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ALTERNATIVE ENERGY

Draft laws on implementation of “Green” auctions for alternative energy producers are being discussed

On August 22 and 28, 2018 within the framework of discussion of draft laws in the sphere of alternative energy the Workgroup meeting on development of key provisions of new renewable energy support system took place.

The meeting was attended by more than 50 participants, among which were representatives of Ministry of Energy and Coal Industry of Ukraine, State Agency on Energy Efficiency and Energy Saving of Ukraine, State Enterprise “Energorynok”, DTEK, World Bank, IFC and others.

Most of participants proposed to increase the term of PPA to 20 years and also agreed on necessity to implement reversed auctions (on lowering price) with minimal threshold for participation. For implementation of the thresholds among others it was proposed to divide all the producers into three categories:

1. Private households – have the right for “green” tariff and also have additional support from the state in the form of simplified procedure of documents’ processing.
2. Small producers – solar plants with capacity less than 10 MW and wind power plants with capacity up to 20 MW. Have the right for “green” tariff and at the same time can participate in auctions.
3. The rest of producers – participation in auctions for them is obligatory. Besides that it is proposed to point out different types of auctions for wind and sun power plants correspondingly.

In addition, participants offered to set the date for the introduction of auctions – January 01, 2020, as well as to determine that by July 01, 2019, sun power plants with capacity up to 10 MW and wind power plants with capacity up to 20 MW have the right to sign PPA for the purpose of obtaining a “green” tariff. Participants also discussed the need for holding of one or more pilot auctions.

Among other things, participants also discussed the principles for setting quotas for state support of auctions and offered to set such quotas once every 5 years rather than every year as prescribed by the relevant draft law.

Also, the working group agreed with proposals of the Bioenergy Association of Ukraine on optimization of “green” tariffs for biomass and biogas depending on the capacity and type of biomass, as well as on the need to introduce separate incentives for biomass and biogas projects in order to promote them and promote their profitability and attractiveness for business.

The regulator has updated information necessary to obtain a license on Uniform State Administrative Services portal

The National Energy and Utilities Regulatory Commission of Ukraine (hereinafter – the “NEURC”), together with the Ministry of Economic Development and Trade of Ukraine has updated information on Uniform State Administrative Services portal, which contains all the information necessary to obtain a license, including:

 

  • list of activities subject to licensing by NEURC;
  • list of documents that must be provided to obtain a license;
  • electronic application forms and other documents required for administrative services, samples of their filling in;
  • fee for the license;
  • grounds for refusal on issuance of a license;
  • regulations governing licensing.

Page of NEURC on Uniform State portal of administrative services is available at the address: http://www.my.gov.ua/info/department/1545/details.
Currently NEURC is working on enabling of the possibility of submission to the Regulator documents on obtaining license as well as information on changes of such data which have been mentioned in the documents attached to the application for a license, and reports in electronic form from home or office starting from September 2018 through authorization for electronic digital signature (EDS).
Full text of news: http://www.nerc.gov.ua/index.php?news=7767

 

The level of “green” energy generation in Ukraine increased on 38 %

According to the information of Ministry of Energy and Coal Industry of Ukraine wind, solar, biomass and biogas stations have generated 1,226 billions of KW per hour for the last six months of 2018.

In comparison to the similar period of last year, the stations have generated 339,1 millions of KW per hour more.

Thus, in 2018 installed capacity of renewable energy sources (RES) has increased by 16,3 % – from 1374,4 MW to 1642,4 MW. The main reason for such expansion was construction of new stations. During the first half of the year 50,350 MW of new wind plants, 5,12 MW of biomass plants, 6,55 MW of biogas plants and 1,034 MW of hydroelectric power plants were put into operation in Ukraine.

Traditionally, solar power plants are being built in the shortest terms: in six months there were constructed 205,65 MW.
Full text of news: http://ua-energy.org/uk/posts/v-ukraini-na-38-vyro…

 

Power plants will provide information on emission of pollutants

The Regulator has approved corresponding draft resolution on July, 27 and is accepting proposals to it until September, 4.
The Regulator proposes to publish information on emissions in tonnes and tonnes per 1 KW per hour about such substances: nitrogen oxide, ammonia, sulphur dioxide, acetone, benz(o)pyrene, butyl acetate, vanadium pentoxide, hydrogen chloride, carbon monoxide, carbon dioxide, hydrocarbon, gaseous fluorine compounds, solids, cadmium compounds, manganese and its compounds, nickel and its compounds, ozone, mercury and its compounds, lead and its compounds, hydrogen sulphide, carbon disulphide, n-butyl alcohol, styrene, phenol, formaldehyde, chromium and its compounds.

Also power plants will be obliged to publish information on pollution of water with: nitrogen with ammonium, organic substances (according to indicators of biochemical oxygen consumption (BOC 5), suspended materials, petroleum products, nitrates, nitrites, sulphates, phosphates and chlorides.

Besides that it is proposed to oblige power plants to inform on shares of energy sources which were used for generation of electricity.
The reason of such requirements of the Regulator is the new Law “On the Electricity Market” according to which producers of electricity shall publish on their web-sites information on the share of each source of energy and on influence on environment caused by generation of electricity.
Full text of news: http://ua-energy.org/uk/posts/elektrostantsii-budu…

 

Almost all operators of distribution system have already finished process of separation of electricity producers on the territories attributed to them

Starting from August 01, 2018 following the requirements of Final and Transitional provisions of the Law of Ukraine “On the Electricity Market” vertically integrated entities have established new entities on the attributed territories. This was stated in announcement on the web-site of the National Energy and Utilities Regulatory Commission of Ukraine dated August 17, 2018. Such new entities shall thereafter obtain licenses for production of electricity for consumers, required by Regulation of NCSREU dated December 27, 2017, No. 1469, and for the next two years shall perform functions of universal service providers on attributed territories.

Attributed territory is determined as a region, Kyiv and Sevastopol, Autonomous Republic Crimea, on which before separation the respective vertically integrated entity was carrying out its activity on transfer of electricity by local power grids and supply of electricity under regulated tariff.

At the same time, as for today such vertically integrated entities as JSC “CHERKASYOBLENERGO”, JSC “ENERGY COMPANY “SEVASTOPOLENERGO”, PJSC “DTEK KRYMENERGO” have not implemented measures for separation.
Full text of news: http://www.nerc.gov.ua/?news=7842

 

Norwegian company NBT is planning to construct in Ukraine wind power plant with capacity of 250-330 MW

Total cost of construction is estimated at 369 mln. Euro, 150 mln. Euro of which is expected to receive from European Bank of Reconstruction and Development, and others – to syndicate from other sources.

Construction of wind power plant is planned on the basis of already existing in Kherson region small wind power plant with capacity of almost 3 MW which now is operated by “SYVASHENERGOPROM” LLC.

In 2006 Kherson regional state administration has transferred unfinished Syvash wind power plant into concession to “SYVASHENERGOPROM” LLC till 2055. In 2011 “SYVASHENERGOPROM” LLC signed lease agreement of land plots with the total area of 12 hectares which are under concession wind power plant and 1,3 thousand hectares designed for construction of new wind and sun generating capacities.

In 2018 Norwegian company NBT bought company “SYVASHENERGOPROM”. Now NBT is planning to construct a new plant with capacity of 250-330 MW near existing windmills.

NBT Company (http://www.nbtas.no/) is specialized in construction of wind power plants mostly on the territory of China. As of today it owes 49 % of shares of wind park Linxi with capacity of 100 MW and 33 % of shares of wind park Baicheng with capacity of 49,5 MW in China.
Technical justification of Syvash wind power plant foresees also increasing of capacity of the existing plant up to 5 MW (it is equipped with 16 out-of-date wind generators of model USW56-100 with nominal capacity of 107,5 kW for each and two wind generators of model Т600-48 with nominal capacity of 600 kW).
Besides that earlier “SYVASHENERGOPROM” was planning construction of modernized wind park with capacity up to 300 MW and sun power plant with capacity up to 100 MW on the neighbouring land plots.
Full text of news: http://ua-energy.org/uk/posts/yebrr-mozhe-prokredy…

 

Greek island Tilos shall switch on 100 % of alternative energy

Till the end of 2018 Greek island Tilos will be the first in Mediterranean sea which totally switches on alternative sources of energy: wind and sun. This summer technicians have performed final tests of a new system which shall satisfy energy needs of resort by virtue of batteries which will be charged by wind turbine and sun power plant.

Now on the territory of the resort wind turbine with capacity of 800 kW is being constructed.

Innovation of this program consists in special electric batteries which shall save the energy produced from wind and sun and transfer it in the periods of intense consumption in the high tourist season – for maintenance of the stability of electricity supply.

Program Tilos – “Technological innovations for local optimal integration of battery saving of energy” – is one of the directions of investment program of European Union Horizon 2020. In this project the prototype of battery system which is working more efficiently with excess of electricity is used.
To launch Tilos it is needed to make modernization of the network by installing in each residential and commercial building “smart” counters which will calculate periods of peak load.

Main part of funding of the project in amount of 11 mln. Euro (total cost equals to 13,7 mln. Euro) was provided by European Union. As it is mentioned in the European Commission Tilos can become a good example for other small islands of EU which have limited access to the continental electricity network.
Full text of news: https://ecotown.com.ua/news/Hretskyy-ostriv-Tilos-…

 

Tree shaped wind turbines to be installed on the streets of Paris

A French company “New Wind” is planning to install tree-shaped wind turbines at the Place de la Concorde in Paris, France. The company’s founder, Jérôme Michaud-Larivière came up with the idea while walking in a Paris square, when he “saw the leaves tremble when there was not a breath of air”. He hopes the trees can be used to exploit small air currents flowing along buildings and streets, and could eventually be installed in people’s yards and urban centres.

Besides that the author of the idea admits that the efficiency of the trees is low compared to more consistent currents higher up, but believes the £23,500 trees are more viable and less intrusive than conventional wind turbines. The 26 feet trees, which use tiny blades inside their “leaves” could potentially be profitable in regions where yearly wind speed is not less than 7,8 mph.
Full text of news: http://www.alternative-energy-news.info/tree-shape…

Max Lebedev

Max Lebedev

Partner, Head of Corporate Law and M&A practice, Attorney at law

  • Recognitions
  • Best Lawyers in Ukraine 2021
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