

www.uabio.org/en/news/uabio-news/1758-position-paper-9-news

 

SECCESSFUL DEVELOPMENT OF WIND ENERGY SECTOR IN UKRAINE IN 2013

Wind energy growth rate in Ukraine totaled 56% in 2013

15.01.2014 According to the market survey conducted by the experts of the Ukrainian Wind Energy Association, new 95,3 MW wind capacities were added in the country in 2013. Thus, by December 31, 2013 the cumulative installed capacity of wind energy sector in Ukraine reached 371,2 MW compared to 276 MW in 2012, which corresponds to a growth rate of 56%.

www.uwea.com.ua/news.php

UWEA’s report includes information on the market development in 2013, review of the Ukrainian manufacturers of the wind equipment as well as plans of the developers till 2020, and, as usual the latest changes to the Ukrainian wind legislation. The document is available in two languages – Russian and English.

www.uwea.com.ua/news.php

 

ELECTRICITY PRODUCTION FROM RENEWABLE ENERGY SOURCES (RES) IN UKRAINE IN 2013 HAS INCREASED TWICE

31.01.2014 According to the materials of the Ministry of Energy and Coal Industry of Ukraine, in 2013 the share of electricity produced from renewable energy sources (wind, solar, biomass, small hydropower) in the overall electricity production output increased from 0.32% to 0.64 %.

Electricity generation by power plants using renewable energy sources, except for the large hydropower plants, in 2013 has doubled from 638.6 million kWh in 2012 to 1,247 million kWh.

In the past two years Ukraine is developing renewable energy more intensively than the traditional one, thus facilitating the increase of energy diversification and strengthening energy and environmental security.

 

DEVELOPMENT OF THE UKRAINIAN RENEWABLE ENERGY SECTOR, 1H 2013

21.10.2013 According to IMEPOWER Ukraine Renewable Energy Newsletter No. 27 the installed capacity of Ukrainian renewable energy plants has reached 0.9 GW by the end of June 2013 or 1.7% of all Ukrainian power plants. This includes 569.5 MW solar, 330.4 MW wind, 74 MW small hydro and 7.3 MW biomass & biogas plants. The electricity production of the renewable power plants in 1H 2013 (excluding large hydro power plants) adds up to 246.1 GWh (solar), 316.9 GWh (wind), 158 GWh (small hydro) and 13.5 GWh (biomass & biogas).

For more information read here (in English)

http://imepower.files.wordpress.com/2013/10/ukraine-renewable-energy-newsletter-27.pdf

 

BY 2020 ELECTRICITY PRPDUCED BY SOLAR POWER PLANTS WILL BECOME CHEAPER THAN FOSSILE FUEL BASED ENERGY

Solar energy is one of the most rapidly growing areas of the electricity industry in the world. According to the European Photovoltaic Industry Association the total capacity of the existing solar power plants increased by 31 GWs, and exceeded the milestone of 100 GW last year. In total, solar power plants produce as much energy as 16 large nuclear power plants. Worldwide trends are reflected in Ukraine as well. Despite the reduction of state support, the solar energy market continues to develop actively. During first six months of the year 12 large solar facilities with a total capacity of 167.7 MW were built and commissioned in Ukraine. Thus, the total installed capacity of Ukraine’s solar power plants increased by 51.4% to 494 MW. Investments in the sector of solar energy in the first half of 2013 amounted to more than EUR 360 mln. 

Today, Europe is playing a lead role as to the number of solar power facilities.70 % of the global amount of solar power plants is concentrated in the European countries. Last year the EU commissioned new solar power plants with the total capacity of 17 GW.

In the mid-1990s, cost of 1 kWh of electricity produced by solar power plants was 1 Euro; now it has decreased to 0.1 Euro per kWh.

For more information read here (in Russian)

http://pronedra.ru/alternative/2013/08/14/solnechnaya-elektroenergiya/#axzz2bxP56Bxh

http://www.depo.ua/ru/delovaja-stolica/2013_ds/avgust_2013ds/31-32-637-638/109975.htm

 

 

NERC PROPOSED NEW AMENDMENTS TO THE SECONDARY LEGISLATION REGULATING RENEWABLE PROJECTS

On 25 January 2013 the NERC published on its official web-site the draft Regulation "On Amendments to the Procedure of Establishment, Revision and Termination of the Green Tariff for Economic Entities". Major changes envisaged by this draft Regulation, which shall come into force from 01/07/2013, are as follows:

- for power generation facilities (or construction stage /start-up complex), construction of which commenced after 01 January 2012 and commissioned after 01 July 2013, establishment of the green tariff shall be considered after the decision is taken on the level of local content under the law requirements;

- the NERC shall approve the Procedure for determination of the local content for power facilities, including commissioned construction stages of power plants, which generate electricity from alternative energy sources (except for blast furnace and coking gases);

- compliance of the local content with requirements of the law shall be assessed on the basis of calculations and supporting documents submitted by the entity and approved by NERC.

 

EWEA - EASTERN WINDS: EMERGING EUROPEAN WIND POWER MARKETS

February 2013

The publication of the European Wind Energy Association (EWEA) “Eastern Winds” examines the frontier of wind power development in Europe. The report deals with the prospects for wind power in Central and Eastern Europe, tackles financing and provides an in-depth analysis of 12 emerging wind power markets, including Ukraine. “Eastern Winds” is also a tool for decision-makers highlighting bottlenecks, regulatory challenges and providing policy recommendations.

For more information read here (English)

http://www.ewea.org/publications/

 

 

POSITION PAPERS OF BIOENERGY ASSOCIATION OF UKRAINE PUBLISHED

Bioenergy Association of Ukraine (UABio) has presented three major documents on their web-site:

- Position Paper 1 “Position of bioenergy in the draft updated Energy Strategy of Ukraine till 2030”,

- Position Paper 2 "Analysis of the Law of Ukraine "On amendments to the Law of Ukraine "On Electricity" N5485-VI of 20.11.2012" and

- Position Paper 3 "Barriers to the Development of Bioenergy in Ukraine".

UABio’s Position Papers are regular documents of the planned series of publications on key issues of bioenergy development in Ukraine.

The mission of Bioenergy Association of Ukraine is to create a common platform for cooperation on bioenergy market in Ukraine in order to ensure the most favorable business environment, accelerated and sustainable development of bioenergy sector.

For more information read here

http://www.uabio.org/en/activity/uabio-analytics 

 

WWEA: WIND POWER STATUS IN RUSSIA AND THE CIS COUNTRIES

Regional Wind Power Market and Potential

Bonn (WWEA), 14 December 2012 - The World Wind Energy Association has published a new report about the status of wind power in Russia and all CIS countries.

The CIS countries are representing a world region with huge wind potentials, but where so far wind energy plays only a marginal role: The total wind installations have only reached 178 MW, a very small share of the global wind capacity of 254’000 MW (as of June 2012).

The CIS Report highlights the huge economic and social potentials and provides a comprehensive overview of the situation in the CIS countries. It aims at contributing to kick-start the deployment of wind technology in the region by providing information and by raising awareness amongst decision-makers from within and outside the region, amongst governments, industry as well as academia.

For more information read here

http://www.uwea.com.ua/news.php?news_id=134

 

AMENDMENTS TO THE LEGISLATION REGULATING UKRAINE’S RENEWABLE ENERGY SECTOR APPROVED (LAW № 10183)

On 20 November 2012 the Parliament of Ukraine has adopted the Law “On Introducing Changes to the Law of Ukraine “On the Electricity Sector” (regarding promotion of electricity production from renewable energy sources), registration number № 10183. The Law was signed by the President on 29 November 2012.

The Law 10183 provides for a number of significant changes to the incentive system for renewable power plants. It makes less attractive investments in solar power, and opens new perspectives for biogas and hydropower.

 

EU AND U.S. URGED UKRAINE TO REVISE THE DRAFT ENERGY STRATEGY

 

The European Union and the U.S. calls on Ukraine to review the draft of the updated Energy Strategy for the period up to 2030, as the document has been prepared on unrealistic projections of the national economy, is not consistent with other legislation, and does not account for all the international obligations of the state. Joint letter to the Head of the EU delegation to Ukraine Jose Manuel Pinto Teixeira, head of the U.S. diplomatic mission in Ukraine Eric Schultz and World Bank Director for Ukraine, Belarus and Moldova Chimyao Fana was sent to the Minister of Energy and Coal Industry Yuriy Boyko.

In particular, the Strategy should foresee an increase in the share of renewable energy sources in the energy balance to 12% by 2020 (the draft energy strategy has less than 2% by 2030), as the relevant agreement will be approved by members of the Energy Community in the near term.

For more information read here (in Russian)

http://www.kommersant.ua/news/2030301

 

 

CHANGES TO THE GREEN TARIFF REGULATORY SYSTEM APPROVED BY THE PARLIAMENT IN THE FIRST READING 

On 4 July 2012 the Parliament adopted in the first reading the Draft Law “On Introducing Changes to the Law of Ukraine “On the Power Sector” (regarding promotion of electricity production from renewable energy sources), registration number 10183 (hereinafter referred to as “Draft Law”).

The Draft Law is currently being prepared for the second reading with the Parliament.

 

GLOBAL RENEWABLE ENERGY INVESTMENT POWERS TO RECORD $257 BILLION

The sister publications, UNEP’s Global Trends in Renewable Energy Investment, and REN21’s Renewables 2012 Global Status Report were launched on 11th June 2012.

Total investment in renewables excluding large hydro last year increased 17% to a record $257 billion, a six-fold increase on the 2004 figure and 94% higher than the total in 2007.

In the power sector, renewables accounted for almost half of the estimated 208 GW of electric capacity added globally during 2011.

By the end of 2011, total renewable power capacity worldwide exceeded 390

GW (not including hydro) and 1,360 GW (including hydro), up 8% over 2010; renewables comprised more than 25% of total global power-generating capacity (estimated at 5,360 GW in 2011) and supplied an estimated 20.3% of global electricity.

Over the last three years photovoltaic module prices fell by close to 50%, and onshore wind turbine prices by around 10%. These changes brought these two leading renewable power technologies closer to competitiveness with fossil-fuel alternatives such as coal and gas.

Total investment in solar power jumped 52% jump to $147 billion.

According to the State Agency for Energy Efficiency and Energy Saving, the total installed capacity of renewable energy facilities in Ukraine is 411 MW(107 operating facilities - 76 hydropower plants, 18 solar power plants, 11 wind farms and two bio-energy facilities) or 0.8% of power generating capacity of the country.

257MW of renewable energy facilities were commissioned in 2011 and it is expected that in 2012 wind farms with a total capacity of 252 megawatts and solar power plants with the total capacity of 290 megawatts will be launched.

THIS YEAR THE GOVERNMENT EXPECTS 1 BILLION KWH OF ELECTRICITY PRODUCED FROM RENEWABLE SOURCES

May 17, 2012. Kiev hosted the first Polish-Ukrainian forum for renewable energy at which the Deputy Minister of Economic Development and Trade of Ukraine Volodymyr Bandurov said that by the end of 2012 Ukraine expects to 1 billion kWh of electricity produced from renewable energy sources. In the past year only 340 million kWh of energy from renewable sources was produced.

 

BY 2030 9% OF ELECTRICITY WILL BE GENERATED FROM RENEWABLE ENERGY SOURCES

Mykyta Konstantinov, a Director of the strategic policy, investment and nuclear energy complex department at the Ministry of Energy and Coal Industry of Ukraine, announced on 27.03.2012 that the installed capacity of the power plants that run on alternative and renewable energy sources will increase to 9% or 6 GW by 2030. Wind turbines will reach the installed capacity of 3.5 GW, solar 2 GW and small hydropower plants up to 0.6 GW.

 

WORLD MARKET FOR WIND TURBINES RECOVERS IN 2011: 42 GW OF NEW CAPACITY IN 2011, WORLDWIDE TOTAL CAPACITY AT 239 GW

The world market for wind turbines set a new record in the year 2011 and reached a total size of 42 Gigawatt, after 37,6 Gigawatt in 2010. According to the preliminary data gathered by WWEA the total capacity worldwide has come close to 239 Gigawatt, enough to cover 3 % of the world's electricity demand. Amongst the individual countries, China kept its strong position reached a similar amount like in the previous year 2010: China installed around 18 GW of new wind turbines within 2011, coming to a total capacity of 63 GW, more than one fourth of the global wind capacity. The second largest market for new wind turbines was again the USA with 6,8 GW, followed by India (2,7 GW), Germany (2 GW) and Canada with 1,3 GW of new installed capacity. Spain, France and Italy added each around 1 GW.

 

WIND POWER IN EUROPE INCREASED BY 11%

During 2011 the EU commissioned a great number of new wind power plants with the total capacity of 9,616MW, making up more than a fifth of total new power installations commissioned during the period under review. Growth of offshore projects in the UK, Sweden and Germany helped the EU member states to increase wind power sector by 11% compared with 2010. According to the representatives of the European Wind Energy Association (EWEA), the total renewable power capacity generated by wind power plants at present makes up 93 957MW.

 

73% GROWTH IN WIND POWER SECTOR OF UKRAINE IN 2011

2011 was a landmark for the wind energy sector in Ukraine and went into its history as a year of implementation of the first private industrial wind power projects (WPP) in Ukraine. According to the National Committee on Fuel and Energy of Crimea and Ukrainian Wind Energy Association, the installed capacity of wind power in Ukraine increased by 66.1 MW in 2011. Thus, the total installed wind power capacity of Ukraine at the end of 2011 reached 151.1 MW, compared to 87.5 MW in 2010, which corresponds to 73% growth in wind power capacity.

 

THE GLOBAL PV MARKET IN 2011: 27.7 GW OF NEW PLANTS CONNECTED TO THE GRID UKRAINE NOW UNDER THE TOP 15 COUNTRIES

Photovoltaic production has been increasing by an average of more than 20% each year since 2002, making it a fast-growing energy technology. At the end of 2011 the PV capacity world-wide was 67.4 GW. Top capacity countries were, in GW: Germany 24.7, Italy 12.5, Japan 4.7, Spain 4.2, the USA 4.2, and China 2.9. Globally, PV systems connected to the grid rose from 16.6 GW in 2010 to 27.7 GW in 2011. The European share in the global PV arena still remains predominant with more than 75% of all new capacity in 2011. The 2 biggest markets, Italy and Germany, account for nearly 60% of global market growth during last year.  In Europe, over 50 GW of PV systems were installed at the end of 2011. Ukraine is now under the top 15 countries with a newly connected capacity of 140 MW in 2011.

 

THE PRESIDENT ADOPTED AMENDMENTS TO THE LAW “ON THE POWER SECTOR” CONCERNING LOCAL CONTENT REQUIREMENT

The Law on Amendments to the Article 17.1 of the Law “On the Power Sector” (concerning the share of components of the Ukrainian origin in the cost of construction of power facilities) states that the share of raw materials, materials, main assets, works and services of the Ukrainian origin in the construction cost of power facilities that generate electricity from alternative (renewable) energy sources, the construction of which is initiated after 01 January 2012 and which are commissioned before 01 January 2013, should be at least 15%;

for power facilities, the construction of which is initiated after 01 January 2012 and which are commissioned after 01 January 2013 - at least 30%;

for power facilities, the construction of which is initiated after 01 January 2012 and which are commissioned after 01 January 2014 – at least 50%.

Additionally, for solar power facilities commissioned after 01 January 2013 the share of materials and raw materials of the Ukrainian origin in the production cost of solar modules should be at least 30%, and after 01 January 2014 – at least 50%.

The procedure for determining the share of raw materials, materials, main assets, works and services of the Ukrainian origin in the construction cost shall be approved by the National Electricity Regulatory Commission (NERC).

The procedure for issuing certificates confirming the Ukrainian origin of goods for the purposes of this Law shall be approved by the Cabinet of Ministers.

 

VERKHOVNA RADA COMMITTEE ON FUEL AND ENERGY COMPLEX IS REQUESTING VICTOR JANUKOVICH TO REVISE COMMENTS TO THE LAW STIPULATING THE “GREEN” TARIFF FOR ELECTRICITY MADE OF BIOGAS

16.10.2011. INTERFAX UKRAINE – Verkhovna Rada Committee on fuel and energy complex, nuclear policy and nuclear safety has decided to address the President of Ukraine Victor Yanukovich with a request to revise comments to the law stipulating the “green” tariff for electricity made of biogas.

As Nikolay Martynenko, Head of the Committee put it on Wednesday, such a decision is unprecedented and the reason for this is that, on the one hand, it would be difficult to pole enough votes to override the veto, and, on the other hand, the deputies cannot agree with the President’s arguments and reject the law.

 

PRESIDENT VETOED ON 21 OCTOBER 2011 THE LAW STIPULATING THE "GREEN" TARIFF FOR ELECTRICITY MADE OF BIOGAS

President of Ukraine Viktor Yanukovych believes that adoption of amendments to the legislation of Ukraine aimed at establishing conditions for the development of biogas projects in the country is disadvantageous. President notes that international experience shows that the cost of electricity produced from biogas that in turn is produced from biomass plants or of animal origin, as well as of the organic fraction of waste, is equal to the cost of electricity produced using traditional fossil fuels.

 

VERKHOVNA RADA PASSED THE LAW STIPULATING THE "GREEN" TARIFF FOR ELECTRICITY MADE OF BIOGAS

On 6 October, 2011 the Parliament of Ukraine has adopted the draft law #8028 which introduces amendments to the Law of Ukraine “On electric power industry” as to establishment of a “green” tariff for electric power produced from biomass and biogas. The law is based on clear establishment of the procedure for “green” tariff calculation for electric power from biogas.

 

 

CARBON EMISSIONS TRADING UNDER KYOTO PROTOCOL IS SUSPENDED FOR UKRAINE

According to the decision of committee on Observance of the Secretary of the United Nations Framework Convention on Climate Change, the possibility of international emissions trading and joint implementation of projects has been temporary suspended for Ukraine.

However, the possibility to implement projects on joint implementation under international procedure remained open for Ukraine.

  

 

PRESIDENT SIGNED THE LAW ON CHANGES TO THE ARTICLE 17-1 OF THE LAW “ON THE POWER SECTOR”

On 07 July 2011 the Law №8231 “On Introducing Changes to the Article 17-1 of the Law of Ukraine “On the Power Sector” was signed by the President of Ukraine.

In accordance with the new Law, the general local content requirement (LCR) has been lowered (from 30%) to 15% starting 01 January 2012. It will then increase up to 30% starting 01 January 2013 and up to 50% starting 01 January 2014. In addition, there is specific LCR for solar energy projects - starting 01 January 2013 the solar modules used in such projects will have to be made from 30% Ukrainian raw materials and supplies (50% - starting 01 January 2014).