Ukraine needs to quickly add 2GW of maneuverable electricity generating facilities to balance the Ukrainian power grid in the conditions of the rapidly growing renewable energy sector, which will require around EUR 1.2-1.4 billion, Business Development Director at Wärtsilä Energy business in Eastern Europe Igor Petrik has said.
“The introduction of 2 GW of highly maneuverable generating capacities gives the highest economic effect for the power system,” he wrote in an article published on the Energy Reform resource.
Petrik said that the calculations were made for gas generator stations. According to him, energy storage systems based on batteries at current equipment prices are not so effective. According to the experience of other countries, the most common option are projects of gas generator stations with a capacity of about 100 MW and a cost of EUR 60-70 million, the expert said. According to him, their gas consumption will be “insignificant” – about 40 million cubic meters per year for the installed capacity of 2 GW.
According to Petrik, the introduction of highly maneuverable generation will help reduce the use of the “hot” reserve of thermal power plants by 12.5 billion kWh per year and the volume of coal-burning generation by 4.2 billion kWh per year. As a result, the total reduction in coal consumption will be 3 million tonnes, CO2 emissions will decrease by 7 million tonnes a year.
He added that the volume of renewable energy restrictions could be reduced by more than three times – from 6.5 kWh to 1.9 billion kWh per year, and the overall reduction in operating costs of the power grid – by EUR 300 million per year.
In the current situation, the expert said that renewable energy restrictions may increase to 30% of production during 2020, with fees of EUR 580 million per year for limited energy. Petrik said that such restrictions could arise provided that the installed capacity of the solar power plants and wind farms by the end of 2020 would increase to 7.5 GW and the existing feed-in tariffs and priority dispatching of cheaper energy, such as nuclear energy, would remain.
The Ukrsadvinprom Association has convened a congress of Ukrainian winemakers as part of the large-scale specialized exhibition Wine & Spirits in Kyiv and introduced an umbrella brand, Wine of Ukraine, which, according to the organizers, should help Ukrainian wine with winning solid positions in foreign markets.
Head of the Ukrsadvinprom Association Volodymyr Pechko, who was a co-organizer of the event, says Ukraine has already proved that it is a country with producers of high-quality wine, sparkling wine, vermouth, brandy, fruit wines and distillates, however, marketing Ukrainian-made produce in other countries should be backed by regular support of the state and an alliance of Ukrainian wine producers around one brand on the “Made in Ukraine” principle.
“The Ukrsadvinprom Association, the country’s leading winemakers recognized the urgent need for joint actions to enter foreign markets. Our trips and participation in top wine trade fairs in Chile, Argentina, France and other countries have shown in practice the success of other countries implementing joint projects under a single wine brand. Only together we can successfully present our products, and the common Wine of Ukraine brand will allow us to position our products abroad in the right way, reduce costs when participating in foreign exhibitions and forums, and lower advertising and PR expenses,” Volodymyr Pechko said.
“Our plans include the development of our project around the Wine of Ukraine brand as early as in 2020 and encourage all Ukrainian winemakers – both large and small enterprises – to join it,” Volodymyr Pechko, the head of the Ukrsadvinprom Association, added.
The Ukrsadvinprom association includes about 200 enterprises from different regions of Ukraine. Ukrsadvinprom was established in March 2016 to bring together market players and provide practical assistance in resolving problematic issues in viticulture and winemaking, as well as horticulture, including berry and walnut growing.
The main areas include lobbying interests and representation of enterprises in state executive agencies, expanding the geography of exports of products, formation of commodity lots, legal support of economic activities, consultation on issues of applying for state support, development of technological instructions and technical specifications necessary for the production of wines, cider, drinks made of fruit and other types of wine products.
Volodymyr Pechko heads the Ukrsadvinprom Association.
Interfax-Ukraine is a media partner of the event.
Ambassador of the European Union (EU) to Ukraine Matti Maasikas is satisfied with the pace of improvement of the business climate in the country.
The new government and the new president have taken an obligation to improve business climate, he said at the Kyiv International Economic Forum on Friday, adding that there is significant progress in the legislative process seen in the parliament if to speak about the improvement of business environment and fight against corruption.
Maasikas called the achievement of the rule of law, the fight against corruption among the main problems that Ukraine should solve. At the same time, he said that he sees positive trends in this direction.
The dynamics are positive if we talk about the law on illegal enrichment, the ambassador said. In addition, there are other examples – the fight against money laundering, he added.
Ukrainian President Volodymyr Zelensky has called on investors to invest in Ukrainian people, who are the main capital of the country, and reiterated that he personally guarantees protection to each investor. “You are in a phenomenal country. Without modesty, I’ll say that this is one of the most interesting and attractive startups on planet Earth. Yes, for 28 years important reforms were imitated, built a shadowy opaque system. As a result, Ukraine has become a kind of economic underdog. But the new Ukrainian government is too ambitious to put up with such a very unattractive status, and when they say that our chances are low, when they underestimate us, all this adds us adrenaline, determination, strength for a powerful economic leap,” he said, speaking at the Kyiv International Economic Forum on Friday.
Zelensky said that people are the main capital of Ukraine.
“This is the very one Made in Ukraine that we are proud of and which gives us a competitive advantage. After all, the modern global economy is actually an economy of talents. Economic growth in the world is mainly thanks to innovation, while Ukrainians are ready to become pioneers, Ukrainians are able to look to the future and understand the needs of tomorrow. Ukrainians are very talented, hardworking, courageous, ambitious, creative, and this is exactly what your investment needs,” he said, addressing investors.
The president said that Ukraine is well aware that the country needs equal rules of the game for everyone, cleansing the judiciary, overcoming corruption, digitalizing processes, reforming education in accordance with the challenges of the 21st century, laws that are vital for the economy, even when they are unpopular.
“Every day, together with the government and parliament, we are putting all these bills into life,” he said.
Zelensky called on investors to invest in Ukrainians, in Ukrainian youth, in Ukrainian startups, small and medium-sized businesses in Ukraine.
“And remember: today, Ukraine is a rough diamond that needs to be cut with internal reforms and external investments to become a real diamond not only in the center of Europe, but throughout the world. And I, as president, guarantee that I am ready to personally protect your every investment, every penny that you invest in each of our Ukrainians,” he said.
The president also said that the video shown before the opening of the forum said that, according to the forecasts of futurologists, until 2050 there will be two main players in the world: China and India, but it was also said that “futurologists are sometimes mistaken.”
“When I decided to run for the post of the president of Ukraine, there were also two other leaders, but futurologists are sometimes mistaken. Therefore, we all have to do everything this time so that futurologists are also mistaken, and among the two columns where India and China are, Ukraine too occupies pride of place,” he said.
The founder of Alibaba Group Jack Ma has said at the Kyiv International Economic Forum that he fell for Ukraine a long time ago and sees a large potential for development.
“Such a wonderful combination like this cannot fail,” he said at the forum, noting the fertile land, open and ready for change people, beautiful women and rich history among Ukraine’s advantages.
The founder of Alibaba said that there are few countries in the world where the president is a trifle over forty, the prime minister is thirtysomething, and some ministers are 28, and this is positive.
Ma said that he would invite his business partners to visit Ukraine.
In his opinion, Ukrainian-Chinese relations should be actively developing.
He also called for changing the situation when AliExpress products go to Ukraine from four to seven days “like in the last century.”
During his visit to Ukraine, Ma met with the president, visited a number of universities and will also be on a visit to the UNIT.City innovation park.
Commodity pattern of Ukrainian export in Jan-Aug, 2019
