Month: November 2024

As part of the working trip of the Ukrainian delegation headed by UWEA to the Kingdom of the Netherlands, the participants of the trip took part in the international conference “Decentralised energy solutions for Ukraine’s security”, which took place on 25 November 2024 in The Hague. The conference, organised by the Ukraine Facility Platform and Open Door Ukraine – two non-governmental organisations that are at the forefront of strategic development and cooperation between Ukraine and the European Union – brought together, on the basis of the Clingendael Institute, professionals in the field of renewable energy, investors, business leaders, politicians and representatives of local authorities to address Ukraine’s most pressing problem: the restoration of energy infrastructure.

During the conference, the participants analysed the possibilities of deploying in Ukraine advanced decentralised systems that combine solar and wind energy, bioenergy, as well as energy storage systems.

During the opening of the conference, the Ambassador Extraordinary and Plenipotentiary, Deputy Minister of Foreign Affairs in 2014–2019 Lana Zerkal, a representative of the Ukraine Facility Platform, noted that “Ukraine needs a new modus operandi (plan of action) for the energy system. Decentralised renewable energy systems offer a resilient energy security strategy for Ukraine that corresponds to climate goals and strengthens Europe’s strategic autonomy”.

The Special Envoy for Ukraine at the Ministry of Foreign Affairs of the Kingdom of the Netherlands Erica Schouten, in turn, noted that “Ukrainian winters are long, and therefore, in this case, simply restoring damaged equipment is not enough. Ukraine needs two things today: a) more air defence systems and b) a more decentralised and sustainable national energy system. The Netherlands is ready to comprehensively support Ukraine. In particular, regarding the development of renewables systems, the Dutch government is ready to implement various instruments, both financial and insurance-related.”

Andriy Konechenkov, Chairman of the UWEA Board and head of the Ukrainian delegation on the trip to the Netherlands, spoke at the conference within the framework of the session “Combining investment and innovation: Strategies for Ukraine’s energy transition” and presented the role of wind energy in building a decentralised energy system in Ukraine. “Today in Ukraine we have very many different strategies and plans for the development of renewable energy, but the result will come only when the country has a single vision and single goals towards which everyone will strive. As is the case at the EU level, wind energy projects must acquire the status of projects of overriding public interest. In addition, the effective utilisation of the entire potential of renewable energy sources in the country, in particular wind energy capacity, will be possible with a balanced regulatory environment, the availability of state support and instruments for attracting investment.”

Also invited to speak was Andriy Herus, Head of the Verkhovna Rada Committee on Energy and Housing and Communal Services, who emphasised that “in modern Ukrainian realities, the question is not what is more important: the restoration of existing facilities or the construction of new ones. Today the Ukrainian consumer expects a comprehensive approach and unequivocally needs a decentralised system in which generation will be located closer to places of consumption.”

UWEA extends its gratitude to the Netherlands Enterprise Agency (RVO) of the Ministry of Economy and Climate Policy of the Kingdom of the Netherlands and the association NedZero for organising the trip of the Ukrainian delegation to the Kingdom of the Netherlands.

On 8 November 2024, UWEA representatives took part in an expert discussion of draft law No. 11392, which took place within the framework of the event “Opportunities for the green transformation of Ukraine’s energy sector”, organised with the support of UNDP within the Green Energy Recovery Programme of Ukraine.

The participants of the event – representatives of the Verkhovna Rada Committee on Energy and Housing and Communal Services, the Ministry of Energy of Ukraine, the NEURC and industry associations – focused attention on the importance of the draft law and its role in the development of safe distributed generation and the strengthening of Ukraine’s energy security.

Roman Shakhmatenko, head of the portfolio of energy and environmental protection projects of UNDP in Ukraine, noted: “This discussion and the work on the draft law are especially important now, when Ukraine’s power system is going through a crisis caused by russian aggression and, more than ever, needs solutions that will lay the foundation for strengthening Ukraine’s energy security for many years to come”.

After the presentation of the draft law, a constructive dialogue took place between the participants regarding the proposed legislative changes and provisions. In particular, concrete solutions were discussed that can remove the existing barriers on the market and accelerate the development of the renewables industry. The UWEA representatives expressed their full support for such changes as:

• the introduction of a capacity reservation mechanism;
• the provision of the possibility of carrying out hybrid connections and using the existing grid infrastructure;
• the possibility of installing and licensing generating capacity on the producer’s side that is greater than the technical conditions at the connection point provide for;
• the extension of the validity period of technical conditions subject to the approval of the design documentation and the making of payment for connection.

Andriy Herus, Head of the Verkhovna Rada Committee on Energy and Housing and Communal Services: “We have no choice but to build distributed generation. We see an interest in this not only from our partners, but also from business, which invests in Ukrainian energy facilities. Therefore, it is important for us to create a regulatory environment in which it will be comfortable to work, to forecast and to attract investment more easily”.

The Chairman of the UWEA Board, Andriy Konechenkov, expressed general support for the provisions of the draft law, recognising it as an important initiative on the path to creating a genuine distributed energy network in Ukraine: “Draft law No. 11392 is an important initiative for the development of renewable energy, and we support its provisions regarding, for example, the simplification of the procedure for connection to the grids, because this is a very relevant factor for the development of wind energy in Ukraine. We also welcome the provisions that envisage the introduction of a capacity reservation mechanism and the possibility of carrying out hybrid connections using the existing infrastructure, as well as obtaining permission for the licensing of generating capacity that exceeds the technical conditions at the connection point. Of course, it is worth noting that these provisions will contribute to stability and predictability for investors on the market”.

At the same time, Mr Konechenkov also drew the attention of those present to those provisions of the draft law that nevertheless cause concern among market players. In particular, the obligation to pay a prepayment for connection in the amount of €10 per kW upon receipt of the technical conditions carries a risk for those projects that already have approved documentation and are at the stage of readiness for construction. Such a provision may become an additional financial burden for producers. So, UWEA proposed to revise this mechanism, establishing the obligation to pay this prepayment a year after receiving the technical conditions, as well as to make the payment for capacity reservation to an escrow account of the reservation customer. Such refinements will make it possible to maintain a balance between state interests and the needs of investors, providing appropriate guarantees for both customers and grid operators.

Overall, the discussion of draft law No. 11392 demonstrated how effective cooperation and dialogue between the state and the market can be, but, once again, highlighted the difficulties that still need to be resolved for the accelerated development of renewables in the country. Such discussions are necessary for finding balanced solutions that will truly contribute to the stable development of the industry and ensure Ukraine’s energy security in the long term.