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9.1.10 Renewables sector news
Ukraine’s Energy Ministry has presented a solution to fight excessively high rates for electricity produced by renewable sources, Interfax-Ukraine reported on February 27. In particular, the ministry offers to decrease green tariffs for solar power plants by 15% for stations below 10 MW capacity, 25% for over 50 MW and 20% for those in between. For wind stations, the offered rate decrease will be 10%. Along with the decrease of rates, the ministry offers to increase the duration of the feed-in tariffs for five years, to the end of 2034. Alternatively, the producers could chose smaller rate decreases (12.5% for solar and 5% for wind pants) without a five-year prolongation. The measures are expected to be applied for renewable sources commissioned after 2017. Based on current legislation, renewable energy sources commissioned in 2017-2019 are eligible to get a feed-in tariff at the level of €150/MWh (solar) and up to €102/MWh (wind). The tariff are fixed in euro and are applicable till the end of 2029. With such generous rates, installed capacity of solar and wind power stations in Ukraine reached 4.83 GW as of end-January 2020, compared to 0.76 GW as of end-2016. The average wholesale electricity price on the Ukrainian market was €53/MWh in January.
9.1.11 Metallurgy & mining sector news
Ukraine will impose a 50% “anti-dumping duty” on some Russian steel products for 5 years, reports the Interagency Commission on International Trade.
The government plans to close most of Ukraine’s coal mines during this decade, Minister Orzhel said Friday at a presentation of a revised draft Concept for a Green Energy Transition To 2050. The cutoff level for production will be $40 a ton. “Very few facilities will be competitive,” Orzhel said, outlining a policy that he predicts will outlast the five-year Zelenskiy Administration. Referring to the social impact, he said: “It will not be shock therapy, but gradual closures.”
Coal consumption down 24.2% year-over-year in January, according to the State Statistics Service. A changing economy and global trade slowdown are contributing factors.
Ukraine’s coking coal imports rose 21% m/m to 808 kt in December, according to Concorde Capital's analysis of a February 3 report by Interfax-Ukraine, which cited Ukrkoks, an industry association.
In 2019, coking coal imports dropped 12.3% y/y to 10.43 mmt, according to our analysis of the data. By country of origin, imports from Russia dropped 24.2% to 5.02 mmt, imports from the US slid 6.2% to 4.57 mmt, imports from Kazakhstan jumped 88.5% to 0.75 mmt, and imports from Czech Republic increased almost 9 times to 0.09 mmt.
Supplies of domestic coking coal to Ukrainian coke plants amounted to 3.5 mmt in 2019, a 30.3% y/y increase, according to Ukrkoks.
Recall, in April 2019, the Russian government decided to restrict exports of coal, including coking coal, to Ukraine starting from June 1, allowing such exports only under permits issued by Russia’s Ministry of Economic
57 UKRAINE Country Report March 2020 www.intellinews.com
