Page 59 - UKRRptAug19

UBJ July 1, 2019
The electricity market is part of a wider free market package designed to bring $30bn in investment through 2030 -- 11.5 times more than without the changes, writes Andrian Prokip, an energy analyst for the Ukrainian Institute for the Future. Since 1991, Ukraine has largely coasted on its Soviet energy inheritance, Prokip writes in an essay first published by the Wilson centre. He writes: “90% of electricity transmission lines are outdated. The distribution lines have depreciated by 60%, and thermal electrical power stations have depreciated by 80%.”
Ukraine’s national nuclear energy provider Energoatom has inked a memorandum of understanding with France-based Technetics Group following talks in late June. The move now paves the way for the further diversification of supplies in the Ukrainian atomic energy industry. The two sides are looking to foster direct business cooperation, with Ukraine’s Energoatom interested in acquiring spare parts from Technetics Group along with additional production machinery. Technetics Group is part of the EnPro Industries group of companies and is a globally recognized supplier of engineering components for use in the nuclear power and thermal power sectors.
Over the next three years, Ukrenergo is to invest €357mn to synchronize Ukraine’s electricity supply system with ENTSO-E, the European Network of System Operators of Transmission of Electricity. Ivanna Klimpush-Tsintsadze, deputy prime minister for European integration, told a conference last month that 40% of this money is to come from foreign sources: the EU, the US, the World Bank, the European Investment Bank, and KfW, Germany’s development bank. Compliant with the EU’s Third Energy Package, the new energy laws were required by the EU and the IMF for continued soft loans.
9.1.10 Renewables sector news
Renewable energy installation in January-June 2019 almost doubles annual total for the previous year. Renewable energy facilities generating 1.55 million MW underwent installation in Ukraine during the first six months of 2019, according to figures released in early July by Ukraine’s State Agency for Energy Efficiency and Energy Saving. This total represents almost twice the generation capacity of renewable energy facilities installed during the whole of 2018. Investment in renewable energy facilities commissioned during the January-June 2019 period reached approximately EUR 1.3 billion. Ukraine’s renewable energy sector has attracted considerable international investment in recent years thanks to the country’s natural suitability for renewable technologies together with attractive terms offered by the Ukrainian authorities as part of a strategic shift towards greater energy independence and sustainability.
Ukraine’s renewable energy boom will slow in 2020 to 540 MW of new capacity, about one quarter of the 2 gigawatts planned for this year, Mykhaylo Blyznyuk, deputy minister of Energy and Coal Industry, told a Ukraine renewables forum last week in London. These volumes – 300 MW for solar, 160 MW for wind and most of the rest for biogas – will have their electricity feed in tariffs set two times a year at ProZorro auctions. This year,
59 UKRAINE Country Report August 2019 www.intellinews.com