Participation in the webinar “Understanding the Solar Energy Market of Ukraine”

On April 24, representatives of Ukrainian and foreign companies gathered on the webinar “Understanding the Solar Energy Market of Ukraine” to discuss the current situation in the energy sector: COVID19 pandemic impact on solar business, new legislative regulation, and much more. The event held by ZNSHINE SOLAR, one of the leading manufacturers of Tier 1 photomodules.

Speakers: Alexey Shyshkanov, AVENSTON Senior Business Development Manager; Myriam Mbarek, ZNSHINE SOLAR International Sales Director; Eric Zheng, ZNSHINE SOLAR Technical Director; Can Keles, Europower Enerji International Business Development Manager; Natalya Chernyaeva, Unisolar Executive Director; Tatyana Kovalenko, Indian Solar Deputy Director; Maksym Sysoiev, Dentons Counsel in the Energy Practice; Artem Semenishin, Solar Energy Association of Ukraine CEO.

Each participant shared his view on new challenges facing solar energy in Ukraine and worldwide and how the companies cope with all the difficulties and what opportunities they see to move forward.

Speakers’ speeches include universal provisions of crisis strategies:

• logistic improvements;
• cost optimization;
• personnel safety (means of protection, remote work);
• close cooperation with suppliers, customers, and partners.

The current conditions suggest a flexible approach to companies` work structuring and regulating, as well as coordinated actions of all market participants. The economic transformation is inevitable, and the task of everyone is to use new opportunities (for example, to digitalize the work process), not be afraid of changes and abandon the old, non-working, ineffective.

Myriam Mbarek, ZNSHINE SOLAR International Sales Director, noted that despite the forced suspension of production in January 2020 due to the quarantine introduction in China, the company operating at full capacity today. Can Keles, Europower Enerji International Business Development Manager, emphasized that their company is pleased to work in the Ukrainian market special in terms of speed and efficiency of project implementation. For example, at the end of 2019, Europower Enerji implemented projects with a total capacity of 32 MW in 47 days in winter.

CEO of Solar Energy Association of Ukraine Artem Semenishin noted state support is need to stabilize industry economic indicators.

Alexey Shyshkanov, AVENSTON Senior Business Development Manager, shared information about the situation within the company and the whole solar industry in Ukraine. Briefly about the main thing further in the material.

Market condition

The construction of new solar power plants slowed significantly after major changes in the legislation, as well as reduction of the green tariff, a new scheme of state support through auctions, ideas to reduce preliminary PPA, etc. Therefore, many solar projects stopped due to an uncertain future.

«In 2018-2019, we observed a rapid growth in the Ukrainian solar energy market; by the end of 2019, 4.5 GW of new capacities were implemented. However, certain negative factors led to a decrease in investor activity in early 2020. It is not fair to blame COVID19, which became only a catalyst already difficult situation. Ukrainian power grids overloaded due to a decrease in consumption against the background of quarantine. Unfortunately, our power grid is not able to balance the drop in consumption, as a result of which a temporary shutdown of solar power plants occurs»Alexey Shyshkanov, AVENSTON Senior Business Development Manager.

AVENSTON cope with the pandemic

Today, the company devotes a lot of time to strategic planning, focusing on long-term goals. AVENSTON decided not to cut staff, but plan future growth.

«We continue to work under quarantine with the same level of effectiveness. As for logistics, we had no problems with the procurement and delivery of materials to facilities even from abroad. To avoid rush and queues, we plan our deliveries. All company personnel are at home and transferred to remote work with instructions and recommendations for disease prevention. Work is in full swing and does not stop. We know that our partners decide to go the same way, and they also have no problems with work efficiency.

Now we continue the construction of all the launched projects of solar power plants, providing the necessary protection to our employees. However, in most cases, after design stage completion, investors ask to slow down the further implementation of the project until the end of the quarantine»Alexey Shyshkanov, AVENSTON Senior Business Development Manager.

How will the further development of solar energy occur?

«There will be several different market segments. Most interesting to us are commercial PV-stations with primary PPA; commercial PV-stations with a capacity of less than 1 MW; commercial PV-stations with a capacity of more than 1 MW with an auction scheme of state support. Also, we positively assess the prospects for providing EPC services for the construction of solar power plants for own consumption.

The market does not stand still, there are many areas of development that require our attention. Today, Ukraine’s solar energy is undergoing a transformation phase. Such changes found in any area of ​​the economy. How do we respond to them? Mainly keep a sober look and follow our goals»Alexey Shyshkanov, AVENSTON Senior Business Development Manager.