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29.03.2019

HARDTALK: RENEWABLES IN DETAILS – EXPERTS ASSESS PROSPECTS AND CHALLENGES FOR THE FUTURE OF “GREEN” ENERGY IN UKRAINE

On 28 March 2019, the RE industry event “Hardtalk: Renewables in Details” was held in Kyiv. Leading energy experts spoke about implementation of the new electricity market in Ukraine and the readiness of the NEURC (Regulator) and the market operators for the new state support mechanism for renewable energy projects.

Discussions focused primarily on issues related to the new model of the electricity market of Ukraine, which should become operational from July 1, 2019. According to Anton Gudachenko, Director of Energy Industry Relations of NEURC, “the Regulator is fully prepared for the new electricity market of Ukraine; all the necessary regulatory documents have been prepared”. However, if the draft law on RE auctions is adopted, the provisions of the PPA model contract could be amended. “This is the only reason why these normative documents have not yet approved”, noted Gudachenko.

He also commented on pre-PPA and timing of its renegotiation. "When we talk about pre-PPA, there is absolutely no problem, because the deadline for signing a pre-PPA is the end of the year.... The problem is likely to be with re-signing contracts for already operating power plants (as part of the transition process from a Single Buyer (SE Energy Market) to a Guaranteed Buyer). At the same time, the Guaranteed Buyer is responsible for such contracts to be re-signed”.

Anton Gudachenko devoted considerable attention to the imbalance-related issues. “The Guaranteed Buyer is obliged to purchase all electricity generated by a RE power plant. Therefore, RE generators should provide forecasting and fulfil their applications and contracts for the sale of their power. Accordingly, all RE generators belonging to the balancing group should have financial responsibility for imbalances caused by them. According to the draft law, RE generator whose power plant has been commissioned prior to the enactment of the law will have no responsibility for imbalance. For those who commission their power plants after the law’s entry into force but prior the new electricity market become operational, responsibility for imbalance will be introduced gradually as envisaged by the law”, noted Anton Gudachenko.

Ilya Polulyakh, assistant for People’s Deputy of Ukraine, stressed that RE generator’s responsibility for imbalance should be introduced following establishment of the fully liquid intraday market.

Andriy Konechenkov, Chairman of the UWEA Board, commented on development of different types of renewable energy sources in Ukraine: “There should be no preference or priority between solar, wind or biomass power generations; there should be a harmonious development for all renewable energy sources”.

“With regard to auctions, we should not expect a sharp reduction in the “green” electricity prices since companies will offer prices economically feasible for them”, said Andriy Konechenkov.

“Hardtalk: Renewables in Details” was organised by A7 CONFERENCES jointly with a law firm GOLAW. PU Ukrainian Wind Energy Association was an information partner.