Page 76 - UKRRptSept21

Alexander Paraschiy: This is a purely populistic move aimed at promoting the images of the government and the president. The price of UAH1.44/kWh does not even cover electricity transmission and distribution costs in certain locations (which range from UAH0.67/kWh to UAH1.80/kWh in Ukraine).
The decline in rates will cost the energy sector about UAH2.0 – 2.5bn in annual terms, and someone will have to shoulder this additional burden. Taking into account Haluschenko’s words, those will be state holdings Energoatom and Ukrhydroenergo. But it could also happen that other market players, including business consumers of electricity and private power producers (including renewables) will also have to take on part of this burden.
All in all, the initiative looks neither logical nor beneficial for Ukraine’s power sector and public finances.
DTEK Energy, Centrenergo agree to import coal from US. In the coming months, they have agreed to supply 75,000 tonnes of thermal coal from the US States through the international trader Trafigura. It will be divided equally upon arrival. According to DTEK: “It became possible to ensure coal imports due to normalization of the situation in the electricity market, which made it possible to achieve economically reasonable prices, and thus find the necessary resources to prepare for the autumn-winter period." DTEK also announced the start of coal imports from Poland and possibly Kazakhstan.
Miner’s trade union leader criticizes importing expensive coal from abroad. The head of the Independent Trade Union of Miners of Ukraine, MP Mykhailo Volynets notes that coal from the US will cost UAH 3,150 (about $120) per tonne, while Ukrainian mines sell coal at UAH 1,650 per tonne. "State mines are reducing coal mining, and the country is covering its deficit through imports at UAH 3,150 per tonne," he said.
9.1.10 Renewables sector news
According to Naftogaz CEO Yuriy Vitrenko Green Transition will require $100 billion to fully replace conventional energy sources with renewable ones. Ukraine will need these funds and approximately 25 years. Naftogaz is now in negotiations about cooperation projects in this field with other potential partners, not just with German ones. It plans to discuss them with American partners during the Ukrainian delegation’s forthcoming visit to the USA.
The Energy Ministry is considering transferring excise tax on electricity, including 'green,' to a trust fund to pay off debts, particular to the renewable energy sector Energy Minister Herman Haluschenko has told Interfax-Ukraine. It would need parliamentary approval. The introduction of a 3.2% excise tax for electricity from renewable energy sources which is opposed by profile and business associations. The idea of "green" auctions is still being developed but he doubted they could be held in 2021.
76 UKRAINE Country Report September 2021 www.intellinews.com