Business news from Ukraine


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.

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Construction of new grain and oilseeds transshipment facilities at the Mykolaiv seaport will start in the rear of berth eight. Private investment will total over UAH 1.2 billion, the Ukrainian Sea Port Authority has reported. “We are investing our own funds and are actively cooperating with port operators and private businesses. This is the development of the berth and rear infrastructure of berths zero and eight. This will increase the capacity of the Mykolaiv port for processing grain by more than 2 million tonnes per year, oil – by 750,000 tonnes per year,” Head of the Ukrainian Sea Port Authority Raivis Veckagans said during a working visit to the Mykolaiv seaport.
The Ukrainian Sea Port Authority refused to name investors, adding that this would be a new cooperation for the port. The Ukrainian Sea Port Authority plans to allocate UAH 350 million within the framework of fulfilling the company’s obligations under a public private partnership project for the construction and dredging of berth eight. At the same time, private investment in infrastructure will amount to over UAH 1.2 billion.
According to the Ukrainian Sea Port Authority, the planned grain complex will have a storage capacity of 96,000 tonnes, a warehouse – 40,000 tonnes, as well as other support facilities. Earlier, the Infrastructure Ministry reported that COFCO (China National Cereals, Oils and Foodstuffs Corporation) is ready to invest up to $30 million in the berth capacity of the Mykolaiv port and river logistics.
Seaside Terminal intends to invest about UAH 120 million in the reconstruction of the Mykolaiv-Vantazhny railway station in order to increase its capacity.

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National Energy Company Ukrenergo has urged Ukraine’s Energy and Coal Industry Ministry to announce a tender to build new highly maneuverable generating facilities to balance operation of renewable energy facilities, the company has said on its website. Ukrenergo recalled that in case of further rapid growth of green generation and an increase in its share, problems with its balancing may arise. “According to the results of the analysis, we modeled several scenarios for the development of events, provided that measures were not taken to properly balance green energy. In particular, the main negative consequences will be the restriction of renewable energy sources with the compensation of the feed-in tariff for unproduced electricity or the increase in the volume of coal generation and the restriction of nuclear power, given the need to increase opportunities for balancing. Both scenarios will be a significant obstacle to overcoming dependence on fossil fuels and improving the environment in the country,” the company said.
The company also said that any restrictions on the connection of renewable energy facilities and the provision of technical conditions are prohibited by the Transmission System Code, provided that the customer complies with the requirements of the Code.
“The development of renewable energy in Ukraine is an indicator of the country’s attractiveness to the international community. In this regard, the company expects to continue constructive cooperation with state security agencies in responding to potential threats to the Ukrainian energy system and supporting the initiative to build new highly maneuverable capacities,” Ukrenergo said.
Earlier, the Security Service of Ukraine, in a letter to the Prime Minister, expressed concerns about the destabilization of the country’s energy system due to the “excessive” issuance of technical conditions for the connection of renewable energy facilities.

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