Renewable Energy: Investment Opportunities and Perspectives in Ukraine

Size: px
Start display at page:

Download "Renewable Energy: Investment Opportunities and Perspectives in Ukraine"

Transcription

1 Renewable Energy: Investment Opportunities and Perspectives in Ukraine

2 Key priority: Substitution of Natural Gas Natural Gas Consumption For Heating* 19,8 0,65 7,2 11,9 Heating season 2013/ % - 14 % - 10 % 17,4 0, Heating season 2014/2015 Бюджетні Public організації Entities Теплогенеруючі District heating підприємства companies Населення Individual households The main instruments of natural gas consumption reduction: reducing allowed limits of natural gas consumption; reducing rate of gas consumption for heating towards privileged categories of consumers; introduction of incentives to replace gas boilers by biomass ones; simplification of procedure for commissioning heat generation facilities that use renewable energy sources; commissioning new facilities that use renewable fuels ( MW, 9 months in MW). *According to data of NJSC "Naftogaz Ukraine" (except Crimea, Sevastopol, Luhansk and Donetsk (apart from Mariupol) regions) 2

3 National Renewable Energy Action Plan until 2020 developed in line with Directive 2009/28/EC on the promotion of the use of energy from renewable sources approved by Order of the Cabinet of Ministers of Ukraine 902-р dated October 1, 2014 Goal: 11% share of energy from renewables in final energy consumption by

4 Targets of the National Renewable Energy Action Plan Power Generation Category of Electric Power Generation Facility Mega watt GW*h Mega watt GW*h Mega watt GW*h Mega watt GW*h Photoelectric power plants Wind power plants Hydroelectric power plants, including: < 10 MW > 10 MW Bioenergy plants Geothermal power plants Total:

5 Targets of the National Renewable Energy Action Plan Heating and Cooling Types of renewable energy thou thou. thou thou. thou thou. thou thou. t o.e. Gcal t o.e. Gcal t o.e. Gcal t o.e. Gcal Geothermal Solar Bioenergy Heat pumps TOTAL:

6 Targets of the National Renewable Energy Action Plan Transport Energy inputs from renewable sources thou. GW*h, thou. GW*h, thou. GW*h, thou. GW*h, t o.e. thou. t t o.e. thou. t t o.e. thou. t t o.e. thou. t Electicity from renewable sources Bioethanol Biodiesel TOTAL: In it is necessary to build two bioethanol production plants, with the capacity of 100 thousand tons each 6

7 Perspectives for Bioenergy Development* Heat capacities on biomass National Action Plan Natural Gas Substitution MW Bioenergy generations 7,2 billion m 3 /year in 2020 by 4,4 times MW As of Individual houses Multiappartment and public buildings Industry by 2,4 times around 3 billion m 3 /year * According to information of the Bioenergy Association of Ukraine 7

8 Required Investment for National Renewable Energy Action Plan implementation The amount of investment required Electricity Heating and cooling Transport billion EURO 8 6 0,6 Total EURO 16 billion The Investment, inter alia, will be directed to the following measures: Construction of plants for pellet production in Ukraine. Construction of plants for production of boilers (capacity from 7 kw up to 5 МW) that work on biofuel. Construction of second generation bioethanol plants. Energy crops production in Ukraine. Construction of cogeneration plants in Ukraine. Waste recycling plants. 8

9 Total technically recoverable energy potential of renewable energy sources of Ukraine 0,18 0,2 0,24 0,03 1,11 0,29 0,74 0,2 0,17 0,07 0,93 0,17 0,3 0,36 0,26 0,08 1,19 0,29 1,26 0,47 0,28 0,3 0,33 0,04 0,2 0,22 0,07 0,86 0,96 0,20 2,23 6,0 28,34 0,22 0,3 0,14 3,05 1,27 0,44 0,79 1,03 0,52 0,17 0,15 0,14 0,10 0,93 0,15 0,2 0,2 0,77 0,074 1,11 0,130,27 0,18 0,29 0,10 0,85 0,71 0,72 0,16 0,22 0,09 0,3 0,33 0,07 12,0 31,0 18,0 0,25 Сонячна Solar energy енергетика Енергія Wind energy вітру Мала Small гідроенергетика hydro power Геотермальна Geothermal heat енергія Енергія Biomass біомаси 1,11 Енергія Environmental довкілля energy 1,37 1,57 0,29 0,2 0,25 0,40 0,21 0,08 0,31 0,25 0,26 0,09 0,22 0,7 0,37 0,41 0,01 1,70 0,28 0,35 0,26 0,05 0,66 1,37 1,60 0,23 0,5 0,04 0,29 0,47 0,26 4,6 1,50 0,29 0,04 0,35 0,26 0,4 0,10 0,7 0,32 0,38 0,02 4,4 0,38 0,88 4,7 1,54 1,88 0,63 2,25 0,28 0,87 1,25 0,24 0,31 0,06 4,1 1,11 0,05 0,99 0,7 0,29 0,01 0,36 0,93 0,07 1,31 1,53 0,90 1,84 1,04 2,27 0,27 0,27 0,32 0,05 0,85 1,39 0,32 0,11 2,79 0,97 1,24 Технічно-досяжний енергетичний потенціал відновлюваних Mtce джерел енергії (млн. т у.п./рік) 9 Сумарний технічно-досяжний енергетичний потенціал відновлюваних джерел енергії України

10 Growing of energy willow in Ukraine The cost of laying 1 hectare plantation with energy willow is 1,100 EUR UAH) UAH) UAH) UAH) UAH) 10 10

11 Growing of energy crops in Ukraine 11

12 Boiler house of the district heating system in Slavutych Installed capacity Boiler manufacturer Type of fuel 10,5 MW Year of construction 2013 Successful examples of projects on heat energy production from biomass JLLC Komkont (Belarus) Wood chips, peat Boiler houses for heating for population and budget institutions in Kamianets-Podilskyi Total capacity of boilers on alternative fuels Boiler manufacturer Type of fuel 7,6 MW Year of construction 2014 PE Retra (Ukraine) Granules of straw, miscanthus The Belarusian-Ukrainian project is realized in the sphere of thermal power production for heating and hot water supply for population. The project will allow to save more than 0,8 million EUR per year using biomass instead of gas - a mixture of peat and wood chips. LLC "Developer Universal Group is investor of the project, which will allow to save 0,8 million EUR per year. Thermal energy generated by a number of boilers is used for heating a balneary, a hospital, a clinic and a medical college in the town. 12

13 According to results of 2014: The installed capacity of the plant MW Electricity output in the unified power system of Ukraine 652 million kwh The availability of equipment 95,5% The capacity factor 37,7 % Botievska wind power station Volume of investment 340 million EURO Green tariff is at the lvl of 11.3 Euro cents per kwh. 13

14 PJSC Orel-Lieder Biogas plant 5.5 MW Construction: May 20, 2012 Jan.16, 2013 Main tasks: Recycling 100% of chicken manure energy supply of poultry Over the period of Reduced: CO2 emissions tonnes Disposed: Chicken manure tonnes Sorghum silage tonnes Other organic waste tons Sewage m3 Produced: Biogas - 35 million m3 "Green" electricity - 70 million kwh "Green" heat Gcal Replaced of natural gas million m3 Biofertilizers: Liquid m3 Solid tonnes 14

15 Key Points of the Law of Ukraine on Stimulating Renewable Energy Development 1.The green tariff is fixed to Euro for the avoidance of the inflation risks. 2.The green tariff for electricity from biomass and biogas is increased by 10%. 3.The green tariff is set: for geothermal electric plants; for wind turbines for private households with capacity of up to 30 kw. 4.The requirement for local content is cancelled and the premium for the use of equipment of the Ukrainian production is introduced. 5.The producers of electricity from biomass (including products from agriculture and forestry) will be able to get the green tariff at the level of Euro cents per kwh. It will correspond to the Directive 2009/28/EC of the European Parliament and of the Council of 23 April ======================================================================== Unfortunately, this Act is not enough for Ukraine to have a progress in renewables. The country needs technical support in law and regulation development to stimulate investments on projects such as biogas plants construction. 15

16 THANK YOU FOR YOUR ATTENTION 16