that Ukraine seeks from the World Bank and the Clean Technology Fund. According to Wednesday’s decision by the Cabinet of Ministers, the money would go for buying and installing 197 lithium-ion energy storage systems near hydroelectric plants operated by Ukrhydroenergo. Ukraine’s power transmission system is ill-equipped to handle the fluctuating electricity flows from wind and solar power plants.
against the Guaranteed Buyer, Finbalance reported on Monday. As of mid-May, Ukrenergo, parent company of Guaranteed Buyer, said it still owes $574 million in overdue 2020 payments to wind and solar producers. More bills went unpaid this year. PV Magazine reports that Lithuania’s Modus Group, the owner of three solar plants in Ukraine, is preparing to sue the government for €11.5 million in losses due to last summer’s 15% reduction in solar tariffs.
to check the safety of the Soviet-era locks and dams and the viability of Ukryhdroenergo’s multi-year, $120 million rehabilitation plan, reports the press service of the state hydroelectric company. Mott MacDonald counts as a corporate ancestor a water engineering consultancy that worked on Egypt’s Aswan Dam.
“Despite the ongoing challenges in the renewable energy industry in Ukraine, we believe that these growing pains will be successfully managed. Green energy is destined to play a growing role in the Ukrainian energy sector.”
“Ukraine has an extraordinary land resource which is compatible with large scale renewable energy. We look forward to building our next wind project.”
says Artem Semenyshyn chairman of the Solar Energy Association of Ukraine, reports reform.energy. The problem of ‘over production’ by solar plants is to sharpen in the summer, typically the peak solar power production season.
. Scatec’in Ukrayna’da dört faal güneş enerjisi santrali ve 111,4 milyon dolarlık ödenmemiş kredisi var. Şirketin birinci çeyrek raporuna göre, Scatec’in Ukrayna’da sahip oldukları şöyle: 133 MW’lık bir güneş enerjisi santralinde yüzde 73 hissesi, yapım aşamasında olan 203 MW’lık bir santralin tam mülkiyeti ve “birikmiş işlerde” 65 MW’de yüzde 65 komisyon.
– Kyiv-based Southwestern and Dnipro-based Pridneprovskaya – reported the Observer news site. To keep trains running, the Cabinet of Ministers could order the release of fuel from the State Reserve. The lifeblood of an industrial economy, diesel is essential for farm machinery, long haul trucks and Ukraine’s military.
, Reuters reported in a story based on interviews with five traders. Rosneft does not plan to resume supplies next month and Belarus’ Mozyr refinery plans to cut supplies to Ukraine by 37% next month as it undergoes planned maintenance. Ukraine consumes 7 million tons of diesel a year, importing two thirds from Russia and Belarus. In 2019, Ukraine bought four million tons of diesel from Belarus, paying $2.4 billion. Efforts to compensate with sea and rail shipments are not
. Food prices increased by 10%. Leaders were food items produced in Ukraine: bread +14%; fruit +14.5%; sunflower oil +48.5%; sugar +65%; and eggs +109%.
With cold weather expected through the end of February, coal supplies are at dangerously low levels. DTEK Energy, responsible for 90% of Ukraine’s steam coal production, cut its coal production last year by almost 16% yoy, according to Energy Ministry data.
DTEK is tripling its coal imports this month to 450,000 tons, Maxim Timchenko, CEO of DTEK, Ukraine’s largest private power producer, told reporters yesterday. In addition to importing about 150,000 tons a month from Russia, DTEK will import coal from Poland and Kazakhstan. Timchenko said: “DTEK is producing as much coal as possible, and we are producing as much electricity as possible.”
To get its own house in order, DTEK Energy plans to swap its $1.67 billion debt for new Eurobonds by May, Timchenko said of the company’s bond and bank debt restructuring. “It will be a public instrument with a yield of 5% this year, and 7% starting next year until the end of 2027. It will take three months legally [to complete] this process.”
Concorde Capital’s Alexander Paraschiy wrote that the combination of prolonged cold weather and coal production cuts “has resulted in a risky situation in Ukraine’s energy sector.” He warns that yesterday morning: “Six power plants of DTEK Energy that are designed to burn hard steam coal have got coal stockpiles only enough to operate during 33 to 57 hours, based on Energy Ministry data.”
Yesterday morning, 11 DTEK plants were temporarily closed for emergency repairs, reports Ukrenergo, the state electricity distribution company. During the first week of February, sub-freezing temperatures pushed electricity usage to the highest level in six years, Andriy Gerus, chairman of the Rada Energy Committee said on his telegram channel. Timchenko said yesterday that his capital-starved company has not had the money to do regular maintenance on 50-year-old Soviet plants. He said: “If we do not have the money, we can’t
“Financial genocide of power generating companies” threatens Ukraine with electricity brownouts as early as this month and blackouts next year, Timchenko said at a press conference. In the last 18 months, power companies have suffered almost $2 billion in financial losses due to unpaid renewable energy bills, a market liberalization law that created “profiteering” and musical chairs at the Energy Ministry. Five ministers in 18 months have meant constantly changing policies and a “lack of professionalism,” he said. “Strategy is
Without financial relief, he warned, Ukraine will suffer electricity shortages and may miss a 2023 deadline to join Europe’s power distribution system. “Ukraine’s integration into the European energy market will increase competition, reduce prices and improve the quality of services provided,” he said. To get there, the government must create “a professional management team capable of overseeing the development of the energy sector, the application of best practices from our European partners, the integration of the Ukrainian energy system into
DTEK, Ukraine’s largest investor in renewables, plans to launch this year a pilot project for the production of “green” hydrogen and to build 1 MW energy storage capacity at its Zaporizhia thermal power plant site.
With the EU planning to invest €1 trillion to achieve carbon neutrality by 2050, a ‘carbon curtain’ of protective tariffs may grow up to protect the EU’s ‘clean’ products from competing products made from ‘dirty’ energy sources, such as coal or nuclear. “If others will not move in the same direction, we will have to protect the European Union against distortion of competition,” Frans Timmermans, the European Commission’s vice president for the European Green Deal, said last month. As the
“Carbon leakage” means ‘dirty’ industries relocating out of the EU to avoid carbon restrictions. Carbon border tariffs also are expected to supersede Ukraine’s Association Agreement with the EU. Under EU policies expected to be adopted next summer, new tariffs could be levied on Ukrainian steel, cement and even grain. The EU Green Deal could also end EBRD and European Investment Bank loans to companies judge ‘dirty’ for their emissions or use of ‘dirty’ energy.
Climate policy is “the biggest economic priority this year,” Taras Kachka, Ukraine’s Trade representative, wrote yesterday from Brussels on Facebook. “The success of our cooperation with the EU for decades will depend on how it is formed.” Addressing a public private debate over Ukraine’s National Economic Strategy, he warned: “This year, the European Union is actively working on how to influence climate change through import controls.”
“Shmyhal, German representatives of energy sector discuss European Green Deal,” Ukrinform, the state-owned news agency, headlined a story Friday about a video conference with officials of Germany’s Federal Ministry for Economic Affairs and Energy. “We are prepared for the challenges facing Ukraine in the context of the green transition, the decarbonization of the economy,” Shmyhal said at the start of a meeting which was largely designed to win Germany aid and expertise to help Ukraine’s 61 coal mining towns make
Wind and solar investments account for one quarter of the €49 billion of foreign direct investment in Ukraine since Independence in 1991. However, €660 million in unpaid electricity bills is forcing foreign investors to renegotiate bank loans, mull bankruptcy and to pursue international litigation against Ukraine, participants told an Energy Talk webinar organized last week by the European Business Association.
Carl Sturen, the Swedish managing director of wind power developer Vindkraft, said: “We are lagging behind on our payments and we definitely can’t wait.” Sergii Shakalov, CEO of Kness Group, a solar panel production plant launched in 2019 in Vinnytsia, says he has already lost $10 million due to non-payments. “One of the biggest problems of Ukraine is that it doesn’t comprehend that agreements should be fulfilled in any situation,” complained Shakalov, reports the Kyiv Post, a co-sponsor of the
The Government’s Guaranteed Buyer says it has paid all for renewable energy generated in August and for 93% of power produced in September. The press service of the Ministry of Energy reports that the green tariff reductions negotiated with renewable companies in July has saved consumers $53 million.
China’s Sinohydro Corporation Limited intends to file an international arbitration claim for Ukravtodor’s termination two weeks ago of its contract for construction of a bypass highway around Zhytomyr. Sinohydro was five months overdue on the project, delays the company blamed Covid disruptions and the tardy transfer of a key land plot by Ukraine’s state highway agency. The Chinese say that in September, a Dispute Resolution Council give them an extra three months to complete work by the end of this
Coming as Ukraine seeks public-private partnerships with foreign road construction companies, Sinohydro says its treatment should serve as a warning. “It is difficult for the company to understand why, over and over again, Ukravtodor similarly terminates agreements with contractors, including with other foreign companies,” the Chinese company said yesterday. “Sinohydro believes such actions of Ukravtodor will significantly weaken the desire of foreign contractors to participate in the construction projects of the state agency.”
In London, Timothy Ash polled his Twitter followers about Ukraine’s IMF prospects. He posted on @tashecon this breakdown of the 260 replies: IMF money this year – 15%; IMF money in Q1 – 27%; IMF money in Q2 – 15%; unclear as major problems – 43%.
Covid accomplishes what Zelenskiy cannot. Covid has paralyzed the Constitutional Court, with the majority of the 15-member court “either sick or awaiting test results because they have symptoms of coronavirus,” a ‘source’ tells Interfax-Ukraine. One judge, Ihor Slidenko, tells the news agency: “I am reliably aware of two cases of COVID-19 among judges of the Constitutional Court.”
Russia’s last trade office in the Baltics was in Lithuania. Trade during the first half of this year dropped by almost one third, compared to the first half of 2019. An official note accompanying the decree by Russian Prime Minister Mikhail Mishustin complains: “The foreign economic policy pursued by the leadership of the Republic of Lithuania does not contribute to building up trade relations with Russia.”
The recent decision by Ukraine’s Constitutional Court to dismantle anti-corruption legislation is the biggest impediment to a restoration of IMF loans flows to Ukraine, Kyrylo Shevchenko, governor of the National Bank of Ukraine, told Voice of America in Washington after meeting with the IMF and World Bank. Other issues are: the mounting budget deficit and the work of the central bank after the summer changeover of leadership.
Concorde Capital’s Alexander Paraschiy reads between the lines of this “sobering statement” and concludes: “No IMF tranche in 2020, meaning IMF-related financing of Ukraine’s 2020 budget deficit (from the Fund, the EU and the World Bank) for a total amount of up to $2.5 billion won’t arrive this year. Therefore, the only viable way for Ukraine to try to fill its budget gap without such money is a massive issue of international Eurobonds. As soon as it becomes apparent to
Zelenskiy and his chief of staff, Andriy Yermak, are being treated for Covid at Feofania Clinic, the southern Kyiv hospital reserved for high level officials. Two ministers reported this week that they also have Covid: Finance Minister Serhiy Marchenko and Defense Minister Andriy Taran. Three presidential aides reportedly have recovered from Covid: Yulia Kovaliva, Roman Mashovets, and Serhiy Shefir.
With the nationwide ‘weekend lockdown’ starting after midnight tonight, there is scattered resistance. The leaders of Lviv, Rivne and Sloviansk say they will not follow the rules. Epicenter, one of the nation’s largest retailers, announced it is declaring a 72-hour Friday. Yesterday, Health Minister Maksym Stepanov announced a new peak of 11,057 new Covid cases – double the daily average of one month ago. Stepanov told reporters that Covid is spreading in Ukraine at a “hurricane rate.”
Upside of global warming: the shipping season on the Dnipro will be extended by two weeks this year, to Dec. 1, reports the State Maritime and River Transport Service. The four northernmost locks — Kyiv, Kaniv, Kremenchuk and Kamianske – had been scheduled to start closing Sunday. Closing the river involves pulling out hundreds of buoys in a north-south sequence. But Kyiv is not forecast to see prolonged cold weather until mid-December. Last winter, serious ice only formed in January.
Ukraine will invest $70 million next year to revive regular production of aircraft at Antonov and to “master the full production of helicopters,” Prime Minister Shmyhal told the Cabinet Tuesday. The money is to be part of a decade long, $1.4 billion investment to revive the portions of Ukraine’s aircraft industry seen as most profitable. Emerging from an import substitution phase prompted by the 2014 break with Russia, Antonov now is building an An-178 military cargo jet for Peru’s National
Russia has decided to its close trade missions in two of its Western neighbors, Ukraine and Lithuania, and to open a mission in Syria. Russia-Ukraine trade steadily dropped after 2014, the year Russia annexed Crimea and moved troops into Ukraine’s Donbass. Last year, China displaced Russia as Ukraine’s largest single nation trading partner. Through October, Ukraine’s trade with the EU this year was three times its trade with the Moscow-led Commonwealth of Independent States, according to figure released Tuesday by