Page 64 - UKRRptNov18

The National Anti-Corruption Bureau of Ukraine (NABU), the country's main anti-graft body, believes that a new pricing model for thermal power plants in April 2016, now called Rotterdam Plus was "unreasonably applied" and lead to up to UAH15bn of losses, NABU's head Artem Sytnyk said on October 3.
"We have recently received an economic report from specialists that Rotterdam+ was indeed unreasonably applied," Interfax news agency quoted Sytnyk as saying. "The amount of illegally recovered, funds actually received as a result of the unjustified use of this formula was established. This amount stands at UAH15bn."
According to a new methodology for calculating the tariffs for electricity supplied by Ukrainian coal-fired thermal power plants (TPPs), the price of electricity sold by TPPs will cover in full the coal costs, calculated according to the API2 coal index (the CIF price of coal in Amsterda-Rotterdam-Antwerp), plus the costs of coal delivery from Rotterdam to Ukrainian TPPs.
This move was extremely positive for the country’s major power and coal mining conglomerate DTEK, controlled by Ukrainian oligarch Rinat Akhmetov, as the price increased in 2016 from UAH1,100-1,200 ($44-48) per tonne to UAH1,400-1,500.
At the same time, Ukrainian power plants burned mostly domestic coal in 2016, which they bought at a much lower price than API2+ delivery costs. This enabled power generating companies like the state-owned company Centrenergo and the subsidiaries of DTEK to boost their profits last year, experts believe.
Ukraine has installed a 1MW solar power plant in the contaminated area adjacent to the decommissioned nuclear power station in Chernobyl.
The photovoltaic facility is comprised of 3,800 panels and is expected to produce enough energy to meet the power demand of 2,000 local apartments. It benefits from feed-in-tariffs (FiTs) that guarantee a certain price for power, Reuters reported.
The $1.1mn solar plant is the result of a partnership between Ukrainian company Rodina and Germany’s Enerparc AG.
Ukraine has been steadily investing in renewable sources. During the first nine months of 2018, the country has added over 500MW of renewable power capacity to its energy mix, more than twice as much as in 2017. Amongst the projects announced this year are:
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Ukrainian businessman Vasyl Khmelnytsky has completed a 18MW solar power plant in the Kherson region , the businessman said on his Facebook page, reports Interfax. The plant is owned by UDP Renewables, part of Khmelnytsky’s UFuture Group holding company.
Windkraft Ukraine, a company based in the country's Kherson region is going to expand its installed capacity of its wind farms in this region to 170 MW by the end of the year, the company's director Carl Sturen said on September 20. The company is also mulling the next project to boost them by another 150-170 MW, Sturen told Interfax news agency, adding that the company used its own funds and bank loans in 2018.
64 UKRAINE Country Report November 2018 www.intellinews.com