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.