News

Circulation of Guarantees of Origin: Market Operator and UWEA discussed GOs trading

On August 1, 2023, JSC Market Operator and the UWEA representatives discussed trade in guarantees of origin of electricity generated from renewable energy sources (“GOs”).

Law of Ukraine “On Amendments to Certain Laws of Ukraine on the Restoration and Green Transformation of the Energy System of Ukraine” No. 3220-IX (Law 3220-IX) enacted on July 27, 2023, has introduced GO mechanism in Ukraine. The newly implemented legislation provides for GOs to be traded in Ukraine and exported abroad.

To promote trading in GOs the Ministry of Energy of Ukraine will develop a procedure for determining the environmental value of electricity generated from RES.

During the meeting, JSC Market Operator shared their vision of the GO trading process and the advantages of its own trading platform (in accordance with Law 3220-IX, one of the GO trading platforms could be the Market Operator’s one).

Oleksandr Havva, the company’s CEO, emphasized that the proposed bidding format for the sale and purchase of GOs should be transparent for both sellers and buyers. One of the options could be an auction based on the intersection of supply and demand curves, similar to the one used in the day-ahead market.

Oleksandr Havva: “We offer 100% instant payment using escrow accounts. We guarantee transparency of the bidding process, convenient periods for purchasing guarantees of origin, and two types of pricing for the auction: at the ceiling price and at the price of the auction. Once the relevant law is implemented, we are ready to work.”

The UWEA welcomes the Market Operator’s commitment to prompt introducing a trading platform for GOs and expresses its readiness for further cooperation on designing the relevant policy in the RES industry.

Presentation of the JSC Market Operator

UWEA Webinar 2023: Selling Green Electricity in the Free Market

On 25 July 2023, the Ukrainian Wind Energy Association held a webinar “Selling Green Electricity in the Free Market”. Over the past 12 months, RES electricity producers have been granted the right to leave the balancing group of the SE Guaranteed Buyer and operate independently in the electricity market.

The event dedicated to the challenges related to trading green electricity in the free market, provided the UWEA members and other RES market stakeholders with expert views by representatives from the UWEA member companies - KENK (has been operating in all market segments since 20128) and law firm Sayenko Kharenko - on issues such as:

• benefits and risks of selling electricity in the free electricity market;
• cooperation with electricity supplier, trader.

Serhiy Zhylnikov, Commercial Director at company KENK, kicked-off the event with a presentation of the current level of settlements between SE Guaranteed Buyer and RES electricity producers under the feed-in tariff and gave price forecasting for DAM. Serhiy also focused on the benefits of cooperation with electricity suppliers and their balancing groups.

Natalia Hutarevych, Senior Energy Lawyer at Sayenko Kharenko, explained the legal aspects of the process of suspending, withdrawal from the balancing group of SE Guaranteed Buyer and re-joining it, provided algorithm of these process. Natalia highlighted the legal changes introduced by the Law of Ukraine “On Amendments to Certain Laws of Ukraine on Restoration and Green Transformation of the Energy System of Ukraine” on No. 3220-IX, dd June 30, 2023.

Speakers’ Presentations (in Ukrainian)

25.07_Sayenko_Kharenko.pdf

25.07_Kenk.pdf

The webinar recording is available on the UWEA YouTube channel.

UKRAINIAN WIND ENERGY ASSOCIATION SIGNS CO-OPERATION AGREEMENT WITH RENEWABLEUK

UWEA has signed a Memorandum of Understanding with RenewableUK at the international Ukraine Recovery Conference in London today.

In a joint letter to businesses participating in the conference, the Foreign, Commonwealth and Development Secretary James Cleverly and the Ukrainian Ministry of Foreign Affairs Dmytro Kuleba state that it is more important than ever for the global community to come together to show the strength of support for the recovery effort, enabling Ukraine to plan ahead. They note that the magnitude of the recovery efforts needed to overcome the consequences of the war to date are unprecedented and call for careful planning and coordination of the public and private sectors to unleash the economic potential of the large-scale reconstruction opportunity for Ukraine and other countries.

The memorandum sets out a series of objectives promoting collaboration, economic growth and shared commitments to decarbonise the energy sectors of Ukraine and the UK. It recognises the central role of renewable energy in combating climate change and achieving a sustainable energy future. The MoU aims to enhance cooperation, knowledge exchange, market development and trade between the renewable energy sectors of both countries.

Deputy Chairman of Ukrainian Wind Energy Association Oleksandr Podprugin, who signed the MoU said:

“By partnering with RenewableUK, we are taking a bold stride towards harnessing the potential of renewable energy. The MoU sets the foundation for a fruitful collaboration focused on economic growth, knowledge exchange and energy market development of both countries.

This collaboration is especially important for Ukraine as a sign of continuous support against russian aggression. The challenges which our country faces, and our ambitious sustainable targets, require tremendous efforts from Ukraine and a real technological and industrial cooperation with our true partners.”

The other signatory is RenewableUK’s Commercial Director Vicky Mant, who signed the MoU, said:

“Showing solidarity with the people of Ukraine is vitally important right now. This agreement to work closely with the Ukrainian Wind Energy Association is a tangible example of how we can demonstrate our support in a practical way, putting in place a framework to help to boost the future prosperity of the country. We’ll be collaborating closely by exchanging information on the latest developments in clean technology, renewable energy policy and best practice, so that we can roll out projects faster in both countries, backed by international investors.

“It’s extraordinary to see that even during this period of intense conflict, Ukraine is still managing to build onshore wind farms, with a 19-turbine project just sixty miles from the front line being officially opened just last month. That level of tenacity speaks volumes about the level of commitment in Ukraine to ramp up its renewable energy capacity and we stand ready to help them to deliver even more.”

This year's edition of the Ukraine Recovery Conference (URC 2023) focuss on mobilising international support for Ukraine's economic and social stabilisation and recovery from the effects of Russia's war of aggression, including through assistance for immediate needs and private sector participation in the reconstruction process. It brings together Heads of State or Government and Foreign Ministers from the international community, leaders of international financial institutions, the private sector and civil society to mobilise support for Ukraine.

Ukrainian Wind Energy Association participates in URC 2023 “Energy Sector: Power Systems for a Sustainable Recovery” session.

Ukrainian-Polish roundtable “Restoration of Ukraine and Energy Transition in Poland”

For the sixth year in a row, the small Polish town of Serock becomes the heart of the country’s wind energy for three days. It is here that the annual Conference of the Polish Wind Energy Association - PWEA 2023 - takes place from June 20 to 22, 2023. This three-day event brings together key decision-makers, opinion leaders, representatives of local authorities, business and environmental associations, the media, and the entire wind energy industry in one place.

The development of renewable energy sources is becoming more important than ever for Poland. According to the Polish Energy Networks, the potential of RES indicates the possibility of producing more than 100 TWh per year of renewable energy by 2030, which will significantly exceed 50% of Poland’s electricity demand.

An important part of the event was the Ukrainian-Polish roundtable “Restoration of Ukraine and Energy Transition in Poland”. Representatives of the leading Ukrainian wind energy companies and international financial institutions discussed the role of RES, primarily wind, in the restoration of Ukraine and its energy sector.

The recovery of Ukraine's energy sector should be based on renewable energy sources. At the same time, it should be clear that private wind and photovoltaic projects will be the driver of decentralized, green generation in the postwar period. 

Grzegorz Zielinski, EBRD Director, Head of Energy Europe, indicated the EBRD’s continuing support for Ukraine and stressed the need to develop renewable energy sources on market conditions.

IFC's interest and plans to support private renewable energy projects in Ukraine were also stated by Fuphan Chou, Manager, Infrastructure and Natural Resources, Europe & South Caucasus.

Ukraine has a huge potential for onshore and offshore wind energy. At the same time, until the beginning of this century, Ukraine had a post-Soviet centralized energy system built on fossil fuels, mainly imported nuclear fuel, natural gas and domestic coal. The war proved the vulnerability of such a system, as russian terrorists consider it a major target for destruction. However, the operating wind farms, in contrast to the thermal power plants, have shown their resilience and despite the constant shelling, they continued to generate electricity.

Andriy Konechenkov, Chairman of the Board of the UWEA: “As part of the post-war energy recovery, wind power and other renewable energy generation technologies will play a leading role in the newly rebuilt Ukraine’s decentralized energy system relies on distributed generation. Ukrainian business sector is interested in this development, but without Western partnership and investment, it is virtually impossible to accomplish. Participation in PWEA 2023 opens up good opportunities to find such partners and accelerate the development of wind energy in Ukraine.”

WOMEN’S LEADERSHIP FOR PROTECTION OF THE ENVIRONMENT AND SUSTAINABLE DEVELOPMENT

On June 15, Kyiv and Dnipro hosted the Forum “Women's Leadership for Protection of and Sustainable Development” and the presentation of the honorary award “Green Heart Leader”. The event aimed at creating a network of women leaders who promote sustainable development at all levels, decarbonization, and eco-transformation in Ukraine, recognizing the contribution of the most active drivers of the green movement, and scaling up their positive experience, as stated by the Office of Sustainable Solutions website. The nominees were chosen based on the results of a public poll.

“This forum is not a ranking; it does not differentiate between “significant” and “more significant” achievements. It unites, energizes, strengthens synergy, and provides new energy for future projects,” emphasized Lyudmyla Tsyganok, President of the PAEW.

Among the 100 women who received the honorary award “Green Heart Leader,” there are representatives from the wind energy sector: Galyna Shmidt, member of the UWEA Board and Vice President of the WWEA, and Natalia Hutarevych, Senior Associate at Sayenko Kharenko, member of the UWEA Legal Committee.

DTEK OPENS WIND FARM IN UKRAINE AMID WAR TO BUILD BACK GREENEW AFTER RUSSIAN ATTACKS

The world’s only wind farm being built in a major conflict zone has officially opened, DTEK, Ukraine’s largest private energy company, said on May 22, 2023.

Phase I of the Tyligulska Wind Power Plant (WPP), which lies just 100 km from the frontline in the Southern region of Mykolaiv is already generating green power. The plant’s 19 turbines have an installed capacity of 114 MW, generating up to 390,000 kWh – enough to power 200,000 households a year. DTEK invested $200 million in the construction process of phase I. The project is one of the first to deploy 6 MW Enventus turbines from Danish manufacturer Vestas. 

Phase II plans envisage adding up to 64 turbines to raise potential output to 500 MW. The 500MW capacity at that point, will make it Eastern Europe’s largest WPP and provide secure energy for homes and businesses in the south of Ukraine.

Ground was broken in late 2021 and the first wind turbine was erected in December 2021. However, DTEK halted construction after russia’s full-scale invasion in February 2022, with 6 turbines installed, as enemy forces advanced on Mykovaiv and foreign partners were forced to evacuate staff and equipment.

By summer 2022, work resumed with an all-Ukrainian crew of 650 people at its peak. Staff worked in bullet proof vests and spent over 300 hours in bomb shelters from August 2022 until April this year, under the constant threat of missile strikes.

In 1,5 years, the team installed 114 MW of generating capacity – twice the usual speed for a project on this scale and an outstanding achievement in uniquely difficult circumstances.

Commenting on Tyligulska’s official opening, DTEK CEO Maxim Timchenko said:

“The Tyligulska wind farm is a symbol of Ukraine’s resistance to Russian attempts to freeze Ukraine into submission. With projects like Tyligulska, we can build Ukraine back greener and cleaner and become a key partner in Europe’s energy future. And by developing an infrastructure based on distributed rather centralized generation, we create an energy supply that is more resilient and stable.”

“Before the war the development of wind energy in Ukraine was primarily seen as an alternative to natural gas imported from Russia. Today this industry should become one of the main tools for building a new decentralized energy system in Ukraine, which will help to avoid blackouts that our country faced this winter,” said Andriy Konechenkov, Chairman of the UWEA Board, during his speech at the press briefing.

Phase II plans envisage adding up to 64 turbines to raise potential output to 500 MW. The 500MW capacity at that point, will make it Eastern Europe’s largest WPP and provide secure energy for homes and businesses in the south of Ukraine.

UWEA thanks DTEK Renewables' team for their contribution to Ukraine's energy independence and energy security!

Fast facts on Tyligulska WPP

PHASE I

• Construction workforce: Up to 650 at peak periods.
• Turbine type: Vestas EnVentus V162-6.0 MW turbines.
• Blade length – 79m
• Blade weight – 23 tonnes
• Blade rotation diameter – 162m
• Total turbine weight – 730 tonnes.
• Installed capacity: 114 MW (19 turbines, 6MW each)
• Electricity generation: 390 million kWh a year

PHASE II:

• Planned capacity: 500 MW (83 turbines) – making it Eastern Europe's largest wind power plant
• 64 more wind turbines, providing 384 MW of capacity
• Cost: $450 million
• Sustainability impact: emissions of 400,000 tonnes of CO₂ to be saved each year.

UKRAINE NEEDS DISTRIBUTED WIND GENERATION

UWEA Board Member Mykola Savchuk, Gresa Group company, spoke at the webinar organized by the World Wind Energy Association (WWEA), dedicated to the development of small wind power generation in different countries of the world “Small Wind in Practice - What the Industry Provides to Make It Work”. Experts from such major small wind energy markets as the United States, Sweden, the United Kingdom, Germany, Ukraine and Spain presented their achievements, products and services.

In his presentation, Mykola Savchuk presented models of small wind turbines manufactured in Ukraine, namely the Flamengo Aero wind turbines. Unfortunately, the war unleashed by russia destroyed the small wind turbine manufacturing facility in Kharkiv. Resumption of wind turbine production will require appropriate investments. Practical experience of using Ukrainian small wind turbines in different countries has proven their reliability and efficiency. Ukrainian models of small wind turbines are among the best ones in the world.

Mr. Savchuk emphasized the importance of distributed generation for Ukraine: "The practice of using small wind turbines during the war in Ukraine (occupation zones, combat zones and other territories with unstable grid power generation) has shown that distributed generation from wind energy has made it possible to have available electricity for our own needs, sometimes even for our neighbors."

Mykola Savchuk concluded his speech with these words: “Ukraine needs victory, peace and recovery.”

MEMORANDUM OF UNDERSTANDING BETWEEN COWI AND THE UWEA TO CONTRIBUTE TO THE REBUILDING OF UKRAINE

Recognizing that the Russian aggression has caused significant damages to Ukraine’s energy objects and that Ukraine has a significant potential for deployment renewables, especially onshore and offshore wind, COWI and the Ukrainian Wind Energy Association (UWEA), on May 10, 2023, inked a Memorandum of Understanding to contribute to the rebuilding of Ukraine with focus on roll out of wind energy in Ukraine.

International consulting group COWI and the UWEA have signed a Memorandum of Understanding (MOU) to establish a partnership for the development of green energy in Ukraine, focusing on onshore and offshore wind development. The MOU includes projects such as legal gap analysis, road mapping for wind energy development, and the assessment of wind generation potential.

The MoU envisages a local wind energy production pilot project – a small-scale pilot wind generation facility matching the needs of a small local community.

The partnership between COWI and UWEA aims to contribute to the rebuilding of Ukraine's energy infrastructure, which has been significantly damaged by Russian aggression. Through the MOU, the Parties will exchange relevant information and expertise, and work together on the identified priority projects.

Andriy Konechenkov, Chairman of the UWEA Board: “I greatly appreciate willingness and readiness of COWI to contribute to post-war rebuilding of Ukraine. Cooperation with such globally recognised consultancy will help qualitatively rebuild our country and take wind technologies implementation to the next level.”

Jesper Karup Pedersen, Chief Project Manager: “It is a true pleasure having signed this Memorandum of Understanding with the UWEA. For two reasons. One: Wind power will, no doubt, play a major role in ensuring energy security in Ukraine, while at the same contributing to the phase out of green-house gases. Two: Together UWEA and COWI form a strong partnership capable of providing first class solutions in the field of wind power in Ukraine and, hence, supporting rebuilding Ukraine”.

Wind and Hydrogen for Repowering Ukraine’s Post War Recovery

It is time to start rebuilding Ukraine. Because of the war Ukraine has already lost a considerable part of its power capacity. 75% of wind power capacities were forced to shut down due to the russia’s occupation of the territories where they are located. We need a new, decentralised power system with wind and other renewables at the core, a system that is less vulnerable for missile and drone attacks. Ukraine has a great potential for rapid rollout of wind capacity, along with other renewables. Ukraine’s export of green electricity and renewable hydrogen could benefit Europe.

At the same time, the large-scale, accelerated deployment of wind and other renewable technologies, which will require the post-war green recovery of our energy and economy, directly depends on the improvement and sustainability of RES legislation, abandoning manual regulation of the electricity market and implementation of its real liberalization, the flexibility of Ukraine’s energy system for high penetration of renewables, and logistics solutions. The country’s government officials and parliamentarians have to do their homework to establish a truly attractive investment climate in the country for its rapid economic recovery, taking into account the best international practices and trends based on advanced, modern, climate and environmentally friendly technologies.

Modern wind technologies are not only a globally recognized tools in tackling climate change; nowadays onshore and offshore wind is at the core of energy security and energy independence. This is the path Europe has chosen. This is the path we, Ukrainians, should follow.

This was the main topic of discussion at the Ukrainian session, held on April 27, 2023, as part of WindEurope 2023, the largest international event in the European wind energy industry. Oleksandr Podprugin, Deputy Chairman of the UWEA Board, Notus Energy, Serhiy Yevtushenko, Member of the UWEA Board, UDP Renewables, and Maksym Artemenko, Elementum Energy, shared their companies’ vision for the further development of wind energy projects in Ukraine, highlighted current barriers to the implementation of wind energy technologies and ways to solve them. Ivan Bondarchuk, Member of the UWEA Board, LCF Law Group, chaired the session. EBRD representative Edyta Noworyta, who also participated in the discussion, emphasized the bank’s readiness and willingness to play a central role in the country’s recovery, including in financing wind energy projects.

The session participants also talked about hydrogen, namely the possibility of using wind energy to produce hydrogen, its transportation and use.

Oleksandr Podprugin: “Ukraine has a huge wind potential, onshore and offshore. And can effectively satisfy own needs and increase supplies of green energy to Europe. In order to make that happen, the stability of the regulatory environment, investment protection, deblocking of the sea ports, development of the grid flexibility and availability of international financing should be secured.”

“Representatives of the Ukrainian wind energy industry are working to secure and develop renewable energy projects. Major national developers have retained their teams and are working hard to get their projects ready for investments. The UWEA and leading lawyers are working with the government to adopt the necessary legislation. Meanwhile, it is especially important to maintain the attention and support of international partners, so we urge investors to express interest and explore the possibilities of Ukrainian projects, and equipment suppliers to keep Ukraine in their portfolio. Glory to Ukraine!” summarized Ivan Bondarchuk.

Latvia 2023: WindWorks. Moving Energy

Latvia’s largest wind energy industry conference “WindWorks. Moving Energy”, has evolved into the most prominent event of this kind in the Baltic region. Foreign and local experts met in Riga on April 19 this year to look for solutions for more successful and faster utilization of wind energy across the Baltics.

The conference’s agenda included discussions about legislative matters, development of new interconnectors, electricity accumulation (storage) solutions, as well as business opportunities that offshore wind farm expansion will present to local entrepreneurs in the upcoming years. The conference brought together experts and politicians from Latvia, Estonia, Norway, Great Britain, Denmark and other European countries.

President of Latvia Egils Levits opened the conference: “Russia’s war against Ukraine added an energy security perspective to our thinking about renewable energy. It showed clearly that Europe, including Latvia have to act immediately to cut all energy tights with an aggressor country. Due to the unprecedent energy price spikes, it’s also energy affordability perspective. Energy security and affordability have high priorities which also help us to move away from fossil fuels. ...We should plan how to strengthen our energy infrastructure to grow the share of renewable resources in our economy. We should look at the global development of the wind energy sector as a broader economic opportunity that we can benefit of. …I welcome the participation of the Ukrainian Wind Energy association in the today’s event. Latvia will continue supporting Ukraine including in helping to rebuild its energy sector as already now after the war.”

In his welcoming speech to the conference participants Chairman of the UWEA Board Andriy Konechenkov stressed: “Russia’s attempts to blackmail Europe over gas supply have proved that no country today will ever be safe until it becomes energy independent…The pathway to an energy independence is based on renewable, “home grown” energy sources. Wind is instrumental to our energy security, to tackling climate change. Wind energy brings democracy, independence and peace”.

Conference participants discussed the new geopolitical reality and international cooperation in the development of an effective European energy network. Clear rules and regulations in addition to positive preconditions for the development of the wind industry are of high importance.

Offshore wind power was the focus of many discussions. Speakers emphasized the need to solve shortcomings in the existing legislation of both Latvia and Estonia, which would not only speed up implementation of the two countries’ joint project, but also make it clear to private investors that the region is ready and welcoming the development of powerful offshore wind farms.

The conference was organized by the Latvian Wind Energy Association, the Estonian Wind Power Association and the Danish Embassy in Riga in cooperation with the Investment and Development Agency of Latvia.

Cooperation Between Ukrainian and German RES Associations - important step Towards Reforming the Ukraine’s energy sector

The press conference “Signing a cooperation agreement with German renewable energy associations as an important step in reforming the Ukraine’s energy sector” by the expert platform Global 100% RE Ukraine was held on Friday, April 7, 2023, at the press center of the Interfax-Ukraine news agency.

Speakers included: Oleksandr Dombrovsky, Chairman of the Board of Global 100% RE Ukraine, President of MHP Eco Energy LLC; Andriy Konechenkov, Chairman of the Board of the Ukrainian Wind Energy Association; Georgiy Geletukha, Chairman of the Board of the Bioenergy Association of Ukraine, Member of the Board of the European Bioenergy Association; and Oleksiy Korchmit, Director of Global 100% RE Ukraine, Chairman of the Board of the Association of Energy Service Companies of Ukraine. All speakers noted the importance of signing a cooperation agreement between Ukrainian and German renewable energy associations that took place on March 29, 2023, and aimed at developing “green” generation and transforming “green” technologies in Ukraine. “It is intended as cooperation not only between Global 100% RE Ukraine and the German Renewable Energy Federation, but as a large, serious cooperation between the RES industry associations of two countries,” Oleksandr Dombrovsky emphasized in his opening remarks.

The speakers also outlined the challenges faced by Ukraine's renewable energy sector and ways to address them.

Oleksandr Dombrovsky: “Over the past five years, Ukraine’s “green” energy sector has been facing challenging time. There are several reasons for this, both objective and subjective. … We do not have any alternatives to renewables, and we should realise it. There is no alternative to green transformation in Ukraine, and no alternative to green transformation in Europe. Global warming, energy burden are very complicated issues to tackle, and one of the key instruments to address them is “green” transformation, transition to clean “green” energy technologies.”

Andriy Konechenkov: “We need legislative changes to decentralize our energy system and produce green hydrogen. We need our government to be responsible for the memorandums it signs, including the memorandum with RES associations dated 2020 aimed at restoring the further development of renewable energy, repaying debts, and full and timely settlements with RES electricity producers. Until we complete this process, it will be very difficult to attract investors to Ukraine. Nowadays we cannot prolong discussion on these issues, and the adoption and implementation of relevant legislation is a matter of urgency. “

The Global 100% RE Ukraine unites RE Industry associations in Ukraine, namely: Ukrainian Wind Energy Association, Solar Energy Association of Ukraine, Bioenergy Association of Ukraine, Ukrainian Hydrogen Council and Ukrainian Association of Energy Service Companies.

ENERGY COMMUNITY LAUNCHES THE POST-MEDIATION PROCESS
IN UKRAINE

Following up on a meeting with the participants of the 2020 mediation in the Ukrainian renewables sector on 16 March 2023 in Kyiv, the Energy Community Secretariat launched on March 27, 2023, a process meant to settle the current problems faced by the sector.

The post-mediation process focuses on unresolved issues, addresses new challenges occurring after the full-scale war of aggression by Russia and intends to help restoring trust among the key actors. In the immediate, the process will focus on the settlement of outstanding debts by the Guaranteed Buyer towards renewable energy producers, revising the formula for imbalance payments to the Guaranteed Buyer and the corporate governance reform of the Guaranteed Buyer.

In 2020, the Secretariat’s Dispute Resolution and Negotiation Center, had mediated a settlement agreement between renewable investors in Ukraine and the government, which was later integrated in Ukrainian renewable energy legislation. While outstanding debts had been settled in the wake of the agreement, the war exposed again the underlying problems in the sector, notably the lack of liquidity and  the electricity market governance. The post-mediation process intends to address these issues by developing options for their resolution with the involvement of all relevant stakeholders.

“To follow up on the settlement agreement is important not only to address the current challenges faced by the sector, which are indeed significant. This process is even more important now that Ukraine starts preparing for the transition of a green economy, in which renewable energy is supposed to take center stage. What we need to prepare for a is a renaissance of renewable energy in Ukraine,” said Deputy Director Dirk Buschle, who had mediated the dispute in 2020.

Currently, at the initiative of the Energy Community Secretariat, a working group is being set up to to follow-up on the “left-overs” from the mediation, address new challenges in the wake of the full-scale war of aggression by Russia and help restoring trust among the key actors.

ENERGY TRANSITION – SECURING A GREEN FUTURE

This year Berlin Energy Transition Dialogue (March 28-29, 2023), one of the biggest international dialogue forums on climate change, was held under the banner “Energiewende – Securing a Green Future”

Russian armed aggression has not only made Ukraine to accelerate energy transition but has proven that renewable energy is a matter of national security.

The relevant statement was made by Ukrainian Energy Minister German Galushchenko during a panel discussion at the Berlin Energy Transition Dialogue 2023: “During Russian missile attacks, we saw that renewable energy sources are not just about “green transformation” or commitments under the Paris Agreement. Renewable energy sources are about national security, security of supply, security of the state.”

“We see the future energy mix of Ukraine as follows: 50% is nuclear generation, which currently produces more than half of all electricity in Ukraine, and the remaining 50% will be generated by renewable energy sources," said Minister of Energy of Ukraine.

Within the framework of the 9th Berlin Energy Dialogue, two documents on energy cooperation between Ukraine and Germany were signed with the participation of the Minister of Energy of Ukraine Herman Galushchenko.

In particular, the Joint Declaration on Framework Cooperation between the Ministry of Energy of Ukraine and the Eastern Committee of German Business was signed, as well as the Memorandum of Understanding and Cooperation between the “green” energy associations of Ukraine and Germany – Global 100% Re Ukraine and the German Renewable Energy Federation (BEE – Bundesverband Erneuebare Energie eV), including UWEA, ASEU UABIO, BWE, BSW and EvBiogas.

Commenting on the Memorandum of Partnership between the Ministry of Energy of Ukraine and the Eastern Committee of German Business, Ukraine's Deputy Energy Minister Yaroslav Demchenkov said that “the Ukrainian side is currently talking about a new energy strategy, about the possibility for German business to participate in various projects.” According to him, German companies are interested in wind energy, in particular offshore, solar, hydrogen, bioenergy, and energy efficiency. They are also interested in the creation of IT solutions: small distribution networks and smart grids, i.e. transmission and distribution systems.

Chairman of the UWEA Board Andriy Konechenkov emphasised the important role the associations play in the energy transition, because they unite companies that develop these technologies: “At the 26th Conference of the Parties to the UN Framework Convention on Climate Change, which was held in Glasgow in 2021, Ukraine presented the Updated Nationally Determined Contribution to the Paris Agreement and undertook to stop the production of electricity by burning coal by 2035 year, simultaneously investing in RES; last year in Lugano there were statements from Kyiv about switching to “green” hydrogen, etc. But we have to support these statements in a practical way and attract exchange and cooperation between our and German companies.”

IRENA REPORTS RECORD GROWTH OF RENEWABLES IN 2022

Renewable Capacity Statistics 2023, released by the International Renewable Energy Agency (IRENA) on March 20, 2023, shows that renewable energy continues to grow at record levels despite global uncertainties, confirming the downward trend of fossil fueled power generation.

By the end of 2022, global renewable generation capacity amounted to 3372 GW, growing the stock of renewable power by a record of 295 GW or by 9.6%. An impressive 83% of all power capacity added last year was produced by renewables. Expansion of renewable power generation in 2022 confirms upward trend of renewables against declining new fossil fuel capacity.

“This continued record growth shows the resilience of renewable energy amidst the lingering energy crisis”, IRENA’s Director-General Francesco La Camera said. “But annual additions of renewable power capacity must grow three times the current level by 2030, if we want to stay on a pathway limiting global warming to 1.5^°C.”

While many countries increased their renewable capacity in 2022, the significant growth of renewables is persistently concentrated in a few countries and regions like Asia, the USA and Europe. IRENA’s data finds that almost half of all new capacity in 2022 was added in Asia, resulting in a total of 1.63 TW of renewable capacity by 2022. China was the biggest contributor, adding 141 GW to the continent’s new capacity.

Renewables in Europe and North America grew by 57.3 GW and 29.1 GW respectively. Africa continued to expand steadily with an increase of 2.7 GW, slightly above last year. Oceania continued its double-digit growth with an expansion of 5.2 GW and South America continued an upward trend, with a capacity expansion of 18.2 GW. The Middle East recorded its highest increase in renewables on record, with 3.2 GW of new capacity commissioned in 2022, an increase of 12.8%.

Although hydropower accounted for the largest share of the global total renewable generation capacity with 1250 GW, solar and wind continued to dominate new generating capacity. Together, both technologies contributed 90% to the share of all new renewable capacity in 2022. Solar capacity led with 22% increase, followed by wind energy, which increased its generating capacity by 9%.

Wind energy: With an increase of 75 GW in 2022, growth in wind power continued to slow compared to the previous two years. China accounted for almost half of this expansion (37 GW) and capacity in the United States increased by 7.8 GW. Most of the remaining capacity expansion occurred in Brazil and a handful of European countries. Offshore wind continued to account for about 7% of all capacity.

THE UWEA WELCOMES NEW UWEA BOARD MEMBERS

The UWEA Board held its first meeting for the year 2023 on March 10, 2023. The Bord members unanimously voted for Ivan Bondarchuk, Counsel, Head of Energy Practice at LCF Law Group, Olexander Podprugin, Regional Manager at Notus Energy, and Olga Rybachuk, Managing Director at Elementum Energy (Ukraine) to join the Board of the Ukrainian Wind Energy Association.

Olexander Podprugin is also elected Deputy Chairman of the UWEA Board.

THE UWEA SECRETARIAT WELCOMES AND CONGRATULETS THE NEW UWEA BOARD MEMBERS AND WISHES THEM HEALTH, SUCCESS,
ACHIEVEMENTS IN ALL THEIR ENDEAVORS AND INSPIRATION!
TOGETHER WE WILL WIN(D)!

DESPITE ON-GONG WAR CONSTRUCTION OF TYLIGULSKA WIND FARM HAS BEEN COMPLETED

Today, DTEK Renewables, a UWEA member company has announced the completion of construction of the the first phase of its Tiligul wind farm. This is the largest green energy project in the country, which was implemented during russia's full-scale military invasion of Ukraine.

The 114 MW wind farm comprises 19 state-of-the-art wind turbines manufactured by the Danish company Vestas. For the first time in the Ukraine’s wind power sector history, wind turbines with a unit capacity of 6 MW have been installed in Ukraine!

Construction of 114 MW out of the total declared 500 MW is a major achievement for Ukraine, as new, environmentally friendly, fossil fuel-independent power capacities have added a supply to the national grid. And this at a time when a large number of thermal power plants have been damaged by russian shelling.

There are still several other wind projects in Ukraine which construction was halted by the war, and which could be implemented as early as this year, if the Government of Ukraine provides guarantees to investors through extending PPAs at the feed-in tariff and technical specifications for these wind projects for 2023.

It all depends on how quickly the Committee on Energy and Housing and Utilities Services of the Verkhovna Rada of Ukraine considers the draft law aimed at commissioning new renewable energy capacities in 2023.

The President of Ukraine, Volodymyr Zelenskyi, has repeatedly emphasised the importance of green energy for the future of Ukraine. Such projects contribute to the practical transformation of Ukraine into a “green energy hub” of Europe.

SOLAR ENERGY TO HELP IRPIN COMMUNITY

On March 8, 2023, two autonomous mobile solar stations with electricity storage were handed over to Irpin local community: one system - to the Kozyntsi Family Medicine Outpatient Clinic in the village of Kozyntsi, Bucha district, and the other one - to the Irpin Lyceum of Innovative Technologies “ILIT”.

Russian rocket attacks on the power grid led to massive power outages in all regions of Ukraine. Governments and citizens from all over the world supported Ukrainians by providing Ukraine with equipment to restore energy infrastructure damaged by russian shelling.

In order to help civilians, the World Wind Energy Association (WWEA) and the Global 100% Renewable Energy Platform launched the campaign #renewables4ukraine to raise funds for donating renewable energy equipment for emergency humanitarian aid in Ukraine, in particular stand-alone solar systems. On December 26, 2022, the WWEA and the Ukrainian Wind Energy Association (UWEA) donated two 3kW mobile solar stations to Irpin City Centre of Primary Health Care.

The Finnish NGO EKOenergy label has joined campaign #renewables4ukraine in December. Thank to their generous donation two more mobile solar stations have been produced and handed over to Irpin local community. The key feature of the EKOenergy-WWEA-UWEA joint project is that it’s not only about helping people solve energy problems. The project also has an educational goal: to demonstrate in practice the benefits of renewable energy sources, which Ukraine is so rich in, and to teach young people how to use them. Therefore, one solar system will be installed at the Irpin Lyceum of Innovative Technologies “ILIT”.

Steven Vanholme, Programme manager at EKOenergy: “The nonprofit EKOenergy label is a tool for climate action. Energy consumers who choose EKOenergy-labelled energy help us promote renewables in many parts of the world. Last year, we saved money from our campaign budget to support the #renewables4ukraine campaign. Russia is financing the war with fossil fuel money and by supporting renewables we can bring down the use of fossil fuels. We are aware that this is a small step but we wish our contribution inspires others to finance similar projects and  hopefully these small drops accumulate. It’s encouraging to see the concrete results and we hope to contribute more this year.”

Stefan Gsänger, Secretary General of the WWEA and Vice Chair of Global100RE: “Even though the equipment we can hand over to our friends in Ukraine is only a drop in the ocean given the devastation caused by the Russian army, we believe that these solar sets are an important sign of the international renewable energy community's solidarity with the people of Ukraine. May the donations help the clinic to care for its patients and may they help the students of the Lyceum to acquire the skills that are so urgently needed for a good future for Ukraine.”

Irpin Mayor Oleksandr Markushyn, Chairman of the Board of the Ukrainian Wind Energy Association Andriy Konechenkov, Director of the Irpin City Primary Health Care Center Andriy Levkivsky, and Acting Director of the Irpin Lyceum of Innovative Technologies “ILIT” Maria Gostin took part in the mobile solar power stations handover event.

Irpin Mayor Oleksandr Markushyn: “Today, Irpin community has received two more autonomous mobile solar stations produced by the Ukrainian manufacturer – company KNESS. One of them will operate in the Kozynets family medicine outpatient clinic. The second one will be installed at the Irpin Lyceum of Innovative Technologies. Earlier, we have already received two such units, which now help our community outpatient clinics in Bucha district. I would like to remind you that the World Wind Energy Association and the Global100RE platform have launched the Renewables4Ukraine campaign to raise funds for the purchase and transfer of equipment, including autonomous solar systems, to Ukraine. The project's donors are ordinary citizens from different continents. The Finnish non-governmental organization EKOenergy Label has also joined the Renewables4Ukraine campaign. It is thanks to this organisation’s support that we have received these two solar stations today. I am sincerely grateful to the friends of the Irpin community for their constant support and assistance.”

Andriy Konechenkov, Chairman of the Board of the UWEA: “This international project initiated by EKOenergy label not only provides assistance to hospitals in the regions most affected by Russian aggression, but also teaches school students how to use renewable energy sources in their everyday life. The use of mobile solar power systems manufactured by Ukrainian company KNESS, is a vivid example of achieving own independence in everyday live by consuming renewable energy sources.”

Acting Director of the Irpin Lyceum of Innovative Technologies “ILIT” Maria Hostin: “We are very pleased, because innovation is also about renewable energy. We explain it to children in classes and why it is important. And now we have a whole solar station at our lyceum to show how it works and that we can be energy independent.”

COOPERATION OF GERMAN AND UKRAINIAN
RENEWABLE ENERGY ASSOCIATIONS
TO FACILITATE THE GREEN TRANSITION
IN UKRAINE

From February 27 to March 2, 2023, within the framework of the Business Scout Fund (BSF) project “International Dialogues of Renewable Energy Associations for the Global Energy Transition”, the leaders of the Ukrainian Wind Energy Association (UWEA), Association of Solar Energy of Ukraine (ASEU), Bioenergy Association of Ukraine (BAU) and the Public Union Global 100% RE Ukraine, co-founded by the UWEA, the ASEU and the BAU, held a series of meetings with the German Renewable Energy Federation Bundesverband Erneuerbare Energie e. V. (BEE), the German wind energy association Bundesverband WindEnergie e.V. (BWE), the solar association Bundesverband Solarwirtschaft e.V. (BSW) and the biogas association Fachverband Biogas e.V. (FvB).

The main goal of this project is to establish cooperation between the Ukrainian and German renewable energy associations aimed at transferring knowledge internationally and mutually between RES associations, exchanging experiences on national energy transitions and the local deployment of RES technologies. During the meetings, representatives of the Ukrainian and German associations discussed the main challenges facing the renewable energy markets in Ukraine and Germany and preliminarily identified further joint actions.

It should be noted that the German government has been very supportive of the project. During meetings with RES Industry associations from Ukraine and Germany, representatives of the German Federal Ministry for Economic Affairs and Climate Action, Federal Ministry for Economic Cooperation and Development, and Federal Foreign Office department on Foreign Policy on Energy and Decarbonisation, emphasized the German government’s readiness to facilitate Ukraine’s energy transition to new, exclusively green technologies.

“Memorandum of Cooperation between German and Ukrainian umbrella organizations - the German Renewable Energy Federation and Global 100% RE Ukraine, should be our next step. Cooperation between national renewable energy associations will be an impetus for accelerated deployment of green technologies in Ukraine and will contribute to the creation of a new, decentralized energy system of Ukraine based on renewable energy sources,” believes Andriy Konechenkov, Chairman of the UWEA Board.

Remarkably, all RES associations’ meetings took place on the territory of the UREF-Campus research center, located in the Schöneberg district of Berlin, also called “the place of the future". This is where more than 5,000 people work, research and study in more than 150 enterprises, institutions and start-ups in the areas of energy, mobility and sustainability. Since the project started in 2008, the approximately 5.5 hectare city district around the “Gasometer” (Gasholder), which has been meeting the Federal Government’s climate targets for 2045 since 2014, has evolved into a real-world laboratory for the shift to renewable energy and is one of a kind in Europe.

WINDEUROPE: THE EU BUILT ONLY 16 GW NEW WIND IN 2022: MUST RESTORE INVESTOR CONFIDENCE AND RAMP UP SUPPLY CHAIN

According to WindEurope Press Release published on February 28, 2023, Europe built 19 GW of new wind energy capacity in 2022. 16 GW of those were in the EU. That’s 40% up on 2021. But it’s much less than what’s needed for the EU’s 2030 goals. And investments in new wind farms and new wind turbine orders were down in 2022: due to unhelpful Government interventions in electricity markets and inflation. The EU and national Governments must restore investor confidence. And they must engage proactively to support the European wind supply chain and enable it to grow.

Europe built 19 GW of new wind energy capacity in 2022. Germany built the most followed by Sweden, Finland, France and the UK. Europe now has 255 GW of wind energy capacity. Those are some of the findings of the WindEurope Annual Statistics report 2022.

87% of the new wind capacity Europe built last year was onshore. There was only 2.5 GW of new offshore wind farms.

Not enough to reach EU targets

The EU-27 built 16 GW of new wind. That’s 40% more than in 2021. Over 2023-27 we now expect the EU to build 20 GW of new wind every year on average.But that is not enough to reach the EU’s energy and climate targets. The EU needs to build on average 31 GW every year up to 2030. That’s achievable if Europe: (a) continues to simplify permitting rules and procedures; (b) restores clear signals to investors; and (c) invests substantially in the wind energy value chain- factories, grids, ports, vessels, and skilled workers.

Turning the corner on permitting

Europe is finally making progress on the simplification of permitting rules and procedures. The EU’s new energy strategy, REPowerEU, has helped a lot. Last year’s emergency measures on permitting enshrined for the first time that the expansion of renewables is in the “overriding public interest”. In Germany overriding public interest is already unlocking wind energy projects that had been stuck in court cases.

The ongoing revision of the Renewable Energy Directive is key. The trilogues must really nail the improvements on the table: enshrine overriding public interest in the Directive; the clearer definition of the 2-year permitting deadline; the population-based approach to species protection; and the new rules on repowering.

“Governments are beginning to simplify their permitting rules and procedures for new renewables. Germany is leading the way. They’ve doubled their rate of new onshore wind permits compared to three years ago. Their average permitting time has dropped to two years. Others must follow suit. Permitting is still the number one bottleneck for the expansion of wind in Europe”, says WindEurope CEO Giles Dickson.

Inflation and market interventions undermining investment

The share of wind in Europe’s electricity consumption is growing. In the EU27+UK it’s now 17%. The European Commission wants wind to be 43% of EU electricity consumption by 2030. But right now new investments and wind turbine orders are falling. 2022 saw only 13 GW of new wind farm investments announced. Not a single offshore wind farm reached final investment decision. Wind turbine orders fell by 47% on 2021 to 11 GW.

There are two reasons why wind investments are falling.

First is the high inflation in input prices which is insufficiently reflected in developers’ revenues. Higher commodity and other input costs have added 25-40% to the price of turbines, but wind farm developers are often stuck with a revenue base that is not indexed in line with this. Governments must fully index their auction prices and tariffs.

Second, a series of unhelpful interventions in electricity markets by different national Governments have badly undermined investor confidence. The EU’s upcoming reform of Electricity Market Design must urgently restore this confidence. It must make it clear that emergency measures are temporary and must be aligned between Member States. Contracts-for-Difference will play a key role for new investments. But investors must also be allowed to finance their projects with Power Purchase Agreements (PPAs) and on a purely merchant basis if that’s what works best for them.

Strengthening Europe’s wind supply chain

Europe’s wind energy supply chain continues to struggle with low volumes (due to unsolved permitting bottlenecks) and inflation in input costs. But it badly needs to grow: Europe doesn’t have enough factories to build all the new turbines it wants.

The EU Net-Zero Industry Act should make state aid rules more flexible and facilitate grants and finance for investments in new plant and infrastructure. National investment tax credits have a key role to play. And the European Investment Bank should be allowed to finance individual plant investments.

The idea that Germany and France will benefit much more from this than others is wrong. New investments in offshore foundation manufacturing have just been announced in Spain and the Netherlands. Greece is upgrading a cable plant. And Poland is attracting investments in new turbine factories and port facilities.

WORKING MEETING OF THE NEURC MANAGEMENT AND THE RES INDUSTRY REPRESENTATIVES

On16 February 2023, there was a working meeting of the NEURC management and the representatives of the renewable energy industry with the participation of senior executives of NPC Ukrenergo, SE Guaranteed Buyer, leading industry associations and renewable energy companies. The participants of the meeting discussed current industry issues, in particular, the status of settlements with RES producers, determining the approach to the responsibility of RES producers for imbalance settlement.

In his speech, NEURC Chairman Kostiantyn Ushchapovskyi assured that the Regulator was making efforts to resolve the payment issue. According to him, for the first time in 2 years, the Regulator has included all RES costs in the transmission tariff of NPC Ukrenergo for 2023, meaning that 20% of the cost of RES commercial products not included in the tariff in previous years was added.

At the same time, Mykyta Vyshnevskyi, Director for Market Operations at NPC Ukrenergo, noted that there was already a risk of failure to achieve the indicators set out in the tariff, which would not allow to pay for the service to ensure an increase in the share of electricity generation from the renewable energy sources in a timely manner and in full.

In particular, in January and in the first ten-day period of February 2023, the electricity transmission was 20% less than planned, and the electricity selling price of SE Guaranteed Buyer in the market is at the lower threshold, which may prevent from achieving the set in the transmission tariff.

For their part, RES representatives emphasized that the NEURC had a tool to adjust the tariff based on the results of monitoring to avoid a deficit in the tariff. That is why, to prevent the accumulation of new debts this year, it was proposed to review the Ukrenergo’s transmission tariff monthly, rather than quarterly.

It was also announced at the meeting that the renewable energy producers, SE Guaranteed Buyer, and NPC Ukrenergo could not agree on a new formula for calculating imbalances, so the issue would be considered by the NEURC. A meeting on this issue may be held next week. At the same time, the renewable energy producers once again stressed their unchanged position that they should not be responsible for the trade imbalances of the Guaranteed Buyer.

Regarding the formula for calculating imbalances, the RES market representatives noted that the provisions of NEURC Resolution No. 46 dated 15 January 2021 in part of subpar. 8 par. 1 had been recognized by the Supreme Court as illegal and invalid. It should be noted that during validity of these provisions of the resolution, the RES producers suffered significant losses. The RES sector would like to know the Regulator’s position concerning compensation for such losses. At the suggestion of the NEURC Chairman, it was proposed to arrange a meeting of lawyers at the Guaranteed Buyer on this issue.

The RES sector hopes that the NEURC will find a fair solution concerning a new formula for calculating imbalances, considering the conclusions of the Supreme Court of Ukraine, and establish a fair approach to determining responsibility for imbalances, according to which RES producers will not be responsible for the trade imbalances of the Guaranteed Buyer. The RES sector also counts on the Regulator’s mature position concerning compensation for the losses caused by the Regulator’s decision.

It is also worth noting that Mr. Ushchapovskyi informed the RES producers that the NEURC had developed and sent to the CMU a market reform concept to improve the market liquidity. According to the NEURC Chairman, this should become an incentive, in particular, for RES producers to sell “green” electricity on the market at the market prices, which should not be lower than the feed-in tariff.

As a result of the meeting, the RES producers expressed their gratitude to the NPC Ukrenergo and the NEURC for starting to repay debts for the RES curtailment service launched in February 2023 - UAH 1.3 billion has already been paid.

In general, the meeting caused cautious optimism among representatives of the RES sector. Renewable energy producers hope that the NEURC will respond to the industry’s problems and solve them effectively and professionally. As President of Ukraine Volodymyr Zelenskyy noted: “We should become - and we will become, because there is no way out - we will become a leader in development of modern “green” energy sector.” Thus, at the highest political level of the country, renewable energy has already been recognized as a strategic direction for the development of the Ukraine’s energy sector.

“Ukrainian Wind Energy Association believes that such regular meetings only contribute to the constructive and professional recovery of the renewable energy sector from the protracted financial crisis. This improves the investment attractiveness of the renewable energy sector for the international partners,” emphasized Andriy Konechenkov, Chairman of the UWEA Board.

BUCHAREST: 3d EDITION ENERGY WEEK BLACK SEA

On 07-09 February 2023, the high-level international investment conference Energy Week Black Sea was successfully held in Bucharest, Romania. The event was organised by a UK-based consultancy Invest in Network. The UWEA was the event’s official Knowledge Partner.

The war in Ukraine has further disrupted an already volatile market, in which energy prices were rising due to post-lockdown energy demand exceeding supply. Today, self-sufficiency and energy independence talks no longer amount to rhetoric. Utilising vast renewable energy potential, increasing interconnection and facilitating system flexibility and market liberalisation are of paramount importance. At the same time, the Black Sea region is emerging as a renewables hub and there is a political will to cooperate on the regional level prioritising clean energy transition.

The event comprised a 2-day Utility-scale Conference (07-08 February) addressing the green transition challenges and a Rooftop Solar Day (09 February) introduced to enable rooftop solar project matchmaking and solar product distribution in the Black Sea region.

One of the most important regional renewables conferences in the region brought together government authorities, both state and private sector companies from Romania, Bulgaria, Ukraine, Moldova, Georgia, and Turkey, as well as IFIs, DFIs, international financial institutions and foreign private investors. 

Special discussions were devoted to the post-war recovery of Ukraine and offshore wind deployment in the Black Sea region.

Focus discussion “#STANDWITHUKRAINE Green Dream and Post-War Reconstruction of Ukraine” attracted a great deal of attention of the conference delegates. Representatives of the UWEA member companies, namely: UDP Renewables, Emergy, NOTUS and LCF Law Group analyzed the challenges facing the Ukraine’s RES industry in times of war and shared their views on the post-war recovery of Ukraine. 

Galyna Shmidt, UWEA Board Member, Vice-President WWEA: “Ukraine’s reliance on fossil and nuclear power makes us vulnerable to russian attacks. Renewable energy coupled with energy efficiency is the quickest and most effective way to combat dependence on fossil fuels. Therefore, post-war recovery and reconstruction of Ukraine should be based on renewables. The draft National Renewable Energy Action Plan until 2030 provides for sourcing 27% of the total final energy consumption from renewables by 2030. The Ukraine’s ambitions on renewables must now be lifted in line with EU targets. Ukraine can and should become a regional leader in decarbonizing economy and energy.”

Serhiy Yevtushenko, Managing Partner UDP Renewables: “Our industry is very capital intense so without access to borrowed capital to a wide range of market players we cannot make a fast progress. But before capital comes, long term rules should be established. Clear regulation. No major changes but gradual adaptation to changing reality.”

Ivan Bondarchuk. Head of Energy, LCF Law Group: “Over the past year, Ukraine has proved that it is on the way to victory and is able to secure its independence. The energy sector has proven that it is able to maintain the functioning of the energy system, and the renewable energy industry has proven that it is ready to engage in a dialogue with the Government to maintain stability in the market. It is important that the international investment community continues to demonstrate interest and work on the development of projects in Ukraine, thereby increasing the motivation of local stakeholders and setting the agenda for policy makers.”

Assessing the prospects for offshore wind deployment in Ukraine, Andriy Konechenkov, Chairman of the UWEA Board noted: “For the successful implementation of offshore technologies in Ukraine, we need, first of all, to remove the gaps in the national legislation. It concerns such aspects as special maritime spatial planning; regulation of the land and underwater area; environmental impact assessment; connection of offshore wind power plant to the grids; overall construction activities under and above the water. We have a lot to work on, but it’s worth the effort.” 

UKRAINE’S RES INDUSTRY OPEN LETTER TO THE PRESIDENT OF UKRAINE

Addressing the current challenges faced by the RES Industry 
which would define its future in Ukraine

On February 3, 2023, the UWEA jointly with other RES Industry associations of Ukraine called on the President of Ukraine to reaffirm the invariance of legislative guarantees for investors into renewable energy and contribute to eliminating the obstacles for RES producers and creating favorable conditions for the industry’s further development, in particular:

1)Expedite the adoption of program documents to lay the groundwork for the development of Ukraine’s energy sector and renewable energy in particular (National Renewable Energy Development Action Plan for the period up to 2030 and 2050 Energy Strategy);

2)Expedite the adoption of draft law No. 8191 dated 08 November 2022 “On Changes to Certain Laws of Ukraine” which extends the terms for the commissioning of renewable energy generation facilities under the power purchase agreements at the feed-in tariff concluded before 31 December 2019;

3)Support the initiatives of the Associations regarding the amendments to the applicable legislation which would enable electricity producers to restore RES facilities as quickly as possible using state-of-the-art equipment and produce electricity on mutually acceptable terms;

4)Expedite amendments to the applicable legislation in order to implement and support the circulation of guarantees of origin of electricity produced from renewable energy sources and, in particular, the adoption of draft law “On Changes to Certain Laws of Ukraine for Implementation of Registry of Issuance, Use and Revocation of Guarantees of Origin of Electricity Produced from Renewable Energy Sources”;

5)Ensure the review and subsequent introduction of a new tariff for the transmission of electricity to cover all the reasonable needs of NPC “Ukrenergo” (in particular, those specific to the payment of services aimed at increasing the share of renewable energy generation) in Q2 2023;

6)Expedite settlements with producers of renewable energy for the power supplied at the feed-in tariff and the services specific to reducing loads on the energy system — in particular, by using the loans provided by EBRD and other lending institutions; unlock the signing of delivery and acceptance certificates for the period between July and December 2022 between Guaranteed Buyer State Enterprise and NPC “Ukrenergo” regarding the services specific to increasing the share of renewable energy generation;

7)Expedite the approval of amendments to the formula for calculating the value of RES producer's imbalance in consideration of the opinion of the Supreme Court of Ukraine dated 08 September 2022.

“We would like to stress that the RES sector does not require government's financial support or subventions; it simply wants to be paid for the electricity it supplies on the terms provided by the current legislation of Ukraine. RES investors and facility operators all agree that the sector is playing an important role in confronting the energy crisis and desire to contribute to Ukraine's energy security today and building its energy future,” the joint RES Industry associations’ letter says. 

THE OFFICE OF THE PRESIDENT OF UKRAINE SUPPORTS THE COMPLETION OF THE WIND FARMS

Since April 2022, the UWEA has repeatedly called on the Government and parliamentarians of Ukraine to adopt a law aimed at extending the deadlines for the commissioning of wind power capacities at the “green” tariff, the construction of which was put on hold because of russia's full-scale war against Ukraine. All these projects are in the advanced stage of construction works, with all relevant equipment supply and construction contracts having been concluded and grid connection costs being paid.

On November 8, 2022, the Ministry of Energy registered the long-awaited draft law No. 8191 “On Amendments to Certain Laws of Ukraine on Extending the Commissioning Period of Renewable Energy Facilities under Contracts for the Purchase and Sale of Electric Energy at the “Green” Tariff Concluded by December 31, 2019” (hereinafter - Draft Law No. 8191). However, despite the importance and urgency of this draft law in the context of ensuring Ukraine's energy security, the consideration of this draft law was hampered by the Verkhovna Rada Committee on Energy, Housing and Utilities.

Such delay could not only harm the investment climate in the country, but also hinder commissioning of new generating capacities to generate clean and price-competitive electricity that does not depend on imported fossil fuels and which is so urgently needed. The construction of these wind farms will “right now” contribute to the stabilization of the country's energy supply and the development of a decentralized energy system.

We recall that on December 7, 2022, the Ukrainian Wind Energy Association together with other RES associations – UARE and EUEA appealed to the President of Ukraine Volodymyr Zelenskyy and the Chairman of the Verkhovna Rada of Ukraine Ruslan Stefanchuk to take urgent measures to consider the Draft Law No. 8191.

On January 9, 2023, Office of the President responded to the RES associations’ appeal: “Given the importance of the issue raised, the Cabinet of Ministers of Ukraine was asked to ensure proper support of the said draft law in the parliament to accelerate its consideration and adoption by the Verkhovna Rada of Ukraine.”

According to the UWEA, only 76.5 MW out of 1 GW new additions initially expected this year were added in 2022. Temporary russia’s occupation of some parts of Kherson and Zaporizhzhia regions and constant shelling of Mykolaiv and Odesa regions have stopped the construction of new wind farms. The adoption of the draft law drafted by the Ministry of Energy of Ukraine would allow the completion of wind farms in accordance with the legislative guarantees originally provided to the RES investors.

OUTPATIENT CLINICS IN IRPIN RECEIVED TWO MOBILE SOLAR SYSTEMS

On December 26, 2022 the World Wind Energy Association (WWEA) and the Ukrainian Wind Energy Association (UWEA) handed over two 3 kW mobile solar systems to Irpin City Center of Primary Health Care. Solar electricity will allow medical entities in Irpin community, one of the most affected by the Russian aggression in Kyiv region, to use certain medical equipment also in times of power interruptions. 

The WWEA and the Global 100% Renewable Energy Platform launched the campaign “Renewables4Ukraine” to raise funds for donating renewable energy equipment for emergency humanitarian aid in Ukraine, in particular, small and stand-alone solar systems, including batteries, power banks, etc. The WWEA-UWEA joint project aims at helping civilians with solving energy problems through the use of renewable energy sources. 

Ukraine has a huge wind and solar potentials. Wind and solar technologies, as the most affordable and scalable, will support the independence and prosperity of our country. The use of renewable energy sources is a significant contribution to the energy independence of our country, it is a response to the current challenges of russia’s energy terror. Unlike fossil fuels which russia’s aggressor has turned into a brutal weapon against humanity, renewable energy means peace and democracy.

Stefan Gsänger, Secretary General of the WWEA: “People all over the world express their concrete support for Ukraine. We received donations from individuals and also from companies, smaller amounts, larger amounts. In light of the humanitarian situation, we want to provide you with even more plants and above all, we want to make our modest contribution, so that Ukraine can be energy self-sufficient with help of renewable energy. We know that given the situation in your country, this is just like a drop in the ocean. Nevertheless, we hope that solar sets will proof practically useful and that the signal it sends will be received: you are not alone, we stand by your side.”

“I am pleased that the World Wind Energy Association and the Ukrainian Wind Energy Association together with KNESS Energy company have chosen a town of Irpin for implementing a pilot project aimed at supporting local primary healthcare institutions in their transforming into energy independent ones. The situation in Ukraine and in the Irpin community, this winter in particular, will be the most difficult one in the entire history of the Ukraine’s independence. But with such reliable partners it will be easier for us to survive the energy crisis.

On behalf of the entire Irpin community, I wish to express special thanks to Stefan Gsänger, Secretary General of the World Wind Energy Association, and Andriy Konechenkov, Chairman of the Board of the Ukrainian Wind Energy Association, for the very important help and support!” thanked Oleksander Markushyn, the mayor of Irpin.

Andriy Konechenkov, Chairman of the UWEA Board: “The main goal of our project is to provide assistance to hospitals in the regions most affected by russia’s invasion. Solar sets will provide them with electricity generated from the renewable energy sources, namely from solar energy. We have also invited a Ukrainian manufacturer of renewable energy equipment into the project. KNESS Energy has developed a very good mobile solar system that not only generates electricity from solar energy, but can also work as a power bank.”

Ukrainian Wind Energy Association signed a memorandum of cooperation with NRG.space. office space

Memorandum of Cooperation signed by the Chairman of the UWEA Board Andriy Konechenkov and the founder of the NRG.space. office space Oleksiy Badika on December 22, 2022, aims at ensuring the effective transformation of the energy system of Ukraine.

Cooperation between the UWEA and NRG.space residents will result in new development projects, contribute to professional growth of the energy and environmental industries specialists, ensure harmonization of Ukrainian energy legislation and strengthening of energy security of Ukraine. In addition, there will be special conditions for rent and services for the UWEA’s members.

“This cooperation opens up opportunities for the members of our association to integrate into the energy expert community while working and participating in NRG.space events. This is an opportunity for developing and implementing new projects and establishing partnerships that would not be possible without the joint work of specialists from different fields in one office space”, noted Andriy Konecehnkkov. 

“We want to create the basis for the transformation of Ukraine’s energy system into a state-of-the-art, efficient, technologically and economically stable one, capable of withstanding not only a war with an outdated aggressive neighbor but also competition with highly developed markets of other countries. We are sure that such a transformation is impossible without combining the expertise, energy, and resources of many market players, public associations, educational institutions, and the state, without creating a common goal and development strategy,” says Oleksii Badika founder and CEO of Atmosfera, co-founder and member of the ASEU Board, NRG.space resident 

World Energy Outlook 2022

“Renewables were already expanding quickly, but the global energy crisis has kicked them into an extraordinary new phase of even faster growth as countries seek to capitalise on their energy security benefits. …The world is set to add as much renewable power in the next five years as it did in the previous 20 years,” said IEA Executive Director Fatih Birol.

On December 6, 2022, the International Energy Agency (IEA) presented its annual World Energy Outlook 2022.

This year World Energy Outlook explores three scenarios: 

• Stated Policies Scenario (STEPS), which looks not at what governments say they will achieve, but at what they are actually doing to achieve the targets and objectives they have set out, and assesses where this leads the energy sector. 
• Announced Pledges Scenario (APS), which examines where all current announced energy and climate commitments – including net zero emissions pledges as well as commitments in areas such as energy access – would take the energy sector if implemented in full and on time. 
• Net Zero Emissions by 2050 Scenario (NZE), which maps out a way to achieve a 1.5 °C stabilisation in global average temperature and meet key energy related UN Sustainable Development Goals. 

Low‐emissions sources now account for around 40% of electricity generation, with 30% coming from renewables and another 10% from nuclear. Deployment of solar PV and wind power accelerates in all scenarios, setting new records every year to 2030: by mid‐century their combined share of these two technologies in the electricity mix reaches 45% in the STEPS and 60% in the APS. 

Within ten years, if countries are taking the necessary action to deliver on their climate pledges, the world will be deploying around 210 GW of wind capacity each year and 370 GW of solar. 

The balance of deployment varies by region and country. In the United States and India, for example, solar PV becomes the leading technology. By contrast, the European Union moves towards an electricity system dominated by onshore and offshore wind, with both sources combined accounting for more than 40% of total generation in 2050 in the STEPS and over 50% in the APS and NZE Scenario. 

Renewables rapidly become the foundation of the global electricity sector in the NZE Scenario. The share of renewables in electricity generation rises from 28% in 2021 to over 60% in 2030, and nearly 90% in 2050. The total installed capacity of renewables triples to 2030 and rises sevenfold to 2050. Annual renewables capacity additions quadruple from 290 GW in 2021 to nearly 1 200 GW in 2030, and average above 

1 050 GW from 2031 to 2050. 

Solar PV additions expand more than fourfold to 650 GW by 2030, and wind additions to over 400 GW, with more than 20% of this from the developing offshore wind industry.

China, USA and India will become the centers of RES deployment. By 2030, thanks in large part to the US Inflation Reduction Act, annual solar and wind capacity additions in the United States grow two‐and‐a‐half‐times over today’s levels. New targets continue to spur the massive build‐out of clean energy in China. India makes further progress towards its domestic renewable capacity target of 500 GW in 2030.

In the NZE Scenario, electricity becomes the new linchpin of the global energy system. Total electricity generation grows by 3.3% per year to 2050, which is faster than the global rate of economic growth across the period. Annual capacity additions of all renewables quadruple from 290 GW in 2021 to around 1 200 GW in 2030. With renewables reaching over 60% of total generation in 2030, no new unabated coal‐ fired plants are needed. 

A huge increase in energy investment is essential to reduce the risks of future price spikes and volatility, and to get on track for net zero emissions by 2050. From USD 1.3 trillion today, clean energy investment rises above USD 2 trillion by 2030 in the STEPS, but it would have to be above USD 4 trillion by the same date in the NZE Scenario. Today, for every USD 1 spent globally on fossil fuels, USD 1.5 is spent on clean energy technologies. By 2030, in the NZE Scenario, every USD 1 spent on fossil fuels is outmatched by USD 5 on clean energy supply and another USD 4 on efficiency and end-uses.

Total energy sector employment increases from just over 65million today to 90 million in 2030 in the NZE Scenario. New jobs in clean energy industries reach 40 million by 2030, outweighing job losses in the fossil fuel‐related industries. Fossil fuel supply jobs decrease by 7 million by 2030 in the NZE Scenario, with coal supply seeing the sharpest decline as mechanisation and decarbonisation efforts lead to further downsizing of the industry. 

UKRAINIAN BUSINESS MISSION TO LATVIA

On December 2, 2022, the business mission of the Ukrainian delegation to Latvia, which was organized by the Latvian and Ukrainian Chambers of Commerce and Industry ended. The business mission was held under the slogan “Support Ukraine's integration into the single Western and European market, using Latvia, Lithuania, and Estonia as entry points”, and focused on the study of the Latvian experience in renewable energy and waste processing sector of the economy.

While presenting their biomass and solar thermal power plants, and processing household waste projects, the Latvian business representatives described specific items for implementing such projects. The transition to local energy sources and the balanced development of Latvian cities and regions is the primary purpose of introducing renewable energy technologies. Today, Latvia is proud to be one of the first EU economies prepared for a complete phase-out from Russian gas.

At the same time, it should be noted quite a high wind energy potential in Latvia. The country plans to install 2,000 MW wind capacity; for stable operation of the energy system already existing balancing capacities such as hydro- and bioelectric power plants are considered. Cooperation between the two associations will contribute to the further large-scale dissemination of wind energy technologies, both in Latvia and in Ukraine. Wind energy technologies will be of particular importance for Ukraine’s post-war recovery, and for Latvia to phase out its dependence on Russian gas.

Therefore, on 1 December 2022, the Ukrainian Wind Energy Association and the Latvian Wind Energy Association signed a Memorandum of Understanding on further cooperation in wind development and experience exchange between the two countries.

The Ukrainian Wind Energy Association expresses its gratitude to the Ukrainian and Latvian Chambers of Commerce and Industry for the well-organised business mission of the Ukrainian delegation to Latvia and hopes for further cooperation in the RES development for restoring the energy system of Ukraine and the transition to energy independence and decarbonization of our countries.

Memorandum of Cooperation between the Ukrainian Wind Energy Association and the Latvian Wind Energy Association

On December 1, 2022, a Memorandum of Cooperation between the Ukrainian Wind Energy Association and the Latvian Wind Energy Association (Memorandum on Cooperation) was signed in Riga, Latvia.

The signing ceremony took place within the business visit of the Ukrainian delegation to Latvia, which was organized by the Chambers of Commerce and Industry of Latvia and Ukraine and held under the slogan “Supporting Ukraine's integration into the single Western and European market, using Latvia as an entry point”, 

Chairman of the Supervisory Board of the Latvian Wind Energy Association Gatis Galvins: “Cooperation between our countries will not only enable setting up new energy structures of our countries without russian gas, but will also provide an opportunity for knowledge and experience exchange on wind energy development”.

Associations will undertake joint activities to demonstrate the feasibility and benefits of wind technologies to a national and European audiences, with both partners providing their best assets from their main sphere of activities and networks, by:

• Exchanging information about latest developments, main challenges and new opportunities in the wind energy field; 
• Organising international events on wind energy to maximise public perception of wind such as conferences, workshops, exhibitions and other types of events; 
• Coordinating and exploring further possibilities of acquiring and undertaking joint projects and initiatives; 
• Regular personal meetings, including members of wind associations.

Andriy Konechenkov, Chairman of the UWEA Board: “The signing of the Memorandum of Cooperation between two wind energy associations is an important step on the way of our countries towards energy independence, decarbonization and peace”. 

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RECOVERY AND DEVELOPMENT OF THE RENEWABLE ENERGY SECTOR AFTER THE WAR

The war unleashed by russia has inflicted considerable damage on the whole energy sector of Ukraine. Russia’s aggression and temporary occupation of some territories of Ukraine deprived the country of a significant part of the green generation: 80% of wind capacities and more than 30% of solar capacities are occupied and/or partially destroyed. However, the development of the industry in 2015-2019 proves that renewable energy could be an investment magnet; while the current EU climate policy and global trends in sustainable development confirm the role of renewable generation in the economic development of nations. Therefore, “green” energy should be at the core of the Ukrainian economy restoration and our energy security. As early as today, the issues related to the RES industry recovery and its development after the war should become key ones on the of the country's energy agenda.

The expert discussion “Recovery and Development of the Renewable Energy Sector after the War” conducted on 15 November 2022, gathered together People’s Deputies of Ukraine, representatives of state bodies and RES industry. 

Participants discussed the current status of national renewable energy sector, existing opportunities and barriers to renewable energy development, shared their views on  short-, medium- and long-term measures aimed at implementing renewable energy projects after the war.

Discussion was opened by Vladyslav Maksakov, a state expert in the expert group for the development of the renewable electrical energy sources in the electricity complex of the Energy Market Directorate of the Ministry of Energy who presented the Ministry of Energy of Ukraine vision for further development of the industry, emphasizing that “the further RES development in the country should be based on market principles.”

Co-chairman of the IFO “Clean Energy - Healthy Environment”, MP, Oleksiy Goncharenko: “If we have already confirmed as an EU candidate country. If we have already decided that this is our way to go with the free world and be a part of Europe.

For Europe today's concept of energy is “green” energy. This is the priority, and this is the future. Ukraine should be one of the leaders in this process, especially since we need it even more than others".

Speakers of the event included: Andriy Konechenkov, Chairman of the UWEA Board; Oleksandr Kozakevych, Chairman of the Ukrainian Association of Renewable Energy; Kyrylo Kostyrya, Legal Director, UDP Renewables; Ihor Retivov, Senior Regulatory Manager, DTEK Renewables; Juliya Usenko, Head of All0Ukrainian Sustainable Development and Investments Agency. Ivan Bondarchuk, Counsel, Energy Law, LCF, moderated the discussion.

Kyrylo Kostyrya, Legal Director, UDP Renewables: “From a long-term RES development perspective, we see opportunities for exporting RES electricity to the European Union. Our “green” elelctricty could held decarbonise EU economy and reduce its dependence on energy resources of the aggressor state. But we don’t have enough ability to do so: we lack the ability to enter into long-term contracts for export and access to interconnectors (for a period of 10-15 years). Another barriers include lack of Guarantees of Origin and mandatory PSO that has been imposed on electricity exporters”.

Ihor Retivov, Senior Regulatory Manager, DTEK Renewables: «We should have a single state strategy or another document of this type. But it should be the same for all state bodies and institutions, it should be accepted and implemented by all, from government agencies to bodies to energy companies”.

Andriy Konechenkov, Chairman of the UWEA Board: “We should not just renovate the Ukraine’s energy system of the past. We want, as EC advises us, to build it back better than before with two main goals in mind: Ukraine’s energy independence and decarbonisation. To deliver these goals we have to make a deep analysis of the whole energy system with renewable energy generating technologies at the core.”

Presentations of the speakers:
Vladyslav Maksakov, Ministry of Energy of Ukraine
Andriy Konechenkov, UWEA

INITIATING THE BLACK SEA OFFSHORE WIND ENERGY FEDERATION

On October 26, 2022, in the city of Izmir, Turkey, Wind Energy Associations from Turkey, Ukraine, Bulgaria and Georgia - Turkish Offshore Wind Energy Association, Ukrainian Wind Energy Association, Bulgarian Wind Energy Association and Georgian Wind Energy Association - initiated the creation of the Black Sea Offshore Wind Energy Federation (BASOFWED). “The Parties shall encourage and support the cooperation in the field of offshore wind power development in the Black Sea Region on the basis of mutual benefit according to the provisions of the present Protocol and the national legislation of each Party,” the BASOFWED Initiation Protocol states.

The Black Sea region, which, according to World Bank estimates, has a technical potential of 453 GW to ensure large-scale implementation of offshore wind energy technologies. Therefore, representatives of the four countries consider offshore wind energy to be one of the driving forces for “green” transition in the Black Sea region.

The Ukrainian Black Sea territorial waters carry significant decarbonization potential for the country's energy system, for low-carbon transformation of industry, production of “green” hydrogen, and opportunities for economic development of local communities.

“Wind energy - onshore and offshore - should become a key element in the post-war reconstruction of the Ukrainian energy system. It is not only the pathway to “green”" energy. This is the pathway to decarbonization of our economy, democracy and peace,” noted Andriy Konechenkov, Chairman of the Board of UWEA.

The official signing ceremony was held as part of the Marentech Expo 2022, International Marine Energy Technologies Fair and Conference, which is the main regional event for offshore wind energy.

UWEA PARTICIPATED IN THE WORLD'S LARGEST WIND ENERGY INDUSTRY EXHIBITION WINDENERGY HAMBURG 2022

Nowadays, in times of economic and energy crises, it is more than ever clear that the development of renewable sources is the only way to reach energy security and fight against rapid climate change. “It's time to put the climate issue first” - motto of this year's exhibition and conference WindEnergy Hamburg2022, which is the world’s largest event of the global wind energy industry. The WindEnergy Hamburg 2022 program included various forums that encouraged participants to discuss and share knowledge.

Speaking at the opening of WindEnergy Hamburg, the Minister of Economy, Vice Chancellor of Germany Robert Habeck noted that the development of wind energy and the spread of renewable energy in general had become more urgently needed and more important than ever. “The accelerated energy transition is the key to a safe and sustainable energy supply not only in Germany, but also in the whole of Euro,” said Robert Habek and once again emphasized the importance of wind energy technologies, both onshore and offshore.

An exhibition and conference of the hydrogen energy sector “H2EXPO & CONFERENCE” was also held, as part of Wind Energy Hamburg 2022. The exhibition was focused attention on the combination of highly innovative technologies and processes in the field of renewable energy.

The Ukrainian wind energy industry was worthily represented at WindEnergy Hamburg 2022 fair by 22 UWEA’s member companies. The UWEA booth attracted a lot of visitors. "We will win(d)!” - the main message Ukrainian companies communicated to the fair's participants and visitors.

UWEA representatives also spoke at several events held as part of the WindEnergy Hamburg 2022 program. Thus, Galyna Shmidt, UWEA Board member spoke at Renewables4Ukraine – Renewables4theWorld event hosted by the WWEA and Global 100% RE.

“All countries are paying currently a high price and need to accelerate the pathway towards 100% renewable energy”, noted Stefan Gsänger, Secretary General, WWEA.

Speakers from Ukraine, Turkey and the Netherlands presented different angels of the current energy crises and what the response should be. As special guest, ESC winner and Renewable Energy Ambassador Ruslana called for renewable action. All the speakers underlined that relief and post-war reconstruction of Ukraine should be based on renewables with wind energy at its core.

Galyna Shmidt: “Ukraine’s power sector recovery should be based on renewables. Energy security for Ukraine means our resistance to global threats and challenges and the confidence of Ukrainians in their future. All this can be achieved by the transition to renewable energy sources and other “green” energy technologies like renewable hydrogen.”

In her presentation at GWEC Working Lunch “Accelerating Renewables to achieve energy security and climate action” Galyna Shmidt emphasized: “With transition to renewable energy, energy itself will cease to be an instrument of political or military influence of one country on another. Ukraine needs EU help to recover our economy, rapidly electrify our energy system, produce renewable hydrogen and deploy offshore wind. This will require true technological and industrial partnership between Ukraine and the EU. For sure, huge investments are required to deliver all these targets. At the same time investing in Ukraine, in our wind power sector means investing not only in Ukrainian energy security but European energy security as well. Wind energy means Peace and Democracy!”

Joyce Lee, Head of Policy and Projects, GWEC, presented “A Five-Point Plan to Accelerate Renewables and Achieve Energy Security and Climate Action” drafted by GWEC to outline tangible steps for global policymakers to take within the next 12 months to address the energy and climate crises over the next 3 years; crises which have worsened in the last 12 months, exacerbated by the russia’s invasion of Ukraine.

The Ukrainian wind energy industry was worthily represented at this year's WindEnergy Hamburg2022 exhibition by 22 UWEA’s member companies.

“Ukraine has huge opportunities and potential for the electricity generation from wind with its further use both on the domestic market, including for the production of “green” hydrogen, and for export to the EU,” summarised Andriy Konechenkov, chairman of the UWEA Board.

Members of the Ukrainian delegation about their participation in WindEnergy Hamburg 2022:

“This year WindEnergy Hamburg showed the scale of Europe’s support for Ukraine, particularly in the field of renewable energy. Green energy is one of the important components of Ukraine’s national security and independence,” Dmytro Neshev, head of the engineering department of DTEK Renewables. 

“The exhibition presented projects from different parts of the world, companies, technologies, equipment and software manufacturers, service providers, law and financial companies. It’s remarkable that the global industry has shifted its focus to offshore wind, especially there are a lot of such projects in Europe; so, this will become a reality for Ukraine in the next 10 years,” Serhiy Yevtushenko, Managing Partner of UDP Renewables.

“In today's circumstances, participation of the Ukrainian companies in such international events is mandatory; it gives them the voices, find new contacts and review business strategies. Support for Ukraine is currently at an unprecedentedly high level, the desire to cooperate was expressed by all representatives of foreign companies who visited our stand. We prove every day that we are invincible on the battlefield, and we will prove it during the reconstruction of our country,” Oleksandr Repkin, special representative of the Minister of Foreign Affairs for economic diplomacy.

“Participation in the exhibition was an opportunity for us to share experience with the world’s leading industry players. Principally new approaches to the implementation of onshore and offshore wind projects, innovative solutions in implementing hydrogen technologies and RES projects in general will certainly be embodied in our new projects”, Serhii Kravchuk, Deputy Director of NESS Group.

“The exhibition provided excellent opportunities for the first steps in presenting our company at the EU level. We gained the necessary contacts with European companies. In short, there were 4 days of GREAT OPPORTUNITIES,” Vadym Lievienberg, director of the Communication Construction Company.

UWEA and UARE appealed to Ministry of Energy of Ukraine and NEURC to introduce Guarantees of Origin for RES electricity

According to Directive 2009/28/EU and Directive (EU) 2018/2001, Ukraine, like other Contracting Parties of the Energy Community, shall create a Guarantees of Origin (GO) system and ensure its functioning. So far Ukraine has not fulfilled the specified obligations.

The introduction of the system of Guarantees of Origin in Ukraine will have a positive effect on the export of electricity to EU countries: it will ensure stable demand for Ukrainian “green” electricity among consumers in the EU and contribute to stable income from the sale of electricity. Moreover, the income from the sale of GO will improve settlements with RES producers, and allow reducing the financial impact of the current PSO model on the electricity transmission services tariff of NPC Ukrenergo.

UWEA and UARE appealed to the Ministry of Energy of Ukraine and the NEURC to facilitate as soon as possible the finalization of changes in the current legislation to provide the rapid implementation of the GO system. The associations expressed their readiness to participate in discussion of relevant changes to the legislation regarding the development and implementation of the GO system with the involvement of state authorities and representatives of associations in the nearest future.

“Given that the mentioned issue has remained unresolved in Ukraine for almost 10 years, the associations stand for finalizing the text of the draft law with relative state bodies and industry associations engagement for the effective implementation of the Guarantees of Origin system in Ukraine within the shortest possible period, » the letter says.

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Working meeting between the UWEA and the Energy Community Secretariat

On September 13, 2022, the Ukrainian Wind Energy Association representatives headed by the UWEA Board Chairman Andriy Konechenkov had a fruitful discussion with the Deputy Director of the Energy Community Secretariat Dirk Buschle and Naida Taso, Electricity Market and Renewables expert, devoted to the importance of extending the pre-PPAs and technical conditions for grid connection for 2 years. The construction of wind power plants was suspended in February 2022 due to the full-scale war started by the russian federation. However, investors want to complete constructions, despite the war.

Each wind turbine installed in the coming months will definitely contribute to strengthening Ukraine’s energy security through providing additional power generating capacities and ensuring additional electricity supply especially important in the difficult winter period. The usage of wind energy reduces the need for consumption of the expensive fossil fuels such as gas, coal, or oil.

In addition, it should be noted that the price for electricity generated at new wind farms will be 88 euros/MWh, which is already comparable to market electricity prices in Ukraine. Therefore, the completion of these wind power plants at “green” tariff will not impose an additional burden on the state. Considering the fact that the market price of electricity is expected to exceed 100 euros/MWh this winter, cheap wind-generated electricity will reduce electricity prices.

According to the provisions of the pre-PPAs concluded with the State Enterprise Guaranteed Buyer (national off-taker) in 2019 and Law of Ukraine “On Alternative Energy Sources”, above-mentioned wind power facilities were to be put into operation until the end of December 2022 in order to benefit of the “green” tariff scheme of support. Without clear and stable state policy for projects under the "green" tariff, investors and creditors are not prepared to take on critical financial risks and resume the construction process. Continuity of policy is also a prerequisite for providing guarantees to wind energy equipment suppliers and installers, as they are wary of the current situation in Ukraine and prefer to suspend performance of their obligations claiming Force Majeure circumstances.

During the zoom meeting with Dirk Buschle and Naida Taso, UWEA’s representatives positively commented on the draft law developed by the Ministry of Energy of Ukraine, which provides for the possibility of completing wind farms at the "green" tariff by the end of 2024. This document, if successfully considered in the parliament, could become a lifesaver both for wind energy companies and for the energy industry of Ukraine as a whole, since the companies will be able to resume construction within the framework of a predictable and understandable legislative field. In turn, the state will have such important new energy-generating capacities, which do not use expensive fossil fuels and, in addition, contribute to the decarbonization of the country.

For their part, representatives of the Secretariat of the Energy Community expressed their understanding of the complexity of the situation for companies whose projects’ implementation were put on hold due to russian aggression, but construction of which could be resumed in the short- and medium-term perspectives.

Taking into account the arguments provided by the UWEA and the market participants’ position regarding the urgency for 2 years prolongation of validity period of already concluded pre-PPAs at “green” tariff and grid-connecting technical conditions for the RES investors to complete construction of their wind power plants in Ukraine, the Energy Community Secretariat will submit its proposals on mechanisms to further promote wind power in Ukraine to the Ministry of Energy, as well as to parliamentarians.

There is no doubt that the issue will be resolved. After all, the President of Ukraine Volodymyr Zelenskyi, the Prime Minister of Ukraine Denys Shmyhal, the Minister of Energy Herman Galushchenko have repeatedly emphasized the priority of the renewable energy industry in plans for the post-war recovery of Ukraine and called on foreign companies and investors to develop the industry.

UWEA’s appeal to International Institutions Concerning Artificial Barriers Preventing the Completion of the Construction of New Wind Capacities in Ukraine.

Today, on September 5, 2022, the Ukrainian Wind Energy Association (UWEA) has addressed to the Commissioner for Energy Kadri Simson, the Director of the Secretariat of the Energy Community Artur Lorkowski, and the Member of the European Parliament Viola von Cramon-Taubadel concerning artificial barriers preventing the completion of the construction of new wind power capacities in Ukraine.

The UWEA raised the issue of the urgency of legislative amendments designed to extend the validity period of the relevant technical conditions for grid connection as well as the terms of commissioning these facilities under the existing PPAs at the green tariff.

Russia’s large-scale invasion of Ukraine has put on hold the construction of wind power plants (WPPs) that were already in the development and construction phases. Given the fact that the construction of these WPPs could be resumed very quickly, in 6-12 months (depending on the project) they could start deliveries of green electricity to the Ukraine’s energy grid, thus partially compensating for the deficit of generating capacities that has arisen in the country as a result of the war imposed by the russian federation.

That is why the UWEA has initiated the process of extensive discussion related to introducing legislative changes to enable the completion of those wind energy projects, the commissioning of which was expected in 2022.

According to the provisions of the pre-PPAs concluded with the SE Guaranteed Buyer (national off-taker) in 2019, these wind power facilities were to be put into operation between February and December 2022. In other words, if these wind farms are put into operation after 31 December 2022, it will actually mean violation of the existing pre-PPAs by the RES investors.

Furthermore, additional legislative amendments should be adopted to ensure the parties to fulfill their obligations under the power grid connection contracts concluded between the wind companies and the NPC Ukrenergo before 31 December 2019. Indeed, if technical conditions under these contracts cease to be effective, it will result in the impossibility of completing actions required for connecting the electricity generating facility to power grid.

In order to solve the above-mentioned problems, the investors are asking the state authorities to extend the period of validity of the relevant technical conditions for grid connection and Pre-PPAs until 31 December 2024 inclusively, or for two years, as renewable energy investors have actually lost one year due to the full-scale war in Ukraine.

Today, on September 5, 2022, the Ukrainian Wind Energy Association (UWEA) has sent an appeal to the Commissioner for Energy Kadri Simson, the Director of the Secretariat of the Energy Community Artur Lorkowski, and the Member of the European Parliament Viola von Cramon-Taubadel concerning artificial barriers preventing the completion of the construction of new wind power capacities in Ukraine.

The UWEA raised the issue of the urgency of legislative amendments designed to extend the validity period of the relevant technical conditions for grid connection as well as the terms of commissioning these facilities under the existing PPAs at the green tariff.

Russia’s large-scale invasion of Ukraine has put on hold the construction of wind power plants (WPPs) that were already in the development and construction phases. Given the fact that the construction of these WPPs could be resumed very quickly, in 6-12 months (depending on the project) they could start deliveries of green electricity to the Ukraine’s energy grid, thus partially compensating for the deficit of generating capacities that has arisen in the country as a result of the war imposed by the russian federation.

That is why the UWEA has initiated the process of extensive discussion related to introducing legislative changes to enable the completion of those wind energy projects, the commissioning of which was expected in 2022.

According to the provisions of the pre-PPAs concluded with the SE Guaranteed Buyer (national off-taker) in 2019, these wind power facilities were to be put into operation between February and December 2022. In other words, if these wind farms are put into operation after 31 December 2022, it will actually mean violation of the existing pre-PPAs by the RES investors.

Furthermore, additional legislative amendments should be adopted to ensure the parties to fulfil their obligations under the power grid connection contracts concluded between the wind companies and the NPC Ukrenergo before 31 December 2019. Indeed, if technical conditions under these contracts cease to be effective, it will result in the impossibility of completing actions required for connecting the electricity generating facility to power grid.

In order to solve the above-mentioned problems, the investors are asking the state authorities to extend the period of validity of the relevant technical conditions for grid connection and Pre-PPAs until 31 December 2024 inclusively, or for two years, as renewable energy investors have actually lost one year due to the full-scale war in Ukraine.

UWEA’s Letter

APPEAL TO THE PRESIDENT OF UKRAINE REGARDING THE THREAT OF BANKRUPTCY OF THE RES SECTOR

Today the UWEA jointly with other RES industry associations have appealed to the President of Ukraine Volodymyr Zelenskyy, Prime Minister Denys Shmyhal and Minister of Energy Herman Halushchenko for their help in preventing bankruptcy of the renewable energy sector, the most transparent and investment attractive sector in the energy sector of Ukraine. The copy of the letter was also sent to the NEURC Chairman Konstyantyn Ushchapovskyy.

In their letter, the leading associations outline the current status of the RES sector and focuse on the key challenges facing the market. According to them, illegal decisions made by some power industry authorities have imposed several artificial barriers to the stable operation of the RES market, in particular:

• artificial limitation of the level of settlements with RES producers and
• some state bodies’ desire to cancel the “green” tariff under the pretext of war and a shortage of funds in the electricity market.

According to the RES associations limitation of settlements with RES producers has been made artificially since the relevant state companies responsible for settlements with “green| generators have enough financial resources to cover almost 100% payments due in 2022. For example, NPC Ukrenergo could collect about 16-18 billion UAH (including 8-10 billion UAH for transmitting electricity and 6-8 billion UAH - from additional sources).

In response to the publicly available information on the NEURC’s consultations with Energy Community on possibility to temporary cancel the “green” tariff, the associations warned:“Ukraine could lose about 8 GW of RES capacity due to the bankruptcy of the RES industry, which will definitely lead to the deterioration of Ukraine's energy security, loss of its own energy independence and reduction in electricity available for electricity export trading essentially important for Ukraine, ( in July 2022 electricity export trading generated about 1 billion UAH in profit for the state operator Ukrenergo”).

The problems artificially-created in the RES market Ukraine are leading the industry to default; they undermine the investment attractiveness of Ukraine. Associations recalled that over the past 10 years the international and Ukrainian RES investors have attracted about USD 12 billion in direct investments to the Ukrainian economy.

The Ukrainian RES associations called for the President of Ukraine and the power industry authorities to respect the state guarantees to the RES investors, refrain from any retrospective changes to the current legislation, and lift the above-mentioned artificial barriers to the conduct settlements with RES producers.

Finally, the association stressed: “The RES sector does not require any additional financial support or subventions from the state, but strives to receive those funds for the supplied electricity, which are provided for by the current contracts and the current legislation of Ukraine”.

RES association letter

EU TAXONOMY AND GAS & NUCLEAR GREENWAHSING

“Putin rubbing hands with glee’ after EU votes to class gas and nuclear as green” under such a headline The Guardian announced today's scandalous decision of Europe. “Amid war, energy crisis, E.U. says gas, nuclear can sometimes be ‘green’” The Washington Post wrote. “Striking hypocrisy” states Recharge.

On July 6, 2022, European lawmakers voted to move ahead with a plan to label some nuclear and natural gas power as “green” energy. It is worth noting, that the taxonomy does not define all gas and nuclear power as "green", it only provides a guide for future investors in such projects: whether they finance an environmentally friendly power project or not.

Only those projects that meet specific conditions are recognized as ecological or sustainable. Thus, investments in gas power facilities are considered sustainable only if such projects replacing coal and emitting no more than 270 grams of CO2 equivalent per kilowatt-hour can get a temporary green label, or if annual emissions don’t exceed an average of 550 kilograms per kilowatt-hour over 20 years. Such plants would have to obtain construction permits by 2030, and have plans to switch to renewable or low-carbon gases by end-2035.

At the same time,  investments in nuclear are considered sustainable only if new plants that are granted construction permits by 2045 demonstrated it had a plan to deal with radioactive waste and avoid significant harm to the environment and water resources. The purpose of the taxonomy is to identify investment conditions that will contribute to the achievement of global climate goals by 2030 and 2050. New nuclear plants that are granted construction permits by 2045 will play no role in achieving these goals due to their long construction timelines.

The taxonomy proposal enjoys the backing by France, Finland and several Eastern European EU states that want to build or expand atomic power, but the inclusion of nuclear has been strongly opposed by Germany, Austria, Spain and Luxembourg, which consider it greenwashing and fear it will lead to the massive channelling of public funds into outdated technologies.

It is important that the bulk of the conservative European People’s Party had voted to support the inclusion of gas and nuclear after a last-minute plea by Ukraine’s energy minister, German Galushchenko. In a letter to lawmakers, he said excluding the energy sources from the taxonomy could be “particularly challenging” for the country’s post-war reconstruction. Putin rubbing hands with glee...

Unless 20 EU member states representing 65% of the economic bloc’s population reject the taxonomy, or it is thrown out by the European Court of Justice, it will enter into force next year.

Please take a look at the photo of the Ukrainian wind power plant, attached to this news and published today by the President of Ukraine, Volodymyr Zelenskyi. What would be the consequences if this projectile hit another power facility, not a wind farm?

European Commission and renewables associations unite for a reconstruction of Ukraine with renewables at its core

• At a hybrid event jointly hosted by WindEurope, SolarPower Europe, the Ukrainian Wind Energy Association and the Solar Energy Association of Ukraine, EU Commissioner for Energy Kadri Simson reinforced the EU’s determination to support Ukraine – both throughout the ongoing war and in the following period of reconstruction.
• In the online presence of German Galushchenko, Ukrainian Minister of Energy, EU and industry representatives committed to supporting Ukraine in rebuilding and strong and sovereign country, less dependent on Russian fossil fuel imports.
• Renewables should be at the core of the joint Strategic Reconstruction Plan and the Ukraine. They are essential to the energy independence, prosperity, employment and peace of post-war Ukraine.
• In a joint statement the European and Ukrainian renewables associations call on Ukrainian leaders to set a target of at least 50% renewables in Ukraine’s electricity mix by 2030, and for a dedicated “Renewables for Ukraine” vehicle as part of the joint Strategic Reconstruction Plan and the Ukraine reconstruction platform

The European and Ukrainian Wind and Solar Associations condemn Russia’s unprovoked and unjustified military aggression against Ukraine in the strongest terms. The European solar and wind community stands in firm solidarity with the people of Ukraine. We hope the human suffering in Ukraine will end as soon as possible.

The Russian invasion of Ukraine has revealed the weaknesses of Europe’s energy system: it’s over-reliance on Russian fossil imports. The Kremlin does not hesitate to explicitly weaponise this vulnerability.

At a hybrid event jointly hosted by WindEurope, SolarPower Europe, the Ukrainian Wind Energy Association (UWEA) and the Solar Energy Association of Ukraine (ASEU) EU Commissioner for Energy, Kadri Simson stressed that the EU is working at full speed to reduce this dependence and strengthen Europe’s energy security. With REPowerEU, its energy answer to the war in Ukraine, the European Commission will put an end to the import of fossil fuel from Russia by 2027. In the meantime, the EU is diversifying its energy supply, ramping up the expansion of renewables and boosting energy efficiency.

On the day of the International Ukraine Recovery Conference (URC 2022) in Lugano, the EU is resolute in its support for the people of Ukraine. The EU will intensify its commitment to drive the recovery of the hard-hit Ukrainian economy. An essential element of this support will be the reconstruction and modernisation of Ukraine’s energy sector. Solar and wind, the most affordable and scalable technologies, will support the country’s independence and prosperity going forward.

At today’s event, the European and Ukrainian Solar and Wind Associations published a joint statement calling on the leaders from Ukraine and the EU to embrace renewables and renewable hydrogen in Ukraine’s post-war reconstruction by setting a target of at least 50% of renewables in electricity production by 2030, through a combination of rooftop and ground-mounted solar, as well as onshore and offshore wind.

The European wind and solar communities stand ready to support Ukraine. To deliver the 50% target, Ukrainian and European leaders should set up a dedicated “Renewables for Ukraine” vehicle as part of the joint Strategic Reconstruction Plan and the Ukraine reconstruction platform. Women Energy Club of Ukraine also supported the Statement.

Andriy Konechenkov, Chairman of the UWEA Board: “Living through the 8 years of Russian hybrid war has taught me two things. The first is that Ukraine will never be safe until we have energy independence, and the second is that energy security can never come from fossil fuels. Ukraine’s post-war recovery should be based on renewable energy. 50% share of renewables in electricity generation by 2030 is realistic and feasible target for my country.”

Artem Semenyshyn, CEO, ASEU: “We see right now how solar supports the Ukrainian grid’s resilience – the flexible nature of solar decreases the vulnerability of the energy supply to attack, with solar keeping the lights on in parts of Ukraine. With financial and political support from the international community, the plan to rebuild Ukraine should have the principle of resilience and flexibility at its core. A mandatory solar rooftop programme to support re-building homes would enable lowest cost and clean power security for Ukraine’s citizens.”

Malgosia Bartosik, WindEurope Deputy CEO: “Renewables should be at the core of rebuilding a climate neutral, prosperous and energy independent Ukraine. Had we all invested earlier and more decisively in renewable energy, we would not find ourselves dependent on unreliable fossil fuel importers today. Wind was already powering Ukrainian homes and companies before the war. The European wind industry stands ready to support the Ukrainian post-war recovery and strengthen its energy security with affordable and scalable technology, while creating new jobs, supporting local communities and revitalising the Ukrainian economy.”

Walburga Hemetsberger, SolarPower Europe CEO: “Ukraine is European, and now a candidate member of the European Union. It follows that we must support Ukrainian renewable reconstruction in line with the Fit for 55 and REPowerEU packages. For the country’s energy security, prosperity, and climate goals, we must maximise the immense potential of Ukrainian renewables, and empower Ukraine to join the continent’s Solar Terawatt Journey by 2030.”

Among Kadri Simson, EU Energy Commissioner and the Chairmen of the RES associations of Europe and Ukraine, the round-table participants included:  German Galushchenko, Energy Minister, Ukraine; Andrii Zhupanyn MP, Member of Energy Committee of Verkhovna Rada; Volodymyr Kudrytskyi, CEO, NPC Ukrenergo; Dirk Buschle, Deputy Director Energy Community Director; Joachim Vanzetta, Chair of the Board, ENTSO-E; Monika Morawiecka, Senior Advisor, Regulatory Assistance Project; Alessandro Boschi, Head of Renewables, EIB; Olga Yeriomina, Senior Banker, Energy Europe, Sustainable Infrastructure Group, EBRD; Maryna Ilchuk, Women Energy Club of Ukraine, Board Member; Galyna Schmidt, Board Member, Ukrainian Wind Energy Association; Alessandro Polito, DG ENER; François Paquet, Impact Director, Renewable Hydrogen Coalition.

COLLABORATING FOR A RENEWABLE PRESENT AND FUTURE IN PEACE

Delegates from almost 30 countries participated in this year World Wind Energy Conference “Collaborating for a Renewable Present and Future in Peace” that was held by the WWEA in cooperation with ANEV in Rimini, Italy.

The Conference gave special consideration to how a renewable energy future could help to ensure peace, next to covering all aspects of mainstreaming and growing wind and renewable utilisation. Cooperation with local community, in particular in the form of community energy and energy communities was another important topic at the conference.

Conference speakers underlined that “the emergency of the climate crisis as well as the energy and security crisis have all been mainly driven by fossil and nuclear fuels and that the only feasible response to tackle these crises is the immediate rollover to 100% renewable energy globally”.

Speaking at the WWEC Galyna Shmidt, UWEA Board Member, Vice-President WWEA noted: “Ukraine needs an urgent plan for energy independence and urgent international help to execute it. Widescale development of renewables, and wind power in particular should be part of the plan. Ukraine should aim for at least 40% of our electricity to come from renewables by 2030.”

This year World Wind Energy Award was given to Hans-Josef Fell for his political achievements and the recognition of the need for governments to act and to Heinrich Bartelt for his decades long work and achievements as pioneer, entrepreneur and NGO representative.

The next World Wind Energy Conference will be held in Hobart, Australia, in April 2023.

THE UWEA BROUGHT TOGETHER ELECTRICITY MARKET PLAYERS TO DISCUSS PROBLEMATIC ASPECTS OF COMPENSATION OF IMBALANCES DURING THE WAR

On June, 22, 2022, Global REnew Day, the UWEA in cooperation with the law firm Asters, NPC Ukrenergo and SE Guaranteed Buyer held a webinar “Problematic aspects of compensation of imbalances by RES producers during the martial law”. The topic of the webinar has proved to be extremely important as the discussion was attended by as many as 100 RES market players.

In his introductory speech Yaroslav Petrov, a partner at Asters, highlighted the main idea of the webinar: “A significant number of the RES producers does not understand why they have received big bills for imbalances in some months of 2022, given the huge number of curtailments of green generation during exactly these periods. As the RES producers keep receiving extremely low payments for the delivered electricity along with such big bills for imbalances, they have to consider different options of protecting their rights and preventing their bankruptcy.”

Oleksandr Symomenko, Head of the Department of Special Obligations and Market Support of the NPC Ukrenergo, and Maksym Dyrenko, Head of the Department of Trade Operations in the Electricity Market of the SE Guaranteed Buyer spoke at the webinar to shed light on this problematic issue and discuss possible solutions.

Commenting the big bills for imbalances, Oleksandr Symomenko noted that the key reason is failure to provide the SE Guaranteed Buyer with full data on the number of curtailments of green electricity in the terms provided by the NEURC’s Resolution No641 from 26.04.2019. “Upon receiving these data, SE Guaranteed Buyer takes them into account when calculating Guaranteed Buyer’s share of compensation for imbalance. Otherwise, the national off-taker considers that there has been no curtailments of RES generation by the TSO in the accounting month and such RES generator is fully liable for imbalance. The reason for the failure to submit the data on curtailments at the proper time to SE Guaranteed Buyer is the delay in signing the relevant acts to settle the imbalances and execute other payments,”
Mr. Oleksandr explained.

Maksym Dyrenko added a number of other factors that cause high bills for imbalances: “In general, three main factors have created this problem: i) legislative, namely inadequacy of the regulation and this year increase of RES producer’s liability for imbalances from 50% to 100%; ii) technical, that associates with forecasting issues and the increase of the average monthly deviation among members of the balancing group from 5% in 2021 to about 40% in 2022, which, in turn, is closely linked to active hostilities and the inability of some generators to clearly assess the status of operation of their power plants; and iii) current decrease in demand in various market segments.” Commenting the situation in the market he added: “SE Guaranteed Buyer does its best to reach the pre-war levels of electricity sales and in May the national off-taker managed to sell 64% of electricity proposed in the market.”

Q&A session of the webinar resulted in a long and comprehensive discussion. Thus, Maksym Sysoiev from Dentons, member of the UWEA, inquired about Guaranteed Buyer’s opinion on the intention of some RES market players to leave its balancing group and sell electricity directly in the market. “The enterprise has nothing against such a step provided that this process will be legalized, since at time being the suspension of the participation in the SE Guaranteed Buyer balancing group could be grounded only with the repair works,” Maksym Dyrenko informed.

Oleksandr Symomenko, in turn, added that the TSO has been actively involved in drafting regulations on joining-leaving the balancing group of SE Guaranteed Buyer, and warned that “the RES producer who has left the balancing group automatically becomes a participant of the balancing market and is obliged to submit on regular basis to the TSO applications for full capacity loading and unloading”.

It should be noted that both speakers encouraged the webinar participants to actively participate in the relevant working groups on amendments to the legislation, as such a format allows to form a common position of all market participants on a particular issue related to the operation of the market.

Concluding the webinar, Andriy Konechenkov, Chairman of the UWEA Board, congratulated once again all the participants on the Global REnew Day and expressed hope for a quick resolution to the ongoing problem and further stabilisation of the functioning of the electricity market in Ukraine.

Recording (in Ukrainian): https://www.youtube.com/watch?v=9cVZdS07dNA&t=582s

WIND INDUSTRY SUPPORTING UKRAINIANS

WIND INDUSTRY SUPPORTING UKRAINIANS

During WindEurope annual event 2022, this year conducted in Bilbao, Spain, WindEurope together with the PWEA, UWEA, RenewableUK and other wind energy national associations launched a fundraising initiative among its member companies to support the Ukrainian Foundation of Citizens (Foundation Gromadyany). The Gromadyany Foundation has existed and operates since 2014 and now the main activities are around providing assistance for hospitals and schools located in the war zones.

Russia’s unprovoked and unjustified war against Ukraine has resulted in increasing number of patients with various injuries. The Office of the UN High Commissioner for Human Rights has recorded so far as much as 10 046 civilian casualties in the country - killed and injured.                                                        

The Ukrainian Wind Energy Association greatly appreciates support and help provided by WindEurope, by wind Industry of Europe!

We thank all our colleagues for their generous donation enabling Foundation Gromodyany to provide five Ukrainian hospitals located in the different regions of Ukraine with eight aspirators ATMOS C 161 Aspirator/DDS. Aspirators have been delivered to Kyiv Blood Transfusion Center, Kyiv Clinical Hospital on Railway Transport No 2, Zaporizhzhia Regional Anti-tumor Center, Regional Clinic Hospitals for War Veterans of Kirovohrad Regional Council and Mykolayiv Military Hospital.

WIND POWER IS A PATHWAY TO PEACE!

Record growth in renewables, but world missed historic chance for a clean energy recovery, says latest REN21 report

Despite the promise of a worldwide green recovery in the wake of the COVID-19 pandemic, this historic opportunity has been lost. REN21’s Renewables 2022 Global Status Report (GSR 2022) sends a clear warning that the global clean energy transition is not happening, making it unlikely that the world will be able to meet critical climate goals this decade. The UWEA traditionally provided expert support to the REN21 platform preparing the Report.

The second half of 2021 saw the beginning of the biggest energy crisis in modern history, exacerbated by the Russian Federation’s invasion of Ukraine in early 2022 and unprecedented global commodity shock. “In response to the energy crisis, most countries have gone back to seeking out new sources of fossil fuels and to burning even more coal, oil and natural gas,” says Rana Adib, REN21 Executive Director.

According to the 17^th edition of GSR 2022, the overall share of renewables in the world’s final energy consumption has stagnated – rising only minimally from 10.6% in 2009 to 11.7% in 2019 – and the global shift of the energy system to renewables is not happening. In the electricity sector, record additions in renewable power capacity (314.5 gigawatts, up 17% from 2020) and generation (7,793 terawatt-hours) were unable to meet the overall increase in electricity consumption of 6%. In the transport sector, where the renewable share went from 2.4% in 2009 to 3.7% in 2019, the lack of progress is particularly worrying, as the sector accounts for nearly a third of global energy consumption.

In COP26 in November 2021, a record 135 countries pledged to achieve net-zero greenhouse gas emissions by 2050. However, only 84 of these countries had economy-wide targets for renewable energy, and only 36 had targets for 100% renewables. For the first time in the history of UN climate summits, the COP26 declaration mentioned the need to reduce coal use, but it failed to call for targeted reductions in either coal or fossil fuels. Most of the increase in global energy use in 2021 was met by fossil fuels, resulting in the largest surge in carbon dioxide emissions in history, up more than 2 billion tonnes worldwide.

The year 2021 also marked the end of the era of cheap fossil fuels, with the largest spike in energy prices since the 1973 oil crisis. By the end of the year, gas prices reached around ten times. The GSR 2022 documents that despite renewed commitments to climate action, governments still opted to provide subsidies for fossil fuel production and use as their first choice to mitigate the effects of the energy crisis. Between 2018 and 2020, governments spent a whopping USD 18 trillion – 7% of global GDP – on fossil fuel subsidies, in some cases while reducing support to renewables (as in India).

This trend reveals a worrying gap between ambition and action. Countries with higher shares of renewables in their total energy consumption enjoy greater energy independence and security.

Full report: https://www.ren21.net/wp-content/uploads/2019/05/GSR2022_Full_Report.pdf

HAPPY GLOBAL WIND DAY!

Every year on June 15 the whole world celebrates Global Wind Day!

Today, wind power is the key tool not only to reduce greenhouse gas emissions, but also to achieve energy independence from imports of "dirty" fossil fuels. The large-scale bloody war waged by russia in Ukraine has only pushed the whole world to take urgent decisions on the development of wind power both on & offshore.

Wind power is a salvation from energy, in particular nuclear, blackmail by russia! Wind power is a safe electricity production without harming the environment! Wind power is a local source of energy available in every corner of the Earth!

Not a single drop of blood has been shed for green energy! Wind power is an energy of peace and one of the most efficient solution for post-war recovery of every country!

Happy Global Wind Day Greetings from the UWEA to all stakeholders of the Ukrainian wind energy market and all our esteemed partners! We sincerely wish you a strong patience on the challenging path to carbon neutrality and energy independence!

THE UWEA HELD AN UKRAINIAN-POLISH ROUND TABLE AT THE PWEA 2022 CONFERENCE

During June 13-15, 2022, representatives of the Secretariat and some Member Companies of the UWEA took part in the largest wind event in Poland and Central and Eastern Europe in 2022, organized by the Polish Wind Energy Association (PWEA) and supported by the Ministry of Climate and Environment of Poland. The UWEA became the main international partner of the PWEA 2022 conference. Generally, the event was attended by more than 1,500 participants, arrived from all over Europe.

The key topics of this year’s Conference included unavoidable climate change and the role of wind energy in the process of energy transformation of Poland and Europe, the use of renewable energy for large-scale production of green hydrogen or grid connection issues and business perspectives for cPPA. There has been also the topic of offshore wind energy, which is seen as an important element in ensuring Poland’s energy security in the coming years. Speakers also touched on more technical issues such as simplification of the grid connection procedure, prospects for national manufacture of steel structures and challenges of maritime logistics and installation. The dynamics of wind discussions was maintained by daily activities, including sports games, media presentation of industry reports and famous singers performances.

Giles Dickson, CEO of WindEurope, and Ruslana, Ukrainian singer and Global Ambassador of 100% Renewable Energy opened the PWEA 2022 conference Thus, Giles Dickson highlighted that “Poland has to urgently remove the 10H-distance rule which is currently excluding 98% of Polish territory from any wind energy development. The Government must facilitate the permitting of new onshore wind farms. There are many lessons to learn from other countries.”

Ruslana, in turn, called on European governments to urgently switch to 100% clean energy sources: “Putin uses energy as a weapon for further blackmailing the whole world. Today, clean energy is not only about the environment, but also about the security. We should choose clean energy and energy independence!”

Ukrainian-Polish Round Table hosted by the UWEA in cooperation with PWEA was one of the important events of the first day of the conference. Bringing together Ukrainian and Polish RES companies, the UWEA raised the issue of prospects for Ukraine’s post-war recovery through implementing joint Ukrainian-Polish green projects, discussed the key challenges and benefits of export-import trade relations between countries, and the role of international financial institutions in creating powerful business climate in Ukraine.

The Ukraine speakers included Wärtsilä Energy, KNESS, MCL Group, Greenville and Dentons, while Polish experts were represented by such companies and organisations as ONZ and Orlen, the Polytechnic of Lublin, the Jagiellonian University, the Forum Energii and the Polish Energy Exchange (TGE) which comments related to electricity trading attracted much attention of the audience.

Mykyta Vyshnevskyi, Market Operations Director at the NPC Ukrenergo and Global Ambassador of 100% Renewable Energy Ruslana also joined the discussion.

Kateryna Knysh, Head of the UWEA Analytical department, who presented the prospects for post-war recovery of Ukraine's power sector trough RES deployment, and Monika Morawiecka, Senior Advisor at the Regulatory Assistance Project, who told about ways to ensure the necessary flexibility and the reconstruction of the power system through electricity trading, moderated the Round Table talks.

Grzegorz Zielinski, Director, Head of Energy Europe, EBRD Poland, reaffirmed the EBRD's intention to finance not only Ukraine's post-war energy recovery but also future green projects in Ukraine.

Commenting the existing export potential of Ukraine’s integrated power system, Director at the NPC Ukrenergo Mykyta Vyshnevskyi noted that “in order to unleash Ukraine's full export potential, it is necessary to ensure transparent commercial exchange with the EU countries in accordance with the European rules, which, in particular, stipulate for the non-discriminatory access for all market players to interconnectors. Strict adherence to the “green” course is one of the priorities of Ukrenergo as a transmission system operator of Ukraine.”

“Ukraine's post-war recovery has to comply with the REPowerEU Plan and wind power should play a key role in this,” underlined Malgosia Bartosik, Deputy CEO of WindEurope.

Representatives of the Ukrainian wind power companies stressed their readiness to cooperate with the Polish companies in implementing joint green projects. Thus, Sergii Kravchuk from KNESS, the first company in Ukraine which has put into operation an industrial energy storage, stressed that “in any case, increasing the share of RES logically entails the need to use such balancing capacities as, in particular, energy storage systems. So, this area of collaboration is very promising for future cooperation between our countries."

Mykola Herasymenko, Head of the MCL Group focused on the development of hydrogen projects and invited Polish business for cooperation: “Practical experience in developing industrial RE facilities gave us the opportunity to begin the development of “wind+hydrogen” project. Today our project provides for construction of a 144 MW wind and a 10 MW electrolyzer. The first phase of the project is ready to build.”

Referring to the comment made by Mykyta Vyshnevskyi on promising regions for the implementation of joint Ukrainian-Polish projects, Piotr Kosior, Vice President of Greenville Poland, told about his company’s “green” projects development in Western Ukraine.

Igor Petryk Senior market Development Manager at Wärtsilä Energy, summarised the discussion: “According to Wärtsilä’s modelling, the cheapest way to increase Europe’s energy independence is to maximase the use of renewables. In the study Europe’s Energy Future, Wärtsilä shows that doubling the renewable power production would cut the consumption of expensive gas by 47% and reduce the electricity cost.”

The Ukrainian Wind Energy Association expresses its gratitude to the Polish Wind Energy Association for its support and hopes for effective and mutually beneficial cooperation between Polish and Ukrainian wind energy companies in the nearest future!

National RES industry associations called on President of Ukraine, Prime Minister and Minister of Energy of Ukraine to prevent the national renewable energy industry from destructing

Ukrainian Wind Energy Association together with other RES industry associations in Ukraine called on President of Ukraine, Prime Minister and Minister of Energy of Ukraine to prevent the national renewable energy industry from destructing, industry which is a priority for the European energy policy, and preserve trust of those investors who remain loyal to Ukraine and seek to develop the economy of Ukraine after the war.

On behalf of Ukrainian and international investors in RES, the associations appealed to cancel the Order of the Ministry of Energy №140 of 28.03.2022, which limits the level of payments to the RE producers (under this Order the current level of settlements amounts only to15-16%) and to ensure current payments to producers of RES in excess of 30-35%

“Being aware of complexity of the situation in the energy sector, we have not appealed this Order against the court to avoid further destabilization of the energy market of Ukraine during times of war... However, as of the end of May, SE Guaranteed Buyer has earned sufficient funds by selling electricity produced on the market to provide payments to the RES producers in the amount exceeding 30-35%. In addition, according to our preliminary estimates, by the end of the year SE Guaranteed Buyer and NPC Ukrenergo, will have retained income of UAH 3.2 bln and UAH 12.7 bln respectively, enough to significantly increase the level of payments to the RES producers”, the letter says. 

According to experts’ estimations, by the end of the year the electricity market will face a deficit in the amount of UAH 35 bln, a significant part of which (about UAH 16 bln), will be covered by non-payment for the green electricity deliveries under the Order №140 from March 28, 2022.

According to the associations, the government, it seems, has an intention to compensate the deficit forecasted in the electricity market and cover the operating costs of the National Nuclear Energy Generating Company Energoatom at the expense of the RE producers.

Investors have emphasized their readiness to contribute to the Ukrainian economy and accelerate a promising sector of the economy. But obviously this requires an attractive business climate and investor confidence.

Taking into account all the arguments set out in the letter, the Associations call on the President of Ukraine, the Prime Minister and the Minister of Energy of Ukraine:

1. to abolish the existing restrictions on settlements with the RES producers (Order of the Ministry of Energy №140 from March 28, 2022);

2.to ensure payments to the RE producers at the highest possible level by available funds generated from the trading activity of SE Guaranteed Buyer and the activity of NPC Ukrenergo.

3.to ensure legislation invariability regarding the RES support system, gradual debts repayment and adherence to existing guarantees provided to the investors at the legislative level.

“We invite the state authorities to a joint dialogue to discuss our mutually beneficial cooperation for the benefit of our state!” the Associations appealed.

UWEA AT THE 14th BALTIC BUSINESS FORUM IN SWINOJUSTIE, POLAND

The 14th Baltic Business Forum taking place on May 23-25 in Świnoujście, Poland, aimed at supporting Ukraine’s European aspirations and promoting economic cooperation between the countries. From the 24th of February we are facing an unexpected challenge. Russian agression towards Ukraine brings human tragedies, material losses, ruins dreams and the economy of Ukraine. This is why the main theme of this year’s BBF is “Power to Rebuild Ukraine”. BBF acquired honorary patronage of the Ukrainian Embassy in Poland. The Polish-Ukrainian chamber of Commerce and Industry (PUIG) and the Ukrainian League of Industrialists and Entrepreneurs (ULIE) are among the Forum’s co-organizers.

This year Forum’s discussions include issues related to the impact of the russia’s full-scale war against Ukraine and the current geopolitical situation on the economies of the Baltic, Adriatic and Black Seas and the post-war reconstruction of Ukraine.

The UWEA Board members Andriy Konechenkov, Chairman of the Board and Galyna Shmidt, head of International department, attended the Forum, while Andriy Konechenkov spoke at the panel discussion devoted to the Polish-Ukrainian cooperation in the energy sector “From Nord Stream to Energy Independence. Challenges for Poland, Ukraine and the European Union.”

“All modern wars in the world involve a struggle for energy resources, for fossil fuels. The country's security strategies should be based on the use of clean and renewable energy sources, as well as on creating alternatives to natural gas through the production of green hydrogen and the use of bioenergy technologies. Involvement of Ukrainian and Polish businesses in joint energy projects will not only contribute to the development of RES in these countries, but also to the substitution of Russian natural gas in the EU due to increased supplies of green electricity from Ukraine to Poland”, Andriy Konechenkov said.

GREEN POWER INSTEAD OF RUSSIAN FOSSIL FUELS. THE REPowerEU Plan

The European Commission on Wednesday 18 May published its plan setting out how the European Union can eliminate its dependency on Russian fossil fuels, as EU convinced that those “enormous funds that russia receives for the export of its fossil fuels help it to continue to wage war against Ukraine.”

The plan covers four main areas:

• energy efficiency and savings;
• energy supply diversification;
• clean-energy transition acceleration;
• investment and reform.

REPowerEU emphasises the acceleration of green technologies, from solar photovoltaic to wind, and heat pumps to green hydrogen – and proposes to increase the EU’s headline 2030 target for renewables from 40% to 45%. The REPowerEU Plan would bring the total renewable energy generation capacities to 1,236 GW by 2030, in comparison to the 1,067 GW by 2030, envisaged under Fit for 55 for 2030.

The EU is betting on the development of offshore wind energy, the wind resource of which “is stable and powerful, while the public support is high.” In light of the Action Plan, European Commission President Ursula von der Leyen visited Esbjerg where the Heads of Government of Denmark, Germany, the Netherlands and Belgium signed a declaration on the expansion of offshore wind in the North Sea.

***

On the same day, the European Commission approved the Plan for the post-war recovery of Ukraine according to which the European Commission plans to allocate up to € 9 billion to Ukraine this year and is preparing a plan to rebuild the country. “Reconstruction of Ukraine should run in line with the European Green Deal and digital agenda, it must strengthen and respect the fundamental principles of the rule of law, including anti-corruption, the judiciary, public administration,” the Plan stipulates.

UWEA’s WEBINAR “FIXATION AND COMPENSATION OF DAMAGES TO RES FACILITIES CAUSED BY THE WAR”

On February 24, 2022, the russian federation forcefully entered Ukraine and unleashed the large-scale war accompanied by the destruction and occupation of critical infrastructure facilities, including renewables. As of May 3, 2022, the UWEA became aware of the destruction of at least 5 wind turbines, certain damages to a substations and power lines, robbery of staff buildings, and fusillade of work vehicles. Since the early hostilities, 1,262.5 MW or 80% of Ukraine's wind power capacities were stopped, most of which are llocated either at the heart of hostilities or in partial or complete occupation in southern Ukraine. As long as Ukraine continues to fight for energy independence, the full extent of russia's damage to Ukrainian wind power producers remains unknown. Nevertheless, the issue of compensation for damages and payment of relevant war reparations by the aggressor is on the agenda of the wind energy market.

On May 6, 2022, the UWEA combined expert efforts of its law firms and hosted the webinar on fixing and compensating for damage to RES facilities caused by the war. During the webinar, the representatives of Asters, Dentons and Sayenko Kharenko explained the peculiarities of the Ukrainian legislation regulating the issue of damages.

“This is a very important webinar for the entire RES market, as it must use all the opportunities available for obtaining compensation, despite the variety of procedures and their duration. So, today we brought together experts from three law firms, members of the UWEA, who will explain the compensation-related procedures and recommend how to go through this process as quickly and efficiently as possible,” opened the webinar Andriy Konechenkov, Chairman of the UWEA Board.

In her presentation “Types of damages stipulated by the Ukrainian law, which can be claimed for compensation. Algorithm of actions for real estate and environmental crimes”, Anzhelika Livitska, Head of the practice of construction, environmental protection and sustainable development at Asters, drew attention to the following novelty in Ukrainian legislation: “Businesses can seek compensation not only for direct losses, but also for lost profits, and this is completely new to our legislation”. Speaking about the fixing and compensating environmental crimes, Mrs. Anzhelika pointed out that “in order to avoid accusations of contamination of the lands where the facility is located, you need to notify the Ministry of Environmental Protection about the contamination (pollution) received as a result of hostilities. I emphasize that Ukrainian law provides for the presumption of guilt of land users.”

Maksym Sysoyev, Partner of law firm Dentons, talked about “Some features of fixing and documenting damage / destruction of real estate of the power plants due to the war”. “Ukrainian legislation contains a number of Resolutions that regulate the procedure for determining the damages caused to RES facilities during the war. At the same time, today we expect the adoption of Methods for determining and assessing damages to such facilities”, Mr. Sysoyev informed.

In turn, Oleksiy Koltok, Sayenko Kharenko's litigation counsellor, focused on the possibilities and precedents of applying to the European Court of Human Rights for recovery of damages: “unfortunately, currently there are no effective mechanisms in Ukraine to protect victims of russian military aggression. Therefore, the ECHR is the international judicial body that can consider an application from both individuals and legal entities and award fair satisfaction.”

Recording of the webinar: https://www.youtube.com/watch?v=mWLWLBtP2EQ

THE UWEA ADDRESSED THE PRESIDENT OF UKRAINE

On April, 28, 2022, on behalf of the Ukraine’s wind power sector, the UWEA called on the President of Ukraine Volodymyr Zelensky to identify the wind power as a priority for the re-starting of Ukrainian economy and envisage large-scale deployment of wind energy in the National Plan of Post-War Economic Recovery of Ukraine.

“On April 18, 2022, you held an intersectoral meeting devoted to a Plan for the post-war recovery of Ukraine. According to the Office of the President of Ukraine, the Government currently identifies those priority sectors of the economy that could become not only an effective tool for the recovery of Ukraine, but also a reliable background for further development of Ukraine on the principles of independence, freedom and investment attractiveness,” the Letter says.

Considering that Ukraine is moving towards new European principles of development and has all the necessary potential to increase the total capacity of national wind power sector to 7 GW by 2030, “we ask you to ensure the interests of wind generation in all post-war recovery plans and to involve the UWEA representatives in all working groups discussing energy or energy security issues, including the working group at the National Council for War Recovery of Ukraine,” the Association requested.

The Ukrainian wind power sector, in turn, will continue to supply the clean electricity to the population, fill the budget of Ukraine and attract new investors to our country, promote the development of national manufacture, renovate the country's power infrastructure and follow the principles of transparency in doing business.

WIND INDUSTRY OF EUROPE STANDS IN SOLIDARITY WITH UKRAINE. WORKSHOP DEVOTED TO UKRAINE AT THE WINDEUROPE ANNUAL EVENT 2022

On April 5, 2022, the largest WindEurope’s conference and exhibition of the European wind industry was opened in Bilbao, Spain. Over 8,000 people took part with 330 companies from across the wind value chain exhibiting. Upon withdrawal from russian energy sources, ministers and policymakers from around Europe along with industry leaders, investors, technology experts and NGOs discussed the future of Europe's energy security. The event also presented the latest wind energy technology developments, including recycling, and feature start-ups.

His Majesty the King of Spain opened the event with the President of the Basque Government, Ministers from Spain, Germany, the UK, Ireland, Portugal, Romania and Lithuania and top officials from the EU Commission.

Giles Dickson, WindEurope CEO: “WindEurope 2022 in Bilbao comes at a decisive moment for Europe. Russia’s invasion of Ukraine has upended the energy system. Europe is pursuing a new energy policy: less dependence on imported fossil fuels; and an accelerated transition to renewables.”

Special attention during the opening ceremony was paid to Andriy Konechenkov, Chairman of the UWEA Board, and Galina Schmidt, member of the UWEA Board, who attended the event on behalf of the Ukraine’s wind power market. Since the key focus of all discussions was devoted to russia's war against Ukraine, a special workshop devoted to Ukraine “The status of Ukraine’s wind power sector before and after the war” was conducted by the UWEA. Andriy Konechenkov presented the status of wind energy market in Ukraine as of the end of 2021 and analysed the impact of the war on the national wind market, while Galina Shmidt focused on the entire power system of Ukraine. Kateryna Knysh, Head of the UWEA’s Analytical Department, who participated online, provided a forecast of wind power development after the war, focusing on the prospects for offshore wind power.

Peter A. Gish, Founder of Ukraine Power Resources, Alexander Podprugin, Operating Director at Elementum Energy and Peter Czopek, Director of the Polish Wind Energy Association, also were among the distinguished speakers of the event. Peter A. Gish shared his experience in working in Ukraine, Alexander Podprugin spoke about challenges in generating wind and solar electricity in the close approximate to the hostilities, while Peter Czopek presented the joint Ukrainian-Polish employment platform Work4Wind.

“Today is the 41 day of war against my country. Ukraine is the focus of attention of the whole world, as Ukrainians defend European values: freedom and independence,” with these words Andriy Konechenkov started the workshop. “As you can see, 88% of wind generation out of 1,673 MW is concentrated in four northern regions of Ukraine: Zaporizhzhya, Kherson, Mykolaiv and Odesa, where russian troops are conducting especially aggressive actions now, in particular, destroying renewable energy facilities”.

Alexander Podprugin added that out of 576 MW of the company's “green” projects, 35 MW turned out to be in the territories occupied by russian aggressor, and 347 MW - in the territory of active hostilities. “Before the aggressor’s invasion, our company was actively constructing the second phase of the Dnistrovska wind farm in the Odesa region with a capacity of 60 MW. Now we have no idea when we will resume our work. Nevertheless, the main focus of our company is still clear - to ensure the safe work of our employees who are at the power plants and to defend our facilities,” Mr. Podprugin said.

“We work in Ukraine since 2017. Since 2020, we have begun to cooperate with Elementum Energy on the construction of a wind farm in Odesa region. Throughout this time, I was struck by the openness of Ukrainian society, the willingness of locals to cooperate and help in the construction of “green” projects. Today, Ukrainians assert their right to energy independence and the ability to move on with renewable energy. I’m pretty sure that we will resume our work in this beautiful country as soon as possible,” told Peter A. Gish.

In her speech, Galina Shmidt stressed: “russia is acting as a nuclear terrorist that threatens the whole world with a nuclear catastrophe. Russia despicably occupied the Zaporizhzhia nuclear power plant, the largest NPP in Europe.  As you know, no nuclear power plant is designed for war. So, if a site is purposefully or accidentally shelled the building, which houses the nuclear reactor is hit, not only Ukraine but russia and Europe will suffer as well.”

Peter Czopek noted: “Since 24 February, 2022, more then 2.5 million of people fled from Ukraine to Poland to find the security and help. We decided to help them to find jobs and, in turn, to show them that they are needed here and that they can start a new life here. So, together with our colleagues from Ukraine we create a project “Work4Wind”, the main purpose of which is to connect people from Ukraine with wind companies which need new workers, new employees.”

Finally, Kateryna Knysh quoted Franklin Roosevelt: “More than just an end to war, we want an end to the beginnings of all wars, even energy,” she said. “Thanks to this war and unfortunately for russia, Ukraine has become even more open to foreign investments. One of the promising areas for this is offshore wind energy, which will not only increase Ukraine's energy security, but also open the way for Europe to stable and significant imports of “green” hydrogen.” Kateryna concluded.

Videos devoted to Zaporizhzhya WPP by Eurocape Ukraine I LLC and Novotroitska WPP by Vindkraft Ukraine LLC became a bright addition to the event.

Recording: https://www.youtube.com/watch?v=6iRSqjydwGo

Related article: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/we-do-not-give-up-ukraine-s-wind-sector-defiant-in-face-of-war-69680330

The UWEA stands alongside the Polish business and locals in their fight for onshore wind in Poland

On March 31, 2022, 10 organizations representing 11.5 thousand of companies and around 700 municipalities around Poland called on the government to unblock the development of onshore wind power as a guarantee of national security and energy independence. Based on the current geopolitical situation, the joint Appeal states that the rapid reduction of Poland's dependence on fossil fuels and the sustainable and balanced development of renewables, including onshore wind power, are the core of energy security.

In 2016, the Polish government adopted the 10H rule, resulted in exclusion of 99% of Poland's territories from the possibility of investing in onshore wind projects.. Today, despite strong public support (85% of Poles voted for wind power), development of new onshore wind projects is still blocked.  Polish business is convinced that the war in Ukraine demonstrates the importance and urgency of accelerating green energy transition and attracting new investments in renewables for strengthening Poland's sovereignty and national interests. “The dynamic development of onshore wind power industry will ensure the supply of cheap green energy, which, in turn, will speed up the process of gaining independence from Russian fossil fuels, as well as increase the energy security of Poland,” the Appeal said.

 “We couldn`t miss a chance to build an independent and energy efficient Poland. A worthy response to current geopolitical challenges is wind, which not only reduces domestic demand for energy imports, but also guarantees 3-3.5 times lower cost of electricity generation comparing to fossil fuels,” noted Januzs Gajowiecki, President of the Polish Wind Energy Association.

Andriy Konechenkov, Chairman of the UWEA Board, also expressed his support for the appeal of 10 organizations and pointed out that the war in Ukraine stopped all the wind projects that had been already under development and construction in the country. “This war has changed our approach to life, energy security and independence. I believe that after this war, Ukraine will set even more ambitious goals for renewable energy. This war has made us stronger and more aware of how significant and important renewables are for the peaceful world. We have to phase out fossil and nuclear sources as soon as possible. Fight for green wind energy! For new wind projects in Poland! As soon as the war in Ukraine is over, we will join you!” Andriy Konechenkov stressed.

UKRAINIAN POWER SYSTEM IS FULLY SYNCHRONIZED WITH THE EUROPEAN POWER NETWORK ENTSO-E

The power systems of Ukraine and Moldova are fully synchronised with the Continental European network. The relevant decision was approved by the association of system operators ENTSO-E on 11 March 2022. Physical operations to interconnect the power systems were performed on 16 March 2022.

Over the past six years of preparation, more than 700 million euros has been invested in power infrastructure development, strengthening of IT infrastructure and cybersecurity, while Ukraine has fulfilled the majority of key technical conditions for integration into ENTSO-E.

On 24 February 2022, Ukrenergo disconnected the Ukrainian power system from the networks of russia and Belarus. On the same day, the russian army attacked Ukraine. But despite active military hostilities, Ukrenergo successfully completed the system tests in an isolated mode planned for three days. Today, synchronisation of the Ukrainian power system with the European one will reduce russia’s influence on Central and Western Europe in the energy sector, as well as increase the level of energy security in the whole region.

After the war ends, both Ukraine and Europe will enjoy new opportunities with regard to joint development of electricity markets and facilitation of “green transition.”

Press release of NPC Ukrenergo:
https://ua.energy/integraciya-do-entso-e/energosystemu-ukrayiny-povnistyu-synhronizovano-z-yevropejskoyu-energomerezheyu-entso-e/  

UWEA calls upon its international partners to facilitate completely embargo on Russian oil and natural gas

The Ukrainian wind energy association (the UWEA) that unites 83 companies from 14 countries including 100% electricity producers from wind in Ukraine, calls upon all its international partners to assist in completely embargo Russian oil and natural gas.

For 13 consequent days already russian aggressor has been hitting peaceful Ukrainian cities, towns and villages with cruise missiles and bombs, killing women and children, destroying everything.  We should stop natural gas and oil supplies to Europe, supplies which bring bloody money to putin’s regime to have more lethal weapons. 

Executive director of the international Energy Agency Dr. Fatih Birol presented
“A 10 Point plan to Reduce the European Union’s Reliance on Russian Natural Gas”. This action plan includes accelerated deployment of the new wind and solar projects.

Renewables mean peace and freedom; they bring prosperity and healthy environment to all nations!

Andriy Konechenkov,
Chairman of the Board, UWEA

GLOBAL COMPANIES HAVE SUSPENDED THEIR ACTIVITIES IN RUSSIA

The Ukrainian Wind Energy Association expresses its gratitude to the UWEA member companies that have decided to suspend all current and planned activities in russia in response to the aggressive war waged by putin’s regime.

Below are statements made by

Vestas:

«Vestas condemns the russian government’s invasion of Ukraine. We worry about the well-being of our many colleagues, customers and business partners in the besieged country. As a result of the invasion, Vestas’ manufacturing, transportation, construction and service operations in Ukraine and russia have been severely disrupted. The existence of this violent conflict is inexcusable and untenable.

In light of the ongoing and indefensible war initiated by the russian government, Vestas will stop any new commercial activity in russia until further notice».

In addition,  Vestas plans to halt wind projects in russia. The four renewable projects have been in development since September last year and have a combined capacity of 253MW.

https://www.power-technology.com/news/vestas-wind-projects-russia/#:~:text=Earlier%20this%20month%2C%20Vestas%20said,new%20commercial%20activities%20in%20Russia.&text=reNEWS%20reported%20that%20the%20company,activities%20due%20to%20the%20conflict

Global Wind Organisation (initiated by BOTC Training, UWEA member-company):

«Acting in line with our values, and with the sanctions of the international community, we have taken following steps effective immediately.

1) We have suspended all current and planned GWO activities in russia until further notice including the acceptance of new training centres.

2) Recognition of all GWO certified safety training in russia is suspended until further notice. The suspensions are entirely a response to the acts of the russian government.»

https://www.globalwindsafety.org/news/global-wind-organisation-statement-on-the-russian-invasion-of-ukraine?utm_campaign=memo&utm_medium=email&utm_source=apsis&link_id=8iw3mDaWz0jSw

WWEA Press Release

Renewable energies avoid the need for imported energy sources

Governments should phase out fossil and nuclear sources as soon as possible for a peaceful, a free, a prosperous renewable energy world

The current war in Ukraine has demonstrated once more the great dangers which are corresponding with an energy supply scheme that is largely based on fossil and nuclear energy sources. One-sided dependencies are a potential cause not only for major tensions and for an unbalanced distribution of economic opportunities. They even entail a risk of war. 

Renewable energies, in particular wind, can be harvested everywhere, they are available in abundance and they are affordable. Accordingly, every country, every region, every community should use these energy sources as basis for their independence and wellbeing. 

The present war in Ukraine has drawn these facts into stark reality as we extend our support for our  members in Ukraine, including our Vice President Dr. Andriy Konechenkov, Chairman of the Ukrainian Wind Energy Association, and his family. 

We call upon all governments in the world to accelerate the switch to a complete, locally sourced renewable energy supply, in order to reduce tensions around limited fossil and nuclear energy resources and to provide prosperity, peace and a healthy environment to citizens and communities around the world. 

As the wind community from around the world, we are ready to support this endeavour and make it a success! 

World Wind Energy Association
Charles-de-Gaulle-Str. 5
Bonn, Nordrhein-Westfalen 53113
DE

EMERGY HAD TO POSTPONE CONSTRUCTION OF THE ZOPHIA WIND FARM PROJECT

According to the Company’s press release published on February 8, 2022, Emergy had to postpone construction of its Zophia Wind Farm Project.

The Zophia wind farm located in the Zaporizhia region in Ukraine will be one of the largest onshore wind farms in Europe when constructed. The wind farm is divided in three stages, Zophia 1 of 40 MW, Zophia 2 of 300 MW and Zophia 3 of 450 MW. Originally, Emergy planned to build Zophia 1 and 2 with a total capacity of 340 MW under the green tariff. This plan was changed and the company decided to postpone construction. There are three main reasons for this:

1. Continuous issues with payments from the Guaranteed Buyer, the off taker of renewable energy,
2. Difficulty to attract large-scale direct foreign investment into the Ukrainian renewable energy market (partly due to geopolitical situation with Russia) and
3. The short time remaining for construction and commissioning of the wind farms (under the current regulations, every renewable project needs to be constructed by end of 2022).

Emergy has started construction of certain infrastructure for the project and is exploring alternative offtake before resuming construction. In the absence of a clear vision from the government of an auction program, we are exploring opportunities to sign bilateral power purchase agreements with large consumers. Until we know for certain how to sell the electricity produced, we do our best to maintain relations and uphold obligations with key stakeholders in and outside of Ukraine.

When constructed, the Zophia Wind Farm will contribute to save close to 2 million tons of CO₂ and will attract more than EUR 1 billion of foreign direct investments to Ukraine.

Emergy remains committed to Ukraine despite the difficult times and will continue with development of the biggest wind farm in Europe and hope to contribute to Ukraine’s energy security.

THE SE GUARANTEED BUYER FULLY REPAID THE 2020 DEBT TO RES PRODUCERS

The Guaranteed Buyer paid in full for “green” electricity, delivered in 2020. “Payments for “green” electricity for every month of 2020 has reached 100%. It is true for all nine hundred members of our balancing group,” underlined Andriy Pylypenko, Acting Director of the SE Guaranteed Buyer.

Before January 25, 2022, the Guaranteed Buyer made a series of regular payments totaling almost UAH 3 billion: UAH 300 mln on December 31, 2021; UAH 2,6 bln on January 21 and UAH 40 mln on January 24, 2022.

In 2020, the enterprise acquired 10 219 MWh of carbon neutral electricity and paid UAH 49 bln to the RES producers.

In addition to repayment of debts accumulated in 2020, the SE Guaranteed Buyer increased the proportionality of payments for 2021.

Ukrainian Wind Energy Association commends the SE Guaranteed Buyer for the gradual settlement of debts to RES producers and the implementation of the provisions of the Memorandum of Understanding!

We also recall that on 13 August 2021, the SE Energorynok repaid 100% of its debts to RES producers in full in line with the national legislation.

THE UWEA HAS LAUNCHED ITS 2022 SERIES OF WEBINARS

Our UWEA webinar series on both theoretical and practical aspects of national wind power development restarted in late January 2022. Webinar “Awareness of safety regulation and implementation of safety culture in wind power industry as a key factor for successful operation of WPPS” jointly organised by the UWEA and BOTC Training, leading GWO training center in the Baltic and Nordic region, was successfully held on 25 January. The first webinar of the 2022 series was devoted to practical safety trainings in wind power sector.

During the webinar high level experts from BOLC Training – Mr. Mihails Kuzmičs, and Mr. Kaspars Kalniņš – presented the international experience of practical safety training of wind power sector employees in accordance with the Global Wind Organization (GWO) standards, adoption of the best global practices and analyze key risks and methods of their control when working in wind industry.

Mihails Kuzmičs in his opening remarks noted: “Promotion and forge of a safety culture through systematic and practical training is the purpose of our today’s presentation.   Practical training is a key issue”.

For information

BOTC Training has been a Member of the UWEA since 2021.

Global Wind Organisation is a non-profit body founded by wind turbine manufacturers and owners including such wind turbine manufacturers as Vestas, GE Renewables, Nordex, Enercon, Goldwind, Envision. GWO members strive for an injury free work environment in the wind turbine industry, setting common international standards for safety training and emergency procedures.

THE UWEA AWARDED WINNERS OF THE CREATIVE PROJECT CONTEST “KIDS FOR THE CLEAN PLANET: SECRETS OF THE WIND”

Elementum Energy the UWEA Member Company launched a creative project competition “Kids for the clean planet: secrets of the wind” this autumn. The target audience of the competition were pupils of general education schools located in the territories of Mayakivska and Starokozatska communities in Odessa region, where Elementum Energy builds and operates its Dnistrovska wind power plant.

On December 24, 2021, Andriy Konechenkov, Chairman of the UWEA Board, and Alexander Podprugin, COO of the Elementum Energy, went to the Odesa region to personally meet with all the participants and reward the winners of the project competition.

According to the conditions of the competition, participants read the children’s book “Secrets of the wind”, developed a relevant wind or eco project and presented it on a creative video. More than 35 teams or 150 pupils participated in this contest.

After a week of lengthy debates, members of the competition committee unanimously declared the “Kimbur” team from Mayakivska local community as the winner of the competition. A special feature of the team was the original approach to disclosing the importance of renewable energy sources in Ukraine and the presentation of its project in poetry.

Winner’s project: https://www.youtube.com/watch?v=bS_WpZQ59oY

All the presented projects were so original and interesting that the competition committee decided also to acknowledge the most initiative participants, namely team “Fighters for ecology and “green” energy” from Mayakivska community in Odessa region. The team individually developed a creative project without involving the school administration and teachers.

The awards ceremony for “Kids for the clean planet: secrets of the wind” competition’s winners and other participants was held after the official part of the event. For its part, the Ukrainian Wind Energy Association awarded the participants with Certificates of Gratitude for their excellent knowledge of wind energy and environmental protection and the original approach to the development of their creative projects!

The Ukrainian Wind Energy Association expresses gratitude to Elementum Energy for its professional approach to the realization of the competition and effective interaction with local communities!
We highly commend parents and teachers for their support to the company’s initiative and their children during the development of their creative projects!

THE UWEA ASSESSES ITS ACTIVITIES AND DEVELOPMENT PROSPECTS

The Public Union Ukrainian Wind Energy Association successfully held the Annual General Assembly of its Member Companies on December 7, 2021. The representatives of the UWEA Member Companies, engaged in the wind power projects, gathered together to review the current status of the wind power market and the UWEA’s activities over the past year. Due to the unpredictable epidemic situation linked to the COVID-19 pandemic, this year General Assembly took place in a mixed format: online and offline in the Lavrskyi business center. 

64 representatives of the UWEA’s Member Companies and respective partners participated in the PU UWEA General Assembly, including Members of the UWEA Board, the newly established UWEA Legal Committee and the UWEA Secretariat.

The meeting was headed by Andriy Konechenkov, Chairman of the UWEA Board. In his opening presentation, Mr. Konechenkov highlighted key challenges of the passing year, summarized the achievements of Ukraine’s wind power sector and main outcomes of 2021 UWEA’s activities.

He also presented Strategic Objectives of PU “UWEA” for 2022 as follows:

• To promote the implementation of new market-based RES support mechanisms such as: FiP/CfD, auctions, Corporate PPAs, Guarantees of Origin, net metering.
• To participate in drafting Energy Strategy of Ukraine until 2050 and National Renewable Energy Action Plan until 2030, setting ambitious targets for onshore and offshore wind energy development.
• To monitor the implementation of obligation taken by the Government of Ukraine, in particular, in a part of ensuring full payments to the RES producers;
• To stimulate wind power development for green” hydrogen production;
• To develop legislation on offshore wind power development in Ukraine;
• To represent national wind power sector at the international level.

Minutes: https://drive.google.com/file/d/1FWGmlKDmREoiwdK8TKrJq4GZwqdqDJCM/view?usp=sharing

This year's General Assembly was marked by a number of important decisions to strengthen the UWEA’s role in the RES market of Ukraine. Thus, the participants unanimously adopted the Sustainability Policy of the UWEA to consolidate sustainable practices in the association corporate culture, and approved the UWEA’s Annual Action Plan for 2022 to address the key challenges facing national wind industry.

Sustainability policy: https://drive.google.com/file/d/1CFwRIJ4lUxZ6r1N4Ced_e9PsVnGIWxvV/view?usp=sharing

Action Plan for 2022: https://drive.google.com/file/d/1zeqx2Ad0qZiY0OnslYMMeFDd2ZHHNV0L/view?usp=sharing

Andriy Konechenkov was unanimously elected as a Chairman of the UWEA Board for the next 5-year period in accordance with the Charter. Andriy Nemchenko from Syvashenergoprom LLC, Loic Lerminiaux from Guris and Iryna Mazur from EuroCape Ukraine 1 were elected to the UWEA’s Audit Commission for a 5-year period, while Anatoliy Vlasenko from Vindkraft Kalanchak LLC, Maris Kunickis from DTEK RES and Yuriy Petrushko from Alternatyvna enerhetyka Halychyny LLC were elected to the UWEA’s Supervisory Board. Finally, the participants of the meeting approved the current UWEA Board, which comprised of:

Andriy Konechenkov, PU “UWEA”; Galyna Shmidt, UWEA-K LLC; Maryna Hritsyshyna, LF Sayenko Kharenko; Zinoviy Kozitskiy, Eco-Optima LLC; Viktoria Syromiatova, Total Eren; Vlad Kazak, Emergy; Anton Mishyn, DTEK Renewables; Mykhailo Chulkov, EuroCape Ukraine-I; Alexander Podprugin, Elementum Energy Ukraine; Andriy Sergienko, MC Wind Parks of Ukraine LLC; Ruslan Souchuk, Vindkraft Ukraine LLC; Yuriy Zhabsyy, WindFarm LLC; Loic Lerminiaux, Guris; Mykola Savchuk, Gresa Group LLC; Sergiy Yevtushenko, UDP Renewables.

The UWEA Secretariat sincerely congratulates the representatives of the UWEA Member companies with their election to the UWEA’s institutions!

We wish all our Members the very best of health and implementation of the most ambitious ideas within the Association.

THE UWEA SECRETARIAT VISITED ELECTRIC CITY 2021 IN COPENHAGEN

WindEurope’s Annual Event “Electic City”, Europe`s biggest wind energy Conference, was succesfully held in Copenhagen, Denmark on 23-25 November 2021. The event was organized by WindEurope, of which the Ukrainian Wind Energy Association is a member. The UWEA was represented at the event by Andriy Konechenkov, Chairman of the UWEA Board, Galyna Shmidt, UWEA Board Member, Maryna Hritsyshyna, UWEA Board Member, Kateryna Knysh, Head of Analytical Department, and representatives of the UWEA Member Companies - Wind Farm and Elementum Energy Ukraine.

The whole wind energy value chain and companies involved in electrifying transport, heating and “clean” industry took part in the event. At the exhibition halls of Electric City 2021 were represented 400 exhibitors, and the use of Europe's offshore wind energy potential was a key focus of the event.

A special attention of the participants was paid to the official opening ceremony in which Ministers of Energy of the EU states, representatives of the European Commission, CEOs of global wind power equipment manufacturers and His Majestry Frederik André Henrik Christian, Prince of Denmark, Crown Prince, took part. Stoffel Vandoorne, the vice-champion of Formula E 2020, who drives a racing electric car sponsored by Vestas, was also a special guest. The opening ceremony was moderated by Giles Dixon, CEO of WindEurope and mastermind of the international event.

Policymakers and industry big-hitters debated key issues including permitting, auctions and the growing role of wind power in transforming sectors such as transport and heavy industry. Day two of Electric City was all about scale, as industry leaders debated the opportunities and challenges ahead as European wind power prepares for massive expansion on- and offshore to help meet ambitious national and EU climate goals.

A session devoted to the onshore sector heard how permitting remains a major bottleneck in too many markets, while the importance of focusing on social acceptance was starkly demonstrated by the Norwegian wind association CEO, who lamented how the industry there has lost its former ‘hero’ status and is now stalled and warned that social acceptability remains a key barrier to growth.

Offshore wind faces its own mountains to climb as it looks to deploy hundreds of gigawatts – an ambition underlined by the new German government’s proposal for an unprecedented 70GW target.

During the event, the UWEA representatives were introduced to recent developments and achievements of the European wind energy industry, communicated with the exhibitors and established new business relationships. As a result, the UWEA has agreed with Vestas and Siemens Gamesa to hold a webinar on wind blades recycling and with Vatenfall on offshore wind energy and hydrogen technologies development.

A special part of the exhibition was devoted to scientific posters, which were selected on a competitive basis.

We are pleased to inform you that the poster prepared by Marina Hritsyshyna, LF Sayenko Kharenko, and Olexandr Charun, Wind Farm, was presented on the event.

THE UWEA’S FOURTH WEBINAR IN 2021 SERIES OF WEBINARS ON WIND ENERGY

The UWEA successfully hosted its fourth webinar in a 2021 series of webinars on wind energy in Ukraine focusing on both theoretical and practical aspects of national wind power development. The webinar “System monitoring and maintenance of wind turbines – path to efficient electricity generation” was devoted to practical service cases in the wind power sector of Ukrainian. According to the webinar, timely scheduled inspections and maintenance of a WTG increases its technical availability, maximizes electricity generation and minimizes the risk of equipment faults which, in turn, leads to a reduction in generation outputs and negative financial consequences. Maintenance of wind turbines is an integral and necessary part of their operation lifetime.

Representatives of such leading national and international wind energy companies as MC Wind Parks of Ukraine, WindAero and Nordex Acciona shared their experience of wind turbine maintenance in Ukraine.

Anton Gnezdytsky, WindAero: “Drone inspections carried out by WindAero minimize the incidence of human error and completely prevent the destruction and damage of wind turbines during monitoring of their technical condition. The automation of most of the system service processes and maintenance allows us to monitor and evaluate the dynamics of the operation of wind turbines. In addition to the monitoring and inspection services, our company is expertise in repairing wind power equipment.”

Arturas Mikas, Nordex Group: “The company is widely represented not only in Ukraine’s wind power market, but also worldwide. The professional team of Nordex Group is able to service wind turbines under any conditions, including an extreme weather patterns. Nordex Acciona is not only a manufacturer, but also a reliable partner along the whole lifetime of wind turbines from inspections to major components exchange.”

Vitaliy Sevostyanov, MC Wind Parks of Ukraine: “As a branch of the MC Wind Parks of Ukraine, the FWT Service LLC has more than a decade of experience in Ukraine’s RES market, including the maintenance and technical monitoring of wind power generators. Currently, the company serves 9 wind farms, including in Germany and Kazakhstan. The company also can dismantle and replace transformers.”

NPC UKRENERGO HAS SUCCESSFULLY PRICED A GREEN AND SUSTAINABILITY-LINKED EUROBOND

According to NPC Ukrenergo, the company has successfully priced a debut 5-year Green and Sustainability-linked Eurobond for a USD 825 million size at 6.875% yield. Settlement of the Eurobonds is expected to take place on 9 November 2021. As part of the issuance, the order book was oversubscribed almost three times, indicating strong interest from international investors in Ukrenergo’s inaugural Eurobond.

Ukrenergo’s Eurobond is the largest debut international bond offering ever done by a Ukrainian non-sovereign issuer as well as the largest green Eurobond so far out of Ukraine and the CIS region. Principally, such amount will be used by Ukrenergo for the repayment of debt owed to the Guaranteed Buyer, with any remaining proceeds after repayment of the debt owed to the Guaranteed Buyer used to finance or re-finance other eligible green projects.

Volodymyr Kudrytskyi, Chairman of the Management Board of NPC Ukrenergo said: “Today marks an important milestone in Ukrenergo’s history. We managed to achieve the landmark Eurobond transaction with an innovative Green and Sustainability-Linked structure in the global capital markets which also becomes an important benchmark for Ukrainian issuers. More importantly, the transaction marks a critical step towards resolution of the electricity market imbalances in Ukraine in line with Ukraine’s obligations to renewable energy producers.”

Rothschild & Cie and FinPoint acted as financial and sustainability advisors to Ukrenergo. BNP Paribas, Deutsche Bank and Goldman Sachs International acted as joint lead managers and bookrunners as well as joint ESG structuring agents on the transaction and Ukreximbank served as co-manager. The European Bank for Reconstruction and Development (EBRD) has announced the investment of US$75 million in the sustainability-linked bond issued by NPC Ukrenergo.

We also would like to recall that, on 11 October 2021, the Cabinet of Ministers adopted Resolution №1049, which approved state guarantee for securing obligations under a loan to be attracted by NPC Ukrenergo via issuing and placement of bonds at international financial markets in order maintain its liquidity and stable work (the borrowings). Before issuing the state guarantee PrJSC “NPC “Ukrenergo” should have approved the borrowings with the Ministry of Finance and enter into the agreement with this Ministry in respect of debt settlement to the state under guarantee obligations. On 5 November 2021, the NEURC adopted the Resolution on Signing Agreement on Measures to Ensure the Fulfillment of Obligations under the agreement on Repayment of NPC Ukrenergo’s debts to the State for Fulfilment of Guaranteed Obligations

NORDEX GROUP WILL SUPPLY WIND TURBINES FOR SKOLE WPP IN LVIV REGION

The Nordex Group, global manufacturer of the Multi-MW class wind turbines and the UWEA Member Company, signed the agreement with Eksim Holding of Istanbul for the supply of wind turbines for the Scole WPP. This wind farm with a total capacity of 67.2 MW, will be built near the city of Skole, Lviv region. The Scole WPP will comprise 14 N149/4.X wind turbines of the Nordex Group. The Skole project will be Eksim’s first wind park investment outside of Turkey. Eksim is now operating eight wind farms with 451 MW total capacity in Turkey, and all of them are built with Nordex turbines. With the Skole Project, Eksim and Nordex carried their business collaboration to Ukraine.

Installation of the turbines is scheduled to start in March 2022. The fourteen turbines will then feed clean electricity into the Ukrainian grid as of in the third quarter of 2022 at full capacity. The Nordex Group will supply the turbines in the cold-climate version in order to ensure a high level of availability in the cold season as well.

“We are pleased to be able to make a significant contribution to the expansion of wind energy in Ukraine with yet another project,” says Patxi Landa, CSO of the Nordex Group. “We are happy to support Eksim with their first wind project in this country. Today we have capacities of 322 MW in Ukraine connected to the grid.”

Andriy Konechenkov, Chairman of the UWEA Board: “We sincerely congratulate the Nordex Group, one of the leading global wind turbine manufacturers which share in the Ukrainian wind power market is 16%, on the new wind power project in Ukraine. We welcome Eksim Holding of Istanbul in Ukraine! I’m glad that Ukrainian wind power sector is increasingly expanding its partnership with Turkey. We hope that this positive tendency will be sustained and further speeded up”.

+++

The Nordex Group has installed more than 35 GW of wind energy capacity in over 40 markets and in 2020 generated revenues of EUR 4.6 billion. The company currently employs a workforce of approx. 8,500. The joint manufacturing capacity includes factories in Germany, Spain, Brazil, the United States, India and Mexico. The product portfolio is focused on onshore turbines in the 4 to 6.X MW class, which are tailor-made for the market requirements of countries with limited space and regions with limited grid capacity.

100% settlement of Energorynok’s debts to RES producers

On 1 July 2019, fundamental changes in the energy sector of Ukraine took place pursuant to the Law of Ukraine “On the Electricity Market”, which provided for shifting from the centralized single buyer model to a wholesale market model. However, the new electricity market in Ukraine was launched without having addressed the problems of the previous market model, in particular the nonrepayment of old debts of the SE Energorynok (ed. a “single buyer” in the previous model) to RES producers, equal to UAH 2,3 billion as of 1 July 2019. This problem arose due to the expiration of the legal acts, which regulated the activity of the SE Energorynok and an extremely low level of payments for the RES electricity delivered in June 2019 by the distribution system operators and universal service providers.

In addition, the Cabinet of Ministers of Ukraine failed to elaborate in time, and the Verkhovna Rada correspondingly failed to adopt the Law on Repayment of these debts envisaged in paragraph 16 of Section XVII of the Final and Transitional Provisions of the Law of Ukraine "On the Electricity Market". Such legislative delay had a negative effect on the energy sector as a whole and threatened SE Energorynok to block its activity due to the potential seizure of accounts and bankruptcy of the enterprise.

RES producers striving to receive the payment for "green" electricity delivered, pursued legal action against the SE Energorynok. Such actions added further  pressure on the enterprise.

To prevent the seizure of accounts and ensure its financial self-sufficiency SE Energorynok repeatedly informed the Office of the President of Ukraine, the Cabinet of Ministers of Ukraine, the Security Service of Ukraine, the Ministry of Energy and Coal Industry of Ukraine (currently the Ministry of Energy), NEURC about the critical situation with the debts to the RES producers accumulated in June 2019 and lack of funds to settle them. Realizing its responsibility and striving to fulfill its financial obligations, the company called for the immediate adoption of the special legislation to allow the SE Energorynok to pay for the “green” electricity. Finally, the required Law was elaborated and adopted by the profile committee of the Verkhovna Rada. The SE Energorynok actively participated in the law drafting with the involvement of all stakeholders.

The Ukrainian Wind Energy Association was also involved in the crisis settlement process and supported the SE Energorynok in its legal initiatives. The UWEA requested the RES producers to withdraw the complaints they had filed against the enterprise, thus giving a time for the state bodies and the SE Energorynok to find the debts repayment sources. The UWEA’s clear and straightforward approach was based on the fact that the SE Energorynok had never violated Ukrainian legislation and always paid in full.  The UWEA was firmly convinced of the inevitable positive solution to the  problem and the fulfillment of its financial obligations by the enterprise.

The Law of Ukraine “On measures aimed at repaying debts generated in the wholesale electricity market” provided for the priority debt repayment to RES producers and was adopted on 7 June 2020. It happened one year after the launch of the new electricity market, at the time when the Government and the RES investors were engaged in negotiations in respect to the debts to RES producers accumulated  this time  by the SE Guaranteed Buyer, the successor of the SE Energorynok.

On 13 August 2021, the SE Energorynok repaid 100% of its debts to RES producers in full in line with the national legislation.

The Ukrainian Wind Energy Association congratulates the SE Energorynok on the fulfilling its financial obligations to the RES producers and is grateful to the RES producers for their understanding and patience!

UWEA PARTICIPATED IN THE ENERGY WEEK BLACK SEA 2021

On 28 September 2021, Kateryna Knysh, Head of UWEA's Analytical Department, took part in the international conference “Energy Week Black Sea 2021”, which was held online and offline in Bucharest, Romania.

During the session “On & offshore wind: project updates and developments”, high-level experts from Turkey, Ukraine, Georgia and Romania outlined the key trends in the development of their national wind power sectors.

Kateryna Knysh in her presentation “Prospects for offshore wind power development in Ukraine: current and future steps”, described the current status of wind power market in Ukraine, emphasized key problems of national energy sector and stressed the need for the development of offshore wind power and “green” hydrogen technologies in Ukraine as well as these technologies’ advantages for the industry of Ukraine.

Kateryna stressed that offshore wind energy was an effective mechanism for promoting international cooperation. She cited a recent example when a Protocol on Initiating Black Sea Offshore Wind Energy Federation was signed between the UWEA and TOWEA and invited the relevant wind energy associations from Romania, Bulgaria and Georgia to join this initiative.

“According to our optimistic predictions, the first offshore wind farms in Ukraine could be commissioned in 2028, and from 2029 onwards at least 100 MW of new offshore capacities could be added per year. Of course, the first offshore wind projects will be implemented exclusively for the production of "green" hydrogen, but in the future, offshore wind farms could also act as interconnectors between Ukraine and the European energy system,”- said Kateryna Knysh.

THE UWEA EXPANDED ITS BOARD

On 21 September 2021 the Ordinary Meeting of the UWEA Board was held. The Board members discussed issues related to debts settlements  accumulated on the RES market of Ukraine in 2020 and 2021, the latest legislative initiatives of the UWEA and corresponding official appeals to the relevant public authorities, as well as the Draft Laws, which are under consideration of the Verkhovna Rada or its Profile Committees, in particular, the Draft Law No5436 as well as the alternative ones No 5436-1, No 5436-2, and No 5436-d, which regulate the implementation of energy storage systems in Ukraine and Draft Law № 4461 “On Emerald Network Territory”.

The Board also discussed the UWEA’s comments and proposals to the National RES Action Plan until 2030, which were submitted under the permission of the Board and envisaged, in particular, the offshore wind energy and “green” hydrogen development. Members of the Board also expressed their support to the UWEA Secretariat’s initiative to hold the UWEA’s Annual International Conference under preliminary title “Wind Power for “Green Deal” of Ukraine” in April 2022 and considered the possibility of conducting PR-campaign to create a positive image of renewable energy in local communities.

The UWEA Board made a decision to establish a common UWEA information and technical platform for further promotion of wind power technologies in Ukraine.

Two new members of the UWEA Board - Alexander Podprugin, COO, Elementum Energy Ukraine, and Mykhaylo Chulkov, Executive Director, EuroCape Ukraine I, - were unanimously elected by the Board.

The Ukrainian Wind Energy Association sincerely congratulates Mr. Alexander and
Mr. Mykhaylo on their election to the UWEA Board, and wishes them every success in their work!

GRAND SIGNING OF PROTOCOL ON COOPERATION BETWEEN THE UWEA AND TOWEA

An official signing ceremony for the Protocol on Cooperation between the Ukrainian Wind Energy Association (UWEA) and the Offshore Wind Energy Association of Turkey (TOWEA) was held in Ankara, Turkey on 17 September 2021. The signatories of the Protocol were Andriy Konechenkov, Chairman of the UWEA Board and Murat Durak, Chairman of the TOWEA.

In particular, the Protocol on Cooperation between the UWEA and the TOVEA provides for the following:

• to cooperate fully between Associations and their national authorities to provide the offshore wind power development in Turkey and Ukraine and establish the framework for intensifying and expanding this cooperation;
• to facilitate and support policies and initiatives aimed at overcoming the legislative and technical barriers to wide-scale development of offshore wind power industry in Turkey and Ukraine;
• to promote the development of offshore wind manufacture in Turkey and Ukraine, etc.

Being conscious of the growing role and importance of regional initiatives in promoting offshore wind energy projects in the Black Sea Region, the UWEA and the TOWEA also signed the Protocol on Initiating Black Sea Offshore Wind Energy Federation (hereinafter referred to as “Federation”). The Federation will encourage and support the cooperation in the field of offshore wind power development among the offshore wind energy associations of the Black Sea Region. The Expected Founding Members of the Federation include offshore wind energy associations from Turkey, Ukraine, Bulgaria, Georgia, Romania.

Andriy Konechenkov: “I am strongly convinced that these Protocols will become not only an efficient tool to strengthen Ukrainian-Turkish cooperation, but also an effective step towards the development of offshore wind power both in Ukraine and throughout the Black Sea region countries”

Within the working trip to Ankara, the Chairman of the UWEA Board Andriy Konechenkov and Head of analytical department Kateryna Knysh had a number of meetings at the Ministry of Energy of Turkey. The UWEA representatives paid special attention to the meeting with Mustafa Serdar, the President of the Ataseven group of companies.

During the above mentioned meetings, the UWEA representatives presented the current status of RES development in Ukraine, the latest legislative initiatives and business deals, and provided a forecast for the deployment of wind power projects for the next 3 years, including measures on launching the offshore wind power market in Ukraine.

The Turkish side emphasized its interest in implementing wind energy projects in Ukraine and establishing new business ties with Ukrainian companies. At the same time, Turkish partners expect auctions, the possibility of concluding corporate PPA and the settlement of other inaccuracies in the industry legislation of Ukraine.

PRESS CONFERENCE “GREEN TASKS FOR THE PARLIAMENT”

On 16 September 2021, the Global 100% Renewable Energy Platform held a press conference “Green tasks for the Parliament” at the Media Centre of the Interfax-Ukraine News Agency.

During the press conference, heads of the leading RES associations, which are Founding Members of the Global100%RE Ukraine, voiced the list of legislative acts, which adoption is crucial for the achievement of carbon neutrality and stable RES development in Ukraine. According to Oleksandr Dombrovskyi, Chairman of the Global100%RE Ukraine: “There are great numbers of Draft Laws, which adaption is important for the RES development and natural resource management reform, still awaiting consideration by the Parliament. In addition, the consideration of some of them have been postponed for several years”.

Andriy Konechenkov, Chairman of the UWEA Board, noted the Draft Laws, which are highly expected to be adopted by wind power market participants and the RES market as a whole. During his speech he justified the importance of elaboration and adaption of the following Draft Laws:

• On Stimulation of Production of Electricity from Alternative Energy Sources under Market Conditions without State Support (Corporate PPA)
• On Development of Hybrid Power Plants from Renewable Energy Sources;
• On Improving Support for Distributed Generation (implementation of Net Billing system)
• On the Development of Wind Power and Hydrogen Technologies
• On Implementation of Offshore Wind Power Technology and Amendments to the Law of Ukraine on Environment Impact Assessment.

“Considering the fact that the EU constantly increases its targets on greenhouse gas emissions reduction and wind power generation, the Ukrainian energy policy should be in line with the leading EU countries’ policies. The main “green” task for the Parliament is to prevent politization of the RES issue in Ukraine, support their development and be a reliable investment partner in the international arena. The adoption of the above-mentioned Draft Laws, including the elaboration of the national Strategy on “green” hydrogen production using wind and solar energies, will attract great investments into our economy,”- Andriy Konechenkov said.

Recording: https://www.youtube.com/watch?v=uQipPBYlWLs 

INTERNATIONAL WEBINAR “CORPORATE RENEWABLE PPA: EU’S EXPERIENCE AND UKRAINE’S PERSPECTIVES”

Recently, more and more companies  are procuring their electricity from renewable energy sources as a part of their sustainability strategies. At the same time, such state support system for renewable energy producers as feed-in tariff has been becoming unreliable in Ukraine, as investors are increasingly faced non-payments for the “green” electricity delivered to the grid. With this in mind, the application of corporate PPAs - long-term agreements for purchase and sale of electricity between a renewable energy producer and a business entity as a corporate buyer, could promote the further development of renewable generation in the country.

On 13 September 2021, the Ukrainian Wind Energy Association, jointly with Sayenko Kharenko, a law firm, member of the UWEA, and in cooperation with AHK Ukraine, hosted the international webinar devoted to the prospects of implementation of corporate renewable  PPAs in Ukraine.

During the webinar, high level experts from the EU and Ukraine covered a wide range of issues, in particular  the experience of corporate PPAs’ application in the EU, Poland, Germany, financing of corporate PPAs by banks, the legislative initiatives of the Ministry of Energy of Ukraine, specifics of electricity pricing under corporate PPAs’ and necessary  amendments to Ukrainian legislation for their application.

Andriy Konechenkov, Chairman of the UWEA Board, in his opening speech said : “Considering the current status of renewable energy in Ukraine, there is an urgent need for new renewable energy support mechanisms to be introduced in our market. Corporate PPAs, contracts for difference are exactly those mechanisms that could increase the “green” generation , in particular from wind energy. Such approach is aligned with the principles of “green” transition followed by the EU countries.”

Hannah Hunt, Impact Director, RE-Source, European platform for corporate PPAs, provided the European corporate PPA market overview with both procurement and policy trends, including important improvements for corporate PPAs which are envisaged with the EU’s recent Fit for 55 package release, presented  examples of different types of corporate PPAs concluded by the European companies.

Olga Yeriomina, Associate Director, Senior Banker, Energy EMEA, Sustainable Infrastructure Group, EBRD, spoke about RES project financing based on corporate PPAs. In particular, Mrs. Yeriomina noted that concluding a long-term contract, for at least 15 years, and having a reliable corporate buyer are  necessary for obtaining such financing.

Oleksandr Martynyuk, Acting Director-General of the Energy Markets Directorate, Ministry of Energy of Ukraine presented the legislative initiatives of the Ministry on the development of renewable energy sector under market conditions . Mr. Martynyuk paid particular attention to the issue of implementation of the contracts for difference in the market, which he considers a prerequisite for the further introduction of corporate PPAs in Ukraine.

Dan Cocker, Partner, Allen&Overy,  specified the implementation of corporate PPAs in Poland, the structure of such contracts, and the issues to be negotiated when concluding a corporate PPA. In turn, Khrystyna Kasyanova, Head of Energy & Energy Transition Working Group, AHK Ukraine, told about main drivers for the application of corporate PPA in Germany and relevant experience of German companies.

Presentation of Maksym Semenyuk, consultant of DNV, a member of the UWEA, was devoted to electricity pricing under corporate renewable PPAs.

Summing up the discussion, Maryna Hritsyshyna, Head of Energy Practice, Counsel, Sayenko Kharenko Law Firm and Member of the UWEA Board, noted  the main barriers for corporate PPAs to be implemented in Ukraine. In her  case study she gave the example of an entity interested in purchasing “green” electricity and what such company need to do.

It became clear at the webinar, that RES producers are interested in implementing corporate PPAs in Ukraine and consider them as one of the opportunities to obtain financing for new RES projects which are not eligible for “green” tariff since 2022.

Webinar recording: https://www.youtube.com/watch?v=Gzoje0WeAK0

THE UWEA SECRETARIAT VISIT TO THE WIND POWER FACILITIES IN THE KHERSON REGION

Chairman of the UWEA Board Andriy Konechenkov together with Kateryna Knysh and Serhiy Kachan, the UWEA Secretariat members, participated in the III scientific and practical conference “Improvement of the electricity market and the integration of Ukraine’s IPS into European Network of Transmission System Operators for Electricity (ENTSO-E)” conducted in Nova Kakhovka, Kherson region on 7-9 September 2021.

The III conference was organised by the Scientific and Technical Union of Power Engineers and Electricians of Ukraine in cooperation with the Ministry of Energy of Ukraine, NPC Ukrenergo, Ukrhydroenerho, the Ukranian Wind Energy Association, Lviv Polytechnic National University, Vinnytsia National Technical University and Khmelnytskyi National University.

Within the 2021 conference, leading energy experts discussed the current status of the power market, benefits of integration of the Ukrainian power system into the European power system ENTSO-E and security of electricity supply in Ukraine. Conference speakers informed on the status of implementation of the Law of Ukraine “On Electricity Market”, provided forecast and structure of daily capacity schedules, presented some outcomes of their scientific researches in the field of energy and their impacts on the energy security of Ukraine.

In his presentation “The current status and prospects for wind power development in Ukraine”, Andriy Konechenkov, the Chairman of the UWEA Board, highlighted the current financial situation in the renewable energy market of Ukraine. He focused on substantive issues, such as  challenges faced by the RES sector since the launch of the new electricity market in 2019, further development of the RES sector under market conditions and prospects for the construction of hybrid wind-solar power plants.

The participants of the conference were especially impressed by the study trip to 163 MW Myrnenska wind farm (including the substation 220/150/35 kV Kairka) which is located in the south of Kherson region and operated by a wind power company Vindkraft Kalanchak LLC.

The representatives of the UWEA Secretariat also visited the Vindkraft office located in Kakhovka city. The company's headquarters  is housed in 100% RES building with rooftop solar system which fully ensures a stable power supply to all departments of the company.

“Ukrainian Wind Energy Association closely cooperates with each its member company and is proud of  not only their wind power projects and achievements but is also pleased to promote  their unique approaches to doing business!”, Andriy Konechenkov stated.

The Ukrainian Wind Energy Association expresses its appreciation and thanks to Oleksandr Velychko, Head of the Myrnenska WPP, for his professionalism and kind assistance in conducting a tour from Myrnenska wind power plant to wind power facilities of the Vindkraft Kalanchak LLC and for providing comprehensive information on their operation to all visitors.

Energy Storage System designed in Ukraine by KNESS at testing and commissioning phase

Energy Storage System by KNESS - the first industrial energy storage system created in Ukraine- is currently in testing and commissioning mode.

During this time, engineers will check the correctness and reliability of all its individual devices and complexes, and will study the algorithms of the software operation that controls the system and its operation as a whole. Next step is preparation for certification in order to obtain the status of ancillary service provider.

This is the first industrial storage fully developed, designed and manufactured in Ukraine by KNESS Group. The entire intelligent system of the ESS prototype is 100% KNESS's in-house development.

“Energy Storage System, with a power capacity of 1 MW and a capacity of 1 MW, consists of battery clusters, which are the result of the work of the power electronics laboratory of KNESS RnD Center, which lasted about a year. All intelligent systems of these modules are in-house development. They perform the functions of balancing the cells’ charge within the modules, monitoring and controlling all processes within the cluster,” comments Volodymyr Holodiuk, Head of Power Electronics Department, KNESS RnD Center. 

KNESS Group is planning to apply this solution in the market of ancillary services of the integrated power system of Ukraine with the service of primary frequency regulation, purchasing electricity on the dayahead, intraday and balancing markets in order to test the regulatory model.

Implementation of the energy storage system is a strategically important task for our country. This is a way to increase the flexibility of the integrated power system of Ukraine, which further will increase the generation of clean electricity from renewable energy sources.

KNESS Group is an international group of companies born in Ukraine, which develops technologies and implements renewable and traditional energy projects. KNESS covers the entire cycle of clean energy supply: from design, construction of solar and wind power plants to the manufacture of equipment and components, operational and technological maintenance and electricity supply. KNESS has its own center of innovative and technological developments (RnD center).

Contacts for the media:

Email: press@kness.energy

KNESS Group’s Media Relations Manager, Karina Tarasova: (0432) 50 47 96

Ukraine at a crossroads or wind power industry of Ukraine in the first half of 2021

After a record year in 2019 followed by a year of struggle for survive in 2020, the renewable energy industry of Ukraine is now at a crossroads pending the Ukrainian Government’s decision on the energy sector’s development vector.  The first option provides for profound transformation of the energy paradigm and modernization of the system to reach carbon neutrality based largely on renewables. The second one is based on further support of fossil fuel generation, overlooking its negative effects on both the health of the society and security and integrity of Ukraine.

In anticipation of the Government’s decision, the wind power sector of Ukraine demonstrates its readiness for development and further contribution to the national economy as around 5,000 MW of wind capacity received building permits as of the beginning of 2020. Having agreed to voluntarily reduction of the feed-in tariff rates, the RES investors continue to seek common ground with the Government of Ukraine on items related to the RES development, and postpone their claims to international arbitration to protect their rights and provide business conduct under fair and predictable rules. Some investors continue to invest in Ukraine, considering all “country risks” and hoping the Government of Ukraine to fulfill its commitments. Thus, 73 new wind turbines with a total installed capacity of 278,4 MW were brought online in three regions of Ukraine during the first half of 2021:

• Phase I of Dnistrovska WPP with a capacity of 40 MW in Odesa region;
• Phase II of Zaporizhzhia WPP with a capacity of 98 MW in Zaporizhzhia region;
• Phase II of Syvash WPP with a capacity of 140,4 MW in Kherson region Thus, as of July 2021, the total installed capacity of Syvash WPP has already reached 241,8 MW of 250 MW designed. The grand opening of Syvash WPP is planned for September 2021.

As of the first half of 2021, the total installed wind capacity of mainland Ukraine (including the temporarily occupied territories in the east of Ukraine) amounts to 1592,4 MW.

The wind power industry of Ukraine plays an important role in providing Ukrainians with environmentally sound “green” electricity. According to NPC Ukrenergo, in the first half of 2021, wind power plants delivered 1 743,65 million kWh of “green” electricity, sufficient to provide electricity to 581 218 households in Ukraine with their average monthly electricity consumption of 500 kWh, ensuring 1,381 million tons of carbon emissions reduction.

With respect to the total installed capacity, Zaporizhzhia region with 595 MW is ahead, closely followed by Kherson region with 579,5 MW while Mykolaiv region with 152,1 MW ranks third.

A trend of increasing nameplate capacity of wind turbines continued in the first half of 2021. An average rated capacity of newly installed wind turbine reaches 3,8 MW compared to wind turbines with average 3,4 MW capacity that have been commissioned in Ukraine since 2011. The market share of wind manufacturers in Ukraine remains unchanged. As of the end of June 2021, three leading wind manufacturers include Vestas, General Electric and
FWT Ukraine.

Growth, though modest, in new wind power installations in the first half of 2021 at the background of unresolved energy crisis, demonstrates a high potential for the Ukrainian wind power sector. Indeed, the growth rates would be much higher, if the Government of Ukraine follows the experience of the EU member-states and chooses the path of “green” energy transition to provide clean future for the current and future generations. 2021 is a point of no return. Either Ukraine relies on renewable energy sources and fully supports their development, or it continues to undermine the confidence of international and national investors and halt the development of the "green" generation with unreasonable and illogical policy decisions and legislative changes.  The things will appear in their true light by the end of year 2021...

THE UWEA PARTICIPATED IN THE 12th ANNUL ADAM SMITH UKRAINIAN ENERGY FORUM

On July 14-16, 2021, the 12th annual Adam Smith Ukrainian Energy Forum was held at the Parkovy Congress and Exhibition Centre in Kyiv. This year forum was focused on the progress made by the government in establishing domestic energy independence via the signing of eight new PSAs, developing a fully-fledged domestic market for gas, electricity and RES markets, and integrating Ukraine into the European energy market.

The Ukrainian Energy Forum brought together more than 80 speakers from different spheres, in particular representatives of the public authorities, international financial and business organizations, foreign embassies to Ukraine and energy market players. More than 400 delegates participated in practical discussions on new business opportunities for business, power industry and international community.

Denys Shmyhal, Prime Minister of Ukraine, in his welcome speech noted that the decarbonization of the economy and energy sector is the main global trend. According to him, Ukraine was one of the first to ratify the Paris Agreement, but “the active measures to elaborate the Ukrainian Green Deal was taken only last year.”

“It is a highly ambitious goal, which provides for a profound transformation of our economic model and substantial investments in modernization of our power industry. According to the Ministry of Ecology and Natural Resources of Ukraine, capital investments of $102 billion over the following 10 years are required to provide a 35% reduction in carbon emissions compared to 1990 level,”- Denys Shmyhal said.

In his key speech, Herman Haluschenko, the Minister of Energy of Ukraine, highlighted three priorities for the Ministry of Energy activity, namely, energy security, integration of the energy markets and development of Ukrainian energy sector in conformity with the European Green Deal.

“Synchronization with ENTSO-E and final disconnection from the energy systems of the Russian Federation and Belarus is a kind of point of no return on our way of the European integration,”- said Herman Haluschenko. “The Ministry plans to elaborate the so-called “Key projects for the development of Ukrainian power sector” list. “Such project could be called “Great modernization of power industry” and collaboration with our European partners on this issue is of the greatest importance,”- the Minister added.

The discussion of modern challenges for the Ukrainian energy sector and urgency for its transformation was the peculiarity of the present Ukrainian Energy Forum. Such discussions included, in particular, energy security of Ukraine in the context of the Nord Stream 2 construction, the current state of hydrogen technology and many others.

The Forum’s third day was “Electricity focus day” with main topics devoted to the electricity power market reform, integration in the European energy market and further RES development in Ukraine. The leading speakers shared their opinions and views on the following issues:

• current status of the electricity market and ways of solving its financial imbalances;
• feed-in-tariff debt and  investment in renewable projects
• steps to reaching the 2023 synchronisation with ENTSO-E deadline;
• further wind energy development after 2022 and offshore renewable energy strategies;
• perspectives of international investment arbitrations and consequences of the introduction of excise tax on RES electricity production;
• energy storage projects and others.

A dedicated session on unlocking onshore and offshore wind potentials in Ukraine was moderated by Andriy Konechenkov, chairman of the UWEA Board. Magnus Johansen, Vice President, Emergy, Mykhaylo Chulkov, Executive Director for Ukraine, EuroCape Ukraine, Viktoriya Syromyatova, Country Director for Ukraine, Total Eren, Maksym Ganzha, Offshore Wind Farm Project Manager, Vuglesyntezgaz Ukraine Affiliated Company, Yurii Zhabskyi, Director, Wind Farm, Oleksiy Feliv, Managing Partner, INTEGRITES, and Ivan Bondarchuk, Counsel, Head of Energy and Natural Resources, LCF Law Group actively participated in the discussion.

In his opening speech Andriy Konechenkov focused on the vital role of the wind energy development not only in the elaboration process of the “green” energy strategy of Ukraine and attracting investments necessary for the decarbonization of the national economy, but also in the introduction of the state-of-art technologies, in particular “green” hydrogen.

Due attention was paid to the importance of the offshore wind power development in Ukraine. “The further development of wind power in Ukraine depends on the following aspects: what to do after 2022 when no new wind project is eligible for “green” tariff; what new RES development support mechanisms to be applied in Ukraine, considering the experience of foreign countries; and the role and place of offshore and onshore wind energy in the production of “green” hydrogen. Artificial challenges at the electricity market dampen investments, but at the same time we demonstrate to the world our “green” transition under carbon-neutral development of Ukraine. The desire of the State to cooperate with “green” electricity market participants could resolve market crisis and provide energy independence of Ukraine,”-said Andriy Konechenkov.

THE EUROPEAN COMMISSION PRESENTED THE “FIT FOR 55” PACKAGE

The ‘Fit for 55’ package presented on 14 July, 2021 by the European Commission is a set of legislative proposals on EU Climate & Energy policy that aim to support the delivery of the European Green Deal. The EU has now committed to become the first climate neutral continent in the world by 2050. This requires a major overhaul of the way of life e.g. how the EU produce energy and raw materials, drive, insulate homes, manage land.

To reach net zero within only three decades time the EU increased its greenhouse emissions target for 2030 from the current 40% to 55%. The European Commission also presented a number of strategies to accelerate the energy transition e.g. the Offshore Renewable Energy Strategy (November 2019), EU Industrial Strategy (March 2020; updated June 2021), the Energy System Integration and Hydrogen Strategies (June 2020).

 All of these require a huge expansion in wind energy. The Commission’s decarbonisation scenarios see wind accounting for 50% of Europe’s electricity production by 2050 up from 16% today. And 1000 GW onshore (up from 165 GW today) and 300 GW offshore (up from 15 GW today) by 2050 in EU-27. The EU is now building 15 GW per year of new wind by 2025. But to deliver the 55% GHG target the EU need to be building 30 GW per year.

The ‘Fit for 55’ package spells out the measures and actions for how Member States fulfil the new 55% GHG target and the Green Deal Strategies at national level. The package sets out higher 2030 targets, namely 40% renewables target (up from 32% today), 39% energy efficiency target for primary consumption (up from 32.5% today) and 36% for final energy consumption.

The Carbon Border Adjustment Mechanism (CBAM), which structure was presented by the EC, is an integral part of these efforts.

The CBAM will mirror the ETS in the sense that the system is based on the purchase of certificates by importers of carbon-intensive products. CBAM would take the form of a ‘notional ETS’: importers (AKA ‘declarants’) would have to surrender units (CBAM Certificates) by 31 May each year equal to embedded emissions in their imports (1 CBAM Certificate = 1 tonne CO2). The unit price of these CBAM Certificates will be equivalent to the average EUA auction price of the previous week. In this way, imports would (at least in theory) be subject to the same carbon costs as EU producers. The proposal contains formulae for the calculation or determination of emissions embedded in imports of tangible goods. Such emissions cover direct process emissions (scope I) and indirect emissions resulting from electricity use (scope II).

Under the Commission's proposal, importers will have to report emissions embedded in their goods in a transitional phase starting in 2023 and finishing at the end of 2025. The CBAM will apply to direct emissions of greenhouse gases emitted during the production process of the products covered, excluding so-called ‘indirect' emissions (i.e. carbon emissions from the electricity used to produce the good).

Importers will start paying a financial adjustment in 2026, once the full CBAM regime becomes operational, with the objective of facilitating a smooth roll out.

The CBAM will initially apply to imports of the following goods: cement, steel, aluminium, fertilisers and electricity.

In principle, imports of goods from all non-EU countries will be covered by the CBAM. That said, certain third countries who participate in the ETS or have an emission trading system linked to the Union's will be excluded from the mechanism. This is the case for members of the European Economic Area and Switzerland.

By the end of the transition period, the Commission will evaluate how the CBAM is working and whether to extend its scope to more products and services and whether to cover ‘indirect' emissions.

CBAM will be applied to electricity generated in and imported from countries that wish to integrate their electricity markets with the EU until such a point that those electricity markets are fully integrated. At that point, and under strict conditions linked to their implementation of certain obligations and commitments, these countries could be exempted from the mechanism. If that is the case, the EU will revisit any exemptions granted in 2030, at which point those partners should have put in place the decarbonisation measures they have committed to, and an emissions trading system equivalent to the EU's.

Full Story: EU economy and society to meet climate ambitions (europa.eu)

THE UWEA PARTICIPATED IN THE PREMIER ANNUAL CONFERENCE CISOLAR 2021

On July 6, 2021, Kyiv hosted CISOLAR 2021, the 10th solar energy conference and trade show of Central and Eastern Europe. The event was organized, in particular, in sponsorship and with the support of EDS and KNESS, the UWEA Member Companies. The Ukrainian Wind Energy Association (UWEA) became an information partner of the event.

CISOLAR is the main business platform of the solar energy industry which for the last ten years in a row has gathered all representatives of public authorities, RES associations, PV market players and society stakeholders to get the market insights and to discuss the current and further development of the solar power sector in Ukraine.

The first day of the Conference was devoted to “green” transition as an inevitable process for Ukraine. Participants discussed the major trends in global energy development, the ways of decarbonizing energy sector, new energy technological drivers and industry infrastructure projects.

Conference’s  session “The main trends that will determine the vector of energy development in 2021-2022” gained much interest among participants.  It included such prominent speakers as: Olga Buslavets, former head of the Ministry of Energy of Ukraine, Alexander Dombrovsky, president of MHP Eco Energy and chairman of 100% RE Ukraine,  Andriy Konechenkov,  chairman of the UWEA Board and vice president of the WWEA, Sergiy Savchuk, executive director of Clear Energy, Nadiya Petruchenko, development director of SPP Development Ukraine, Oleksandr Zapyshnyi, founder of EDS, and Oleksiy Badika, founder of Atmosfera. The discussion was moderated by Yulia Berezovska, co-founder of IB Centre and New Age Lab.

Andriy Konechenkov focused on the current challenges that the Ukrainian RES  market faces and which have already halted RES development in the country. In case of problems remain unsolved they will significantly impact national  RES market in future as well. He listed the following issues, in particular: the League of Antitrust’s application to the Antimonopoly Committee of Ukraine on recognition of “green” tariff as abusive state aid in breach of Ukrainian laws; constitutional petition of 47 MP’s of Ukraine on the unconstitutionality of the “green” tariff to the Constitutional Court of Ukraine; the Government’s intention to impose an excise duty on “green” electricity  enshrined in the Draft Law No 5600 passed by the Parliament at its first reading on 1 July, 2021; current debts to RES producers for electricity deliveries in 2021 and the unresolved indebtedness for the previous year; the delay in launching  “green” auctions.

“As a representative of wind power sector who speaks today at the premier solar energy conference, I want to underline, that current RES market situation with all its challenges, proves the absence of any distinctions in the market among renewables. Today, all renewable energy technologies, namely: wind, solar, biomass and small hydropower equally suffer from these challenges and directly depend on decisions by both the Antimonopoly Committee and the Constitutional Court of Ukraine. Thus, it is important to combine our efforts, to join our forces in advocating RES market interests. All renewable energy sources should speak with one voice”, said Andriy Konechenkov.

THE UWEA’s REPRESENTATIVES MET WITH DIRECTOR OF THE SE GUARANTEED BUYER

On 2 July, 2021, the representatives of the UWEA met with Konstantin Petrykovets, Director of SE Guaranteed Buyer, to discuss key problems of the renewable energy sector, namely, the issue of indebtedness and possible ways of its resolution, potential introduction of excise tax on RES electricity and imbalances.

In order to increase transparency and prevent any manipulations in the market, it was agreed that the SE Guaranteed Buyer (Guaranteed Buyer) would provide more detailed information on its activity in all market segments.

The discussion focused on the issue of the debts to “green” generation. According to Mr. Petrykovets, the debts incurred to the RES generators in 2020 currently amounts to UAH 16,3 billion. Commenting on debts accumulated in 2021 Konstantin Petrykovets stated: “The main reason for incomplete payments for current “green” electricity deliveries is a failure of NPC Ukrenergo to sign relevant certificates required for settlements with the RES producers over the last 5 months. A possible solution to the problem would be covering 20% of the arrears in payments for electricity at the “green” tariff with budgetary funds, as provided for by the legislation. Based on the state’s interests, we propose to address the Ministry of Finance of Ukraine to initiate the issue of government bonds with a long maturity period. It could minimize the burden on the budget and resolve problem of indebtedness in the market until the end of the year. Support from the RES industry associations is needed to succeed in it.”

Possible introduction of excise tax on RES electricity was also discussed at the meeting. “The provision of this Draft Law, which provides for the introduction of excise tax on “green” electricity requires further elaboration. It envisages the inclusion of excise tax in the cost of “green” electricity, which violates the provision of the Memorandum of Understanding, as actually constitutes illegal “green” tariff reduction,” Konstantin Petrykovets said.

With regard to issues related to calculating and paying for imbalances, it was noted that SE Garanteed Buyer is open for discussion with all RES producers. According to Konstantyn Petrykovets, actual supply and demand in the electricity market directly affects the activity of Guaranteed Buyer’s balancing group. Nevertheless, despite all challenges, Guaranteed Buyer manages to sell “green” electricity at higher prices than those of nuclear generation. For example, at a day-ahead market “green” electricity has been sold at 1400 UAH per MWh, while “nuclear” one – at 1200 UAH per MWh.

PRESENTATION OF THE CHILDREN’S BOOK “SEKRETY VITRY” AT THE INTERNATIONAL BOOK ARSENAL FESTIVAL IN KYIV

The wide range of books presented at this year’s International Book Arsenal Festival in Kyiv includes the first Ukrainian book on wind power for kids “Sekrety vitry” (Secrets of Wind). The presentation of the book initiated by the Ukrainian Wind Energy Association, co-sponsored by the Heinrich Böll Foundation Kyiv Office Ukraine and the UWEA and published by the publishing house “Ridna Mova” took place on 24vJune 2021.

The book was presented by its authors - Galyna Shmidt, Member of the UWEA Board, and Galyna Maniv, children’s writer from “Ridna mova” publishing house on 24 June 2021.  Oksana Kravchenko and Iryna Sankovska, eco-speakers from public organization “Zelena Hvulya”, told the children about the climate change and conducted an interesting quiz.

The event took place in the form of interactive discussion, during which the authors were able to talk with the children about the environment, their green habits, renewable energy sources and, of course, about wind energy. Galyna Shmidt, co-author of the book “Sekrety vitru”, revealed the role of renewable energy sources in everyday life, their varieties and the history of the wind energy use by mankind.

“So, what is the secret of the wind? The big secret is… that there’s no secret. You just need to use this wonderful, inexhaustible source of energy, which nature gives us. We are responsible for the future of our planet. We must preserve it. And wind is our First and the best Friend for this task. That is the whole secret...” Mrs. Galyna quoted part of the story.

At the end of the interactive presentation, all children received a book “Sekrety vitry” as a gift and had the opportunity to get the authors’ autographs.

INTERNATIONAL WEBINAR “OFFSHORE WIND FARMS IN THE BLACK SEA: UKRAINE & TURKEY”

Symbolically, on Global Wind Day, June 15, 2021, two leading associations: Ukrainian Wind Energy Association and Turkish Offshore Wind Energy Association dedicated their joint webinar to the promising market for both countries of the Black Sea region - offshore wind power.

Ukraine and Turkey have considerable and still unexploited technical potential of offshore wind energy. According to the World Bank, the technical potential of offshore wind power in the Black Sea basin reaches 435 GW, 70 GW of which accounts for Turkish maritime territory. Ukraine, in turn, is a country which not only possesses half of this total technical capacity (251 GW) but also has an additional and significant potential in its shallow water. In addition,  Ukraine considers offshore wind technologies as a basis for “green” hydrogen production.

Within the two sessions of the webinar, the speakers covered a wide range of issues: from the current status of global offshore wind power and wind potential of the Black Sea to the prospects for local manufacture of offshore wind turbines and floating wind farms as well as the readiness of national legislations for launching new markets.

Murat Durak, Chairman of the Turkish Offshore Wind Energy Association: “Manufacture of offshore wind turbines and foundations, shipping and appropriate infrastructure capacities should be local as much as possible. Lots of EU countries today have a clear vision for the development of offshore wind, so Ukraine and Turkey, as countries of the Black Sea region, should follow the leading countries and set their national targets for offshore wind.”

Andriy Konechenkov, Chairman of the Ukrainian Wind Energy Association: “Ukraine and Turkey are those countries of the Black Sea region that have considerable natural and technical potential for offshore wind projects. In contrast to Turkey, which has already implemented concrete practical and technical steps towards offshore wind development, a discussion on the prospects for its offshore wind has only been initiated in Ukraine by our association. I am convinced that today's webinar, which we conduct on Global Wind Day, will become a kick-off event for further internal work on the development of offshore wind energy in our countries.”

During the second session of the webinar, dedicated to the technical potential of offshore wind power in Ukraine, Kateryna Knysh, Head of the UWEA’s Analytical Department, who also acted as a moderator, highlighted the current status of the Ukraine’s power sector and presented already existing UWEA’s efforts in this regard, such as the White Paper on Offshore Wind Power and “Green” Hydrogen, developed in collaboration with law firm Asters, Ukrainian Hydrogen Council and Institute of Renewable Energy of the National Academy of Sciences of Ukraine. “Nowadays the offshore wind power demonstrates all its technical and social benefits: from reducing greenhouse gas emissions, creating new jobs to replacing fossil fuel power plants and increasing countries' independence from imported fuels. Offshore wind in combination with “green” hydrogen are the most attractive solution for greening, modernizing and balancing modern Ukraine’s power system,” Mrs. Kateryna summarized.

Marta Halabala, Senior Associate at Asters Law Firm, which is the UWEA’s member company, described all legislative and administrative changes and initiatives that should be implemented in Ukraine.

An interesting presentation was given by Maxym Ganzha, Offshore Wind Farm Project Manager at Vuglesyntezgaz, a subsidiary of the Naftogaz Ukraine. Mr. Maxym presented the technical and infrastructural capacities available in Ukraine for the construction and grid connection of the potential offshore wind power plants. He stressed that Ukraine has sufficient resources for the development of national manufacture, such as manufacture of foundations for offshore wind farms.

In her presentation regarding the importance of hydrogen technologies for Ukraine, Anastasiya Kudrya, the representative of Ukrainian Hydrogen Council, focused on  possibilities of “green” hydrogen production in Ukraine, revealed the full range of benefits of such technology and the role of offshore wind in this process. 

The discussion between the experts and the participants of the event demonstrated that Ukraine has significant potential for the development of offshore wind energy and that this market will definitely bring significant economic and social benefits for the country. Instead, the development of offshore wind market is impossible until all legislative (including the adoption of support system) and infrastructural issues (including the lack of vessel fleet) have been resolved.

Recording of the webinar: https://www.youtube.com/watch?v=Fww4Kcgcm3A&t=1033s

THE ROUND TABLE TALKS BETWEEN RES INVESTORS AND STATE AUTHORITIES

On Global Wind Day, June 15, 2021, the RES investors discussed key issues of the current Ukraine's renewable energy sector with the Minister of Energy of Ukraine, People’s Deputies of Ukraine - members of the Inter-Fractional Association “Clean Energy - Healthy Environment” and the Chairman of the Board of NPC Ukrenergo. The Embassies of Denmark, Spain, the United Kingdom, Norway and Lithuania participated in the discussion.

Representatives from national and international investors, which are active in the Ukrainian RES market, including Anton Mishyn, DTEK Renewables, Myhailo Chulkov, EuroCape Ukraine I, Olexandr Podprugin, Elementum Energy, Olexandr Bosak, Acciona, Sergiy Yevtushenko, UDPRenewables and Sergiy Kravchuk, KNESS shared their views and recommendations with Ukrainian officials and MPs. 

In particular, the parties of the round table raised such critical issues of the Memorandum of Understanding signed between the Government and RES investors on June 10, 2020 as: repayment of debts to the RES producers; stable payments for the delivered electricity and electricity transmission tariff of the NPC Ukrenergo. In addition, possible imposing of excise tax on “green” electricity was heavily criticized by the round table participants. The RES sector representatives expressed their deep concern on absence of two important legal decisions: a) by Constitutional Court of Ukraine regarding the constitutional petition of 47 MPs of Ukraine to declare the “green” tariff as unconstitutional and b) by the Antimonopoly Committee of Ukraine on the illegality of state support for renewable energy sources.

Oleksiy Honcharenko, Co-Chairman of the Inter Fractional Association “Clean Energy – Healthy Environment” stressed the need to repay debts to the RES producers and prevent the imposing of excise tax on renewable energy: “Ukraine has already made its European choice - the Green Deal and the European “green” path. So, we need to follow this direction. We know that renewables in Ukraine, which initially had a chance to become a success story, is now considered as a problematic case for our country,” the press release of the Inter Fractional Association says.

In particular, RES investors warned the Minister of Energy and MPs of Ukraine that in case of failure to resolve the crisis in the RES market, the state will finally lose its investment attractiveness. Foreign and national investors will find it unprofitable to invest in a country with high (country) risks. 

Andriy Konechenkov, Chairman of the UWEA Board, underlined: “We hope for assistance  from the Ministry of Energy in urgent settling the situation with accumulated debts to the RES producers; we are open to working with Ministry on finding appropriate solutions.”

Herman Haluschenko, the Minister of Energy of Ukraine, stated his readiness to meet with the RES investors to discuss all possible solutions to the crises in the energy market and further renewable development in Ukraine.

MAKE RENEWABLES A KEY PERFORMANCE INDICATOR IN ALL ECONOMIC ACTIVITIES

On Global Wind Day, June 15,2021, an international policy network REN21 presented its annual Renewables 2021 Global Status Report, which is an annual stock-take of the global transition to renewable energy.

2020 could have been a gamechanger. Economies worldwide were ravaged by the COVID-19 pandemic. Primary energy demand fell by 4%, resulting in a 5.8% drop in global energy-related carbon dioxide (CO2) emissions – the largest percentage decrease since World War II. But even with this historic decline, G20 countries, the planet’s biggest polluters, barely met or even missed their renewable energy targets. But the benefits of renewables in terms of health, climate and job creation are indisputable. REN21’s Renewables 2021 Global Status Report shows that we are nowhere near the necessary paradigm shift towards a clean, healthier and more equitable energy future.

The power sector has made great progress already. Almost all new power capacities commissioned in 2020 is renewable. More than 256 GW were added globally last year, the largest ever increase, of which a record 93 GW of wind power capacity - including more than 86.9 GW onshore, the highest yet, and nearly 6.1 GW offshore. Continuing a trend dating back to 2012, net additions of renewable power generation capacity outpaced net installations of both fossil fuel and nuclear power capacity combined. In more and more regions, including parts of China, the EU, India and the United States, it is now cheaper to build new wind or solar PV plants than to operate existing coal-fired power plants. This progress could and should be replicated in all other sectors.

Though renewable energy reached a record share in 2020 – an estimated 29% of the global electricity mix. In turn, the share of fossil fuels in the total energy mix remains as high as a decade ago (80.3% vs. 80.2% today) and has not decreased for 10th consecutive year.

COVID-19 economic recovery packages include significant spending to stimulate further investment in renewables. Around 7% of the USD 732.5 billion total announced by 31 governments to support all types of energy was allocated directly to policies favoring the production or consumption of renewables. On the other hand, recovery packages pour money into the brown economy despite advantages of renewables, as renewable energy investments in COVID-19 recovery packages were nearly six times less than those for fossil fuels.

Shifting to renewable energy is not only necessary and possible, but it also makes business sense. Global new investment in renewable power and fuels (without hydropower projects larger than 50 MW) totaled USD 303.5 billion in 2020 up 2% from 2019. Such investments continued to focus on wind and solar power, with solar representing nearly half of global renewable energy investment in 2020, at USD 148.6 billion (up 12%), though except solar power, Investments fell in all renewable technologies with wind power falling 6% to USD 142.7 billion (47% of the total).

Moreover, from the second half of 2019 to the same period in 2020, the global benchmark levelized cost of energy (LCOE) from new wind power projects fell 17% onshore (to an average USD 41 per MWh) and 1% offshore (USD 79 per MWh). As a result, global capital expenditures committed to offshore wind power in 2020 surpassed investments in offshore oil and gas.

REN21’s 2021 report clearly shows that governments need to give a much harder push to renewables in all sectors. The window of opportunity is closing unless efforts are significantly ramped up, and it will not be easy to do.

“Governments must not only provide greater support for renewables but also decommission fossil fuel capacity. A good way to accelerate development is to make the uptake of renewable energy a key performance indicator for every economic activity, every budget and every single public purchase. Thus, every ministry should have short- and long-term targets and plans to shift to renewable energy coupled with clear end-dates for fossil fuels,” says Rana Adib, REN21’s Executive Director.

For many years already the Ukrainian Wind Energy Association has been one of the country contributors to the Report REN 21, providing information on RES development in Ukraine.

Full report: Renewables Global Status Report - REN21

Global Wind Day 2021

The wind has always been a symbol of human development: either wind, which had been filling explorers’ sails during the Age of Discovery or wind, which powers our industry and homes with environmentally friendly electricity.

We should comprehend all the value and importance of the wind power and harness it in the most secure and efficient way. The advantages of wind energy technologies could not be overestimated, they reshape our energy structures, decarbonize and develop our economies, boost jobs and growth, increase energy security and national independence. Wind energy is vital for a safe and clean present and future of the humanity! 

Happy Global Wind Day Greetings from the UWEA Secretariat to all stakeholders of the Ukrainian wind energy market! We sincerely wish you good health, strength and inspiration in realization your business ideas and projects. May your business be prosperous. Fair wind for all your endeavours!

MEMORANDUM OF UNDERSTANDING:
ONE YEAR LATER

The first negotiations between the Ministry of Energy of Ukraine and the RES investors on overcoming the RES crises began three months after launching a new model of the wholesale electricity market in July 2019.  On 9 December, 2019 the European-Ukrainian Energy Agency (EUEA) and the Ukrainian Wind Energy Association (UWEA) applied to the Energy Community Secretariat’s Dispute Resolution and Negotiations Centre and initiated a mediation procedure between the above-mentioned RES associations and the Ministry of Energy of Ukraine. Later, the Ukrainian Association of Renewable Energy (UARE) joined the mediation process as well.

After eight months of hard negotiations, on 10 June, 2020, the Cabinet of Ministers of Ukraine, the Ministry of Energy of Ukraine, the NEURC, the Energy Community Secretariat’s Dispute Resolution and Negotiations Centre, the UWEA and the EUEA jointly signed a Memorandum of Understanding on the Settlement of Problematic Issues in the Renewable Energy Industry (MoU). In line with the agreements reached, Ukraine’s state authority pledged to ensure the repayment of existing debts to RES producers and to provide timely and full payments for the delivered “green” electricity. RES investors, in turn, agreed to a  voluntary reduction of “green” tariff for new and existing RES facilities in order to ease the state's financial obligations. On 21 July, 2020 the Verkhovna Rada of Ukraine adopted the Law of Ukraine No 810-IX “On Amendments to Certain Laws of Ukraine on Improving the Conditions for Promoting Electricity Generation from Alternative Energy Sources” (the Law No 810- IX) which legitimized the provisions of the Memorandum of Understanding.

On June 9, 2021, one year after the signing of the Memorandum of Understanding, the leading RES associations and investors together with People’s Deputies of Ukraine, who form the Inter-Factional Deputy Association “Clean Energy - Healthy Environment”, met at the Interfax-Ukraine news agency to summarize the implementation progress. Among the speakers of the press conference were: the direct signatories to the Memorandum of Understanding - Andriy Konechenkov, Chairman of the UWEA Board and Oleksandra Gumeniuk, Director of the EUEA; Oleksandr Kozakevich, Chairman of the UARE; Artem Semenyshyn, Executive Director of the Solar Energy Association of Ukraine; the current People’s Deputies of Ukraine - Liudmyla Buimister, Oleksiy Kucherenko and Oleksiy Honcharenko (online); and Carl Sturen, Managing Director, Vindkraft Ukraine.

Andriy Konechenkov, a moderator of the press-conference, presented comparative infographics on the status of the implementation of the agreed MoU provisions as of June 9, 2021: “We have analyzed the state of implementation of the commitments undertaken by the government bodies under the signed Memorandum of Understanding. One year later, only 4 of 14 obligations have been fulfilled, namely: the adoption of the Law of Ukraine No 810-IX and legal acts on compensation for the curtailments of RES generation, the revision of price limits of the Guaranteed Buyer on the Day-Ahead market and the allowance to Guaranteed Buyer to trade under the bilateral agreements. At the same time, the obligation to apply legislation relevant on the date of entry into force of Law No 810-IX was grossly violated when the Cabinet of Ministers registered in the Verkhovna Rada its Draft Law No 5600 on the introduction of an excise tax on RES electricity at a rate of 3.2%”.

UWEA’s infographic: https://drive.google.com/file/d/1FOnkZTHRLv-DaetU2RIAR-Wt1QZ1H4ui/view?usp=sharing

Lyudmyla Buimister: “Ukraine’s renewable energy sector has become so politicized and full of myths recently that it is difficult for our society to find out the truth. Nowadays, the environmental protection is not just a wish, but a requirement of time in both Europe and worldwide. Considering the fact, that Ukraine strives to integrate with the European energy system, such process is inevitable for our country. Only our north-eastern neighbour benefits from the pressure on the RES sector of Ukraine. Today, the Government is destroying the confidence of national and international RES investors with its own hands and is not fulfilling the obligations set forth in Law №810-IX, which, I remind you, was signed by the President of Ukraine personally”

Carl Sturen: “In Ukraine the overpayment for the “green” transition is only 5%, compared to the EU countries where this figure reaches 20-30%. One of the biggest strategic and environmental challenges for Ukraine is coal-fired power plants, the average age of which is 65 years. Carbon emissions per 1 kWh of electricity generated by them in tens times exceeds generally accepted standard in the European Union, while Ukrainian tax on CO₂ emissions is about 1% of the average EU tax. Thus, there is absolutely no strategic thinking and real political will in Ukraine. And instead, some officials are trying to “kill” those “green” energy achievements that society has already benefited from.  Undoubtedly, any try to manipulate public opinion regarding “green” tariffs and “green” energy as a whole is a failure.”

The press conference was resulted in signing the joint letter addressed to Dmytro Razumkov, Head of the Verkhovna Rada of Ukraine, (with copies to the Minister of Finance of Ukraine, Minister of Energy of Ukraine and the Heads of the Parliament`s Committees on Finance, Taxation and Customs Policy, on Energy, Housing and Utilities Services, on Budget and on Economic Development) by all leading RES associations - the UWEA, the EUEA and the UARE. In their Letter, the associations described all risks from adopting a Draft Law №5600 on the application of excise tax on RES electricity, which was registered by the Cabinet of Ministers of Ukraine with the Verkhovna Rada on June 2, 2021.

The joint Letter: https://drive.google.com/file/d/19K6QFmrlGD4BnpiYFOIZNLqqVRf4ApUU/view?usp=sharing

THE GRAND OPENING OF ZAPORIZHZHIA WIND PARK BY EUROCAPE UKRAINE I

On June 2, 2021 Eurocape Ukraine I, the UWEA Member Company, officially opened the first phase of Zaporizhzhia wind power plant locating near Nadezhdyn village in Zaporizhzhia region. Phase I was sponsored by LongWing Energy SCA, VLC Renewables Fund 1 (VLCR) and GE Energy Financial Services (GE EFS).

Upon full completion of up to a total of 500MW, the project is expected to be one of the largest onshore wind farms in Ukraine, powering approximately 780,000 homes and offsetting 4,860,000 tons of carbon emissions per year.

Oleksandr Starukh, Head of Zaporizhzhia Regional State Administration: “Congratulations to the project and all participants involved in it with their first victory! I am convinced that the project has a great future and that our community will now be well-known not only for our good people, but also for such a modern and fancy wind farm. At least 5% of “green” energy should be used during the production of any commodity for export since 2025. Currently, our industry has not achieved such indicator, but such projects as Zaporizhzhya WPP helps us to meet this goal in the nearest future!”.

Mykhaylo Chulkov, Executive Director of Eurocape Ukraine I: “Our project focuses on 3 main directions: fiscal, social and environmentally responsible business. Within the first direction, our company is a strict and transparent taxpayer, which creates jobs and fills the local budget. Within the second direction, in the last 20 years our company has implemented more than 20 different social projects with a total value of more than 1 million US dollars. Within the third direction, the company cooperates with leading environmental organizations and considers their recommendations during the development of this project”.

Andriy Konechenkov, Chairman of the Board, UWEA: “Today we are witnesses the commissioning of wind power project, the development of which began seven years ago. I wish to point out that despite the COVID19 pandemic, which occurred during the construction period, the company successfully completed the planned construction. Zaporizhzhia wind farm can is an example of the well-thought-out project activity comply with all European norms and standards. The company successfully passed all stages of development: from wind resource measurement and environmental impact assessment to the erection of the last wind turbine of the first phase. On behalf of the Ukrainian Wind Energy Association, I sincerely congratulate Eurocape Ukraine I with commissioning Phase I of Zaporizhzhia wind park and wish a successful realization of another project, which will be known as one of the largest in Ukraine too.”

With an installed capacity of 98MW, Phase 1 comprises 27 GE Renewable Energy 3.6 MW onshore wind turbines with a rotor diameter of 137 meters and a hub height of 110 meters. The Phase 1 will generate enough clean energy to power more than 170,000 households.

FROM SUN TO WIND: STUDY TRIP OF MEMBERS OF PARLIAMENT TO RES FACILITIES WITH UWEA

Three leading RES associations in Ukraine namely the UWEA, the UARE, and the EUEA, as parties to the Memorandum of Cooperation and Partnership with Inter-Factional Deputy Association`s “Clean Energy - Healthy Environment” (IFA), organized the study trip to the Renewable Rnergy facilities located in Odessa region for members of parliament (MPs) on 22 May, 2021. The trip was aimed at presenting  wind and solar generation technologies in operation, establishing a direct dialogue between the RES investors and the Ukrainian legislators to provide cooperative effort to resolve RES market crisis and stimulate further green energy transition of Ukraine. 9 MPs, led by Oleksiy Honcharenko, head of the IFA “Clean Energy - Healthy Environment”, took part in the study trip.

During the event issues related to the current situation on the Ukrainian RES market were highlighted by the RES investors’ representatives, including such UWEA member companies as Elementum Energy, UDP Renewables, Vindkraft Kalanchak, MC "Wind parks of Ukraine", WindFarm, MCL Group. The RES investors have raised the issue of the Memorandum of Understanding implementation by the Government, namely the current level of payments for the supplied electricity and the debts repayment to the RES generators, which have been accumulated since 1 January 2020. Investors also paid attention to the irrationality and frequency of systematic curtailments of RES generation, applied by NPC Ukrenergo applied in spring of 2021.

Andriy Konechenkov, Chairman of the UWEA Board, have presented the current status and forecasted development of Ukrainian wind energy sector under a gradual transition from “green” tariff to market conditions and pointed out: “One of the core priorities of the Ukrainian Wind Energy Association is to sustain comprehensive cooperation with the public authorities, especially with legislators. Our task is to provide constructive dialogue between the RES investors and MPs to elaborate a clear road map for “green” transition of Ukraine.”

The MPs have visited two RES facilities, in particular solar power plant of TIUCanada with the capacity of 13 MW and the I Phase of the Dnistrovska wind park of Elementum Energy with the capacity of 40 MW, which has been commissioned and has begun generating "green" electricity from May 1, 2021.

Oleksiy Honcharenko, head of the IFA “Clean Energy - Healthy Environment”: “After standing next to the wind turbine, I understand what we are standing for. Despite the fact, that all of us (MPs) have different political views, we have a common desire - to ensure clean environment and air for our children, which is primarily possible by RES development. RES bring money into the economy and create jobs, directly and indirectly, and establish truly clean and environmentally friendly sector of economy. We clearly understand the problems of this sector and are aware of our responsibility to solve them. I do hope that this study trip is another step forward to our fruitful cooperation to provide clean future of Ukraine”.

The Ukrainian Wind Energy Association expresses special gratitude to Elementum Energy for the support in organizing the study trip and the opportunity to visit the wind farm!

The UWEA Member Company EuroCape Ukraine I has commissioned Phase I of onshore Zaporizhia Wind Park

The Ukrainian Wind Energy Association sincerely congratulates its member company EuroCape Ukraine I with commissioning Phase I of the 500 MW onshore Zaporizhia Wind Park located in southeast Ukraine.

Construction of Phase I of the wind farm was successfully completed under challenging conditions and social distancing restrictions due to the Covid-19 pandemic.

Phase 1 comprises 27 GE Renewable Energy 3.6 MW onshore wind turbines with a rotor diameter of 137 meters and a hub height of 110 meters. With an installed capacity of 98MW in Phase I, the wind farm has commenced operations and will generate enough clean energy to power more than 170,000 households.

Phase I was sponsored by LongWing Energy SCA, VLC Renewables Fund 1 (VLCR) and GE Energy Financial Services (GE EFS). Senior debt financing of US$ 150 million was provided by United States International Development Finance Corporation (DFC), the U.S. development bank, formerly Overseas Private Investment Corporation.

The wind farm will sell its power through a Power Purchase Agreement with the Ukrainian state enterprise Guaranteed Buyer at a set Feed-in Tariff.  Upon full completion of up to a total of 500MW, the project is expected to be one of the largest onshore wind farms in Ukraine, powering approximately 780,000 homes and offsetting 4,860,000 tons of carbon emissions per year.

David Hunter, MD of the LongWing Energy Group said: “The LongWing Energy team is pleased to have reached the successful commissioning of Phase I of the Zaporizhia Wind Park project, after leading its development over the past seven years.  This result justifies the substantial social and financial investment LongWing has made as a pioneer in the Ukraine renewable energy market, and validates LongWing’s business strategy as a Central and East European renewable energy IPP’.” 

Sheri Hickok, President & CEO, Onshore Wind International, GE Renewable Energy, said: “Reaching commercial operations on the first phase of Zaporizhia Wind Park marks GE’s fourth wind farm project in Ukraine. We are proud to be supporting Ukraine’s drive towards renewable energy by supporting our customers with innovative onshore wind technology, delivering financing solutions that helps drive sustainable economic growth, and working in a way that keeps the safety of our teams front and center.”

GÜRIŞ FOR THE SECOND YEAR IN A ROW STAY AT THE FOREFRONT OF RES MARKET IN TURKEY

Due to the construction of 765.9 MW of wind power capacities in Turkey, the Turkish company GÜRIŞ Holding Co.Inc, one of global giants of the renewable energy market, is recognized as the most powerful producer of wind energy and leader of Turkish RES market.

“The Ukrainian Wind Energy Association, of which GÜRIŞ, a division of GÜRIŞ Holding Co.Inc, is a member, is pleased to cooperate with such a high-quality international company. It is even more pleasant to realize that the portfolio of RES projects of GÜRIŞ Holding Co.Inc takes into account also the wind project located in Ukraine,” Andriy Konechenkov, the Chairman of the UWEA Board.

Since the beginning of 2000, GÜRIŞ has shifted to the investments in the construction and operation of its own renewable energy facilities both in Turkey and the worldwide, including Ukraine. As of 2021, the Holding owns a common portfolio of RES projects (hydro-, geothermal and wind power plants) with a total capacity of 1,130.75 MW, of which 765.9 MW accounts for wind power facilities. Even though most of these projects were implemented in Turkey (1,065.95 MW), 64.8 MW locates abroad.

In particular, for the last three years GÜRIŞ has been investing in wind power market of Ukraine. One out of 12 Holding WPPs generates “green” electricity in Mainland Ukraine. Thus, in 21 September 2019, the fist company’s wind power plant – Ovid Wind – was opened in the Ovidiopol district of Odesa region. The project implemented by the Turkish company consists of 9 GE 3.6 – 137 wind turbines with a capacity of 3.6 MW and hub height of 131 m. This Ukrainian project clearly shows that GÜRIŞ seeks to demonstrate its leadership not only in Turkey but also in Ukraine. The Ovid Wind WPP became the first one in Ukraine where wind turbines manufactured by General Electric, one of the leaders of the global wind power industry, were installed.

“Nowadays the company develops the second WPP – Ovid North – with a total capacity of 66 MW, as Ukraine has a significant wind resource with a powerful speed and, in general, is an investment attractive country,”  Loic Lerminiaux, Ukraine country representative at GÜRIŞ and Member of the UWEA Board.

According to Mr. Loic, as for today, the company also prepares a feasibility study for production of “green” hydrogen with its further supply to the public transport sector and corporate consumers. Similar to other international RES investors, GÜRIŞ still awaits the settlement of the crisis in the electricity market, the full recovery of payments for the delivered “green” electricity and the launch of “green” auctions.  Loic Lerminiaux: “Ukraine is a State with an extremely high country risk. This means that the cost of capital and credit here is much more expensive than in Turkey, for example. This problem will be hot and electricity prices will be high until the Government of Ukraine ensures full and timely payments. Furthermore, until RES investors, as well as banks and financial institutions, do see full implementation of the laws in Ukraine, they will demand compensation for their own risks. This refers to the following components: financial (attractive credit conditions), political (predictable and stable industry legislation and government support) and infrastructural (modernization of power grids, construction of balancing and maneuverable capacities).” The Member of the UWEA Board convinced: “The large-scale decrease of wind power technologies costs worldwide will subsequently enable countries to develop wind power generation de facto without government subsidies on economically viable manner. However, if the Government does not resolve all the above-mentioned challenges, Ukraine will remain one of the most expensive countries for international investors, and ultimately for consumers.”

The activity of GÜRIŞ in Turkey as well as its achievements are an example of how renewable energy sources should be developed in State; what privileges can obtain both the national economy and RES investors by constructing RES facilities; and finally, how the State rises its image when creating RES an attractive business climate for both national and international investors. In particular, the wind farms owns by GÜRIŞ Holding Co.Inc (2 of which are located in Ukraine and Kosovo) produce 2,000 MW of electricity per year and cover the electricity needs of almost 834,000 households  annually.

The Ukrainian Wind Energy Association sincerely congratulates GÜRIŞ Holding Co.Inc, including the office in Ukraine, with strengthening its leading position in Turkish RES market and wishes further business success in foreign markets!

VR Capital’s Elementum Energy achieves commercial operation date for Dnistrovska wind park

Kyiv, 6 May 2021 VR Capital Group is pleased to report the commencement of commercial operations at its 40 MW Dnistrovska wind park (“Dnistrovska WP”).  Having achieved mechanical completion in December 2020, with the installation of 10 x GE 137-4.0 MW wind turbines on 131 meter towers, the power plant has now passed all necessary tests and protocols to enter into production.  The project was realised by VR Capital’s renewable energy subsidiary Elementum Energy together with the American-founded renewable energy developer, Ukraine Power Resources.

Dnistrovska WP sits on a plateau that rises above the Dnistrovska estuary in Ukraine’s Odessa region and benefits from an excellent wind resource.  The project’s wind turbines are the largest capacity machines installed in Ukraine to date.  With an investment of EUR 59 million, the wind farm is one of the largest FDI projects executed in Ukraine in 2020.

During its operating life, Dnistrovska WP is expected to generate 146 GWh of electricity per year and avoid annual carbon dioxide (CO2) emissions of 108,000 tons.

Construction on Dnistrovska WP commenced in February 2020.  Work was carried out in compliance with strict health and safety protocols due to the global pandemic.  Despite the challenging environment, the wind park was constructed in record time frame utilising an innovative multi-contractor approach with overall management undertaken by the project partners allowing for efficient project coordination.

Elementum Energy and Ukraine Power Resources are currently in the process of constructing a second, 60 MW phase of Dnistrovska WP which is anticipated to be commissioned in Q1 of 2022. 

Richard Deitz, President of VR Capital Group Ltd. (“VR Capital”) and Chairman of Elementum Energy’s Board of Directors, commented: “We are excited to welcome the first wind park to Elementum Energy’s portfolio of renewable energy assets in Ukraine and look forward to the implementation of the second 60 MW phase of the project. It is a tribute to the professionalism of our employees and partners that, in the midst of the global pandemic, we managed to complete Dnistrovska WP on time and on budget.  We are thankful to everyone that helped us achieve this milestone.  Despite the ongoing challenges in the renewable energy industry in Ukraine, we believe that these growing pains will be successfully managed.  Green energy is destined to play a growing role in the Ukrainian energy sector.  Ukraine has a tremendous opportunity in the medium term to transform its role in Europe’s energy value chain in line with the European “Green Deal” principles, and we are committed to supporting this future as a leading foreign investor in the country.”

Peter A. Gish, Founder and CEO of Ukraine Power Resources, added: “It was a privilege to develop and build the Dnistrovska wind project.  VR Capital and Elementum Energy were great partners in a challenging environment.  GE’s construction teams worked seamlessly and tirelessly to meet our year-end deadlines, and the local and regional stakeholders were extraordinarily supportive and helpful.  We are particularly proud of the fact that we had no injuries or accidents notwithstanding an accelerated construction schedule.  Ukraine has an extraordinary land resource which is compatible with large scale renewable energy.  We look forward to building our next wind project and helping Ukraine in the battle against Climate Change.”

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VR Capital is an international asset management firm serving an institutional investor client base with approximately $5 billion in investor assets under management.  VR Capital is one of the largest and most experienced western investors in Ukraine with a track record of investing in the country dating back to 1999.  The firm operates via its principal offices in New York and London and serves a client base of leading western institutional investors.

Elementum Energy Ltd. (“Elementum”) is a UK based independent power producer focused on development and operation of renewable energy assets in Central and Eastern Europe.  Elementum is a subsidiary of VR Global Partners, L.P. (“VRGP”), a $4.5 billion global investment fund that is VR Capital’s flagship investment vehicle.

Ukraine Power Resources, based in the United States, is the latest in a series of renewable energy companies founded or co-founded by Peter A. Gish, which have successfully developed over 2.4 GWs of wind power capacity in seven countries. UPR is an affiliate of First Summit Energy, which Mr. Gish founded in 2017 to develop renewable energy projects in emerging markets with positive growth dynamics.

WIND CAN POWER 3.3 MILLION NEW JOBS WORLWIDE OVER NEXT FIVE YEARS – GWEC

New analysis by the Global Wind Energy Council (“GWEC”) shows that 3.3 million new wind power jobs can be created globally over the next five years thanks to major industry expansion. This figure includes direct jobs in both onshore and offshore wind, and covers the entire value chain of the sector: project planning and development; manufacturing; installation; operation and maintenance (O&M); and decommissioning.

With 751 GW of wind power capacity already installed, the wind industry has generated nearly 1.2 million jobs globally to date according to the International Renewable Energy Agency. The world’s leading wind energy countries are home to hundreds of thousands of direct jobs in the wind industry. As of 2020, there were approximately 550,000 wind energy workers in China, 260,00 in Brazil, 115,000 in the US and 63,000 in India, according to a global survey by GWEC Market Intelligence.

GWEC Market Intelligence forecasts that an additional 470 GW of new onshore and offshore wind capacity will be installed around the world between 2021-2025. Based on existing job creation calculations, this surge in new capacity can generate 3.3 million sustainable and long-term jobs over the course of 25-year project lifetimes. Many of these jobs will be locally based, such as for the construction and O&M phase of projects. The majority of these jobs will be created in high growth wind markets including China, US, India, Germany, UK, Brazil, France, Sweden, Spain, South Africa, and Taiwan.

Its worth noting that according to IRENA’s research, the job requirement for onshore wind

is 5.24 jobs per MW over the 25-year lifetime of a typical 50-MW onshore wind project. The job requirement is 17.29 person-years per MW over the 25-year lifetime of a typical 500-MW offshore wind project.

More interesting that a 2017 article in the journal Economic Modelling determined that US$1 million in spending on renewables generated 7.49 fulltime equivalent (FTE) jobs – three times more than the 2.66 FTE jobs generated by the same among of spending on fossil fuels. That means a “brown-to-green” shift in US$1 million in spending results in added value creation of 5 jobs.

Full story: https://gwec.net/wind-can-power-3-3-million-new-jobs-worldwide-over-next-five-years/

WIND IS ON TRACK TO RECORD THE LARGEST ANNUAL INCREASE IN RENEWABLE GENERATION – IEA

International Energy Agency (IEA) presented its annual Global Energy Review 2021.

The report explores whether the rebound in activity risks pushing CO2 emissions to a new high and to what degree new policies targeting a sustainable recovery are able to curb a rebound in emissions.

Key highlights of the report:

1. The Covid 19 pandemic continues to impact global energy demand. Third waves of the pandemic are prolonging restrictions on movement and continue to subdue global energy demand. But stimulus packages and vaccine rollouts provide a beacon of hope. Global economic output is expected to rebound by 6% in 2021, pushing the global GDP more than 2% higher than 2019 levels.

2. Global energy demand is set to increase by 4.6% in 2021, more than offsetting the 4% contraction in 2020 and pushing demand 0.5% above 2019 levels. Almost 70% of the projected increase in global energy demand is in emerging markets and developing economies, where demand is set to rise to 3.4% above 2019 levels. Energy use in advanced economies is on course to be 3% below pre-Covid levels.

3. Demand for all fossil fuels is set to grow significantly in 2021. Coal demand is on course to rise 4.5% in 2021, with more than 80% of the growth concentrated in Asia. Natural gas demand is set to grow by 3.2% in 2021, propelled by increasing demand in Asia, the Middle East and the Russian Federation. Despite an expected annual increase of 6.2% in 2021, global oil demand is set to remain around 3% below 2019 levels.

4. Electricity demand is due to increase by 4.5% in 2021, or over 1 000 TWh, cementing electricity's share in final energy demand above 20%.

5. Demand for renewables grew by 3% in 2020 and is set to increase across all key sectors – power, heating, industry and transport – in 2021. Renewable electricity generation in 2021 is set to expand by more than 8% to reach 8 300 TWh, the fastest year-on-year growth since the 1970s.

6. Solar PV and wind are expected to contribute two-thirds of renewables’ growth. The share of renewables in electricity generation is projected to increase to almost 30% in 2021, their highest share since the beginning of the Industrial Revolution and up from less than 27% in 2019. Wind is on track to record the largest increase in renewable generation, growing by 275 TWh, or around 17%, from 2020. It is followed by active further increase in solar PV, hydropower and bioenergy.

7. China alone is likely to account for almost half the global increase in renewable electricity generation. It is followed by the United States, the European Union and India. China is expected to generate over 900 TWh from solar PV and wind in 2021, the European Union around 580 TWh, and the United States 550 TWh. Together, they represent almost three-quarters of global solar PV and wind output.

Full report: https://www.iea.org/reports/global-energy-review-2021

IEA’s presentation within the UWEA’s Annual Event: “Wind power sector of Ukraine: transition from “green” tariff to market conditions”: https://drive.google.com/drive/u/1/folders/1oZ-nzhouI32l3FcDQnRzl68zxc4uX0lo

THE TWO-DAY UWEA’S ANNUAL INTERNATIONAL EVENT BROUGHT TOGETHER ONLINE LEADING INTERNATIONAL ORGANIZATIONS, MARKET PLAYERS AND DEVELOPERS OF UKRAINE

On April 20-21, 2021, the Ukrainian Wind Energy Association (UWEA) successfully held a large-scale International Conference “Wind power sector of Ukraine: transition from "green" tariff to market conditions”. The event was organized by the UWEA in partnership with the WindEurope and with the support of the Ministry of Energy of Ukraine and the State Agency on Energy Efficiency and Energy Saving of Ukraine. Vestas Northern & Central Europe became the General Sponsor of the Conference.  Information support of the conference was provided by member companies and permanent partners of the UWEA, namely: UDP Renewables, Professional Association of Ecologists of Ukraine, Turkish-Ukrainian Industrialists and Businessmen Union, platform for investment in renewable energy GetMarket, Energoreforma, Elektrovesti and ExproConsulting. Due to the quarantine restrictions, this year UWEA’s Event was held online; the conference studio operated in the heart of Kyiv, at the Spaces Maidan Plaza business center in Independence Square.

More than 500 participants from 25 countries participated in the Event, namely from: Ukraine, Germany, South Africa, Austria, Hungary, Denmark, India, Bulgaria, Turkey, Spain, Chile, Sweden, France, Qatar, Greece, Georgia, the United Kingdom, Uzbekistan, the Czech Republic, Slovakia, Serbia, Belarus, Latvia, the Netherlands and Montenegro.

The two-day conference gathered together representatives from public authorities including the Ministry of Energy of Ukraine, the Ministry of Reintegration of Temporarily Occupied Territories of Ukraine, the State Agency on Energy Efficiency and Energy Saving of Ukraine, the NEURC, Members of Parliament, representatives from leading international organizations such International Energy Agency, BloombergNEF, Wood Mackenzie, and electricity market players including NPC Ukrenergo, SE Guaranteed Buyer, wind turbine manufacturers and wind power generators to explore market-based instruments for wind development effective in EC and exchange their views and ideas for further development of the Ukrainian wind power sector after 2022, as since 1 January 2023 no new wind or solar projects are eligible for “green” tariff in Ukraine. 

“Our idea was to split the conference topics into two days. During the first day we discuss an international experience, while during the second one - Ukrainian reality and expectations. After the conference, we plan to analyze all the views and ideas and communicate with the Ministry of Energy having a concrete proposal for the further development of wind energy in a way that suits both public authorities and investors,” said Andriy Konechenkov, Chairman of the Board of UWEA.

In his opening speech Nils de Baar, President of Vestas Northern & Central Europe, pointed out: “I am really happy that Ukraine is back on track on the energy transition. It overcame the period of uncertainty to reach the retroactive changes in renewable energy program and the COVID-19 restrictions. There is already 1.3 GW wind capacity installed, more than a half are Vestas turbines.  There is still a lot of growth potential in Ukraine”. 

One of the major events for the conference was the presentation by Yuriy Boyko, Deputy Minister of Energy of Ukraine. According to him the Ministry of Energy of Ukraine sees harnessing untapped potentials for wind and bio energies as opportunity in delivering power industry strategic objects “One of the efficient instruments for RES development is the transition from “green” tariff support mechanism to the so-called “feed-in-premium” or a “contract for the difference” mechanisms, both for existing PPAs and for agreements to be concluded in the future with auction winners”, the Deputy Minister stressed.

The Honorary Speaker of the Conference was Ole Mikkelsen, the Ambassador Extraordinary and Plenipotentiary of the Kingdom of Denmark to Ukraine, Georgia and Armenia, who outlined the potential of the Danish-Ukrainian Energy Partnership with particular emphasis on further development of wind energy in Ukraine

Giles Dixon, CEO of WindEurope, presented the economic and environmental benefits of wind energy:  “Wind industry contributes €37bn to EU GDP. Each new turbine generates on average €10m economic activity”.

According to Dr. Dirk Bushle, Deputy Director of the Energy Community Secretariat, a deep reform of RES support mechanisms is needed. Ukraine should follow the European trend of moving to next phase, to auction-based RES support schemes. “But the lack of implementation of the Memorandum preventing us from actually really stopping that bleeding. We still haven't fully avoided the consequences of that “perfect” storm (ed. electricity market crises) , that I was mentioning earlier, which could really turn in number of arbitrations, that we should not like to see, damaging Ukraine`s reputation as having great potential for renewables. Stopping the bleeding is something to be addressed urgently”, warned DR. Bushle.

Lyudmyla Buymister, Member of the Parliament of Ukraine and co-chair of inter-factional deputy group “Clean Energy - Healthy Environment” said: “Ukraine requires a gradual transition from a “green” tariff to market-based RES support mechanisms. Unfortunately, the major problem of Ukraine is that we have not built a healthy and competitive electricity market yet... which has resulted in great market losses. Only after having these problems solved and operation of the market stabilized in line with civilized rules, it will be possible to move to market-based mechanisms for the development of the RES sector.”

Vyacheslav Shapovalov, Deputy Minister for Reintegration of the Temporarily Occupied Territories, highlighted the role of wind technologies in the process of reintegration of the temporarily occupied territories focusing on the Concept of economic development of Luhansk and Donetsk regions, approved by the Cabinet of Ministers of Ukraine in December 2020 that envisages wind development in the territories.

The representatives of the International Energy Agency, BloombergNEF and WoodMackenzie outlined the global trends in the development of renewable energy sources and provided expert assessment of the Ukraine’s investment attractiveness.

With heightened attention the conference’s participants listened to the presentations by wind turbine manufacturers that have been operating in the Ukrainian market for many years, namely Vestas, GE, Nordex Acciona and Wind farms of Ukraine, were in audience focus. The companies presented their recent innovative solutions in wind technologies.

Representatives from wind energy companies exchanged their visions and proposals for further development of the industry. During the conference, a pilot project for the production of “green” hydrogen from wind energy was presented. Presentation of the White Paper on the development of offshore wind energy in Ukraine was a real sensation.

UWEA HELD THE SECOND WEBINAR OF THE 2021 SERIES DEDICATED TO WIND ENERGY

On April 12, 2021, the Ukrainian Wind Energy Association hosted the webinar “Features of wind turbine supply contracts”, which is the second in the 2021 series focusing on both theoretical and practical aspects of national wind power development.

The commissioning of each wind power plant starts with the negotiations between developers and manufacturers on wind turbine supply contract. Even after having the contract agreed by international banks or other financial institution, such negotiations can last from several months to one year. The supply of wind turbines is also a fairly long process that takes at least nine months. Therefore, to have wind turbines erected and commissioned in 2022, developers should conclude supply contracts with wind turbine manufacturers still this year.

Speakers of the second webinar included representatives from the law firm Sayenko Kharenko – member of the UWEA.

During the event, Maryna Hritsyshyna, Counselor, Head of Energy Practice at Sayenko Kharenko and Member of the UWEA Board, together with Volodymyr Yaremenko, Counselor, Head of Industrial Infrastructure Group at Sayenko Kharenko, discussed the following issues:

• How to structure wind turbine supply contracts;
• Which contract to choose - contract of supply or EPC contract;
• What do onshore and offshore contract's obligations mean;
• Which type of contract should be used for wind turbines delivery;
• What are the features of FIDIC contracts.

Andriy Konechenkov, the Chairman of the UWEA Board, moderated the discussion.

Recording of the webinar:  https://www.youtube.com/watch?v=bj3tkeYkaiw&t=654s

UWEA MEMBER - EVERLEGAL LAW FIRM LAUNCHES SUSTAINABILITY DIRECTION

The purpose of any modern company, alongside improving process automation and technologising the work, is to understand its responsibility to society and future generations. Nowadays, economic and environmental awareness concerns each of us, and there is a need for responsible businesses to be involved in maintaining ecological, economic and social balance.

EVERLEGAL law firm, whose values are based on environmental awareness, joins the group of such companies. EVERLEGAL launches the SUSTAINABILITY  direction, based on a consistent contribution to sustainable development through the reasonable use and processing of limited resources and legal support for projects that contribute to solving environmental problems. 

For further development of the direction, EVERLEGAL has assembled a professional team of lawyers headed by co-managing partners – Yevheniy Deyneko and Andriy Olenyuk. The team divided the direction's activities into three sections: sustainable business and sustainable management, sustainability and our clients, sustainability and our projects.

As a responsible business, the company has already made specific commitments: to reduce electricity use, reduce the consumption of plastic and paper, and reduce its carbon footprint by 2025. 

• Within the framework of SUSTAINABILITY direction, EVERLEGAL enhances its activities in the renewable energy and environmental sectors and strongly supports "green" initiatives and environmental projects, in this way contributing to the achievement of 6, 7 and 13 Global Sustainable Development Goals defined by the UN in 2015. 
• EVERLEGAL joins various global organisations and projects and implements its own "sustainable" initiatives, including creating the first platform for investment in "green" projects in Ukraine - GetMarket.
• Therefore, EVERLEGAL`s team is focused on improving the regulatory environment in the sustainable development sector. The company is involved in the preparation draft laws related to sustainable development. 

EVERLEGAL legal team provides legal support to companies and organisations on various issues in the sustainable development sector.

For more information about SUSTAINABILITY direction in EVERLEGAL, follow the LINK: https://everlegal.ua/en/sustainability

UWEA HELD THE FIRST WEBINAR OF THE 2021 SERIES DEDICATED TO WIND ENERGY

Similarly to 2020, in 2021, the UWEA is conducting a series of webinars focusing on both theoretical and practical aspects of national wind power development. On Friday, 2 April, the UWEA Secretariat held its first webinar “Wind project management during construction and operation”.

Within the webinar the UWEA member company Bureau Veritas Ukraine presented its activity including certification, inspection, auditing, testing, training and wind project management.

The list of speakers included the Director of the Industrial Department of Bureau Veritas Ukraine Arsen Panasyuk, and Industrial Safety and Environmental Manager of the Industrial Department of Bureau Veritas Ukraine Volodymyr Grom.

Recording of webinar:  https://www.youtube.com/watch?v=Z84_KuCNvXM&t=20s

Presentations: https://drive.google.com/drive/folders/1hMSsbdKM0Q2tkmY0HNHJMd4beK8S0CYR?usp=sharing

Asters, Ukrainian Wind Energy Association and Ukrainian Hydrogen Council present the White Paper "Offshore wind energy and green hydrogen: new frontiers of Ukraine's energy potential"

Asters, Ukrainian Wind Energy Association and Ukrainian Hydrogen Council have published the White Paper "Offshore wind energy and green hydrogen: new frontiers of Ukraine's energy potential".

The publication targets the top management of the Ukrainian energy market players, as well as a wider audience interested in the development of renewable energy and decarbonization of the Ukrainian economy.

The White Paper analyses the potential for offshore wind energy development in Ukraine, as well as the use of wind energy for the production of green hydrogen. The authors have presented convincing arguments in favor of the development of this energy sector and have suggested relevant changes to the Ukrainian legislation to facilitate investments in offshore wind energy and production of "green" hydrogen. The White Paper (in Ukrainian) is available for download at Asters website >>

Oleksandr Repkin, President of the Ukrainian Hydrogen Council, and Kateryna Knysh, Head of Analytics at UWEA, have inspired the idea behind this White Paper. The White Paper is co-authored by: Stepan Kudrya, Director of the Institute of Renewable Energy of the National Academy of Sciences of Ukraine, Anzhelika Livitska, Counsel at Asters, Marta Halabala and Bohdan Shmorhun, Senior Associates at Asters, and Olena Sichkovska, Associate at Asters. Andriy Konechenkov, Chairman of the UWEA's Board, and Asters Partner Yaroslav Petrov edited the White Paper.

"The development of offshore wind energy technology and green hydrogen production is directly related to strengthening Ukraine's energy independence, fighting the global climate change and implementing the EU strategies," - says Andriy Konechenkov, Chairman of the UWEA's Board. "A result of the cooperation of leading national experts, this White Paper is the first Ukrainian-language analytical study of the potential of these new and promising areas of energy development in Ukraine."

"Under favorable conditions, offshore wind energy and green hydrogen production can become extremely attractive sectors for foreign investments into the Ukrainian economy and strengthen Ukraine's energy integration with the EU," – Yaroslav Petrov, Asters' Partner comments. "Asters experts are actively involved in improving the legal landscape for doing business in Ukraine. We hope that the key points of this White Paper will trigger a productive discussion on further development of the Ukrainian renewable energy market."

Publication: https://drive.google.com/file/d/1JMZUXrIsBgpCFYurqD455aZcmCAMw931/view?usp=sharing

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Asters has extensive experience in advising clients on various significant energy related projects in Ukraine. Asters is a Band 1 law firm for energy and natural recourses by Chambers Europe 2021, a Tier 1 law firm for energy and natural resources by The Legal 500: EMEA 2020 and is ranked among the Top 3 law firms for energy and natural resources by Ukrainian Law Firms 2020. A Handbook for Foreign Clients

Ukrainian Wind Energy Association is a nonprofit organization aimed at promoting wind energy technologies and ensuring wind energy industry interests on the national and international levels. The UWEA links wind power project developers, wind power equipment manufacturers and suppliers, utilities, construction companies, scientists and researches, lawyers, NGOs, consumers and others involved in the wind industry.

Ukrainian Hydrogen Council is the first hydrogen energy association of Ukraine's leading energy, industrial and public companies. Combined by the desire and understanding of the need: integration of modern renewable energy technologies into the Ukrainian economic model, modernization of the energy complex of Ukraine and introduction of sustainable development for the global transition to renewable hydrogen energy resources.

MEMORANDUM OF PARTNERSHIPS AND COOPERATION BETWEEN THE UWEA AND PAEU

On 15 March 2021, a Memorandum of Partnership and Cooperation between the Ukrainian Wind Energy Association and Professional Association of Ecologists of Ukraine (PAEU) was signed by Andriy Konechenkov, Chairman of the UWEA Board, and Liudmyla Tsyganok, President of the PAEU to consolidate efforts of both organisations in promoting renewable energy and improving environment in Ukraine through the balanced development of the Ukrainian energy system.

Andriy Konechenkov, Chairman of the UWEA Board commented: “We are honoured to sign a Memorandum with the Professional Association of Ecologists of Ukraine, which works with dedication for greening the economy and all spheres of economic activity in Ukraine. As you know, wind energy reduces greenhouse gas emissions, contributes greatly to combating climate change and ensures sustainable development of the country. Therefore, combination of efforts, knowledge and experience of our experts and each other’s support will accelerate the green energy transition in Ukraine.”

“The Professional Association of Ecologists of Ukraine has consistently defended the right of everyone to sustainable development. We are confident that the Ukraine’s transition to RES is inevitable. It’s obvious that the European Green Deal will motivate our country to accelerate greening the national power system and our role is to provide methodological, informational and expert support to enterprises. Wind is not only environmentally friendly energy source; wind could bring energy independence to the country.  And last but not least, wind is one of the cheapest energy sources,” stressed Liudmyla Tsyganok, President of the PAEU.

BLOOMBERG NEF: “GLOBAL WIND INDUSTRY HAD A RECORD, NEAR 100 GW, YEAR AS GE AND GOLDWIND WERE THE TOP SUPPLIERS”

Global commissioning of wind turbines was up 59% to 96.3GW in 2020 as installations surged in China and the U.S. New offshore wind capacity was down 19%

In a record-setting year, the wind market commissioned nearly 100 gigawatts of new build in 2020. Undeterred by the coronavirus pandemic, installations grew 59% year-on-year. Developers commissioned some 96.3 gigawatts of wind turbines globally in 2020, compared with 60.7 gigawatts the previous year. Most of these were on land (94%), as the addition of new turbines at sea fell to 6.1 gigawatts – a 19% drop compared to 2019.

Just four manufacturers accounted for more than half (51%) of the machines deployed: General Electric (GE), Vestas, Goldwind and Envision all commissioned over 10 gigawatts last year. The latest data from research company BloombergNEF (BNEF) shows that GE and Goldwind were the top two turbine suppliers in 2020, following a surge in installations in the U.S. and China. Vestas, which placed first for four years, fell to third place in the 2020 ranking. “GE and Goldwind claimed the top two spots in this year’s ranking by concentrating on the largest markets. This strategy may not be as fruitful in 2021 as subsidies lapse in those areas,” said Isabelle Edwards, wind associate at BloombergNEF and lead author of the 2020 Global Wind Turbine Market Shares report. “Vestas takes on less market risk, with turbines commissioned in 34 countries last year.”

Total onshore wind additions in 2020 were 19.4GW in the Americas, 12.6GW in Europe and 863MW in Africa and the Middle East, while Asia Pacific accounted for 57.3GW. BNEF’s database registered new wind farms starting full commercial operations in 44 countries.

Siemens Gamesa retains its position as the leader in the offshore wind market and already books the offshore wind order out to 2025. Last year, Siemens Gamesa commissioned 1.91GW at sea, with 752MW in the Netherlands, and a further 539MW in the U.K. A significant share of the offshore wind energy market belongs to Chinese companies - Shanghai Electric, Mingyang, Envision, Goldwind and CSSC. Vestas, which acquired MHI Vestas Offshore Wind in 2020, is also aiming to become a leading supplier of offshore wind turbines.

More: https://about.bnef.com/blog/global-wind-industry-had-a-record-near-100gw-year-as-ge-goldwind-took-lead-from-vestas/

THE UWEA SIGNED A MEMO OF PARTNERSHIP AND COOPERATION WITH INTER-FACTIONAL DEPUTY ASSOCIATION

“This Memorandum will provide a basis for active, efficient cooperation between the Parliament of Ukraine, leading associations in renewable energy, and RES investors,” Oleksiy Honcharenko, People's Deputy of Ukraine, Co-Chairman of the Inter-Factional Deputy Association “Clean Energy - Healthy Environment”

On 5 March 2021, Inter-Factional Deputy Association “Clean Energy - Healthy Environment” in Verkhovna Rada of Ukraine of IX convocation and the UWEA, the UARE, the EUEA and the Ukrainian Hydrogen Council inked the Memorandum about Partnership and Cooperation.

Signing ceremony was accompanied by a press briefing conducted by the Centre for Economic Recovery with the participation of the UWEA, other RES industry associations and members of the Inter-Factional Deputy Association “Clean Energy - Healthy Environment". Participants discussed urgent issues relating to the development of renewable energy in Ukraine.

By signing the Memorandum, the Parties join forces, according to the legislation, to promote the development of renewable energy sources to protect the environment and disseminate technologies using renewable energy sources, development and implementation of state strategies and policies aimed at achieving the United Nations Sustainable Development Goals in Ukraine, implementation of the Energy Strategy of Ukraine for the period up to 2035, approved by the order of the Cabinet of Ministers of Ukraine № 605-r of August 18, 2017.

Oleksiy Honcharenko presented the key provisions the Memorandum of Partnership and Cooperation:  “Our inter-factional deputy association unites representatives of all parties. I want to underline, that this Memorandum will provide a basis for active, efficient cooperation between the Parliament of Ukraine, leading RE associations, and RES investors in order to leave a clean planet to future generations, to fulfill our commitments made to the international community, to become competitive and to scale up the development of renewable energy in Ukraine.”

Dmytro Lubinets, People's Deputy of Ukraine, continued: “Green” energy is nor longer the future, it is the present. For example, I’ve been very impressed by the project of 800 MW WPP in Donetsk region, developed by WindFarm company, which not only   attracts 1 billion US dollars, but also will create hundreds of jobs in Donetsk region.”

Lyudmyla Buimister, a People's Deputy of Ukraine, reminded: “In the energy strategy of the Russian Federation, the development of renewable energies in neighbouring countries including Ukraine, which power systems are unfortunately interconnected, is considered to be the greatest threat to Russia’s energy security. Therefore, we should push the development of renewables not to lose the opportunity to become energy-independent.”

Andriy Konechenkov, the Chairman of the UWEA Board: “Today, Ukrainian wind power market is on the way of transition from “green” tariff to market conditions. It is critical now to jointly develop new and effective laws for the real expansion of renewable energy in the country. Nowadays, the renewables are efficient tools for economy recovery from COVID-19, they bring health for present and future generations, clean environment, and a huge opportunity to open new markets in Ukraine. I am confident that our cooperation will be productive.”

Recording of the press briefing:  https://www.youtube.com/watch?v=aFPwmZqL4fI 

THE FIRST 126 MW ENVENTUS ORDER IN THE EASTERN EUROPE

The Public Union Ukrainian Wind Energy Association (the UWEA) congratulates its two member companies - Vestas, the world leading onshore wind manufacturer and DTEK Renewables, one of Ukraine’s leading renewable energy developers, for signing the first EnVentus order in the Eastern Europe region for the 126 MW DTEK Tiligulska wind farm in Mykolaiv region, Ukraine.

“It’s not the first case of successful cooperation between the Ukrainian Wind Energy Association’s member companies. Such fruitful projects demonstrate resilience and steadfastness of the Ukrainian wind power sector as well as readiness of investors to further strengthen the Ukraine’s economy and power sector despite all the legislative and political challenges,” noted Andriy Konechenkov, the Chairman of the UWEA Board.

According to the UWEA, despite 5,000 MW of wind projects, which were granted building permits still in 2019, the financial crisis that hit Ukraine’s renewable power market in 2020 significantly slowed the pace of wind installations (only 144.2 MW were added in 2020). The construction of the first phase of Tiligulska WPP will give new life and momentum to Ukraine’s wind power sector. With CO₂ emissions savings estimated at 504,000 tonnes per year, Tiligulska wind power project would make a significant contribution to achieving goals set by the Low emission development strategy of Ukraine . At the same time, the implementation of the Tiligulska wind power project, which total installed capacity is planned to reach 564 MW, will create several hundred temporary and dozens of permanent jobs in Mykolaiv region.

Moreover, according to DTEK Renewables, the construction of 126 MW first phase is financed by the company’s funds accumulated in 2019 through issuing “green” Eurobonds. Maris Kunickis, CEO of DTEK Renewables: “We are proud that our company for its own funds, which were obtained in 2019, and at its own risk, given the instability of national power sector functioning, has taken the responsibility to implement RES projects and attract investments exclusively in Ukraine. Our company will continue to invest in clean and affordable energy in our country.”

According to Vestas, the first EnVentus contract in the Eastern Europe region includes supply, installation and commissioning of 21 V162-6.0 MW wind turbines, alongside a long-term 20-year Active Output Management 5000 (AOM 5000) service agreement, enabling optimal power production throughout the project lifetime. The V162-6.0 MW turbines boast a swept area of over 20,000 m² and industry-leading energy production, while benefiting from the advanced modular design approach applied across Vestas’ EnVentus platform. That is why, the Ukrainian Tiligulska WPP will be one of the first wind farms in the world to generate “green” electricity by using the latest wind turbines of Vestas “We are just doing high quality work to improve the climate conditions of our planet,” underlined Igor Nus, Sales and Business Development Director for Eastern Europe and the CIS at Vestas.

According to the UWEA, 673 MW of Vestas wind turbines have already generating “green” electricity in Ukraine while the total installed capacity of the Ukrainian wind power sector has reached 1,314.1 MW.

RES INVESTORS MET WITH ACTING MINISTER OF ENERGY OF UKRAINE

“I’m a supporter of “green” transition and personally interested in making our energy sector “green”, because it means clean air and a clean environment for us and our children. The “green” transition must be sustainable both economically and politically,” Mr. Yuriy Vitrenko, Acting Minister of Energy of Ukraine

On 18 February 2021, the UWEA’s member companies had a meeting with Mr. Yuriy Vitrenko, Acting Minister of Energy of Ukraine. The UWEA’s delegation included Andriy Konechenkov, the Chairman of the UWEA Board, and representatives from such wind companies as UDP Renewables, GÜRİŞ, Vindkraft Ukraine, DTEK RES, Yuzhne Enerdzhi LLC, EuroCape Ukraine I, Elementum Energy, MC Wind Parks of Ukraine LLC, and NBT.

The participants discussed the current state of the national wind power market and focused on its further development and possible solutions to the crises caused by indebtedness and lack of a clear strategy for further wind energy development in Ukraine.

Andriy Konechenkov underlined the UWEA’s readiness to facilitate the development of the Road Map for Wind Power Development in Ukraine. “I think that it is our responsibility to develop this road map with the maximum involvement of all parties: market participants, investors, steakholders, and consumers both industrial and household. It is supposed to be a real document for sustainable development of the whole industry,” Acting Minister of Ukraine agreed.

Mr. Vitrenko also informed on possibility of issuing “green” bonds under state guarantees to balance the renewable energy market: “Green” bonds are one of the most important short-term measures, since they can completely overcome the issue of indebtedness and partially compensate the difference between the “green” tariff and this year’s market price,” the Head of the Ministry explained.

Long-term measures are also being developed. For example, a possibility is studied of increasing the carbon tax rate to compensate the “green” electricity. Nowadays the carbon tax rate in Ukraine is ten times lower than in the European Union, while level of emissions  remains one the highest in Europe: “It is the polluter pays principle in real. And it is only fair. Those who make living conditions better and the environment cleaner - should receive some compensation”, Mr. Yuriy Vitrenko underlined.

UWEA PARTICIPATED IN N THE SECOND ALL-UKRAINIAN FORUM “UKRAINE 30. PAYMENT”

“Governments and RES investors should consolidate their efforts in finding out a profitable solution not only to  resolve the current crisis but also to promote  the further Renewable Energy development,”  Mr. Andriy Konechenkov, the Chairman of the UWEA Board

On February 8, 2021, President of Ukraine Volodymyr Zelensky launched a large public dialogue to mark the 30th Anniversary of Ukraine's independence, which would consist of 30 large-scale weekly forums on vital issues for the country.  On 16 February 2021, All-Ukrainian Forum “Ukraine 30. Payment”. was dedicated to the issues related to utility tariffs and energy independence of Ukraine.

The Forum was attended by representatives of the Cabinet of Ministers of Ukraine, the Ministry of Energy of Ukraine, State Agency on Energy Efficiency and Energy Saving of Ukraine; People's Deputies of Ukraine and heads of relevant Committees of the Verkhovna Rada; representatives of international organizations, including the World Bank, public figures and experts in the energy field, including Andriy Konechenkov, Chairman of the UWEA Board.

Speaking at the session “Renewable energy: the future industry” of All-Ukrainian forum “Ukraine 30. Payment”, Andriy Konechenkov presented the current state of RES development in Ukraine and highlighted future industry trends and tendencies: “In recent years, national Renewable Energy sector faced a number of artificially created barriers and challenges. If we analyze the ratio between the actual numbers of installed RES capacity and the goals set by the National Renewable Energy Action Plan by 2020, we see that with 6,872.6 MW of installed capacity (against the planned 2,300 MW) only the solar power sector has achieved the goals envisaged by the National Action Plan. Ukraine has exceeded the assigned plan for solar capacity installation by a factor of 3! Given this imbalance and other factors that scale up existing and create new market challenges, Governments and RES investors should consolidate their efforts and find a profitable solution not only to resolve the current crisis but also to promote the further growth of renewables in Ukraine,”  Mr. Andriy Konechenkov said.

Recording of session “Renewable energy: the future industry”:
https://www.youtube.com/watch?v=5lBFT4AdsgY