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"Green tariffs" and the load on the electricity market

08 December 2019In Ukraine, the existing "green" tariff mechanism and the obligatory buyout of the entire electricity output produced from renewable energy sources is legislatively embedded.

Power grid connection fees lowered

28 November 2019The National Energy and Utilities Regulation Commission (NEURC) lowered the power grid connection fees for 2020. This news is positive for large players only, though.

The "unbundling law" concerns not only the gas transmission system but also power grids and gas storages

22 November 2019A comprehensive approach to reforms of the electricity and gas markets can only be welcomed. It’s a pity it took so long for changes to materialize, though.

A strategy to overcome energy poverty is needed

06 November 2019While presenting the draft budget for 2020, Yuliya Sokolovska, Minister of Social Policy, stated that the government did not change the criteria for the allocation of subsidies, nor did it intensify checks on applicants’ revenues. Similar statements are made by government officials certifying their inability to offer the public a long-term strategy to overcome energy poverty.

The government should open the essential terms and conditions PSAs once they are signed

01 November 2019As soon as production sharing agreements are signed between the government and the tender winning companies, the essential terms and conditions of the agreements should be made public.

The effect from the government’s decision concerning imports from Belarus and Russia

07 October 2019After the launch of a new market, retail electricity prices for various consumer categories went up by 5-30%. Therefore, the government’s recent decision concerning imports from Belarus and Russia may produce a certain positive effect in a short term, first of all, for large consumers. Development of competition and the strengthening of consumers have been, and still are, some of the key goals which reform of the domestic electricity market had to attain. In turn, these factors had to result, via the action of market mechanisms, in optimization of prices, increasing quality and reliability of power supply. But for that to happen, certain conditions are needed which we actually don’t have and are not going to have anytime soon with our internal generating capacity. In addition, the rapidly growing renewable energy segment is one of the factors destabilizing the new market. Due to the effect of a relatively high "green" tariff and low controllability of renewable energy generating capacities, it may only aggravate the situation and increase physical and financial imbalances of the market.

Separation of the GTS operator

26 September 2019During the talks, the Russians have not only been introduced to the future GTS operator but were also given the roadmap for the completion of unbundling process

Ukraine needs an own version of gas contract, and not just with terms

02 September 2019Contracts signed under duress have always contained threats for the party forced to sign them. The existence of an own vision of cooperation laid down on paper allows to minimize this risk.

Does Europe hear us? And do we hear it?

23 August 2019Do journalists, politicians and experts in EU states talk about the role of Ukraine in Europe’s energy sector? Did they discuss all risks for the EU from the construction of Nord Stream 2?

Attracting quality investors in the Ukrainian oil and gas sector

29 July 2019This year, the government launched a tender for entering into a production sharing agreement (PSA) for the Dolphin oil and gas site on the Black Sea shelf. Only four proposals were received for two months from Caspian Drilling International Ltd., Frontera, Trident Black Sea and Ukrnaftoburinnia PrJSC. The interagency commission could not decide on the winner of the tender until Azerbaijani Caspian Drilling International Ltd. has withdrawn from the tender. After that, Trident Black Sea owned by Ilya Ponomarev, former member of the Russian Duma, was announced a winner. The results of the tender for Dolphin development were criticized by the Association of Gas Producers of Ukraine. And Volodymyr Groysman, Prime Minister, said he would propose to conduct the tender anew as he hoped for a more representative and competitive tender. So how should you find reliable investors in the gas production sector? The main characteristics that should be taken into account when the state enters into an agreement with an investor for 50 years.

Ukrainian natural resources: reforms to be continued

11 April 2019The increase of own oil&gas production is not only a contribution to energy security of Ukraine, but also an opportunity for the development of economy, of the own energy market. This fact becomes more and more obvious, however only in recent years significant steps have been taken to implement this strategic course.

Prospects For Achieving Energy Independence In Terms Of Gas Industry

24 January 2019Nowadays energy security is one of the most important priorities of Ukraine, with natural gas market included. Current gas imports covered by the domestic gas production capacity will allow Ukraine to be independent from the export market conditions, significantly decrease the currency market pressure, and get rid of the Russian Federation’s black marketeering.