Business news from Ukraine

NATIONAL ENERGY COMPANY UKRENERGO LIMITS LOADING GENERATION OF WIND FARMS AND SOLAR POWER PLANTS

National Energy Company Ukrenergo on January 7, 2020 due to abnormally warm temperatures for this period of the year restricted loading generation of six large wind farms by 384 MW and eight solar power plants (SPP) by 545 MW in the period from 12:09 through 13:00, the company’s press service has reported.
Ukrenergo said that on that day, the average daily air temperature was -2.4°С, which is 4°С higher than the one on January 7 last year. Accordingly, consumption on January 7, 2020, decreased by 47.6 million kWh or 10.6% compared to the same period of the previous year (394 million kWh versus 441 million kWh).
Prior to this, all applications of balancing market players were used, electricity imports to the Integrated Power System (IPS) of Ukraine from Belarus and the Russian Federation were limited to zero, and the thermal power plants (TPP) generation was also limited by 1,350 MW.
Besides, at the moment of a sharp leap in the renewable energy generation from 12:09 to 13:00, there has already been no possibility to switch to the pumping mode the hydroelectric generators of pumped storage power plants (PSPP) since at that moment their reservoirs have already been filled.
At the same time, it is worth noting that due to the short-term nature of the balance deviations nuclear power plants (NPP) loading was not restricted.
“Therefore, in order to balance the power system and ensure its operational safety, NPC Ukrenergo dispatchers had to restrict the loading of powerful wind farms and SPPs,” the company said.
After that, from 13:00 to 13:46, all wind farms and SPP generation restrictions were rescinded.

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TWO WIND FARMS OF 76 MW TO BE BUILT IN LVIV REGION

Skolivska wind farm and Karpatska wind farm intend to build two wind power plants with a capacity of 40 MW and 36 MW (Lviv region), the website of the unified register of environmental impact assessment reports.
According to the report, within the framework of the project, Skolivska Wind Farm LLC plans to install 14 wind turbines. Karpatska Wind Farm LLC intends to install 15 wind turbines. The building area of the two stations will be 18 ha.
According to the unified state register of legal entities, Skolivska Wind Farm and Karpatska Wind Farm are owned by Cyprus-based Plotsan Holdings Limited, whose ultimate beneficiaries are a Swiss citizen and Ihor Ronchevych.

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PARLIAMENT COMMITTEE HEAD INITIATES RETURN OF VAT ON IMPORTED EQUIPMENT FOR SOLAR POWER PLANTS AND WIND FARMS

Chairman of the Verkhovna Rada committee for energy and utilities Andriy Herus has initiated the abolishment of the provision to exempt taxpayers from paying value added tax (VAT) on imported equipment for solar power plants and wind farms.
“This is an absolutely unacceptable situation when importers receive preferential VAT, do not pay it to the national budget, and Ukrainian producers are forced to pay VAT under the worst conditions… From Monday [September 30] I will register the corresponding bill in order to cancel this equipment import privilege as quickly as possible,” he said during a meeting on legislative regulation of state support for the development of renewable energy projects in Kyiv on Friday.
As reported, at the end of 2018, the Verkhovna Rada introduced amendments to the Tax Code, which exempted taxpayers from paying VAT on imported equipment for solar power plants and wind farms.

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UDP RENEWABLES PLANS TO BUILD THREE WIND FARMS IN UKRAINE (VOLYN REGION)

Volyn West Wind 1, 2, 3 LLC (Volyn region) plans to build two wind farms with a capacity of 63 MW each and a wind farm with a capacity of 72 MW, according to information on the website of the environment assessment register.
Under the project it is planned to install 44 turbines with a capacity of up to 4.5 MW each. The height of the tower will be up to 125 meters. The area required for placing one turbine is 0.35 ha.
In addition, it is planned to build a 110 kV/35 kV substation and a 110 kV/35 kV power line.
The tentative useful life of the wind farms is 20 years.
According to the unified public register of companies, Volyn West Wind 1, 2, 3 LLC belongs to UDP Renewables of Vasyl Khmelnytsky and UDP Renewables Managing Partner Serhiy Yevtushenko.
As reported, UDP Renewables together with Spain’s Acciona Energia Global intends to build two solar power plants in Odesa region with a capacity of almost 44 MW by the end of 2019. Total investment in projects is EUR 30.6 million.

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DTEK ENERGY PLANS TO BUILD TWO WIND FARMS IN MYKOLAIV REGION

DTEK Energy Holding plans to build two wind farms – Tylihulska wind farm LLC (in the territory of Anatolivka, Krasnopillia and Tashyne rural councils of Berezanka district of Mykolaiv region) with a capacity of 500 MW and Tylihulska wind farm 2 LLC (in the territory of Tashyne rural council) with a capacity of 65 MW, according to a register of environmental impact assessment.
Under the Tylihulska wind farm project it is planned to install up to 130 wind turbines with a capacity of 3.9-6 MW 700-1,500 meters far from each other. The height of the tower is 105-157 meters.
In addition, it is planned to build up to 10 110/35 kV substations, a 35 kV and /or 110 kV overhead power line of 100 km long, as well as 35 kV and /or 110 kV underground power lines of 150 km long.
The total construction area will be 35,000 ha.
Under the Tylihulska wind farm 2 project it is planned to install up to 17 turbines with a capacity of 3.9-6 MW 700-1,500 meters far from each other. The height of the tower is 105-157 meters. It is also planned to build a 35 kV and /or 110 kV overhead power line of 20 km long, as well as 35 kV and /or 110 kV underground power lines of 40 km long.
The total construction area will be 3,000 ha.

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NORWAY’S NBT AND FRANCE’S TOTAL FINALIZE SECOND PHASE OF UKRAINIAN WIND FARM’S FINANCING OF FOR EUR 107.6 MLN

Norway’s NBT and France’s Total Eren have finalized an agreement on the second phase of the project financing of construction of the 250 MW Syvash wind farm (Kherson region) in the amount of EUR 107.6 million, INTEGRITES law firm, which advised the companies, has said in a press release. According to the law firm, this financing agreement was signed with a syndicate of development banks including Black Sea Trade and Development Bank (EUR 30 million), Proparco (ca. EUR 42 million), Finnfund and IFU (EUR 15 million each), and the Nordic Environment Finance Corporation (NEFCO) (EUR 5 million).
All in all, the financing put into place for the whole project reaches EUR 262.6 million. The first phase of financing included a loan of up to EUR 155 million led by EBRD. EBRD’s loan consisted of EUR 75 million, Green for Growth Fund (GGF) and the Netherlands Development Finance Company (FMO) provided EUR 75 million, while a parallel loan of EUR 5 million was provided by the Nordic Environment Finance Corporation (NEFCO).
In addition, AlGihaz, a Saudi Arabian conglomerate, recently took a minority stake in the project alongside Total Eren.
INTEGRITES has advised NBT and Total Eren on all issues within Ukrainian law. In particular, INTEGRITES’ advise included negotiations with the abovementioned international banks, support on the local statutory requirements and communication of project related matters with the National Bank of Ukraine.
“We welcome the closing of the first large-scale project finance in renewable energy In Ukraine. Signing of the second segment with four new international financial institutions and one new co-shareholder on board speaks for the quality of the project and continuing high interest of foreign investors, making a great contribution to increasing of investment into Ukraine,” Managing Partner at INTEGRITES Oleksiy Feliv said.

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