Business news from Ukraine

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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NCER SETS FEED-IN TARIFF FOR SOLAR POWER PLANTS OF VR CAPITAL AND ICU

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has set feed-in tariff at 15.03 eurocents per kWh for Energy Den LLC with a capacity of 17.3 MWh (Bashtansky district, Mykolaiv region).
The commission approved this decision during a meeting on August 6.
The tariff is set until January 1, 2030.
The NCER also set feed-in tariff for the first stage of SPP Ternovytsia Solar LLC with a capacity of 13 MWh (Yavorivsky district of Lviv region). Another SPP in that region, Ternovytsia Solar Plus with a capacity of 12.8 MWh, received the aforementioned tariff.
Azymut Zakhid LLC with a capacity of 9.9 MWh and Tatarbunary Solar 2 LLC with a capacity of 9.9 MWh (both in Bilhorod-Dnistrovsky district in Odesa region) received feed-in-tariffs.

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NCER SETS FEED-IN TARIFF FOR SOLAR POWER PLANTS OF VR CAPITAL AND ICU

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has set feed-in tariff at 15.03 eurocents per kWh for Nick Solar2 LLC with a capacity of 15.4MW and Nick Sunstar with a capacity of 13.3 MW (Bashtansky and Voznesensky districts, Mykolaiv region).
The commission approved this decision during a meeting on July 30.
The tariff is set until January 1, 2030.
NCER also set feed-in tariff for Nick Green LLC with a capacity of 9 MW and Sunstar Pryvilne with a capacity of 7.4 MW (Veselynivsky and Bashtansky districts of Mykolaiv region).
Also, Ukrspecstroy Plus LLC with a capacity of 21.669 MW received the aforementioned tariff (Dniprovsky district of Dnipropetrovsk region).

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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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FEED-IN TARIFF FOR PRIVATE ROOFTOP SOLAR UNITS TO BE CUT BY 67% FROM 2025

The National Commission for Energy, Housing and Utilities Services Regulation (NCER) has set a feed-in tariff for private rooftop household solar power plants with a capacity of up to 50 kW and/or facades of buildings and other permanent facilities, as well as for private wind farms with a capacity up of 50 KW and combined wind and solar plants with a capacity of up to 50 kW.
The draft resolution was approved by the regulator on June 27.
In particular, the tariff for rooftop solar power plants with a capacity of 50 kW constructed on January 1, 2019 through December 31, 2019 is set at UAH 540.79 per kWh (without VAT), which is 18 eurocents per kWh. For the facilities constructed on January 1, 2020 through December 31, 2024 the tariff will be reduced by 10%, to UAH 486.07 per kWh (without VAT). The tariff will be cut by three times (66.7%), to UAH 157.26 per kWh (without VAT), which is 5 eurocents per kWh, for the solar power plants constructed on January 1, 2025 through December 31, 2029.
The regulator also set feed-in tariffs for wind power plants with a capacity of 50 kWh constructed during the three periods at UAH 347.65, UAH 312.24, and UAH 101.14 per kWh (without VAT) respectively, and for hybrid wind and solar power plants at UAH 489.29, UAH 366.96, and UAH 115.75 per kWh respectively.

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GROUND HOUSEHOLD SOLAR PLANTS WITH CAPACITY OF UP TO 30 KV GUARANTEED FEED-IN TARIFF BY LATE 2019

The relevant Rada committee, when preparing the adopted law on green auctions for signature by the speaker, proposes making a clear definition of conditions for providing feed-in tariffs for all household solar power plants with a capacity of up to 30 kV, indicating that their owners are entitled to such a tariff until the end of 2019.
Oleksandr Dombrovsky, the chairman of the Verkhovna Rada committee on fuel and energy complex, nuclear policy and nuclear safety, said on his Facebook page that he had sent a letter to Rada Speaker Andriy Parubiy with a corresponding proposal.
According to him, in the process of technical and legal preparation of the law on green auctions, adopted by the Verkhovna Rada, the main legal department of the Verkhovna Rada revealed inconsistencies that may lead to incorrect practice of its application. Thus, the law established the procedure for calculating feed-in tariffs for households operating solar plants of up to 50 kV, provided they are placed on roofs, facades of buildings and other housing structures. However, he did not foresee the procedure for calculating the tariff for all household solar plants with a capacity of up to 30 kV until the end of 2019.
To eliminate this gap, the procedure of Article 131 of the regulations may be applied, which allows for clarification of the wording of the voted law, the committee believes.

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