Business news from Ukraine

Business news from Ukraine

UKRAINE CUTS ELECTRICITY EXPORTS BY 2.3% IN 7 MONTHS

Ukraine in January-July 2019 decreased electricity exports by 2.3% (by 83.6 million kWh) compared to the same period in 2018, to 3.543 billion kWh, the Ministry of Energy and Coal Industry has told Interfax-Ukraine.
Electricity supplies from the Burshtyn TPP Energy Island in the direction of Hungary, Slovakia and Romania increased by 3.8% (by 86.9 million kWh), to 2.382 billion kWh.
Electricity supplies to Poland decreased by 9.2% (by 76.3 million kWh), to 755.6 million kWh.
Electricity supplies to Moldova amounted to 404.8 million kWh, which is 18.9% (94.1 million kWh) less than in January-July 2018.
For the seventh months of 2018 and 2019, Ukrainian electricity was not exported to Belarus and Russia.
In addition, for the aforementioned period Ukraine imported 15.9 million kWh of electricity from the Russian Federation and 0.7 million kWh from Belarus.

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ELECTRICITY PRICE FOR UKRAINIAN NON-DOMESTIC CUSTOMERS CAN BE 20% LOWER

It is possible to lower electricity prices for non-domestic consumers by 20%, presidential representative in the government Andriy Gerus said.
“It is necessary to consider three solutions that all together are to significantly reduce the price of electricity for non-domestic consumers,” he said at a briefing following the results of the conference with President of Ukraine Volodymyr Zelensky over functioning of a new model of electricity market and preparation for autumn-winter period in Kyiv on Monday.
According to him, it is necessary to review government’s resolution on charging National Nuclear Energy Generating Company Energoatom and PrJSC Ukrhydroenergo with the special duties, most of which to be commissioned to the latter.
“It will allow decreasing tariff of Ukrhydroenergo over three times. Now it is 32 kopecks/kWh, when it is expected to be 8-9 kopecks/kWh,” Gerus said.
Besides, he said that it was worth to raise a maximum night price by about 10%, and to lower a maximum day price by 15-20%.
“If all three measures are taken, [electricity price] for ending consumers, large, middle, small, budget establishments and organizations, will be almost 20% less,” the presidential representative said.

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UKRAINE INCREASES ELECTRICITY GENERATION FROM RENEWABLE ENERGY SOURCES BY 2.8 TIMES

Ukraine in June 2019 increased electricity generation from renewable energy sources by 2.8 times (by 378.3 million kWh) compared to June 2018, to 585 million kWh.
According to data from the Ministry of Energy and Coal Industry, available to Interfax-Ukraine, production of electricity from renewable energy sources in January-June 2019 increased by 1.9 times compared to the same period last year, to 2.372 billion kWh.
The share of renewable energy in the structure of electricity production in June 2019 reached 5% against 1.8% in June 2018, while the share of renewable energy in the first half of this year was 3% against 1.5% in January-June 2018.
As reported, as of the end of the first half of the year, the installed capacity of renewable energy facilities reached 3,634 MW, in particular that of solar plants some 2,640 MW, wind plants 776.6 MW, biomass plants 51.3 MW, and biogas stations some 66.4 MW.

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ANNUAL PAYMENTS FOR ELECTRICITY FROM RENEWABLE SOURCES ON FEED-IN TARIFF IN UKRAINE COULD EXCEED EUR 1.3 BLN OVER NEXT 10 YEARS

Annual production of electricity from renewable energy sources, taking into account objects commissioned until 2020, will exceed 7.5 billion kWh, while annual payments for energy resources at feed-in tariffs will be EUR1.3 billion, according to the presentation posted on the website of the Ministry of Energy and Coal Industry.
It is reported that by the end of 2019 some 2.7 GW of renewable energy capacity will be additionally commissioned. Taking into account ‘green’ capacities put into operation by 2021, annual payments could amount to about EUR 1.8 billion, which corresponds to the payments made by Energoatom for 55% of electricity it generates (in 2018 prices).
The ministry said, with reference to the calculations of Ukrenergo, that additional costs to cover unbalances in the power system, which will arise due to the difficult predictability of alternative generation, could amount to EUR 300-900 million (depending on the price in the balancing market).
According to the ministry, in 2018, the total amount paid to producers of electricity from renewable energy sources on feed-in tariffs was EUR 560 million (including VAT), which corresponds to 7.9% of the total cost of electricity generated in the country with the share of sales being 1.9%

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DTEK PLANS TO IMPORT ELECTRICITY FROM EUROPE

DTEK intends to begin importing electricity from Europe within the Burshtyn Energy Island in July 2019, according to the Facebook page of D.TRADING.
“Our company also plans to start importing electricity as early as July with the further active development of this direction of business in the coming months,” Dmytro Maliar, the director for the D.TRADING energy portfolio management, said.
According to him, imports in the new market will allow increasing the level of competition.
Earlier, on July 1, ERU Trading LLC announced the implementation of test imports of electricity from Slovakia and Hungary within the Burshtyn Energy Island.
D.TRADING conducts wholesale trade in electricity, natural gas and coal in the domestic and foreign energy markets.

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PRESIDENT OF UKRAINE SENDS BILL ON CUTTING ELECTRICITY TARIFFS TO PARLIAMENT

President of Ukraine Volodymyr Zelensky has sent to the Verkhovna Rada of Ukraine a bill amending some laws of Ukraine on cutting electricity tariffs.
The document was registered in the parliament on June 26. The text of the bill has not been made public.
As reported, representative of the head of state in the Ukrainian government Andriy Gerus said that Ukrainian President Volodymyr Zelensky initiated the legislative change of the Rotterdam+ formula by the Rotterdam- formula in order to reduce electricity tariffs. He said that according to the document, the cost of shipping coal from Rotterdam to Ukraine should be removed from the formula. In addition, it is proposed that discounts be introduced if the quality of coal is worse. The bill also provides for a delay in the introduction of the electricity market for one year.

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