Page 66 - UKRRptDec19

obligations on them, which leads to a distortion of the mechanism of the market.
"At the sub-regulation level, the implementation was distorted a lot, and something needs to be done with it. It needs to be refined and returned to a certain logic, which in the future will help to develop the sector and provide the country with electricity of good quality and at the best price," Poluliakh said.
9.1.10 ​Renewables sector news
In the last five years, $4.8bn has been invested in renewable energy in Ukraine.
In a bad sign for renewables, Ukrenergo, for the first time, did not use the full amount of power produced on October 4 night by three DTEK wind power plants: ​Botievska, Orlivska and Prymorska 1. Andriy Gerus, head of the Rada Energy Committee and an opponent of renewable energy tariffs, said that Ukrenergo will pay for the unused electricity under the current ‘take or pay’ system. and Housing and Public Utilities. He said the money will come from nuclear and large scale hydro. The sponsor of a bill to end ‘take or pay’ for renewable projects over 150 MW, Gerus warns on Facebook: "The problem is growing, and in the spring it will become large-scale.”
DTEK issued €325mn of the country’s first green bonds. ​The bonds are to help DTEK Renewables, Ukraine’s largest investor in renewable energy, move ahead with almost 1 gigawatt of new projects. In the Odesa region, DTEK is preparing to build what would be Europe’s second-largest wind farm – Tylihul, with a capacity of 565 MW. Next year, DTEK plans to start building three solar parks in the Dnipropetrovsk region with a total capacity of 390 MW – Pavlogradska, Troitska, and Vasilkovska. Today, DTEK accounts for about half of Ukraine’s installed wind power capacity and about 15% of its solar capacity.
9.1.11 ​Metallurgy & mining sector news
Steel output fell to 50,400 tons in October, the lowest level in post-Independence Ukraine​, reports UkrMetalurgProm, the steel producers association. The 12.7% y/y drop was attributed partly to higher iron prices that made it more profitable for some vertically integrated companies to export iron ore, rather than refine it in Ukraine.
Due to a drop in world steel consumption, smelting in Ukraine fell by 10% over the last two months​, reports the Industry Ministry. The US-China trade war has depressed major investments involving steel. About 350,000 people work in Ukraine’s metals industries, a sector that typically exports $10bn every year.
9.1.12 ​Other sector news
Head N.V., the sports equipment manufacturer, is building its largest manufacturing plant in the world in Vinnytsia.​ The $100mn factory should employ 1,000 people by 2025. “Ukraine offers by far the best prospects for future manufacturing,” Johan Eliasch, CEO of Head, told the UBN at the Economic Forum. “Eastern European labour costs have gone up almost to the
66​ UKRAINE Country Report​ December 201 ​ ​www.intellinews.com