Business news from Ukraine

Business news from Ukraine

FERREXPO LAUNCHES SOLAR PLANT IN UKRAINE

Ferrexpo, a mining company with assets in Ukraine, has launched a pilot project of a 5 MW solar battery complex at the operating industrial site of Poltava Mining and Processing Plant (Poltava GOK) without a feed-in tariff, the company said.
“This is a pilot project, after which the company will move to a full-scale replacement of conventional electricity with renewable energy from the sun as part of the program of decarbonization of manufactured products. Ferrexpo plans to build a power plant for the production of renewable energy with a capacity of 250-1,000 MW in the medium term,” the document says.
According to the report, almost 10,000 photovoltaic panel of Jinko Solar were used in the implemented project, the panels are installed on the dumps of the quarries in order to rationalize the use of the area.
The cost, according to the press release, was “several million U.S. dollars.” The company financed it without using any state compensation programs, subsidies, grants or a feed-in tariff.
“We have achieved a market return on this project without any feed-in tariffs from the state, which should be an example for other enterprises building renewable energy generation facilities,” Ferrexpo said.
According to chairman of the board of Poltava GOK Viktor Lotous, the solar plant will generate 6.5-7 million kWh of electricity per year and supply it for consumption by the group’s enterprises at the operating industrial site.
“The launch of its own generation reduces the negative consequences of monopolization of the energy market for Ferrexpo due to the restriction of competition and the risks of an increase in the tariff for electricity transmission,” he said.
Ferrexpo owns 100% of shares in Poltava GOK, 100% in Yeristovo GOK and 99.9% in Belanovo GOK.
In 2020, the company increased its net profit by 57.5%, to $ 635.3 million with an increase in revenue by 12.8%, to $ 1.700 billion. Last year, Ferrexpo increased its total production of pellets by 7%, to 11.22 million tonnes, concentrate output increased by 5.9%, to 14 million tonnes.
In the first half of this year, Ferrexpo cut pellet production by 0.6%, to 5.563 million tonnes, but total production, which also includes commercial concentrate, rose by 2%, to 5.712 million tonnes.

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NORWEGIAN COMPANY SCATEC LAUNCHES FIFTH SOLAR PLANT IN UKRAINE

The Norwegian company Scatec on July 6 held the opening ceremony of its fifth solar power plant (SPP) in Ukraine with a capacity of 40 MW in Chyhyryn district (Cherkasy region).
As reported, from July 2, the company also began commercial operation of its largest in Ukraine SPP Prohresivka (Mykolaiv region) with a capacity of 148 MW, and from the beginning of June – a 25 MW solar plant Kamyanka (Cherkasy region).
In addition, in 2020, Scatec launched a 54 MW SPP near Bohuslav (Kyiv region), and in 2019, together with Rengy Development Group, implemented its first Ukrainian project of a 47 MW SPP in Mykolaiv region.
Thus, the total capacity of solar generation facilities built by Scatec in three regions of Ukraine has reached 314 MW.
According to PJSC Cherkasyoblenergo, the construction of a 40 MW SPP near Chyhyryn, in particular, has become one of the largest investment projects in Cherkasy region.
In order to connect the Scatec facility to the power grids, Cherkasyoblenergo carried out technical re-equipment of the 150/35/10 kV Orbita substation, and also built two overhead power transmission lines of 150 kV Orbita-Greenteco-SPP. The works worth UAH 139 million were partially financed from the funds of Greenteco SPP LLC (Scatec Ukraine) as a payment for connecting to the power grids.
“The team of Cherkasyoblenergo, for its part, fully supports the development of “green” energy in Cherkasy region and will do everything possible to increase its share in the total amount of electricity generated in the regional power grid,” chairman of the board of the company Oleh Samchuk said.

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NAFTOGAZ COMMISSIONS 33 MW SOLAR PLANT

Naftogaz Group received a feed-in tariff and a license to sell electricity for a new solar power plant in Chudniv, Zhytomyr region.
As the group reported on Wednesday, October 21, the planned volume of productive electricity supply for the first year of solar plant operation, built in September 2020, will amount to at least 36,500 MWh with an expected income of more than UAH 153 million.
Naftogaz clarified that the peak capacity of photovoltaic modules is 33.313 MW, and the capacity at the connection point is 25 MW.
The release states that the plant uses graphene-coated monocrystal photovoltaic modules with one of the highest capacity in its class of 430 W from ZNSHINE PV-Tech Co., as well as SUN2000-185KTL string inverters from Huawei.
“All support elements of equipment and materials are of Ukrainian origin,” the company noted.
“According to the company’s forecasts, the reduction of greenhouse gas emissions, in particular, carbon dioxide, will be at least 880,000 tonnes. In addition, the project encourages the economic development of the local community, as only Ukrainian specialists, including local residents, were involved in the construction of the solar power plant,” first deputy chairman of the board of NJSC Naftogaz Ukrainy Serhiy Pereloma explained.

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DTEK RENEWABLES COMMISSIONS SOLAR PLANT IN DNIPROPETROVSK REGION

DTEK Renewables has commissioned the 240 MW Pokrovska solar plant (Nikopol district, Dnipropetrovsk region).
The press service of the company said Pokrovska solar plant is a project implemented by Ukrainian companies and specialists. Some 16 enterprises took part in the construction, which received orders worth EUR48 million.
Pokrovska solar plant consists of 840,000 solar panels manufactured by Risen (China). It is expected that each year the plant will produce 400 million kWh of “green” electricity, which is enough to provide 200,000 households.
“Pokrovska solar plant is the company’s third project in solar energy, investment in which amounted to EUR193 million,” DTEK CEO Maksym Tymchenko said.
He said that the payback period in current tariffs is estimated at six to six and a half years.
In addition, he said that DTEK plans to implement the project for building the Energy Storage system either at Pokrovska or Nikopol solar station.

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CHERKASYOBLENERGO INTENDS TO BUILD POWER GRIDS FOR CONNECTING SOLAR PLANT OF SCATEC SOLAR

JSC Cherkasyoblenergo intends to build two overhead power grids of 150 kV for connecting Greenteco LLC solar power station with a capacity of 55.4 MW (Chyhyryn district of Cherkasy region) to the 150/35/10 kV Orbita substation, according to the website of the unified register of environmental impact assessment.
It is also planned to reconstruct the 35 kV PRK-1 and PRK-2 grids to transfer them to a power of 150 kV.
Greenteco solar plant belongs to the Norwegian company Scatec Solar.
As reported, in July the European Bank for Reconstruction and Development issued a loan of EUR19.7 million to Greenteco solar plant for the construction of a solar station. The total project cost is EUR56.2 million.
In 2018, Scatec Solar established and acquired about half a dozen companies in Ukraine to carry out its solar plant construction projects. The company plans by 2020 to build about 400 MW of capacity in Ukraine.

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STATE REGULATOR SETS FEED-IN TARIFF FOR SOLAR PLANT OWNED BY ETG GAS TRADER

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has set a feed-in tariff for the ETG Solar 5 LLC solar plant with a capacity of 11.1 MW (Zhovti Vody, Dnipropetrovsk region) at a rate of 15.03 euro cents per kWh.
According to the NCER’s website, the commission made such a decision at a meeting on October 3.
The validity of the tariff is until January 1, 2030.
The commission also provided tariff for Dniproukrenergo LLC station with a capacity of 6.2 MW (Nova Kakhovka, Kherson region). The company is owned by Logos Firm LLC and Mykyta Hostev, who is the director of Dniproukrenergo.
In addition, feed-in tariff was given to Sunny City LLC with a capacity of 8.3 MW (Ivano-Frankivsk region). The company is owned by Sansolar LLC, Andromeda Industry LLC and Yevhen Yaremenko. The ultimate beneficiary is Andriy Havryliv.
The NCER also set the tariff for the second stage of Ternovytsia Solar LLC with a capacity of 15.5 MW (Ternovytsia, Lviv region). The company is owned by Vydobutok Plus LLC and Greenville closed non-diversified venture corporate investment fund. The ultimate beneficiary is Ivan Torsky.
ETG Solar 5 LLC is owned by Energy Trade Group LLC, the largest private gas supplier to Ukraine. The ultimate beneficiary is Oleksiy Bondarenko. The number of clients of Energy Trade Group at the beginning of 2019 exceeded 2,500 companies.

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