Month: January 2025

DTEK, the parent company of DTEK Renewables, a member of UWEA, announced the attraction of the largest volume of investment in the country’s energy sector – €450 million – for the completion of the Tyligulska wind farm. According to the terms of the deal, the banks will provide €370 million in loan funds, secured by guarantees of the state Export and Investment Fund of Denmark (EIFO), the larger part of which will be used to purchase 64 Vestas EnVentus V162-6.0 MW turbines. The remainder of the project’s cost will be financed from DTEK’s own funds.

This deal will make it possible to accelerate the construction of the station already this year, as the company has previously already laid the cable networks and the foundation. “The number of turbines of the expanded wind park will grow from 19 to 83, and the capacity will increase fourfold – from 114 to 500 MW. At full capacity, the Tyligulska wind farm will produce 1.7 TWh· of electricity per year – this is enough to provide electricity to 900,000 Ukrainian homes, which is equivalent to the energy needed to charge every smartphone in the EU for a year”, the company’s official press release states.

President and CEO of Vestas Henrik Andersen: “We are proud to expand our cooperation with DTEK and provide our technological solutions for the Tyligulska wind farm project, which will support Ukraine’s power system. I want to thank DTEK for its far-sighted leadership, as well as the authorities of Denmark, Ukraine and the EU for their strong support of this ambitious project, which will help to strengthen Ukraine’s energy security”.

After the construction of the second phase of the Tyligulska wind farm, this wind station will become the largest in Ukraine, for the implementation of which a total of €650 million has been attracted. The start of the installation of the wind turbines of the second phase of the Tyligulska wind farm is planned for the first half of 2025, and the 100% commissioning of the entire wind farm – for the end of 2026.

First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Svyrydenko at the World Economic Forum in Davos noted: “The implementation of the project to build the Tyligulska wind power plant, which is to become the largest in Eastern Europe, is a significant step on Ukraine’s path towards implementing the National Energy and Climate Plan, strengthening the state’s energy security and decarbonising the economy. This project is also supported by the Danish Export Credit Agency and the Government of Denmark. This is a powerful signal to all our partners and investors that investing in Ukraine’s recovery projects can and must be done today”.

Andriy Konechenkov, Chairman of the UWEA Board: “The attraction of the largest volume of investment in the history of Ukrainian energy for the completion of the Tyligulska wind farm is vivid evidence that world investors believe in the potential of Ukraine’s renewable energy, even in the most difficult times. This project will not only ensure the energy security of our state, but will also become a model for future initiatives to recover and decarbonise the economy. We are proud that the members of our association, such as DTEK Renewables and Vestas, are demonstrating leadership, proving that Ukraine can be a key player on the map of “green” energy of Europe”.

Elementum Energy, a member of UWEA, has concluded Ukraine’s first pilot price stabilisation agreement between the 100 MW Dnistrovska wind farm, which it manages, and an industrial enterprise. The contract, designed for one year, is based on the CfD mechanism (Contract for Difference), which allows businesses to forecast electricity costs and protects them from price fluctuations. Read about the terms of the test agreement at the link:

Under the terms of the agreement, the parties agree on a “price corridor” — a range within which market fluctuations do not trigger additional settlements between the producer and the consumer. If the price on the market exceeds the upper limit or falls below the lower one, the difference is compensated by the relevant party. In the event of the upper limit being exceeded, the producer compensates the consumer for the difference, and if the price falls below the corridor, the consumer compensates the producer. Settlements are based on the indicative price benchmark defined in the agreement (for example, the base index of the day-ahead market) and an agreed volume of electricity. At the same time, no physical delivery of electricity takes place, and all transactions are carried out on the open market.

This approach makes it possible to minimise volatility risks for both parties and creates the possibility of effective cost planning on the energy market.

This pilot project will make it possible to test the viability of the CfD mechanism under the conditions of the current regulation of Ukraine’s energy market. Olha Rybachuk, Managing Director of Elementum Energy, notes: “We are introducing in practice an innovative instrument on the complex energy market of Ukraine, where instability has become the norm. Our pilot project will help to assess how the CfD mechanism works in real conditions and will prepare the basis for its application in new large-scale projects that we are already developing”.

An important aspect of the agreement is its term of validity. Under wartime conditions, businesses are not ready to conclude long-term contracts for 10–20 years because of market uncertainty. At the same time, price stabilisation instruments for 1–3 years arouse considerable interest, as they provide the opportunity to forecast costs and reduce risks.

This is not the first time that Elementum Energy has tested such instruments on the market. The pilot agreement will be another step in the development of this mechanism, which may further become an important tool for the stable reconstruction of Ukraine’s energy infrastructure.

UWEA sincerely welcomes the initiative of Elementum Energy and its significant contribution to the introduction of innovative support mechanisms on the Ukrainian energy market. The first pilot CfD agreement is a landmark step towards stability and predictability under the conditions of an unstable market. Thus, Elementum Energy confirms that Ukraine’s energy sector is ready for new solutions that are being successfully applied around the world. We are confident that this pilot will become the basis for a larger-scale implementation of the CfD mechanism, which will be important for the effective reconstruction of Ukraine’s energy infrastructure and will contribute to integration into the European energy markets.