✔️ High-level Advisory Group on the Ukrainian NECP launched in London amid Ukraine Recovery Conference

The Government of Ukraine, the Energy Community Secretariat, G7+ members and international partners present today, at the premises of EBRD HQ, including EBRD, EIB, USAiD, Word Bank, UNDP, DFC recognized that an integrated National Energy and Climate Plan for Ukraine (NECP) is a key reference document in line with Ukraine’s economic recovery vision, outlining Ukraine’s green rebuilding reform priorities, based on the EU template for energy and climate governance, aligned with the Energy Strategy 2050, the international commitments of Ukraine under the Paris Agreement, with the European accession process and decarbonisation targets under Energy Community Treaty.

A well-designed NECP shall facilitate market reforms and ensure consistency across the various sectoral policies and objectives of the European Energy Union. With the development of the NECP until mid-2024, it is aimed to unlock Ukraine’s potential to leapfrog to a state-of-the-art decentralized energy system based on renewables, which will serve a modern and highly-efficient energy system in the future. Details.

✔️ Ukraine after the war will be very interesting to private investors for the development of renewable energy sources - the top manager of the EBRD

"There will also be a huge wave of investment in renewable energy sources. Ukraine really has a history of success, because before the war there was an extraordinary boom in RES - 5 GW of renewable energy financed by private sources. And this is a template for Ukraine in the future," Carpenter said during a discussion on Ukraine's transition from coal to clean energy ahead of the London URC2023.

According to him, money from the public sector will also come to Ukraine, but it should be directed primarily to the development of nuclear energy, as well as to the construction and reconstruction of grids in order, among other things, to ensure the operation of the decentralized RES system.

He drew attention to the fact that the contours of Ukraine's energy sector in the future are quite clear - it will be built on nuclear and renewable energy, and the country has huge resources in all these areas. At the same time, Carpenter noted that RES previously developed in conditions of "imperfect market and tariffs", calling it a difficult transition period, but expressed his belief that in the future their development will be based on three fundamental pillars that will remove these problems. It:

• commitment to a green future;
  market reforms;
  integration with the European energy system. Source. 

⚡️Minister of Energy of Ukraine Herman Halushchenko on the launch of the Energy Partnership between Ukraine and Great Britain

"Together with the Minister of State for European Affairs, the British Foreign Ministry, Leo Dockerty, signed the Memorandum on Energy Partnership between our countries. The Innovation Fund "InnovateUkraine" will be created in the amount of 62 million pounds. Also, an Agreement was signed between Great Britain and IFC on the financing of Ukraine's energy security programs in the amount of 30 million dollars." Details.

✔️ The head of DTEK within the framework of URC2023 called on business to invest in the construction of the second phase of the Tyligul WPP in the amount of EUR450 million

DTEK, after putting into operation in May of the current year the first phase of the Tyligul WPP with a capacity of 114 MW is ready to continue the construction of the second phase with a capacity of 384 MW, for which it intends to attract 70% of the required capital of EUR 450 million, its CEO Maksym Timchenko said. According to him, EUR 450 million is needed for the construction of 384 MW of wind power, 30% of which DTEK is ready to invest itself. Details.

DTEK also intends to implement the Smart Grid construction project in the Kyiv region with a total cost of $145 million, reported its CEO Maksym Timchenko. "We have developed a concept of how to build modern smart grids (...) And we present this project, which will cost us 145 million, here for discussion," Timchenko said during the business table on reforming the energy sector of Ukraine within the framework of URC2023. Details.

✔️Ukraine Recovery Conference 2023: what support the partners have promised

• The United States will provide more than $1.3 billion to rebuild Ukraine, State Secretary Antony Blinken said.
• France will allocate €40 million to rebuild critical infrastructure and increase Ukraine's resilience, Foreign Minister Catherine Colonna said. The country will also launch an investment protection mechanism through the state Public Investment Bank.
• Germany will provide an additional €381 million for humanitarian aid this year, Foreign Minister Annalena Berbock said.
• The European Union has committed to covering 45% of the financing of the reconstruction of Ukraine until 2027, said the President of the European Commission, Ursula von der Leyen.
• Spain will provide a wide package of civil aid worth €7 million and 24 tons of humanitarian aid for victims of the explosion of the Kakhovskaya HPP, Foreign Minister Jose Manuel Albarez said. Source.

OTHER MARKET NEWS

✅According to the results of the meeting of the NCRECP, the Commission:

• Approved changes to the Procedure for Licensing Types of Economic Activities State Regulation of which is carried out by the Regulator. Details.
• Adopted the resolution "On determination of the rate of contribution to regulation for the III quarter of 2023." The rate of the contribution for regulation for the III quarter of 2023 was determined in the amount of 0.053%. Details.
• Approved the procedure for holding public consultations in the development of rules for the distribution of capacity of interstate crossings and determining the structure of the distribution of capacity. Details.
• Made changes to Resolution No. 109 dated January 17, 2023. The deadline for introducing the settlement mechanism on the balancing market using escrow accounts was postponed to January 2024. Details.

 👉🏻 ENTSO-E has increased the capacity of interstate interconnectors for importing electricity to Ukraine and Moldova to 1,200 MW

Now, from the zone of continental Europe to the Ukraine/Moldova block, the maximum available capacity will increase by 150 MW, Ukrenergo reports. Currently, the import of electricity from the EU is a significant source of covering a possible deficit in the Ukrainian energy system, the energy company adds.

📈UNDP published a report on "green" transformations in the Ukrainian energy sector of Ukraine

Ukraine's energy system remains extremely vulnerable and continues to operate in emergency mode with almost no safety margin for both power grids and generation, the report's foreword notes. UNDP analysts also provide the following statistical data:

• Generation capacity more than halved, from 37.6 GW to 18.3 GW as of April 30, 2023;
• Maneuvering capacity suffered the most and decreased by 68% from 14.3 GW to 4.6 GW, mainly at thermal power plants;
• The available capacity of nuclear generation decreased by 44% from 13.8 GW to 7.7 GW;
• Available hydrogen generation decreased by 29% from 6.6 GW to 4.7 GW;
• Available RES capacity decreased by 24% - from 8.1 GW to 6.2 GW.
• According to estimates of the World Bank, the damage caused to the infrastructure of electricity, gas, heat supply and coal mining exceeds 10 billion US dollars and continues to grow, the report emphasizes.

UNDP Report.

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