Latest market news 19/05

👉🏻According to the results of NEURC meeting, the Regulator:

Approved the draft decision on amendments to the Code of Commercial Accounting of Electric Energy. The text of the draft resolution and justification by the link.
Extended the period for carrying out a scheduled inspection of Ukrenergo by five working days. The text of the draft resolution and justification by the link.
Approved the draft resolution on the approval of the Gas Storage Development Plan for 2023-2032 of the Gas Storage Operator JSC UKRTRANSGAZ. The text of the draft resolution and justification by the link..

✔️"Guaranteed buyer" (GB) received 6 applications for temporary exit from the balancing group

As of May 16, GB has received only 6 applications for the suspension of contracts from June 1. As noted by GB, since the beginning of the full-scale war, 42 entities with a total capacity of 227 MW have joined the balancing group of the "Guaranteed Buyer". Among them, 5 companies returned after the termination of the contract. "This shows that the counterparties tried to enter the free market on their own, weighed the results and decided that it is more profitable for them to return. Also, since the beginning of the new year, SE "Guaranteed Buyer" has concluded 19 agreements with counterparties," the state company says. Source.

💬Interview with Andriy Herus, Chairman of the Verkhovna Rada Committee on Energy and Housing, for Ukrinform

Main points:

- electricity export resumed in surplus conditions, without concluding long-term contracts and with the possibility of redirection for domestic consumption;

- Ukraine needs to develop electricity storage technologies, but such technologies are not enough yet, so the electricity produced in the country can be exported;

- the need to transition to a distributed, decentralized energy system with more distributed generation, in particular "green";

- the goal is to reduce the share of traditional energy and develop small modular nuclear energy and hydrogen energy;

- gas-piston generation is promising for balancing the energy system in the context of the development of green generation. There are already a number of projects to install gas-piston power plants;

- there are problems with the collection of the necessary tariff revenue and the timely payment of all electricity sold under the "green tariff". But the state works in this direction;

- we are working on a draft law that, among other things, provides for guarantees of origin of green energy (at the beginning of May, the parliament adopted draft №9011-d), as well as on a document on the prevention of abuse in wholesale energy markets (№5322). I hope that in the near future we will adopt it in the second reading;

- the law on the corporatization of Energoatom was adopted. Next should be the decision of the government, the formation of a professional authoritative supervisory board and, in fact, the corporatization of the company;

- we are still working on implementing a norm of 5% bioethanol in gasoline in Ukraine. This is what works in the European Union, which means the content of bioethanol in fuel is 5%.

📊The Cabinet of Ministers can provide loans to energy companies for recovery before winter

The government offered all energy companies loans to restore damaged equipment. Several TPP and CHP operator companies have already agreed to this program. This was reported by ExPro. According to the publication, "Lending under the "5-7-9" program was offered to all companies, but so far only a few have agreed.

♻️Metinvest is ready to join the "green" transition of Europe

Mining and metallurgical group "Metinvest" is ready to join the "green" transition of Europe within the framework of decarbonization of the steel industry. General Director Yuriy Ryzhenkov stated this at the Made in Steel conference in Milan. According to him, most of Ukraine's energy balance is already decarbonized: 65% of it consists of nuclear energy, 10-15% from renewable energy sources, and 10% from hydrogen. He added that the transition to "green" production will make steel products more competitive in the future. Cleaner steel will be preferred over other products such as aluminum or plastic. Metinvest also intends to increase its presence in Europe at all levels. Source.

⚡️Ukraine started minor import of electricity from Slovakia - Ukrenergo

Since April 17, Ukraine has started exporting electricity to Slovakia — 200 MW is supplied every hour. Our power system maintains a sufficient power reserve. This was reported in the press service of Ukrenergo. According to the information, electricity is being exported to Poland (75 MW every hour) and Moldova (99-134 MW at different hours).

✍🏻SAEE signed a memorandum on broad cooperation with the International Energy Cluster

The International Energy Cluster is an association of Lithuanian companies and scientific institutions acting in coordination with Lithuanian government structures and working in the field of energy. The parties agreed to cooperate in the following areas: energy efficiency, decarbonization, alternative fuels and the development of highly efficient cogeneration. The partners showed a special interest in the operation of the future leasing platform. The parties also discussed the work of the SAEE on the development and implementation of technical regulations regarding eco-design requirements for various equipment and machinery, as provided for in the EU. Details.

💲The government will provide financial support to energy companies affected by missile attacks

The CMU will provide financial support to energy companies affected by russian missile attacks. Companies will be able to receive loans under the "5-7-9" program and a state guarantee for commercial loans for 10 years, writes RBC-Ukraine with reference to Resolution No. 489. In particular, amendments were made to Resolution No. 28 of January 24, 2020 "On the provision of financial state support". Loans can be granted for "restoration, repair or replacement of the energy infrastructure of thermal power plants and thermal power stations damaged as a result of hostilities, necessary for the sustainable passage of the autumn-winter period of 2023/24." The loan is granted for a period of up to ten years for repairs that do not exceed 3.6 million hryvnias per 1 MW of installed capacity and no more than 90% of the cost of the necessary financing. Source.

✅ From October 1, 2023, Ukrainian importers in the EU will report on CO2 emissions

On April 18, 2023, the European Parliament approved the text of the Regulation on carbon border adjustment mechanism (CBAM). The implementation will look like this: the manufacturer of a product subject to the ETS, when importing it into the EU, must pay for the CO2 emissions released as a result of its production, buying ETS certificates at a price that will be formed by the EU ETS trading market. In case of non-compliance - a fine with a subsequent ban on trade in the EU. From October 1, 2023 to December 31, 2025, there will be a transition period during which the importer only reports CO2 emissions and does not pay for them. Details.

👉🏻 TotalEnergies will launch Europe's largest energy storage system in Belgium

TotalEnergies will launch Europe's largest energy storage system in Belgium, the media reports with reference to the company's press service. The energy storage capacity will be 25 MW with a capacity of 75 MWh, which is equivalent to the daily consumption of almost 10,000 households. The storage unit, which will be commissioned by the end of 2024, will help meet the needs of the European and, in particular, the Belgian high-voltage power grid 24/7. Details.

📊 EBRD's assessment of the possibilities of recovery of Ukraine's GDP

The latest Regional Economic Prospects report by the European Bank for Reconstruction and Development (EBRD) sets out a scenario, drawing on the lessons of history, which shows that a five-year recovery would require extra investment of around US$ 50 billion a year from inflows of capital from abroad, including private capital, in that time.

For Ukraine to recover within five years, its economy would need to grow by 14 per cent a year throughout that period and its net inflows of the capital should be at the level of 20% of GDP or EUR 50 bln per year, according to the report. This would raise average GDP to US$ 225 billion from around US$ 150 billion in 2022, in constant prices.