Accelerating the green energy transition
+380 (66) 508-07-64On November 13, the IV Legal Energy Forum was held in Kyiv. It is an event where energy market players, as well as representatives of the legal sector and public authorities, discuss current legal issues and challenges in regulating Ukrainian energy. This year, business leaders and gas companies of Ukraine, experts from state authorities, the chairman of the subcommittee of the Verkhovna Rada and others were present.
The political, economic and social implications of the introduction of a new electricity market and its pain points were discussed. One of the main topics is the potential of alternative generation and the European direction of energy market development.
Main topics of discussion:
- State support for “alternative” manufacturers – a course to reduce?
- Legal analysis of auctions
- Recent legislative changes in the renewable energy field
- Problematic issues of creating a new energy infrastructure
- New risks for Ukraine
AVENSTON CEO Dmytro Lukomskyi was invited to participate in the panel discussion “Alternative Potential of Ukraine” as an expert on the real sector of the alternative energy market of Ukraine. In his report “SOLAR ENERGY DEVELOPMENT STRATEGY. INDUSTRY PROBLEMS IN MODERN UKRAINE MARKET REALITIES” Dmytro Vasilyevich shared his view on the industry through the eyes of a Ukrainian company (contractor):
“Since 2012, the solar energy market in Ukraine has grown more than 20 times. This facilitated by the green tariff, which become an impetus for investors arrival. However, large volumes of solar and wind generation have led to a situation of insufficient power system reserves to maintain its sustainability and lack of high maneuverability. A green-coal paradox has arisen in the country. That is, in Ukrainian realities, the development of renewable energy sources creates competition not for nuclear power plants, but for NPPs. This problem could be solved by the timely introduction of auctions for generating capacities creation.”
Dmytro Lukomskyi’s theses
- Ukrainian realities, the development of renewable energy sources creates competition not for nuclear power plants, but for NPPs.
- Due to significant constant changes in the industry rules, amplified by the manipulative statements of politicians and behind-the-scenes decisions, a rather nervous atmosphere reigns in the market.
- A retrospective change in tariffs for renewable energy is unacceptable. Violation of Ukraine’s international obligations to investors will lead to the filing of claims in international investment arbitration.
- Ukraine currently lacks a clear strategy for the development of the solar energy industry by 2050, which will be able to steer the industry’s development in the right direction and make the market more sustainable and predictable.
- Renewable energy market players should unite and formulate a concept for the development of this sphere, which will contain a clear roadmap for the further development of clean green generation.
During the panel, the participants considered some important issues: what is the real situation on the market and the main problems of the industry, where the industry is moving and the government’s plans to develop green energy in Ukraine. Alternative energy is a global trend, so Ukraine has no other way of development than to move towards renewable energy sources.
The Executive Director of the Solar Energy Association of Ukraine Artem Semenyshyn presented statistics on energy sources and shared the ASEU’s view on the processes in the industry. A troubling situation with investors’ restraint from investing in Ukraine’s RES projects due to delays in green tariff calculations in 2019 and political uncertainty was highlighted.
Vladislav Maksakov, a representative of the NKREKP, outlined the principles by which auction systems will operate. The representative of the State Enterprise “Guaranteed Buyer” Gennady Ivanov spoke about the functions and interaction of the SE with the business and presented a new model of the market.
The forum was held for the fourth year in a row. The organizer was the Legal Practice Publishing House. AVENSTON thanks the publishing team for inviting such an important event. We are happy to take part in useful events that fortify and strengthen communication between the sectors of the Ukrainian economy, as well as help resolve sensitive issues through dialogue and support from the state.
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