Ukrenergo analyzing possible reduction in renewable energy share in energy balance

The power grids operator's tariffs will be changed dynamically.

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State-owned Ukrenergo, the operator of Ukraine's power grids, is analyzing a possible reduction in the share of renewable energy facilities in the energy balance.

"In the coming years, the operator's tariff will change dynamically: it will go down and up. It will happen regularly. And down and up. Why? First, if we talk about 'green' stations, they are dynamically developing and the forecasts are not very clear. And therefore predictions given, for example, at the beginning of the year or at the end of the previous one regarding how much will actually be produced by 'green' generation facilities next year will not be very accurate," CEO of NEC Ukrenergo Vsevolod Kovalchuk said at a press conference on July 11.

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"Now they're talking about a reduction [the share of renewable energy facilities in the energy balance]. The point at issue today is a potential reduction from 6 MW to 5 MW. So far we expect this forecast plus minimum to be realized," Kovalchuk said.

In his opinion, a reduction in the weighted average price is possible in the second half of 2019 for renewable energy sources to UAH 4,700 (US$ 182.17) per MW from UAH 4,800 (US$186.05) per MW.

"We are still checking if it can be confirmed, and there is no document yet that obliges someone to do something, but to calculate the amount of obligations, the regulator really needs to have maximum objective predictions," Kovalchuk said.

Ukraine's Ministry of Energy and Coal Industry is ready to revise the current energy balance to reduce the share of renewable energy sources, provided that such an initiative is set forth by Ukrenergo or the national commission that regulates energy and utilities.

At its next meeting, the National Commission for Energy, Housing and Utilities Services Regulation plans to approve a new transmission tariff for Ukrenergo in the second half of the year. The corresponding document, which provides for the transmission tariff to be set at UAH 312.14/US$12.10 per MWh from August 1, 2019, is on the agenda of a meeting scheduled for July 12. The proposed tariff is 10.2% down from the tariff set by resolution No. 954 (UAH 347.43/US$13.47 per MWh).

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