Market news as of November 18, 2022

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👉🏻 Associations appeal regarding the tariff for electricity transmission services for 2023

On November 17, the EUEA, together with UWEA, UARE and SEAU, appealed to the NEURC regarding the draft resolution “On setting the tariff for electric energy transmission services of NPC “UKRENERGO” for 2023″, which provides for the establishment of the tariff for electricity transmission services for system users (except for “green” electrometallurgy enterprises) at the level of UAH 522.46/MWh (excluding VAT). At the same time, the tariff level calculated by NPC “Ukrenergo” for system users (except for “green” electrometallurgy enterprises) was to be UAH 636.17/MWh.

Also, the Association proposed to determine, upon approval of the tariff, in which way the full settlements of the NPC “Ukrenergo” will be provided for payment to the SE “Guaranteed Buyer” for the services provided in 2022 to increase the share of electricity production from alternative sources. More details in the letter.


📌 Letter of approval to the CMU on reservation from the military draft of workers in the RES sector

On November 4, the Verkhovna Rada adopted Draft Law 7687 on amendments to the Law of Ukraine "On Mobilization Training and Mobilization" regarding the reservation of conscripts for the period of mobilization and wartime, which updated the rules for the reservation of workers. According to the approved amendments to the law "On Mobilization Training and Mobilization", military conscripts who work, in particular, at enterprises, institutions and organizations that are critically important for the functioning of the economy and ensuring the livelihood of the population in a special period, are subject to reservation. At the same time, the adopted changes require changes to by-laws, in particular, relevant decisions of the Government. The draft letter is attached.


💬 Kateryna Polyakova's comments regarding the transmission tariff for 2023

"We call for decisions on the tariff to be made in the context of the big picture of what is happening around the renewable energy sector. Starting from July, at international conferences, we hear statements from the government and the President regarding the possibility and intentions of Ukraine to become a "green hub" for Europe, plans for "green" reconstruction and the importance of RES for the country's energy security. In order to see this green recovery, it is very important for us to preserve the industry and the confidence of existing investors in RES now.

 We welcome the intention of the NEURC to approve the tariff for transmission services at a level that should take into account the requirements of the legislation on the formation of the tariff. At the same time, we ask to provide an opportunity to get acquainted with the justification of the received values of the indicators that were used for calculations (we noted the list of indicators in the letter). The proposed tariff is still lower than Ukrenergo's calculations, as we heard from a Ukrenergo representative earlier, it will still create a deficit, and does not take into account the need for full settlements with RES producers for 2022 and the completion of settlements for 2021." Video.


⚡️ War risk insurance should be extended to both foreign and Ukrainian investors, - Yulia Svyrydenko

The First Vice Prime Minister emphasized that war risk insurance remains an important issue from the point of view of attracting investments. An agreement on military risk insurance in the amount of $30 million has already been reached with the MIGA agency, which belongs to the World Bank group. Investors, having purchased an insurance policy, will be able to receive up to 90% compensation of their potential losses. Two projects are currently in the works: one is a foreign investment, the second is a purely Ukrainian project. Two projects are currently in the works: one is a foreign investment, the second is a purely Ukrainian project.

Next year, Ukraine plans to mobilize up to $1 billion for the project with MIGA. Negotiations are also ongoing with DFC, which is ready to lend Ukrainian businesses up to $1 billion. Support is possible both by direct lending and by insurance of the borrower's credit risk. Details.


✔️ The government is canceling taxes on the import of generators and batteries

Recently Ukrainian PM Denys Shmyhal has announced that Ukraine will lift all import taxes and VAT for power generators and grid resilience solutions. This opens a once-in-a-lifetime opportunity for innovative companies to prove their worth in the harsh reality of an energy grid that is constantly under attack by #russianterrorism. Resolution of the CMU.

If you are developing something from the following:  hydrogen/ammonia/methanol fuel cells, off-grid power-to-power solutions, grid frequency support tech, short-term/mid-term/seasonal energy storage solutions of all kinds, grid data analytic tools, alternative decentralized power production technologies, not-traditional fuel powertrains for railway transport, etc. The support of Ukraine and proving your technology effective and backing it up with real data will provide you with the best advertisement for years.


✍🏻Synchronization of strategic documents in the energy sector in the context of the post-war recovery of Ukraine

The Task Force “Cooperation for Restoring the Ukrainian Energy Infrastructure” is pleased to publish the new report "Synchronization of strategic documents in the energy sector in the context of the post-war recovery of Ukraine" The report provides a comprehensive picture of the strategic legislative framework for key stakeholders involved in the Ukrainian energy sector’s forecasting, planning and development. Details.


✔️The Ministry of Economy of Ukraine signed a Memorandum with the world's largest investment company

On November 10, the Ministry of Economy of Ukraine and the world's largest investment company BlackRock signed a Memorandum of Understanding by which they agreed on the framework of advisory assistance for the development of a special platform for attracting private capital to restore Ukraine and support the economy. Thanks to the platform, it is planned to mobilize investments, primarily private, in key sectors of the Ukrainian economy, taking into account the needs for reconstruction due to the full-scale invasion of russia. Details.


🤝The USA and Ukraine will start a hydrogen production project

The special representative of the President of the United States of America on climate issues, John Kerry, and the Minister of Energy of Ukraine, Herman Halushchenko, announced a pilot project for the production of hydrogen using a small modular nuclear reactor.

The project should evaluate and demonstrate technical capability, economic competitiveness, as well as the possibility of production and use of hydrogen and ammonia on an industrial scale using small modular reactors to obtain clean carbon-free energy. Details.


💥Scatec and partners start commissioning of “Egypt Green”

On November 8, Scatec began commissioning the first phase of the green hydrogen plant in Ain Sokhna, Egypt, during an event at COP27.

The Integrated Green Hydrogen Power Plant is the first integrated green hydrogen power plant in Africa. The total capacity of electrolyzers is 100 MW, powered by solar energy and wind with a capacity of 260 MW. The plant will supply up to 15,000 tons of green hydrogen as a feedstock for the production of up to 90,000 tons of green ammonia per year.

The first and largest PEM electrolyser in Africa is currently being tested for the first phase of the project. A loan from the EBRD in the amount of EUR 80 million was used to finance the project. Details.

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December 05, 9.30-17.30 CET - European Hydrogen Forum. Registration.

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November 21-25 - Energy Security Forum 2022. Registration.


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Sincerely,

EUEA Team
Dorogozhytska str., 3, UNIT City, building B9, office 5, Kyiv, Ukraine
Mobile (WhatsApp): +38 091 331 0010

mailto: office@euea-energyagency.org   

Established in November 2009, European-Ukrainian Energy Agency (EUEA) has grown into an effective advocate for the realization of Ukraine’s massive renewable energy and energy efficiency potential, by working within Ukraine’s business community, government structures, and with other key energy market stakeholders.

Members of EUEA: 

Acciona, Arzinger, Beycelik-Elawan Renewable Energy LLС, CCT Energy, CES, DTEK, EMERGY AS, EMSOLT, Electrum, Elementum Energy, Eurocape, GOLAW, Guris, Green Genius, GrECo Ukraine, GSE&C, Huawei, iC consulenten, IMEPOWER, Indian Solar, IRUN Engineering, Investment Fund For Developing Countries, Irshanska SES, Khmelnytsky Bio Power Plant, Met Energy, Scatec, Schneider Electric Ukraine, Sfera, Sungrow, West Solar, Terra Solar, Thermosystems, TIU Canada, Total Eren, Ukraine Power Resources, Ukrwindinvestments.


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