✉️EUEA sent a letter to the NEURC

On February 13, a letter regarding the Association's support of the draft resolution of the NKRECP "On Approval of Amendments to the Resolution of the NKRECP dated April 26, 2019 No. 641" was sent.

The adoption of the draft Resolution and changes to the Market Rules are extremely important and relevant for RES producers, who expect the regulation of the mentioned issues by secondary legislation so that the producers will have the opportunity to enter the market and work in all segments of the electricity market on a market basis.

Thanks to the IMEPOWER team for preparing the letter! The letter is attached.

📊 The level of payments of the Guaranteed Buyer to RES producers

For 10 days of February, the level of payments for "green" electricity was 56.3%, and for January 2023 - 91%, which together amounts to UAH 2.4 billion.

As of February 15, 2022, it has been paid - 53.3%, and the debt of NPC "Ukrenergo" - is UAH 13.5 billion. Details.

✔️Ukrainian business will be insured against war risks

The draft law 9015 on the insurance of investments in Ukraine against military risks was registered in the Verkhovna Rada. According to the Ministry of Economy, in the near future, with the support of MIGA, investors will be able to secure their investments in Ukraine by purchasing a special insurance policy, and receive up to 90% compensation for their potential losses incurred as a result of military operations.

An agreement has already been reached with MIGA on a pilot project worth $30 million. Similar projects are planned to be implemented in 2023 for $1 billion.

📌A meeting of the RES sector associations with NEURC was held

On February 16, 2023, NEURC held a working meeting with RES representatives. During the meeting, the participants discussed the following issues, namely:

• conducting timely and full settlements with producers at the "feed-in" tariff – the Regulator is considering the possibility of using a part of previously attracted loans for payments, also the representative of "Ukrenergo" noted that according to the results of January, there is a decrease in the electricity volume transmission by 20%;
• determining the conditions for reimbursement of the service cost for ensuring an increase in the share of electricity production from alternative sources;
• the possibility of adjusting the tariff for electricity transmission services of NPC "Ukrenergo" to finance the needs of "green" generation;
• prospects of transition from work under the "feed-in" tariff to work on a market basis - the Regulator noted that they sent the new Concept of the market for consideration by the Government;
• The Regulator and participants noted that there is currently no agreement on the formula for imbalances. They agreed to continue working on this issue in working groups. During the meeting, the NEURC chairman cited the decision of the appeal court dated 31.01.2023 regarding the application of the decision of the Supreme Court dated 08.09.2022 and said that he believes that the court's decision concerns calculations exclusively from the date of its adoption.

According to the results of the meeting, the participants agreed to maintain a permanent professional dialogue aimed at resolving the issues raised. The next meeting was planned to be held based on the results of the inspection by the Regulator of NPC "Ukrenergo", which should verify the company's financial indicators.

👥 Decisions by the NEURC announced at the meeting on February 14:

• Adjusted the amount of the cost of the service to ensure an increase in the share of electricity production from RES, provided by the Guaranteed Buyer in November 2021, taking into account the Courts' decision.  Resolution and justification.
• Amended the Guaranteed Buyer's estimate regarding financing the expenses "Regulation contribution" and "Court fee and maintenance of court processes" through the balance of funds as of January 1, 2023, from savings in 2022.
• Approved the Resolution on clarifying the requirements in terms of the procedure for the fulfillment of technical requirements by existing consumers with installed generating units.

⚡️ENTSO-E decided to increase the technical possibility of importing electricity to Ukraine to 700 MW at any time

The increase in trade capacities available for electricity import supports Ukraine and Moldova in ensuring the supply of electricity to end consumers, reported on the ENTSO-E website.

💲Imbalances: the court supported NPC "Ukrenergo" claim for UAH 1.17 billion funds of SE "Guaranteed Buyer"

01/13/2023 The Northern State Court of Appeal refused to satisfy the appeal of the SE "Guaranteed Buyer" and left unchanged the decision of the State Court of Kyiv dated 09/20/2022 (case №910/9328/21)in terms of recovery from the complainant in favor of "Ukrenergo" of UAH 1.17 billion in debt (the cost of electricity for settlement of imbalances for January-April 2021). Details.

⚡️EUEA participation in the Energy Week Black Sea conference 

On February 7-9, the Black Sea Energy Week conference was held in Bucharest. EUEA Director Kateryna Polyakova took part in a panel discussion devoted to the prospects for the development of Ukrainian green energy. The key points of the panel discussion were 

• Ukraine's post-war energy industry is undergoing significant changes both on the generation side and on the demand side. We already understand that the consumption of metallurgical and some other sectors has decreased, and the geography of consumers has also changed.
• 25% of electric power generation in Ukraine was due to heating plants, most of which are now significantly damaged. With a strategic approach to the development of the sector, a large share of this percentage can be replaced by renewable energy. Ukraine should set more ambitious goals for the green transition than was announced.
• A strong existing ecosystem of RES producers and engineering companies, as well as the potential for equipment localization for the sector, will be important factors in the further development of the sector.

The rich agenda of the conference and more than 250 participants from the countries of the Black Sea region testify to the lively development of the RES sector in such countries as Romania, Bulgaria, Turkey and Moldova. This is important to understand when planning the post-war development of the Ukrainian energy industry: while the war in Ukraine continues, its neighboring countries are actively working on solving EU energy security issues.

✔️Summary of the EUEA and GOLAW joint webinar “Options of compensation for damages caused by the military aggression of russia”

According to the latest data, as a result of a full-scale war, russia caused losses to Ukraine in the amount of more than 600 billion dollars as of the beginning of 2023, as noted by the Prime Minister of Ukraine.

The damages relate to the demolition, destruction and damage of energy facilities, offices, warehouse and production facilities, etc.  At the moment, specific mechanisms for compensation of losses are in the process of development. As of today, there is no clear and unified procedure and algorithm for damages recovery, but a plan for such measures is being developed. Learn more about the above ways of compensation for damages, as well as practical cases regarding compensation for losses in the field of energy in the webinar video recording.

Webinar recording.

📊 IEA Electricity market report 2023

This year's report offers an in-depth analysis of the latest strategies, trends and market developments, including forecasts to 2025 for electricity demand, supply and CO2 emissions, with a detailed study of the changing generation mix. It contains a comprehensive analysis of events in Europe, which faced various energy crises in 2022 (Ukraine, pages 90-91). Report.