DiXi Group Logo
uk
www.upscalerolex.to
IMG

Nongovernmental Organizations and Think Tanks Make a Statement on Ukraine’s Energy Dependence

A statement by independent experts of think tanks and nongovernmental organizations active in the energy sector and consistently supporting economic reforms in it to

– President of Ukraine Petro Poroshenko
– Prime Minister of Ukraine Volodymyr Hroisman
– Parliamentary majority fraction leaders

Over the last several weeks we have noticed a very politicized, distorted, and dangerously superficial discussion on the coal shipments from the regions of Luhansk and Donetsk oblasts that are temporarily not controlled by the Government of Ukraine. Absence of a systemic and strategic solution of Ukraine’s energy dependence on the economically unstable and morally controversial trade with companies located beyond the delimitation line has already caused confrontations. The controversies will only escalate unless a clear and efficient policy is shaped and followed in this field. We realize that taking interim emergency actions in the electric power market is necessary but is not capable of resolving the issues properly.

Emphasizing the inaction by authorities responsible for framing the respective policy over the last years, we regard the coordination and implementation of the energy crisis solutions as the urgent need. Given appropriate political will and responsibility, it is constructive dialog that can unite the opposite sides of the polarized society.

Therefore, we make the following requests to the Government, the President, and the Verkhovna Rada:

1. To consolidate the opposing parties by jointly searching for a solution to the key issue – assurance of Ukraine’s energy safety. Such a consensus on short-term actions must be achieved that will allow avoiding emergency power cuts and, at the same time, ensuring resolving energy supply issues. The Cabinet of Ministers of Ukraine should be the decision making center since the departments responsible for the energy policy have proved to be incapable of controlling the situation.

2. The appropriate dialog and action plan development should be as transparent and inclusive as possible. The current wholesale power pricing methods, which have led to a considerable growth of heat generating companies’ revenues, are socially unacceptable while, at the same time, such companies have failed to diversify fuel supply sources and ensure the country’s energy safety. This approach is linked to serious corruption risks and fails to encourage companies to ensure stable operation of the energy system.

3. Any action plan should necessarily include specific mid-term and strategic actions and clearly define the expected results, timing, and performance indicators. The focus should be on substituting anthracite coal with other fuel types and ensuring stable operation of the country’s energy system.

4. Before making the final decision to switch Ukrainian nuclear power plants to load-following operation, to conduct a full-scale risk assessment with respect to the technical capacity of power generating units to operate in this mode.

5. Among a variety of measures, the following suggestions should be considered mid-term:

– To provide conditions for stable and competitive import of coal A from several supplying countries and define companies’ responsibility, regardless of their ownership, for ensuring the necessary coal reserves. Such conditions are likely to include adjustments to the current heat generating power pricing methods and/or use of regulatory barriers against purchasing cheap coal from the occupied regions of Donetsk and Luhansk oblasts at world prices.
– To draft and adopt without delay the Law of Ukraine on critical infrastructure and protection thereof where heat generating plants should be assigned to critical infrastructure and their operators should be obligated to ensure uninterrupted work under crisis circumstances. To obligate operators of heat generating plants and combined heat and power generating plants to provide daily detailed information on coal reserves and scheduled coal shipments.
– The Government and the Parliament should implement coherent transformations in the electric power market and related thermal coal market. The bill “On Electric Power Market” has been ready for a long time, and a law on the coal market is long awaited.
– To switch heat generating plants that currently use anthracite coal to other fuel types, etc. It is quite feasible to find interested investors to put in practice relevant projects, in particular, get back to offers made by the Polish business and Government and other Western countries. Also, existing heat generating units should be redesigned with due regard to economic and environmental efficiency principles and in compliance with the country’s long-term energy strategy. In other words, outdated noncritical plants should be closed down and outdated critical ones should be renovated in order to, among other things, improve fuel combustion efficiency.
– To make a political decision on the framework of technical connection of the Ukrainian Unified Energy System to the continental ENTSO-E network and consider constructing HVDC (high voltage direct current) links on Ukraine’s Western border which have the required capacity to diversify the potential electric power import.

6. Long-term, strategic decisions should consider the following:
– Each challenge presents an opportunity. The refusal to use domestic-produced coal or significant restrictions of its consumption may be compensated as beneficially as possible if the consumed volume is reduced by improving energy efficiency and substituting heat generation with renewable heat generation, taking account of the environmental impact.
– Along with the operating solution of the thermal coal supply issue, the Government and the Verkhovna Rada should focus on promoting the renewable energy industry. Renewable energy should be treated as the top priority in view of the total befits it can provide: new jobs, enhanced energy safety of the country, compliance with international climate-control and environmental undertakings, development of the domestic intelligence-intensive industry, etc.
– We are also aware that the governmental policy towards specific regions of Donetsk and Luhansk oblasts where government authorities are temporarily unable to exercise their functions should be changed overall. While the possibility of reintegrating the occupied territory, companies, and people into the Ukrainian common economic area should be maintained.
– It will not be feasible to correct public energy policy mistakes without adequate personal liability of officials whose professional inactivity and negligence has led to the current crisis. 
– Investigations into abuses committed at state-owned and private energy companies are published regularly, and ignoring these findings is unacceptable.

Further, for the purposes of restoring trust, we urge to comply with the obligations to rotate members of the National Commission for State Regulation of Energy Markets and Utility Services. Under the newly adopted law, the rotation of the National Commission for State Regulation of Energy Markets and Utility Services members should have started already. As never before, we need a regulator trusted by the market and people.

We recommend the President of Ukraine, including the Ministry of Foreign Affairs and foreign diplomatic missions, to join in their effort to cooperate with foreign partners to protect Ukraine’s internal and external interests in the field of energy safety.

And finally, we believe that the Government, the President, and members of the parliamentary majority should improve communication with the public both through experts and directly. The government should honestly tell about the energy system issues and honestly outline ways out of the serious situation in which we have happened to be.

The Ukrainian people deserve to know the truth.

Civic Network OPORA Reanimation Package of Reforms (RPR) DiXi Group Association on Energy Efficiency and Energy Saving/ AEEBioenergy Association of Ukraine Center for Economic Strategy Ukraine Crisis Media Center greencubatorUkrainian Pellet Union Institute of Social and Economic Research (ISER)

Comments

Ukraine will fully disclose extraction contracts according to the EITI Standard

Olha Polunina

Manager for Sustainable Development at DiXi Group

Ukraine will fully disclose extraction contracts according to the EITI Standard

The major achievement of the adopted amendments is the legislative requirement to fully disclose all contracts between extractive companies and the government

Disclosure of resource extraction contracts is important for Ukraine’s compliance with international environmental conventions

Olha Polunina

Manager for Sustainable Development

Disclosure of resource extraction contracts is important for Ukraine’s compliance with international environmental conventions

Ukraine has time until July 2022 to submit a plan of action, including a time schedule, and until October 2023 to provide a detailed progress report.

Ukraine Follows a Fossil Fuel Recovery Pathway

Yuliia Oharenko

expert of the DiXi Group project “Promoting Ukraine's Participation in the European Green Deal in the fields of energy and environment”

Ukraine Follows a Fossil Fuel Recovery Pathway

Despite multiple political statements supporting the European Green Deal and announced plans for the development of a joint with the EU Roadmap, Ukraine is moving in an opposite direction. These are the results of Energy Policy Tracker

The “Augean stables” of the extractive sector: is there any progress?

The “Augean stables” of the extractive sector: is there any progress?

The practice of procuring special extraction permits and then sitting idle on them for decades is unacceptable from the viewpoint of Ukraine’s energy independence and national security, raising budget revenues and the country’s investment attractiveness.

Ukraine improves its ranking under the EITI Standard

Olha Polunina

Manager for Sustainable Development at DiXi Group

Ukraine improves its ranking under the EITI Standard

The EITI Board acknowledged Ukraine’s efforts concerning disclosure of beneficial ownership information, creation of an online EITI reporting portal, and the launch of EITI implementation monitoring and assessment at national level.

Тижневик

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform

Our platforms

https://ksep.energy/en/

Independent energy educational center

http://eiti.org.ua/

National website of Extractive Industries Transparensy Initiative in Ukraine 

http://ua-energy.org/

Information and analitical website “Ukrainian Energy UA-Energy.org” is unique   platform to inform