RENEWABLE ENERGY BUSINESS OPPORTUNITIES IN UKRAINE
Investment and Business Development in Ukraine 30 March 2016, Netherlands
Carl Olof Richard Sturen, Managing Director Vindkraft Ukraine LLC, UWEA Expert Council member
MACRO CONSEQUENCES FROM RENEWABLE ENERGY
Benefits in addition to sustainability and being environmentally friendly Reduced dependency on imported gas and coal bought in hard currency; Improving supply reliability and reducing network electricity transit losses due regional generation;
Domestic generation and sales in local currency subject to VAT, payroll and profit taxes; Conforming with set EU targets and association agreement; Creating alternative modern generation capacity in parallel to aging nuclear plants;
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RENEWABLE ENERGY TARGETS Renewable Energy Production is foreseen to reach 11% of the total Ukrainian energy production by 2020 2015
2020
Actual mainland Ukraine
National Action Plan for Renewable Energy for the period up to 2020
MW
MW
4 800
5 200
Small Hydro
98
150
Geothermal energy
8
20
Solar power plants
420
2 300
Wind power plants (on-land)
426
2 280
Bio-mass/bio-gas
51
950
5 803
10 900
Hydro power stations > 10 МW
On 1 October 2014 the Cabinet of Ministers of Ukraine adopted the Decree On National Action Plan on Renewable Energy for the period up to 2020. This decree of the government of Ukraine was adopted to execute the Decision of the Ministerial Council of the Energy Community D/2012/04 / MC-EnC On the implementation of Directive 2009/28/EC and amending Article 20 of the Energy Community Treaty.
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INSTALLED CAPACITY AND ELECTRICITY GENERATION FROM RES 2015
1300
Wind Energy
1200
1100
Installed capacity as of 2015, MW
1000 900
Electricity Generation in 2015, mln kWh 800
700 600 500
Solar Energy
400 300 200 100 WWW.UWEA.COM.UA
Small Hydro Biomass
Biogas
GREEN (FEED-IN) TARIFF SYSTEM Law on Introduction of Changes to Certain Laws of Ukraine with respect to Securing Competitive Conditions for Production of Electricity from Alternative Energy Sources, No 514-VIII dd 4.06. 2015
GT rate varies by types of renewable energy and size of installed capacity GT rates remains fixed in EUR and the UAH equivalent is re-calculated quarterly No EUR/UAH exchange rate link of GT for PPs commissioned from 2025
Tariff commitment valid till January 1, 2030
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FEED-IN-TARIFF RATES, IN EURO PER kWh
Jan.1, 2015 Dec. 31, 2019
Jan. 1, 2020 – Dec. 31, 2024
Jan. 1, 2025 – Dec. 31, 2029
RES
Power Plant Capacity
WIND
Wind turbines 2000 and more kW
0,1018
0,0905
0,0792
Power plants on a ground surface
0,1599 -0,1502
0,1352
0,1201
Power plants on the roofs and/or facades of buildings
0,1723 -0,1637
0,1475
0,1309
Biomass power installations
0,1239
0,1115
0,0991
Biogas power installations
0,1239
0,1115
0,0991
Mini hydro power plants from 200 kW to 1 MW
0,1745
0,1572
0,1395
0,1395
0,1255
0,1115
0,1045
0,0942
0,0835
SOLAR
BIOMASS & BIOGAS
HYDRO
Small hydro power plants from 1 MW to 10 MW
GEOTHERMAL
Geothermal PP
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LOCALLY PRODUCED EQUIPMENT
No Local Content Requirement Producers could be eligible for a premium of 5% of the eligible GT rate if the ”level of locally produced equipment” in a project is 30%, or a premium of 10% of the eligible GT rate if the project contains at least a 50% “level of locally produced equipment”.
The premium will not apply for power plants commissioned after 2025 The Regulator will determine the level of locally produced equipment based on certificates of origin from the Chamber of Commerce of Ukraine and other confirming documents The Law contains the lists of equipment which could qualify as locally produced equipment and based on which one could calculate the share of local component in a project, see table
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DRAFT LAW No 2010 Wind Turbine Elements of Equipment locally produced in Ukraine
Share, %
Blades
30
Tower
30
Nacelle
20
Main Frame
20
Total
100
WIND OPPORTUNITIES IN UKRAINE
Good wind potential and large territories suitable for a wind projects development
Attractive feed-in-tariff Fixed EUR/UAH exchange rate No local content requirement Bonus for use of locally manufactured equipment System operators are obliged to connect wind farms to the grid WWW.UWEA.COM.UA
WIND CAPACITY IN OPERATIONS 2015
MW 6000 5300 5000
ď ľ More than 7000 km2 of land area is ideally suited for wind farm development
4192
4000
3330
3000 2000 1000
426
0
Ukraine
Romania
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Turkey
Poland
OPERATING WIND FARMS
Chernihiv
Lutsk
Sumy Rivne Zhytomyr
Kyiv WF LLC Ligena (0,45 MW)
Lviv Ternopil Starosamborskaya WF (6,6 MW)
Kharkiv
Poltava Cherkasy
Khmelnytskyi Vinnytsia
Uzhhorod
Luhansk WPU Lutugino WF (25 MW)
Ivano-Frankivsk
Kirovohrad
Dnipropetrovsk
Chernivtsi
WPU Krasnodon WF (25 MW) Donetsk Zaporizhzhia
Mykolaiv
WPU Novoazovsk WF (88 MW) Botievo WF (200 MW)
426 MW
WPU Ochakov WF (47,5 MW) Odesa
Kherson Sivashskaya WF (2,92 MW)
Vindkraft Ukraina WF (30,75 MW)
Simferopol
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WIND PROJECTS PIPELINE
Chernihiv
Lutsk
Sumy Rivne Kyiv
Zhytomyr
Sokalska 2 WF (42,9 MW) Lviv Starosamborskaya 1 WF (6,6 MW – 13,2 MW ) Starosamborskaya 2 WF (19,8 MW)
Poltava Cherkasy
Khmelnytskyi
Opaka WF (50 MW)
Kuryany WF (5 MW)
Kharkiv
Vinnytsia
WPU Krasnodon WF (425 MW) Luhansk
Skolivska 2 WF (46,2 MW) Ivano-Frankivsk Uzhhorod
Kirovohrad
WPU AtomWind Kramatorsk (66 MW) Dnipropetrovsk WPU Lutugino WF (225 MW)
Chernivtsi
WPU Antrizit-1 WF (225 MW) Donetsk Zaporizhzhia
WPU Baltskaya WF (225 MW) Mykolaiv WPU Berezanskiy WF (95 MW) Tiligul WF (500 MW)
3 555 MW
WPU Tatarbunaru WF (150 MW) WPU Zolninskaya WF (12,5 MW) Simferopol
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Berdyansk WF (150 MW)
Primorsk WF (200 MW) Botievo 3,4,5 WF (300 MW) Kherson WPU Illichovskaya WF (50 MW) Odesa WPU Kaborga WF (100 MW) Sivashenergoprom (5 MW) Ovidioplo Energy WF (120 MW) Novotroitsk WF (140 MW) WPU Ovidiopolska WF (200 MW) Kalanchak WF (300 MW) WPU Belyaevskaya WF (150 MW)
UKRAINIAN WIND ENERGY ASSOCIATION The UWEA is an All-Ukrainian public organization aimed at promoting wind energy technologies and ensuring wind energy industry’s interests at the national and international levels. It is a proven, effective advocate for Ukrainian wind industry and it continues to mature along with the industry.
UWEA members include: DEVELOPERS MANUFACTURERS CONSULTING COMPANIES TRANSPORT COMPANIES SERVICE COMPANIES P.O.Box 75, Kiev 01033, Ukraine phone: +380 (44) 2232996 е-mail: uwea@i.ua www.uwea.com.ua
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LAW FIRMS INSURANCE COMPANIES