From November 19 to 21, 2018 Kyiv hosted Ukrainian Energy Week'18 which became the platform for discussion of the actual issues of the energy sector. Ukraine has all the possibilities to be an energy independent country with a matured renewable energy and energy efficiencies sectors – this is the main outcome of the event organized by A7 CONFERENCES.
III Ukrainian Renewable Energy Forum’18 took place on the second day of the Ukrainian Energy Week. UWEA was a co-organizer of the special session devoted to the wind energy sector of Ukraine and information partner of the Ukrainian Energy Week'18. Managing Company “Wind Parks of Ukraine” LLC was a sponsor of the session “Wind Power in Ukraine”, the main topics of which included current status of wind development in Ukraine and the experience of foreign companies involved in national wind power sector. Switching from the “green” tariff system to the auctions was the focus of the discussion.
In his opening address Sergiy Savchuk Head of the State Agency on Energy Efficiency and Energy Saving of Ukraine noted: “I'm convinced that while we are developing auction system, the investor should find and increase funding for other projects that are valuable in terms of returning investments and the economy of the country as a whole”.
Andriy Konechenkov, Chairman of the Board, Ukrainian Wind Energy Association, Vice President of the World Wind Energy Association Maksym Sysoiev, Counsel, Dentons Kyiv, Co-chair, EBA Fuel & Energy Committee moderated the “”wind” session and engaged the speakers and audience in analysing the advantages and disadvantage of introducing RE auctions in Ukraine.
Representatives of manufacturers of wind turbines, which are already generating “green” electricity in Ukraine, were optimistic on the prospects for the further development of the national wind sector.
Vladyslav Yeremenko, General Director of the Managing Company “Wind Parks of Ukraine”: "Today, there is an opportunity for any manufacturer to enter the Ukrainian (wind – Ed.) market with a rather long and inexpensive money, to build turbines and to generate income. Along with this, any manufacturer has the opportunity to come to Ukraine, to establish a production and to create additional bonuses for potential investors in the form of a extra payments to the “green” tariff. "
Igor Nus, Vestas Northern & Central Europe: “In 2011 Vestas was the first company that installed a new 3 MW class wind turbine in Ukraine. It was also the first 3 MW wind turbine in the territory of the former USSR. A 3 MW wind turbine with a full cycle frequency converter was a completely different approach to electricity generation. This was a positive experience in Ukraine, because you can install a turbine and it will rotate, but the most important is to generate and deliver the electricity to the grid. Today we see quite a positive growth of the wind energy market in Ukraine.”
Slava Feklin, Director of GE Ukraine: “We are becoming a company which has a Ukrainian (wind energy - Ed.) market in priority. We see many opportunities for further development.”
Commenting on switching to the RES auctions in Ukraine Andriy Konechenkov, Chairman of the UWEA Board, Vice-President of the World Wind Energy Association, said: “When we talk about a quick transition to auctions, we should clearly understand the main goal of such steps. Auctions should not be considered just as a tool for artificial reduction of the tariff rates, they should be considered as a new renewable energy support scheme acceptable for investors. We are ready to switch to a new support system, but at the same time we should ensure the balance of interests in the market; we should not stop the market, as it happened in Poland. We should not lower the tariff rates below the economically reasonable level.”
In his presentation Joël Meggelaars, Head of Advocacy & Messaging, WindEurope, noted that according to the International Energy Agency “wind would be the largest source of power in the EU well before 2030”.
Speaking about results of auctions conducted in deferent EC countries in the last five years Joël Meggelaars warned the Ukrainian government not to repeat the mistakes of other countries, such as the lack of flexibility in permit envelope in France, uncertainty about government policy in Germany.
“We would really urgent them (government – Ed.) to look at the lessons learned in other countries. It’s so important to get a design right and to progressively introduce auctions into your system, because it’s better to have an evolution than a revolution. Provide for a smooth evolution into auction, which of course, have their benefits and will enable confidence in the market, but do it in a right way”.
Joël Meggelaars emphasized that revenue stabilisation continues to be key in the market. “In many countries we're trying to explain that sharing a cost, sharing the risk between society and between the developer is good for all, because by sharing the cost, by sharing the risk, you will lower the cost of the finance, when you go to the bank and in the end it means that you’ll have lower finance cost, more competitive bits in the auctions, and therefore, cheaper electricity for business and citizens”, said he.
Mustafa Serdar Ataseven, President of the Turkish Wind Energy Association; President of Ataseven GROUP stressed: “The Board of the Turkish Wind Energy acts as the bridge between government and the wind sector. This is important. This is very important, because government has to listen to the sector problems. If you want to develop more quickly, you have to listen to sector problems”.
Olga Yeriomina, Senior Banker at the EBRD Power and Energy Utilities department, encouraged the Ukrainian Parliament to urgently take the necessary steps towards “green” auctions and adopt a new law on introducing RE auctions in Ukraine. “It’s a matter of days, when the bank could make a decision not to support renewable energy projects in Ukraine. We have already decided not to support new solar projects. There should be no illusions, we do have to switch to a new system (auctions - Ed.), otherwise it will be too late”, warned she.
Carl Sturen, General Manger of Vindkraft Ukraina LLC underlined that the proposed draft bill did not solve the key problem facing the renewable sector of Ukraine: “How do auctions solve the main problem - the problem of balancing? Auctions have no relation to balancing issue. Until we understand how the capacity balancing mechanism will work, auctions will not solve anything”. Carl Sturen proposed to consider the adoption of two laws in parallel - on auctions and on balancing facilities, which will allow developers to clearly understand the future prospects of electricity generation from renewable energy sources in the country. “And today we have a real opportunity to avoid the problems experienced by other countries in this area”, added he.
The video record of the session “Wind power in Ukraine is available at: https://youtu.be/vbqk4RR8Jyo?t=1728