Energy Sources: Weekly Digest, December 3-9

Topic of the week: Future of the "green" generation auctions

This week, the relevant committee of the Verkhovna Rada discussed future legislative changes regarding the introduction of the green energy auctions. With Europe’s highest RES prices, Ukraine has to resolve this issue because of the economic imbalance of such an approach, as the long-term stimulation of the green energy needs compensation through consumers’ tariffs.
At present, resulting from difficult discussions, the following amendments were proposed to the Verkhovna Rada within the bill No. 8449-D: introduction of auctions from 2020, reduction of the "green" tariff from 2020: by 25% for the SPP plus a further reduction by 2.5% annually next 3 years, for the WPP the tariff will be reduced by 10% with a 1.5% decrease next 3 years. 
Tariff cut is inevitable, but whether all the RES sectors are already "stimulated" and supported just enough? According to members of the Bioenergy Association of Ukraine, a 10% reduction in the green tariff for biomass and biogas from 2020 and another 10% from 2025 will have a negative effect on the development of the industry that has not yet discovered its potential. By the way, the tariff for biomass electricity production in Ukraine is considerably lower than in Europe unlike solar and wind power generation.

Company of the week: Energoatom made the top five of the cleanest industries

The company arrived at "Best Green Energy Generation: Carbon-Free Generation Capacity" rating (TopGreenPowerGenerators: Carbon-FreeGenerationCapacity). The rating includes the 20 largest energy generating companies worldwide. It prepared by EnergyIntelligenceGroup, the international information
and analytical agency, within the EI NewEnergy project. «GreenUtilitiesReport» PDF file.

 Figure of the week: The EBRD will provide up to EUR150 million to Sivashenergoprom

Let us recall that the company is a subsidiary of the Norwegian NBT. Previously, the EBRD stated about the discontinuation of financing of solar generation projects because of a delay in the introduction of auction system. Support for wind power projects was open to question. EUR 75 million will probably be allocated from the EBRD's own funds, other funds - syndicated from other sources. The total cost of wind energy facilities is estimated at EUR 369 million.


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