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The introduction of a competitive electricity market, scheduled for July 2019, will give impetus to a fundamental change in the energy paradigm, according to the study.
Ukraine may see the share of nuclear power plants (NPP) and coal-fired thermal power plants (TPP) significantly shrink due to new technologies, according to an analytical study published by the Ukrainian business portal Mind.ua.
Today, the global energy map is being changed dynamically: in particular, shares of different generating capacities, power grids patterns, and the organization of national energy markets are undergoing changes.
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Against this background, Ukraine is unfortunately "stuck" in the middle of the 1990s. The archaic and politically dependent model of the electricity market, coupled with the country's administratively handled tariff setting system, contributed to the conservation of the existing power generation structure where the 'dinosaurs' represented by large nuclear power plants and worn-out thermal power plants prevail.
At the same time, power supply infrastructure in Ukraine remains free from modern technologies. Under the conditions of total state regulations, there was no point in investing in the industry," reads the study, according to Mind.ua.
The introduction of a competitive electricity market, scheduled for July 2019, will give impetus to a fundamental change in the energy paradigm.
"However, this status quo cannot last forever. The upcoming liberalization of the energy market, together with the integration of Ukraine's energy system into the [European Network of Transmission System Operators for Electricity] ENTSO-E, opens a window of opportunity for investors and new players who will go far beyond the traditional NPP-TPP 'bundle.' What is more, changes in dynamics and directions of the industry development will happen very quickly. Actually, they are already under way. On the eve of the launch of a competitive market, trends in Ukraine's power industry that will change the landscape of [power] generation and determine investment in the short and medium term are becoming more noticeable," the publication wrote.
Obsolete generation facilities will be gradually decommissioned and replaced with renewable sources of energy, energy efficient measures, and batteries.
Acting CEO of the operator of the Ukrainian integrated power grids Ukrenergo Vsevolod Kovalchuk has repeatedly stated that the Ukrainian energy system may additionally need 2.5 GW of highly maneuverable capacity in the form of batteries and gas-piston power stations for balancing wind farms and solar power plants.
According to Ukrenergo's analytical report on the development of wind and solar power as part of Ukraine's integrated power grids, 0.5 GW storage stations can be built before 2025. Another 2 GW could be provided by highly maneuverable cogeneration stations, which, together with batteries, will enable the balanced operation of 4.2 GW wind farms and 3.3 GW solar plants by 2025.