Renewable Energy: Investment Opportunities and Perspectives in Ukraine
Key priority: Substitution of Natural Gas Natural Gas Consumption For Heating* 19,8 0,65 7,2 11,9 Heating season 2013/2014-22 % - 14 % - 10 % 17,4 0,51 6.2 10.8 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 (2014-452 MW, 9 months in 2015-492.3 MW). *According to data of NJSC "Naftogaz Ukraine" (except Crimea, Sevastopol, Luhansk and Donetsk (apart from Mariupol) regions) 2
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 2020 3
Targets of the National Renewable Energy Action Plan Power Generation Category of Electric Power Generation Facility Mega watt 2009 2014 2016 2020 GW*h Mega watt GW*h Mega watt GW*h Mega watt GW*h Photoelectric power plants 0 0 820 485 1 250 1 310 2 300 2 420 Wind power plants 76 41 514 1170 1 350 3 240 2 280 5 900 Hydroelectric power plants, including: 4 549 11 430 4 780 8 850 4 987 12 440 5 350 13 340 < 10 MW 49 30 80 250 107 240 150 340 > 10 MW 4 500 11 400 4 700 8 600 4 880 12 200 5 200 13 000 Bioenergy plants 0 0 49 100 380 1 680 950 4 220 Geothermal power plants 0 0 0 0 10 56 20 120 Total: 4 625 11 471 6 163 10 605 7 977 18 726 10 900 26 000 4
Targets of the National Renewable Energy Action Plan Heating and Cooling 2009 2014 2016 2020 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 0 0 30 300 36 360 50 500 Solar 0 0 140 1400 160 1 600 200 2 000 Bioenergy 1 433 14 330 2 280 22 800 3 100 31 000 5 000 50 000 Heat pumps 40 400 130 1300 280 2 800 600 6 000 TOTAL: 1 473 14 730 2 580 25 800 3 576 35 760 5 850 58 500 5
Targets of the National Renewable Energy Action Plan Transport 2009 2014 2016 2020 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 52 606 65 755 78 909 115 1 340 Bioethanol 0 0 16 24 200 313 320 500 Biodiesel 0 0 0 0 20 23 70 80 TOTAL: 52 81 298 505 In 2015-2016 it is necessary to build two bioethanol production plants, with the capacity of 100 thousand tons each 6
Perspectives for Bioenergy Development* Heat capacities on biomass National Action Plan - 2020 Natural Gas Substitution 16 150 MW Bioenergy generations 7,2 billion m 3 /year in 2020 by 4,4 times 3 650 MW As of 01.01.2015 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
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
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
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
Growing of energy crops in Ukraine 11
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
According to results of 2014: The installed capacity of the plant - 200 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
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 2013-2015 Reduced: CO2 emissions - 270 000 tonnes Disposed: Chicken manure - 100 000 tonnes Sorghum silage - 70 000 tonnes Other organic waste - 20 000 tons Sewage - 350 000 m3 Produced: Biogas - 35 million m3 "Green" electricity - 70 million kwh "Green" heat - 10000 Gcal Replaced of natural gas - 1.2 million m3 Biofertilizers: Liquid - 350 000 m3 Solid - 30 000 tonnes 14
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 12.38 Euro cents per kwh. It will correspond to the Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009. ======================================================================== 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
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