News

Authorization
21.08.2017

THE GOVERNMENT APPROVED A NEW ENERGY STRATEGY OF UKRAINE

On August 18, 2017 the Cabinet of Ministers at its meeting approved the Energy Strategy of Ukraine until 2035: Security, Energy Efficiency, Competitiveness (NES), which provides for a twofold reduction in the energy intensity of the national economy and increase in the production of both traditional and renewable energy sources.

Prime Minister of Ukraine Volodymyr Groisman called the approval of the energy strategy of Ukraine by 2035 as a historic day. “According to the new strategy, the new structure of energy needs is as follows: nuclear energy will give 50% of the country's electricity by 2035, renewable sources - 25%, hydropower - 13%, and the rest will be covered by thermal power plants” said the premier.

The NES will be implemented in three stages.

STAGE 1: Energy sector reform through 2020 

Complete implementation of the “Third Energy Package” is envisaged during this period, allowing for the creation of full-fledged natural gas and electricity markets in accordance with EU energy legislation. Also to be carried out during this stage is the complete institutional integration of Ukraine into the ENTSO-G network, as well as to meet most of the requirements for integrating Ukraine’s unified power system (UPS) into the ENTSO-E grid.

Moreover, this stage involves reforming energy companies in accordance with Ukraine's Energy Community treaty obligations, increasing gas production, reducing GDP-based energy demand, and further developing renewable energy capacity.

Finally, by 2020, Ukraine is expected to achieve radical advances in the field of renewable energies by increasing its share in final consumption by 11 % (8 % of total primary energy supply, or TPES). This will be pursued through stable and predictable policies both to promote the development of renewable energies and to attract investment.

STAGE 2: Optimisation and innovative development of energy infrastructure through 2025

The second stage of NES implementation will be geared towards operating in a new market environment and under Ukraine’s actual IPS integration into the European grid, which will significantly affect the rationale in selecting facilities for renovation (or new constructions in the energy sector) and boost energy efficiency as well.

Renewable energy sources, meanwhile, are expected to be the fastest-growing sector in terms of power generation, with an envisioned share increase within the TPES structure to 25 %.

STAGE 3: Sustainable development through 2035

The third stage of the NES anticipates innovative development of the energy sector and the construction of new-generation facilities. It also looks to secure investments in new power generation facilities to replace those, which are to be decommissioned. Selected types of generation will depend on projected fuel prices and the growth rate of each energy generation system, which will in turn raise the level of competition within the sector.


Structure of TPES of Ukraine, mln t o.е.

Name of primary energy supply sources

2015

(fact)

2020 (forecast)

2025 (forecast)

2030 (forecast)

2035 (forecast)

Solar and Wind energies

 

0,1

 

1

 

2

 

5

 

10


Structure of TPES of Ukraine, %

Name of primary energy supply sources

2015

 (fact))

2020 (forecast)

2025 (forecast)

2030 (forecast)

2035 (forecast)

Solar and Wind energies

 

0,1

 

1,2

 

2,4

 

5,5

 

10,4


Key performance indicators for NES in time

Key performance indicator

Type

2015

2020

2025

2030

2035

The share of RES, including hydropower capacities and thermal energy) in TPES, %

 

goal

 

4%

 

8%

 

12%

 

17%

 

25%

The share of RES, including hydropower capacities and thermal energy) in elelctricity generation, %

 

goal

 

5%

 

7%

 

10%

 

>13%

 

>25%