Ukrnafta PJSC, which with the help of the European Bank for Reconstruction and Development (EBRD) has planned projects to generate power from its own gas with a total capacity of up to 370 MW, is additionally working to attract investment to build renewable energy capacity such as solar and wind, said supervisory board chairman Duncan Nightingale.
“We want to introduce about 200 MW of renewable energy over the next two years,” he said in a blitzing interview with Interfax-Ukraine.
Nightingale recalled that, according to agreements with the EBRD, in addition to loan funds, the bank is providing the company with grant support worth several tens of millions of euros.
“All these funds will be used for the construction of gas generation. At the first stage we plan to build about 375 MW of new gas to power capacities,” the chairman of the Supervisory Board specified.
According to him, initially Ukrnafta’s plan until 2028 provides for the introduction of about 1 GW of new electricity and heat generation, as well as storages (for energy storage – IF-U), which will require significant investments.
“We plan to attract funds from current donors, national and international banks, and investors. The main task is to direct the company’s funds to the main activities to increase hydrocarbon production, and energy projects should be self-sufficient, including the attraction of financing,” Nightingale emphasized.
He thanked investors who are now supporting Ukrnafta on the way to building gas generation.
“Ukrnafta realizes the importance of traditional energy sources, especially under the conditions of martial law. At the same time, we use gas as a transition fuel for power generation. This allows us to work on environmentally sustainable solutions for the future,” summarized the Chairman of the Supervisory Board.
“Ukrnafta is Ukraine’s largest oil producer and is the operator of the national network of gas stations. In March 2024, the company entered into Glusco asset management and operates a total of 544 filling stations – 461 owned and 83 under management.
Ukrnafta’s largest shareholder is Naftogaz of Ukraine with a 50%+1 share stake. In November 2022, the Supreme Commander-in-Chief of the AFU decided to transfer to the state a share of corporate rights of the company, which belonged to private owners and is now managed by the Ministry of Defense.
Read the full blitzinterview with PJSC Ukrnafta Supervisory Board Chairman Duncan Nightingale on the sidelines of the Ukrainian House in Davos soon on the agency’s website www.interfax.com.ua.
Ukraine in January-June 2021 additionally commissioned 709 MW of new electrical installations based on renewable energy sources (RES), which made it possible to increase the overall capacity of RES generation in the country to 9,225 MW.
According to the State Agency on Energy Efficiency and Energy Saving of Ukraine, in particular, in January-June, wind power plants (WPP) with a capacity of 278.4 MW were additionally built, solar power plants (SPP) for 257.4 MW, SPPs of private households – for 156 MW, biomass power plants – for 10.4 MW, biogas power plants – for 6 MW, and small hydropower facilities (HPP) – for 1.6 MW were also commissioned.
“About EUR530 million has been invested in the establishment of 709 MW of renewable energy facilities,” the agency stressed.
Of the total capacity of 9,225 MW of Ukrainian renewable energy sources, the share of solar power plants is 6,351 MW, renewable energy sources – 1,593 MW, household solar power plants – 933 MW, solid biofuel power plants – 119 MW, small hydroelectric power plants – 118 MW and biogas plants – 111 MW.
The largest renewable energy capacity in Ukraine was commissioned in 2019 – some 4,669 MW, while in 2020 – 1,574 MW, in 2018 – 848 MW, in 2017 – 291 MW, in 2016 – 136 MW, in 2015 – 32 MW.
HPP, RENEWABLE ENERGY, RENEWABLE ENERGY FACILITIES, SPP, WPP
On Monday, July 13, at 15.00, the press center of the Interfax-Ukraine News Agency will host a press conference on the subject: “Renewable Energy – Will There Be the Light at the End of the Tunnel?” Participating will be MP from the Servant of the People faction, Deputy Chairman of the Verkhovna Rada Committee on Energy, Housing and Utility Services Serhiy Nahorniak, Director of the European-Ukrainian Energy Agency Oleksandra Humeniuk, Board Chairman of the Bioenergy Association of Ukraine Heorhiy Heletukha, Co-Chairman of the Energy Strategies Fund Dmytro Marunych. Moderator – Manager of the Project titled “Creation of Energy Efficiency and Renewable Energy Allowance” Oleksandr Holizdra (8/5a Reitarska Street). The broadcast will be available on the YouTube channel of Interfax-Ukraine: https://youtu.be/QLYYzNWn1F0. Admission requires press accreditation on the spot.
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have agreed a new EUR 50 million programme of financial guarantees aimed at scaling up investment in renewable energy in Ukraine and in the EU’s Southern Neighbourhood with a particular focus on Jordan, Lebanon and Tunisia, the bank has said in a press release.
Under the new programme, the EBRD will provide guarantees to lenders such as local commercial banks, which will allow them to provide financing to projects alongside EBRD loans. The guarantee is expected to help generate total investments of up to EUR 500 million.
This is the first agreement during the bank’s cooperation with the EU through the External Investment Plan (EIP) in the EU neighbourhood regions.
“We’re delighted to partner with the EU for such an urgent cause as climate action. Our lending combined with the EU’s financial instruments encourages more participation of the private sector in investments which are very much needed to face the global challenges of the future, including a more sustainable development model,” EBRD Vice President, Policy and Partnerships Pierre Heilbronn said.
European Commissioner for European Neighbourhood Policy and Enlargement Negotiations Olivér Várhelyi added that the EU is convinced the guarantee provides sufficient risk cover to attract major private sector investment in countries where not enough such financing is available.
According to the report, through the EIP, to date the EU has allocated EUR 4.5 billion in public funds to leverage EUR 44 billion in public and private investment for development in countries neighbouring the EU and in Africa.
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved the provision of additional financing in the amount of EUR 200 million for the development of renewable energy sources in Ukraine. The EBRD said it intends to issue new funds to finance private renewable energy projects under the current system of stimulating “green” tariffs. The planned replenishment will allow the bank to build on the success of USELF-III and maintain momentum in the transition from the existing mechanism of preferential tariffs to a support system based on competitive auctions.
The bank noted that the third program of financing renewable energy development approved in July 2018 in the amount of EUR 250 million (Ukraine Sustainable Energy Lending Facility, USELF-III) will be fully implemented by the end of 2019.
As reported, the EBRD under the USELF program has been supporting the development of renewable energy in Ukraine since 2009. The program is aimed at assisting the state in achieving by 2020 the share of “green” generation in the country’s total energy consumption at 11% (including a 6% share of large hydropower plants).
President of Finland Sauli Väinämö Niinistö has assured Ukraine of support in the area of energy sector reforms, in particular renewable ones.
“We are cooperating in the energy sector. We are interested in cooperation in the field of renewable energy sources and, I think, it will be for the benefit of both states. Therefore, we are ready to share our knowledge in this area,” he said at a joint press conference with President of Ukraine Volodymyr Zelensky in Kyiv.
He emphasized that Finland had also done a lot of work on forests.
“For the forests not only contribute to the economy, but also improve the life of society,” Niinistö added.
