Page 74 - UKRRptAug22

9.1.9 Utilities sector news
Electricity exporters will transfer 80% of their profits to support tariffs for the population. The government obliged companies that export electricity to EU countries to transfer 80% of the income from exports to ensure the availability of electricity for household consumers. Thus, electricity exporters will transfer the cost of the "electricity supply security service" to the state company Guaranteed Buyer. This value will be calculated as 80% of the difference between the conditional income of the exporter and the costs of carrying out this export. The guaranteed buyer will further direct the received funds to providers of universal services that deliver electricity to the population. Exporters who do not sign a contract with Guaranteed Buyer will not be admitted to Ukrenergo's electricity auctions. These changes are valid until the day martial law is terminated or abolished.
EU will more than double electricity imports from Ukraine. Starting July 30, the ENTSO-E association, which represents the EU electricity transmission operators, allowed a 2.5-fold increase in the export of Ukrainian electricity, or 250 megawatts, to European countries. “The EU is aware of the role of Ukrainian electricity, which helps in replacing Russia’s toxic gas,” said Volodymyr Kudrytskyi, the head of the board of state-owned electricity grid operator Ukrenergo.
Ukraine earns nearly $20 million in first month of selling electricity to EU. Volodymyr Kudrytskyi, head of the state electricity grid operator Ukrenergo, said during a briefing that the figure is expected to increase significantly in the following months as the volume of electricity exports grows. Ukraine began exporting electricity to the EU using an interconnection with Romania on July 1.
Ukrenergo will spend UAH 2.5B on strategic coal reserves. On behalf of the government, state company Ukrenergo will finance the creation of a strategic coal reserve for the 2022-2023 heating season, the company's press service reported. This reserve will guarantee that Ukrainian thermal power plants will have enough fuel for the heating season. For this purpose, Ukrenergo will provide an interest-free loan of UAH 2.5B ($66M) to the state enterprise Ukrvugilya for the purchase of coal at the current market price and place it in storage. It is emphasized that priority will be given to domestically produced coal to support Ukrainian miners. This coal will be sold to thermal power plants in agreement with the Ministry of Energy.
Moldova will buy electricity from Ukraine to cover the deficit. In August, Moldova will buy 30% of the electricity it needs from two Ukrainian companies, announced the Minister of Infrastructure of Moldova, Andrii Spinu. The companies to export electricity to Moldova are Energoatom with 20% and Ukrhydroenergo with 10% of the required volume. Both companies will supply electricity at the same price - $77/MWh. Spinu noted that 70% of his country’s electrical needs will be provided by the Moldovan
74 UKRAINE Country Report XXXX 2018 www.intellinews.com