presentations_res_forum_speakers.pdf

Mr Daniel Scholten
Assistant Professor at the
Technical University of Delft (NL)

INVESTMENT FORUM
18th December 2018

HIGH LEVEL POLICY SESSION
Renewable Energy and EU-Ukraine
Strategic Energy Partnership

Mr Maros SEFCOVIC
Vice-President of the
European Commission

Video message from Mr SEFCOVIC
Vice-President of the
European Commission

THEMATIC SESSION I
Opportunities and Goals of Ukraine
in Renewable Energy

MODERATOR
Mr Peter WAGNER
Head of Support Group for Ukraine,
European Commission

Mr Gurbuz GONUL
Acting Director of Country Support
and Partnerships Division,
International Renewable Energy
Agency (IRENA)

Mr Oleksandr DOMBROVSKYI
Member of the Verkhovna Rada,
Acting Head of the Verkhovna Rada
Energy Committee

Oleksandr Dombrovskyi
Acting Chairman of the Verkhovna Rada
of Ukraine Committee
on Fuel and Energy Complex,
Nuclear Policy and Nuclear Safety
Verkhovna Rada’s draft law
on support to
renewable energy
development

Basic energy legislation in compliance with the
Third Energy Package
1) The Law on Natural Gas
Market was adopted in
April 2015
2) The Law on Energy
and Public Utilities
Regulator was adopted
nn 22 September 2016
3) The Electricity
Market Law was
adopted in April 2017
VERKHOVNA RADA OF UKRAINE

Ukrainian Parliament adopted the
Law ratifying the COP 21 Paris in July
2016.
It was earlier than in:

Ukrainian Parliament adopted the Law of Ukraine’s
joining the Statute of the International Renewable Energy
Agency (IRENA) on December 2017.
Ukraine has become a member of IRENA on February 24
2018.

INSTALLED CAPACITY OF RENEWABLE ENERGY OBJECTS
WORKING UNDER THE "GREEN" TARIFF
2014 2015 2016 2017 Q ІІІ 2018
411 432 531
742
1097
0.1 2
17
51
121
426 426
438
465
522
80 87
90
95
96
35 35
39
39
44
15 17
20
34
45
SPP SPP Households WPP Small HPP Biomass Biogas
From the beginning of 2015, 958 MW were introduced and
around € 910 mln were invested.
967 999
1 135
1 426
1 925

Solar (ground
based)
56%
Solar (roof
based)
1%
Solar
(households)
6%
Wind
27%
Small HPP
5%
Biomass
2%
Biogas
3%
Share of Renewable Energy objects working under
the “green” tariff (%)
(as of 01.10.2018)
The total capacity of power plants operating under the "green" tariff is 1925 MW

It's been 10 years since the introduction of a system of
feed-in tariffs in Ukraine.
On June 7, 2018, a Draft Law on Amendments to Certain
Laws of Ukraine on Ensuring Competitive Conditions
for the Production of Electricity from Alternative
Energy (No. 8,449) was registered, aiming at introducing a
system of support for renewable energy projects based
on auctions.
There were 7 alternative bills registered (8449-1, 8449-2,
8449-3, 8449-4, 8449-5, 8449-6, 8449-7).In general, 56
people's deputies of Ukraine submitted their proposals.
On December 4, at a meeting of the Energy Committee, the
Members of Parliament recommended to the Verkhovna
Rada of Ukraine to adopt the draft law in the first reading.
On this Thursday, the draft law is expected to be considered by
the Verkhovna Rada.

Position in the Clean Energy for All Europeans
Package:
Support schemes must be cost-effective and market
oriented
Provisions of the Ukrainian Draft Law on RES № 8449-d:
The new Draft Law introducing auctions for support of
renewable energy projects.
Low price is the criterion to select successful bidders.
Auction frequency: 2 times a year with deadlines on or before 01
April and 01 October.
Quotas shall be set annually for 5 years.
Auction platform – “Prozorro” electronic auction platform.

Position in the Clean Energy for All Europeans Package:
Provide long-term certainty for investors and a competitive
European market for renewables
Date of the new support scheme introduction - 01 January 2020.
Support for the successful bidder 20 years.
Final date to sign a pre-PPA to complete the launched RES
projects using the “green” tariff scheme (regardless of the project
size) - 31 December 2019.

Renewable energy can be produced from a variety of sources,
such as wind, solar, hydro, tidal, geothermal and biomass
The following projects are obliged to participate in auctions:
in 2020 – WPPs with the installed capacity > 20 MW and all other RES types with
the installed capacity > 10 MW
in 2021 and 2022 – WPPs with the installed capacity > 20 MW and all other RES
types with the installed capacity > 5 MW
from 01 January 2023 – WPPs (or one wind turbine) with the installed capacity > 3
MW and all other RES types with the installed capacity > 1 MW
Entities to participate in auctions on a voluntary basis - All RES types

Leads to lower energy bills for households and business
“Green” tariffs for SPPs, WPPs:
Decrease for SPPs in 2020 is 25% with a further decrease by
2.5% annually during 3 years.
Decrease for WPPs in 2020 according to the wording of the
current law is 10% with a further decrease by 1.5% annually during
3 years.

- Allows households, communities and business to become
clean energy producers;
- Provide consumers with affordable, clean and secure energy
Simplified procedure for the “green” tariff (without obtaining an electricity
generation license) shall cover the following:
- wind, solar – for the consumers with up to 50 kW generating facilities
(currently, it is 30 kW for households).
- solar for the consumers with the generating facilities with a capacity
exceeding 50 kW but not exceeding 500 kW, subject to placement of facilities
on roofs, facades of capital buildings, structures.

The Clean Energy for
All Europeans Package
The Ukrainian Draft
Law on RES № 8449-d
Will
attract new investors,
bringing with them new jobs,
new economic activities,
and new financing

It’s time to invest in
Oleksandr Dombrovskyi
Acting Chairman of the Committee
on Fuel and Energy Complex,
Nuclear Policy and Nuclear Safety

THEMATIC SESSION II
Policy and Regulatory Framework
for Renewable Energy

MODERATOR
Ms Olena PAVLENKO
President, DiXi Group

Ms Paula ABREU MARQUES
Head of Unit Renewables and CCS
Policy, DG Energy, European
Commission

CLEAN ENERGY FOR ALL EUROPEANS
CLEAN ENERGY
FOR ALL
EUROPEANS
2009 Renewable Energy Directive

EU'S RENEWABLE ENERGY HISTORY
Renewable Electricity
Directive
Indicative 22.1% share of
renewable power in 2010
National indicative targets
for renewable electricity
Renewable Energy
Directive - 1
EU-binding target of 20%
share of renewable energy
in 2020
National binding targets
for renewable energy by
2020
Renewable Energy
Directive - 2
EU- binding target of
32% share of renewable
energy
in 2030
National contribution in
renewable energy share
to achieve EU- wide target
Indicative formula to
assess national
contributions
21-07-2001 23-04-2009 11-12-2018
Energy Union
25-02-2015
State aid
guidelines for
energy
09-05-2014
2021

Current
status

EU RENEWABLE ENERGY SUPPORT POLICIES IN 2012
AT BE BG CY CZ DE DK EE ES FI FR GR HU IE IT LT LU LV MT NL PL PT RO SE SI SK UK
Electricity
FIT x x x x x x x x x x x x x x x x x x x x x
Premium x x X x x x x x x
Quota
obligation
x x x x x x x x
Investment
grants
x x x x x x x x x x
Tax
reductions/
exemptions
x x x x x x x x x x
Financial
incentives
x x x x x x x
heating
Investment
grants
x x x x x x x x x x x x x x x x x x x x x x
Tax
reductions/
exemptions
x x X x x x x x x x
Financial
incentives
x x x x x
Premiums x
transport
Quota
obligation
X x x x x X x x x x x x x x x x x x x x
Tax
reductions/
exemptions
X x x x x X x x x x x x x x x x x x x x x x x x
SWD (2012) 164

COM (2017) 57
EU RENEWABLE ENERGY ADMINISTRATIVE POLICIES IN 2014

STATE OF PLAY - PROGRESS TOWARDS NATIONAL 2020 TARGETS
Source: EUROSTAT Shares 2016

Looking
forward

Source: EUROSTAT Shares 2016
STATE OF PLAY – RES SHARE PER SECTOR IN EU"*
0%
5%
10%
15%
20%
25%
30%
2004 2006 2008 2010 2012 2014 2016
RES share total
RES-E share
RES-H/C share
RES-T share

The renewables financing challenge
The cost of capital for RES investments remains high and substantially
diverging across the EU while RES investments mostly go to a limited
number of MS
However, meeting the 2030 targets cost effectively would require an
important level of investment more evenly spread across the EU

Global renewable energy progress
IRENA/IEA/REN21 (2018)

2020-
2030

0%
5%
10%
15%
20%
25%
30%
35%
historical trajectory
2020: > 20%
2023: upward
review
2030: >
32%
EU RENEWABLE ENERGY SHARE 2009 - 2030

Investment
certainty
Promoting
active role of
consumers
Cost-effective
deployment
Collective
target
achievement
Tapping
heating and
cooling
potential
Promoting
innovation in
transport
Strengthening
bioenergy
sustainability
Contributing to the EU
political priority of
world leadership in
renewables
&
Achieving the
at least 32 %
EU-level binding
renewables target
cost-effectively
THE REVISED RENEWABLES DIRECTIVE – KEY OBJECTIVES
Regional
cooperation
Access &
curtailment
rules
Revised CEF &
new MFF
Access &
curtailment
rules
Gap filler

68
Increasing Competition and market integration of RES-E
Selling in the
market
(premiums)
Exemptions
for small
scale-and
demo projects
Competitive
bidding
Exemptions
for small scale
and demo
projects
Competition
of
technologies
Technology-
specific based
on justified
grounds
(listed)
Without prejudice to individual state aid procedures (case-by-case assessment)

70 #EnergyUnion

Mr Janez KOPAČ
Director, Energy Community
Secretariat

Energy Community Secretariat
EU-Ukraine Renewable Energy Investment Forum
Renewable energy sources
deployment in the Energy
Community
18 Dec 2018
Janez Kopač, Director 72

Energy Community Secretariat 73
Energy Community
• RES Directive (2012)
• 2020: 20 – 15 – 0
• 2030: ? - ? - ?
• Policy Guidelines
(State aid/competitive
support scheme

Fossil fuel subsidies in the WB6
74
Contracting Party Estimated fossil fuel
subsidies
(% of GDP)
2005-2009
Energy subsidies (% of
GDP)
2015
Albania 7-8% 1.9%
BiH 9-10% 37%
FYR of Macedonia 8-9% 18.7%
Kosovo* 35-36% N/A
Montenegro 10-11% 16.7%
Serbia 7-9% 34.7%
Source: adapted from ‘Fossil Fuel Subsidies in the Western Balkans’, UNDP, 2011 and REN 21 “Renewable Energy Status Report”, UNECE, 2017

Budget financed subsidies

Monitoring the progress in the promotion of renewable energy
76
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4
Ukraine
Serbia
Montenegro
Moldova
The FYR of Macedonia
Kosovo*
Bosnia and Herzegovina
Albania
21,2%
26,3%
11,9%
21,9%
18,9%
34%
31,2%
2009 RES share Additional Effort to 2020 RES Target
38%
40%
2016 RES share
25%
23%
17%
33%
27%
11%
37,1%
25,3%
24,6%
18,2%
26,9%
41,5%
20,9%
5,8%

Support for Renewable Energy in the WB6
77
Contracting
Party
PV Wind Biomass Hydro Biogas
Wast
e
Geot
herm
al
PPA Links
Albania 10 7,6 - 5,63 - - - 15 yrs.
http://www.ere.gov.al/doc/Tarifate_
e_miratuara_nga_ERE_Prill_-
_Dhjetor2017.pdf;
http://www.ere.gov.al/doc/VENDIM
_NR.120_2017.pdf
BiH- FBiH
27,2 -
15,78
17,86 -
7,1
16,1 - 11,61
14,84 -
6,33
36,37 -
14,26
- - 12 yrs.
http://www.ferk.ba/_ba/images/stor
ies/2017/prilog_1_odluka_gc_bs.p
df
BIH-
RS
FiT
15,06 -
10,3
8,45
21,53 -
11,55
7,87 - 6,36 12,28 - -
15 yrs.
http://www.reers.ba/sites/default/fil
es/FeedInPrices_RES_290616.pdf
FiP 11,07 - 6,32 4,21 8,1 - 7,32 3,63 - 2,12 - - -
Kosovo* 13,64 8,5 7,13 6,747 - - -
12 yrs.
except
hydro 10
yrs.
http://ero-
ks.org/2016/Vendimet/V_810_201
6_eng.pdf
FYR of
Macedonia
16 - 12 8,9 15 12 - 4,5 18 - -
15 yrs. -
PV,
biomass,
biogas;
20 yrs. –
wind,
hydro
http://shpp.moepp.gov.mk/Upload/
Document/EN/uredba-za-
povlasteni-tarifi.pdf
Montenegro 12 9,61
13,71 -
12,31
10,44 - 6,8 15 9 - 12 yrs.
http://www.oie-
res.me/index.php?page=uredbe-i-
pravilnici

RES State aid in the EnC
Points of departure:
• Transposition of RES Directive 2009/28
• Reform of RES support in line with
European Commission Guidelines on
State aid for environmental protection
and and energy 2014-2020

Benchmark for compliance
European Commission Guidelines on
State aid for environmental protection
and and energy 2014-2020
-> Market integration of RES
Defines standards for compliance of state support
to RES with State aid acquis
Authorities involved:
- National State aid authority
- Energy Community Secretariat as monitoring
body

• Competitive bidding process for
determination of
• Privileged producers and
• Level of support
• Rule, with exceptions
• Premium on top of market price
• Sell directly to the market
• Except for small producers
• Balancing responsibility
• in case of liquid IDM
Main aspects of reform of RES support

• For NEW projects
• For ALL technologies
• Except for small installations
• Except for limited circumstances
Mandatory competitive bidding process
-> predictability
-> market integration
-> driving level of support down
81
Competitive bidding process

Law on auctions adopted
Draft law discussed
No legislative initiative

.
Policy Guidelines on Competitive Selection and
Support to Renewable Energy

NEXT STEPS

Possible RES target in 2030
49.6 48.1 46.1 33.7 38.0 24.4 48.0 35.6 16.6 27.4 32.0 23.1
0%
10%
20%
30%
40%
50%
60%
Albania
Bosnia
and
Herzegovina
Georgia
Kosovo*
FYR
of
Macedonia
Moldova
Montenegro
Serbia
Ukraine
European
Union
28
and
Energy
Community
European
Union
28
Energy
Community
RE
share
in
GFEC
in
2030
2020Start FlatRate GDP Potential Interconnectors Total
2030 RE Targets for all CPs
and the EnC region
according to the proposed
target setting approach (i.e.
a flat rate & GDP based
approach).
(Source: EUROSTAT, 2018;
IEA, 2018; IMF, 2018; NTUA,
2012; own calculations)

www.energy-community.org
Thank you
for your attention!
Janez Kopač, Director 86

Dr Johannes LUEBKING
Acting Director, Markets and Cases:
Energy and Environment,
DG Competition, European Commission

Kiev, 18 December 2018
State aid for renewables
Dr Johannes Lübking
Acting Director - Energy & Environment
DG Competition/European Commission
All views expressed are personal and do not commit the European Commission

BACKGROUND: WHERE EEAG CAME FROM
• Previous EU State aid Guidelines (2008)
‒ Supported progress towards 2020 targets
‒ Only partially suited for the new challenges
› no requirement to use tenders (could set administrative tariffs
even for large installations), no requirement for RES to sell into
the market.
• Impact of support in the electricity market:
1. Overall costs of support were increasing
› concerns about competitiveness of economy and about State
finances
2. Reduced price signals for investments in other electricity capacity
› concerns about generation adequacy/security of supply
3. Lack of integration of RES in the market
› distortion of competition and partitioning of the internal market
89

EEAG 2014 - AID FOR RES ELECTRICITY
Since 2016
• Sell electricity directly on the market
(aid as premium on top of the market price)
• Balancing responsibilities (if liquid intra-day market)
• No incentives to generate at negative prices
Since 2017
• Competitive bidding as default option
• Open to all RES generators and technologies
(technology neutral)
• Exemptions from bidding and tech competition
possible
90

SUCCESS STORY: DECLINE IN SUPPORT LEVEL
Example: Decline for solar since introduction of tenders in Germany
0
1
2
3
4
5
6
7
8
9
10
Ct/kWh
Gebotstermin
Durchschnittliche
Zuschlagwerte PV-
Freiflächen
Fördersatz EEG2014
Average bid for PV
(on the ground)
Support level in
EEG 2014
Date of auction
91

SUCCESS STORY: DECLINE IN SUPPORT LEVEL
Example: Decline in offshore wind costs
0
2
4
6
8
10
12
2015 2016 2017 2018
EURct
/
kWh
Year
Offshore wind tenders in Netherlands, Germany and
Denmark
NL DE DK Linear (NL)
2018: ‘Zero subsidy’
winners in NL and DE
• Less costly RES schemes
• Foster market integration and entry 92

OVERVIEW OF STATE AID STATUS OF RES SCHEMES
Approved schemes
(or found no aid)
Non-notified
schemes
01/07/2014
Past no aid decision No open scheme
31/10/2018
93

WHAT DOES IT MEAN FOR UKRAINE?
State aid control brings market mechanisms to the sector
which reduce costs and help ensure objectives are achieved.
• On the one hand…
‒ EEAG is not part of the EU acquis and does not need to be
applied to the letter in Ukraine.
• On the other hand…
‒ Certain EEAG principles are useful to apply:
› Tenders
› Openness to different technologies
• Administrative price regulation still remains an option:
‒ where competition cannot be enabled effectively or
‒ for small installations (due to administrative burden)
94

RULES OF THUMB FOR RES TENDER DESIGN
• Tenders are particularly valuable but need to be well-
designed to:
‒ ensure sufficient competition;
‒ prevent opportunities for strategic bidding;
‒ ensure project realisation.
• This could include for example:
‒ requirements that are non-discriminatory and transparent;
‒ tenders that are held far enough in advance to allow new projects to be
developed;
‒ price caps or other market power mitigation rules that prevent
unreasonably high bids being accepted;
‒ participation rules that avoid uncompetitive tenders through narrow
technology definitions.
95

CONCLUSIONS
• State aid control has increased the share of renewables at
decreasing support levels
• Granting aid by way of competitive tendering was an
essential tool for ensuring success
• For Ukraine, EEAG do not have to be applied literally, but
specific market circumstances should be taken into account
• Certain principles are useful to apply, like tenders,
openness to different technologies
96

THEMATIC SESSION III
Integrating Renewables:
Conditions for Investment

MODERATOR
Ms Yuliya KOVALIV
Head of Office
National Investment Council

Mr Sergiy SAVCHUK
Head of the State Agency on Energy
Efficiency and Energy Saving of
Ukraine (SAEE)

Mr Laurent SCHMITT
Secretary-General
ENTSO-E

Integrating renewables –
Conditions for investments
Laurent Schmitt
Secretary General ENTSO-E

What does ENTSO-E do?
122
Common Grid Model
Contributes to the
design and
implementation of
the Internal Energy
Market
Develops the
necessary IT tools for
enabling the
implementation
Provides regular
reporting and
recommendations for
the development of
the network

Current Pan European System
Challenges

124
ACCELERATING THE ENERGY
TRANSITION
Mitigation of climate change requires more
renewables to be integrated in our system
More renewables call for power systems to integrate
horizontally and vertically & with other sectors
(transport, heating…)
More renewables means stronger AND smarter
grid infrastructures : towards cyber-physical grids
The European Power System Transformation

Growing Grid Congestions
125
Distributed Energy Resources Flexibility
September 2016 in Denmark, one week
(source Energinet.dk)
… translates into growing System complexity

126
2040 Energy transition pathway scenarios
1
EUCO30
Maximising the use of
existing infrastructure
Prosumer driving
climate change
Large scale renewables
development in both
electricity and gas
sectors
Commission core 2030
policy scenario

Grids are essential leverage to minimize
renewable spillage
1
156 TWH OF CLEAN
ENERGY SAVED EACH YEAR
with grid investments
= 1/3 of France’s power consumption

Grids minimize renewable integration costs
1
COST OF ‘NO GRID’
7.5 billion
euros per year to
invest until 2040
With power links Without power links
43billion
euros extra to pay
each year for electricity
x
v

Call for Strongers & Smarter Grid
Infrastructures

Anticipate investments in Grid infrastructures
TSOs will invest 114 billion euros in next 20 years to
build power bridges in Europe
Rescheduled
Investment on time
Delayed
Ahead
of time
1
60
63
148
57
New

Growing system flexibility needs for 2030
➢ Wind and Solar penetration reaching 60-80% of the
electricity generation mix during Renewable Peaks
➢ Residual Load ramp rates reaching 40-100GW/h
➢ Low inertia limits reached in small synchronous areas
❖ New Interconnector usage (VSC and AC)
❖ Batteries
❖ Fast Synchronous Condensers

Deployment of new European Network Codes
Facilitate the EU code
deployment
Transparency of
Grid Capacity
Foster
cooperation at
all levels
Shared Data
Sets
EU
National
Regulators &
ACER
TSOs &
ENTSO-E
Distribution
Stakeholders
Flow based
Bidding
zones review
Real-time
Markets
TSO-DSO
Flexibility
Platforms
Including links inside
countries
Enhanced
Regional
security
coordinators
Capacity
Calculations
New Emergency
Restorations
Enabling
more RES &
demand
response
connections

133
Evolving European market model
Balancing Capacity Auction
Explicit
auctions
Implicit
auctions
Monthly auction
Yearly auction
Intraday
Implicit Continuos
Trading, Implicit
Auction or “First-
come-first-served”
Day-Ahead
Implicit Allocation
(Market Coupling)
Balancin
g Energy
Auction
h
h-60
D-1;
12:00
Coordination of
interconnector
capacities
(flow based or
ATC)
Coordinated available transmission capacity (ATC)
Flow based approach (FB)
Capacity
calculation

134
A single Opendate Hub across Europe

New integrated system Vision 2030
Access to
Distributed
Flexibility
Operating with
millions of smart
devices
High RES and
Network of the
Future?
Clean Energy
Package including
Risk Preparedness
New R&D Tools
and Processes
Optimizing
Market Design
with Physics
Which design
changes will
support
system
operation?
What R&D
projects will be
‘operational’?
By 2030?
How can we
manage smart
devices at TX
level?
Can the network
support high
RE?

136
Bringing together flexibility providers and flexibility users
Which services? How to foster new actors participation and value them?
Residential DSR
SME & Buildings
Industrial
Technical and economical
features
Generation
/RES
Storage
POWER NETWORKS ADAPTING THE GRID TO ACCELERATE THE TRANSITION
Next generation market design 2030

Cooperation
beyond
membership
IREN
A
IEA
Sector
coupling
Business
Network
for
Innovatio
n
New
partnerships
Start
-ups
E-
mobilit
y
Business Network for
Innovation
Partnering with new actors to
advance on the energy transition
Sector coupling
Transversal cooperation
between different
sectors
Cooperation beyond
membership
Fulfilling our legal mandate of
helping neighbouring countries
building state of the art power
systems
Beyond Europe, beyond energy

Mr Vsevolod KOVALCHUK
CEO
Ukrenergo

RENEWABLES INTO UKRAINE’S
ENERGY SYSTEM:
network development and requirements
• Auction
• Renewable • Technical conditions
• Green generation

853 996 1034 966 1125
1614
1873
2188
2748
3398
139
138
137
137
140
199
248
287
369
401
1100
2013
2693
433
142
333
Dynamic of issuing technical conditions for grid connection of RES (01.10.2017-30.09.2018)*
2
Ukrenergo DSOs
1533 2155 3026 2805 3255 3646 5065
4220
01.10.2017 01.01.2018 01.10.2018 01.10.2017 01.01.2018 01.04.2018 01.07.2018 01.10.2018
Wind Solar Mini/Micro Hydro Biogas/Biomass
Total, incl. 01.10.2018:
Wind –
3818 MW
Solar –
3731 MW
Mini/Micro Hydro –
141 MW
Biogas/Biomass –
401 MW
Key factors.:
1. Changing market rules (feed in tariff vs green auctions)
2. Existing feed in tariff depreciation
3. “Dark side moon” factor: new network codes do not
envisage approval by Ukrenergo issuing of technical
conditions for DSO grid connection less than 20 MW
*Not including already commissioned capacities

RES integration technical conditions VS RES commissioned capacities
DATE 01.01.2016 01.01.2017 01.01.2018 01.10.2018
Wind PP 942 1 151 3473 4431
Solar PP 656 998 2 770 4 773
Mini/Micro Hydro 100 107 239 243
Biogas/Biomass 61 106 325 490
TOTAL 1 759 2 362 6 807 9 937
DATE 01.01.2016 01.01.2017 01.01.2018 01.10.2018 01.01.2020*
Wind PP 423,78 435,38 463,28 612,8 1232
Solar PP 354,3 453,1 753,6 1041,8 2550
Mini/Micro Hydro 93,3 96,1 100,5 102,2 105
Biogas/Biomass 32,03 42,2 76,4 88,5 94
TOTAL 903,47 1026,89 1393,8 1845,29 3981
ISSUED RES GRID CONNECTIONS INCLUDING ALREADY COMMISSIONED
COMMISSIONED RES CAPACITIES
Key trends
▪ 2019 – the highest
share of commissioned
RES capacities
▪ Disproportion between
issued technical
conditions for grid
connection and
installed RES projects
▪ Market speculations by
owners of technical
conditions for grid
connection
* Forecast

20-25.06.2018
Draft Law «On amendments to some laws of Ukraine to provide competitive
conditions for electricity generation from RES»
07.06.2018
Round table “World experience of introducing auctions for electricity
purchases”
12.09.2018
06.12.2018 Law of Ukraine No.9260 “On amendments to Tax Code of Ukraine…” to exclude
VAT on import of equipment for solar and wind power plants
7 alternative draft laws on electricity generation from RES and
“green” auctions
04.12.2018 Integration into one draft law No. 8449 for voting in session hall
Issued technical conditions for RES
01.07.2018 – 8897 MW 01.10.2018 – 9937 MW
more than 1GW
– “price” of delay in taking decision
regarding auction system
Recommendations on “green” auctions
Verkhovna Rada
Committee on Fuel
“Green” auctions in Ukraine – talks and works
5
New legislation changes regarding “green” auctions

Renewables generation: example of normal volatility
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
'00-00 '01-00 '02-00 '03-00 '04-00 '05-00 '06-00 '07-00 '08-00 '09-00 '10-00 '11-00 '12-00 '13-00 '14-00 '15-00 '16-00 '17-00 '18-00 '19-00 '20-00 '21-00 '22-00 '23-00
MW WPP SPP Total
SPP – max 623 MW
WPP – max 240 MW
deviation
100 MW
6
SEPTEMBER 17, 2018

Renewables generation: example of high volatility
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
'00-00'01-00'02-00'03-00'04-00'05-00'06-00'07-00'08-00'09-00'10-00'11-00'12-00'13-00'14-00'15-00'16-00'17-00'18-00'19-00'20-00'21-00'22-00'23-00
MW WPP SPP Total
SPP – max 754 MW
WPP – max 463 MW
deviation
450 MW
The normative amount of reserves in the IPS of Ukraine must be equal to 650 MW. The target fluctuations of
RES generation in the amount of up to 528 MW must be taken into account when drafting a daily chart.
The inaccuracy of the existing system of forecasting requires Ukrenergo to attract additional balancing reserves
6
MAY 22, 2017

Green generation: key points for 2020 and 2025
WPP – 1750 MW SPP – 3000 MW
Maximum level of SPP and WPP capacities managed by Ukraine’s energy system without serious deviations in the operation by
2020 according to joint Ukrenergo and Tetra Tech ES research funded by USAID
USAID/Mercados Research
4750 MW
Providing the limitation of nuclear generation,
the absence of restrictions for RES and a
significant increase in the basic generation of
the generating companies of thermal power
stations.
GREEN-COAL
PARADOX For the connection of
7500 MW of RES, at least
1500 MW of highly flexible
generation should be added to
generation fleet of Ukraine till
2025
7
2020
5750 MW
SPP – 4000 MW
WPP – 1750 MW
2025
Maximum level of SPP and WPP capacities managed by Ukraine’s energy system without serious deviations in the operation by
2025 according to joint Ukrenergo and Tetra Tech ES research funded by USAID provided TYNDP is fully implemented

Maneuvering reserves of TPS, HPP
Rapid reserve of TPS, HPP
400
2000
500
2000
600
1900
600
1800
600 600
500 500
700 700
50 800
100
650
200
800
1000
2000
300 500 500
500
1000
1500
2000
2500
3000
3500
4000
4500
MW
Reserves of capacities in energy system of Ukraine for the regulation of WPP
and SPP at the expense of new maneuvering capacities and rechargeable
batteries2,
New maneuvering capacities
Rechargeable batteries
2016 2017 2018 2020 2021 2022 2023 2024 2025
1600
1400
1200 1100
1100 1100
The main task of the IPS of Ukraine is to
ensure the reliable operation of the
system, taking into account the
introduction of the required share of RES
Decision – the introduction of new
capacities:
• 1000 MW of quick start gas-fires
power plants
• 500 MW of energy storages
High-maneuvering balancing capacities: possible combinations
8
1,1 BLN USD of investments needed
to install 1500 MW additional capacities by
2025
300

Energy storage Project
30 October Memorandum of cooperation signed by the Presidents of RTE & Ukrenergo
centralized installation of
200 MW of ESS at one of
Ukrenergo’s substations
Option 2
decentralized installation
of 5 ESS up to 40 MW at
Ukrenergo’s substations
Option 1
May / 2019
Start Finish
May / 2020
IMPLEMENTATION TIMESCALE
ESS equipment
Installation works
154 mln. EUR
150
4
9

Ensuring of the
required volume
of primary
frequency control
Balancing the IPS
of Ukraine with a
high share of RES
capacities
Reducing of coal
consumption by
14600 tonnes
annually through
Implementation of the project will allow:
10
Successful implementation of the Project will ensure the balancing of the IPS of Ukraine under
the conditions of the expected introduction up to 700 МW of additional RES capacities

THE REGULATOR
• To implement the changes to the Transmission system
code with regards decrease (by 1 MW) of level of RES
DSO grid connection to be approved by TSO
• To implement the changes to the market rules by
introduction “ready to serve” fees or other temporary
financial instruments for supporting new reserve
capacities
THE GOVERNMENT AND MINISTRY OF ENERGY AND
COAL INDUSTRY
• To develop and approve the procedure for conducting
tenders for the construction of generating capacity
including high-maneuvering generating capacities
• To hold a competition for the construction of the
maneuvering generating capacity
THE PARLIAMENT
• Introduction RES auction model by changing existing legislation
• Envisage in Ukrenergo tariff the cost of purchasing services to ensure construction of new
generating capacity (primarily maneuverable)
Improved accuracy of forecasting of RES
generation
Implementing strict responsibilities
for RES imbalances
Creation of “ fast start” high-maneuvering
generating capacities and energy storages
Implementing demand response mechanism
Development RES in Ukraine: the way of solutions
11

• Auction
• Renewable • Technical conditions
• Green generation

Dr Leonardo BARRETO-GOMEZ
Head of Center EU & International
Affairs, Austrian Energy Agency

Expanding renewable energy
network
Experience in Austria
Leonardo Barreto | 18.12.2018

154
Outline
• The Austrian Energy Agency
• RES electricity generation in Austria
• Pumped storage
• Climate and energy strategy
• Market coupling
• Balancing responsibilities
• Masterplan 2030 and network development plans
• Project of Common Interest (PCI)
• Conclusions

155
Austrian Energy Agency
A link between business, administration and politics
• Founded as a non-profit association in 1977
• Today: 87 employees| EUR 8.5 million turnover
• Expertise and networking for policy, administration and business
• The Presiding Committee is made up of
 The Federal Minister of Sustainability and Tourism (BMNT) as president
 a provincial governor to be nominated by the provincial governors conference as vice
president.
• Members are the federal government, the federal states and more than 40
energy and social institutions

156
Our services at national level
Federation, countries, cities
• Program management of the climate protection initiative
klimaaktiv
• Energy efficiency monitoring body in the framework of the
energy efficiency law
• Energy and transport policies: Development of strategies,
concepts, programs and measures
• Evaluation and further development of support
mechanisms
• Assistance to public authorities with the implementation
of laws and EU directives
BUNDESLÄNDER
BUNDESLÄNDER
* Auswahl
INSTITUTIONEN,…

157
Projects and networks at EU and international levels:
• EU
• Coordination of the EU Concerted Action on the Renewable Energy Directive (CA-RES3)
• Leadership of Core Theme NEEAPs at EU Concerted Action for the EE Directive (CA EED)
• Participation in H2020 projects
• Member of the European Energy Network EnR (network of energy agencies)
• International Cooperation
• Cooperation with UNIDO
• Mandated body for Twinning projects
• Member of the Climate Technology Centre&Network (CTCN)
• Member of the SEforALL industrial energy efficiency accelerator
• Development of NREAPs/NEEAPs
• Implementation of EU acquis communautaire on energy efficiency and RES in EU neighbouring countries
• Techno-economic assessment of projects (e.g. waste incineration plant in the city of Ulaanbaatar, biogas in
Brazil)
• Secretariat of the Global Forum on Sustainable Energy (GFSE)
• Participation in IEA Renewable Working Party (REWP) and several IEA task forces

158
Installed Capacity in MW in 2016
Hydro run-of-river,
5,714, 22%
Hydro storage,
8,436, 33%
Coal and Oil
derivates, 1,180,
5%
Gas, 4,853, 19%
Biomass,
424.051, 2%
Biogas, 85, 0%
Wind, 2,887, 11%
Solar PV, 1,193, 5%
Others, 641, 3%

159
RES electricity production in 2016
40902
3226
5350
1378 1096
0.02
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Hydropower Biomass
(solid, liquid,
gaseous)
Wind power Black liquors Photovoltaics Geothermal
energy
RES
Electricity
Production
(GWh)

160
• Run of river hydro is the
backbone of the electricity
supply system
• About 100 large scale
installations (> 20 MW) and
more than 2500 small HPP
(< 10 MW)
• Biggest plants at Danube river:
– Up to 330 MW / 2 TWh p.a.
• Important contribution to:
– Flood prevention
– Inland shipping
– Ecology
– Recreation and tourism
RUN OF RIVER HYDROPOWER FOR BASELOAD
Pictures: Verbund

161
Distribution of wind power plants in Austria
• Most wind power plants are located in the East of the country (lower Austria,
Burgenland)

162
Available generation capacity on Thu. 14.6.2018

163
Pumped storage in Austria
• The baseload is covered by run-of-river hydro power and biomass
• Pumped storage plants and natural gas plants supply electricity during
demand peaks
• They also compensate short-term fluctuations due to variable renewable
electricity generation (wind, solar PV)
• Pumped storage provides the bulk of balancing energy in Austria

RES SHARES IN AUSTRIA IN 2016:
GROSS FINAL ENERGY CONSUMPTION
2016 Share
(%)
Target
2020
RES Total 33.5 34
RES-Electricity 72.6
RES- Heating and Cooling 33.3
RES -Transport 10.6 10
Source: EUROSTAT (2018)

165
Climate and energy strategy
• Austria has set a national target of 45-50% RES share of the gross final energy
consumption by 2030
• Austria aims to achieve 100% RES electricity by 2030 (excluding balancing
energy to stabilise the grid)
• Several lighthouse programmes on RES
– 100,000 Solar PV rooftops
– Linking RES promotion with storage
– Renewable hydrogen and biomethane
– E-mobility

166
Cross-border electricity exchanges

167
Market coupling
• Day-ahead market coupling allows simultaneouslyconducting energy trade
and allocating cross-border transport capacities
• On the Italian and Slovenian borders, market coupling has already been
successfully implemented
• In the other borders an explicit allocation of capacities takes place
• Market coupling in these other borders is necessary for an optimal
integration of RES into the electricity grid
• This is particularly the case in the German border

168
Balancing responsibilities in Austria
• The procurement of balancing power in Austria is done through a weekly
tender procedure conducted by the electricity market operator (Austrian
Power Grid, APG)
• The resulting costs are borne by the service fee paid by all electricity
generators (including RES) over 5 MW and through the balancing energy
charges of the entity responsible for the respective balance group
• The balancing responsibility for supported RES electricity lies with the single
buyer of green electricity, the clearing agency for green electricity (OeMAG)
• There is currently no possibility in Austria for RES electricity plants that
receive support to directly offer balancing services on the market
• Costs of balancing energy are increasing substantially and adaptations to the
system may be required in the future

169
Balancing costs for the green electricity balancing group

170
Masterplan 2030 and Network Development Plans
• The Masterplan specifies the transmission infrastructure that must be
upgraded or expanded to integrate RES and guarantee grid security and
stability until 2030
• Networks development plans (NDP) based on the Masterplan detail the
investments that should be completed within the next 3 years and the plan
for the next ten years
• Significant grid reinforcement are necessary to accomodate more RES
electricity in the grid
• A 380 kV ring that allows connecting the major demand centers and RES
power plants is one of the major investments

172
Projects of Common Interest (PCI)
• Several grid expansion projects are Projects of Common Interest (PCI):
– 380 kV transmission line in Salzburg to close the 380 kV ring: This
transmission line connects the wind power plants with the hydro storage
plants in the south-west of the country
– Connection of the existing 220 KV Westtirol-Zell/Ziller transmission line
to the 380 kV ring to secure the integration of RES electricity and pump
storage plants
– Grid reinforcement Lienz-Obersielac to close the 380 kV ring as an
additional connection between the RES injection centers in the East and
the pumped storage plants in the central Alps
– 380 kV transmission line St. Peter (AT)-Isar/Ottenhofen (DE): It increases
the coupling capacity between Austria and Germany, replacing an
existing 220 kV line. The new line increases interactions between
pumped storage plants in AT and wind power plants in Northern Europe.

173
Conclusions
• Austria has been able to integrate substantial amounts of RES electricity
• Austria has set a target of 100% RES electricity by 2030. Additional grid
reinforcements are needed to achieve it
• Pumped storage hydro plays a significant role in the integration of large
amounts of wind and solar PV electricity
• Grid reinforcements to secure the integration of RES electricity and pumped
storage plants and ensure security of supply are being undertaken
• Austrian pumped storage plants will play an increasing role in RES integration
at the regional level
• Market coupling has been succesfully implemented in several borders but it
needs to be expanded to other borders as well

Contact
Leonardo Barreto Gómez
Head of Center „EU&International Affairs“
Österreichische Energieagentur - Austrian Energy Agency
Leonardo.barreto-gomez@energyagency.at
Tel +43 (0)1 586 15 24 - 127
Mariahilfer Straße 136 | 1150 Vienna | Austria
www.energyagency.at
@at_AEA
Providing answers through expert know-how to questions of the energy future – this goal is supported by the Austrian
Energy Agency with its strategic personnel development.
The Austrian Energy Agency is ÖNORM ISO 50001:2011 and ISO 29990:2010 certified.

Mr Harry BOYD-CARPENTER
Director, Power & Energy Utilities,
EBRD

Renewable energy in Ukraine
• 18 December 2018

Ukraine – the investment challenge
21 January, 2019 177
0
5000
10000
15000
20000
25000
30000
35000
40000
0
2000
4000
6000
8000
10000
12000
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Ukraine - electricity generating capacity (GW)
5-year periods by technology (LHS) and cumulative (RHS)
Nuclear Thermal Hydro Cumulative
Source: EBRD calculations

Global energy transition
21 January, 2019 178
0
2000
4000
6000
8000
10000
12000
14000
16000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040
Global electricity generation capacity in the
IEA Sustainable Development Scenario – 2016-2040
Coal Gas Hydro
Oil Nuclear Other renewables
Wind Solar PV Battery Storage
Source: International Energy Agency (2018), World Energy Outlook 2018, OECD/IEA, Paris

Carbon is no longer cost-free
21 January, 2019 179
EU CO2 Emission Allowance price (EUR) – 2013-2018
Source: Markets Insider

A bankable renewables sector
21 January, 2019 180
Long-term market
with predictability
and scale
Affordable,
sustainable and
transparent tariffs
Transparent and
sufficient grid
capacity
Stable regulatory
regime
Investment
National target and
published
trajectory to reach
it
Price determined
and allocated
through
competitive
auctions
Investments in
networks, storage
and peaking capacity
Revised PPA, clear
permitting, no
retroactive changes!

EBRD support for the Ukrainian power
sector
21 January, 2019 181
USELF I - €50mln and 47 MW
USELF II - €50 mln and 110 MW
USELF III - €250 mln,
targeting 300 MW
Support for Ukrenergo
• Investment in transmission
lines
• Substation modernisation
• Corporatisation and
unbundling
• Network absorption
Regulatory reform
• PPA revision
• Legal support for Electricity
Law amendments
• Auction design and
implementation

EBRD power projects in Ukraine
K2R4 Post-start-up Safety &
Modernisation
Nuclear Safety Upgrade
(Zaporizhzhia NPP)
(South-Ukrainian NPP)
(Rivne NPP)
(Khmelnytsk NPP)
HPP Rehabilitation
(Kyiv)
HPP Rehabilitation
(Kaniv)
HPP Rehabilitation
(Kremenchuk)
HPP Rehabilitation
(Dnipro)
HPP Rehabilitation
(Zaporizhzhya)
LEGEND
Nuclear Safety
Hydro Rehab & Small Hydro
High Voltage (HV)
Renewables
Ivankiv
Biomass
Novoazovskiy
Wind
Rokytne
Biogas
Aquanova Small
Hydro Projects
Eco-Optima
Wind
Sunelectra
Power
Gnatkov
Solar
Porogi
Solar
Ecoprod
Biogas
Hydropower Small
HPP Shargorod
Solar
Yavoriv-1
Solar
Karpatskyi Wind
Rivne Kyiv
HVL
Zakhidna
Substation
Usatove
Adzhalyk HVL
Zaporizhzhya
Kakhovska HVL
Kness
Solar
Ekotechnik
Solar
Mykolaiv
Solar

Contacts
21 January 2019 21
• Harry Boyd-
Carpenter
Director, Head of
Power and Energy
Utilities
Tel: + 44 20 7338
6559
Email:
boydcarh@ebrd.com
• Marina Petrov

Mr Alessandro BOSCHI
Head of the Renewable Energy
Division, EIB

21/01/2019
185
STIMULATING INVESTMENTS IN RENEWABLE ENERGY
THE VOICE OF EIB
EU-Ukraine RE Investment Forum - Kyiv 18 December 2018
Alessandro Boschi

The EIB: the EU bank
21/01/2019
186
‣ Natural financing
partner for the EU
institutions since 1958
‣ Around 90% of lending
is within the EU
‣ Shareholders: 28 EU
Member States
Investing in
Europe’s growth

EIB Group financing in 2017: EUR 78.16bn
21/01/2019
187
Signatures
EFTA &
Enlargeme
nt
Countries
EUR
1.62bn
Eastern
Neighbo
urs
EUR
0.88bn
Africa,
Caribbea
n, Pacific,
South
Africa
EUR
1.47bn
Asia, Central
and Latin
America
EUR 1.99bn
Mediterran
ean
EUR
1.96bn
European
Union
70.24bn
Outside EU
7.91bn
EUR
EUR
Total EUR 78.16bn

21/01/2019
188
EIB is a significant energy financier in the EU and active globally
EIB will review its Energy Lending Policy in 2019 so as to align it to the new energy
landscape and to the to EU’s Clean Energy for All package

21/01/2019
189
EIB Energy Lending in Energy Community - Contracting Parties: 2013-2017
5
EIB’s lending to the Energy sector in Ukraine has been of ~660M€ over the last 5 years
mainly in the context of wider programs and targeting mainly electricity networks,
energy efficiency and renewables

21/01/2019
190
5
EU Renewables - Out with the old; In the with the new
Old world
- 2020 MS Targets (20% EU)
- Feed-in tariffs
- Priority dispatch
- outside the power market
New world
- 2030 EU target of 32%
- Competitive auctions
- integration into power markets
- 2050 long term strategy + Paris
alignment
- Full decarbonisation
Mixed picture at RES-e level between MS, however
overall target is expected to be achieved
Mixed progress for 2020

21/01/2019
191
5
15% 15%
22%
30%
37%
44%
49%
1%
2%
5%
12%
19%
25%
29%
0%
10%
20%
30%
40%
50%
2000 2005 2010 2015 2020
% RES-E
% Variable
RES-E
Share of renewables and variable renewables(VRE)
in the electricity sector consistent with EU target by2030
2025 2030
Source: PRIMESEUCO27
• The proposed EU 27% renewables target implied 50 % for the electricity sector and 30% for wind and solar.
• Impact of the new 32% targets agreed on 13/06/2018 need to be further analysed
• Curtailment of renewables and zero or negative prices are becoming an increasing concern at high shares of
wind and solar
• Flexibility is increasingly needed to integrate VRE in power systems
Average solar PV and wind auction results inGermany
Source: BNEtzA,Tennet
EU Renewables – Driving the transformation of the energy markets

21/01/2019
192
5
OPPORTUNITIES
‣ Significant reduction in cost of technologies
‣ Experience and lessons learnt from the EU
‣ Support from the EU, Energy Community
and IFIs
‣ Significant RE resource potential
‣ Security of supply
Renewables in Ukraine – Opportunities and main challenges
MAIN CHALLENGES
‣ Reform of gas and electricity markets
‣ RE Regulation
‣ Commercial/offtake risk
‣ Environmental standards
‣ Grid issues related to connection and commissioning

21/01/2019
193
5
‣ Wide variety of financial products tailored to needs of project
‣ Significant experience in providing technical assistance and advisory to promoters
‣ Strong technical expertise in energy sector, in all RE technologies, both mature and emerging
‣ Experience both inside and outside the EU, spreading best practice
‣ Close collaboration with EU Commission ensuring that EU values and standards are properly integrated in all projects
LENDING BLENDING ADVISING
• Project Loans
• Intermediated Loans
• Equity Participation
• Guarantees
Combining EIB
finance with EU
budget and co-
financing with other
IFIs
Prepare, evaluate
and support the
implementation of
projects
Attracting FUNDING for long-term growth
How can EIB contribute to stimulating RE investments

Mr Nicola R. SAPORITI
Senior Investment Officer,
International Finance Corporation

STIMULATING INVESTMENT IN RENEWABLE ENERGY:
INTERNATIONAL EXPERIENCES
Nico Saporiti
International Finance Corporation
Kiev, 18 Dec. 2018

196
Disclaimer
• This presentation mostly draws on a longer presentation on the “Development
and Financing of Large Scale Private Renewable Energy Projects”, authored by
Tonci Bakovic, IFC Chief Energy Specialist.

IFC is a member of the World Bank Group
197
IBRD
International Bank
for Reconstruction
and Development
IDA
International
Development
Association
IFC
International
Finance
Corporation
MIGA
Multilateral
Investment and
Guarantee Agency
To promote
institutional, legal and
regulatory reform
Governments of
poorest countries with
per capita income of
less than $1,025
- Technical assistance
- Interest Free Loans
- Policy Advice
To promote private
sector development
Private companies in
179 member countries
- Equity/Quasi-Equity
- Long-term Loans
- Risk Management
- Advisory Services
To reduce political
investment risk
Foreign investors in
member countries
- Political Risk
Insurance
Est. 1945 Est. 1960 Est. 1956 Est. 1988
Role:
Products:
To promote
institutional, legal and
regulatory reform
Governments of
member countries with
per capita income
between $1,025 and
$6,055.
- Technical assistance
- Loans
- Policy Advice
Shared Mission: To Promote Economic Development and Reduce Poverty

IFC’s Investment and Advisory Services
198
Technical assistance and advice to
governments and businesses
World’s largest multilateral provider
of financing for private enterprises

The World has Turned to Renewable Energy
199
Global Investments in Renewables, 2015 US$BN,
and Growth from 2014
Global Investments in Renewable Energy:
Developed and Developing Countries, 2004-2015, US$BN
Source: UNEP
Source: UNEP
Source: UNEP
TBakovic

Are we there yet? (1/2)
200
Sun and wind competing with coal.

Are we there yet? (2/2)
201
China Solar PV and Onshore Wind LCOE vs. Coal Marginal Cost of Generation

Feed-in Tariffs vs Auctions
202
Feed-in Tariff
• A fixed tariff (or indexed) that is paid per MWh produced.
• Easy to implement and of less risk for the investor since he has visibility and
certainty on his revenues long term.
• Generally the counterpart is a Government Agency or a State Owned Utility.
• Examples: France (15 year FIT), Portugal (15 year FIT extendable to 22 years),
Spain (old FIT for the life of the asset), Italy (20 year FIT).
Auctions
• Price discovery is attained through a competitive process awarding to the lowest
price bidders a fixed tariff at the auction price.
• The tariff award comes with a long-term contract.
• Some auctions include price indexation others don’t.
• Examples: Canada, some States in the USA, off-shore wind in France (20 years fixed
tariff), South Africa (20 years), Brazil (20 years), Mexico (15 years), Argentina (20
years), Chile (20 years), India (25 years), Zambia, Senegal.

Auctions – the consumer’s best friend (1/2)
203
1
Evolution of average AUCTION prices for onshore WIND: January 2010-February 2017

Auctions – the consumer’s best friend (2/2)
204
Evolution of average AUCTION prices for SOLAR PV, January 2010-February
2017

South Africa: RE auction program
205
• Three rounds of auctions:
• August 2011: 53 bids for 2128 MW of power generating capacity were received.
Ultimately 28 preferred bidders were selected offering 1416 MW for a total investment
of close to US$6 billion.
• November 2011: Seventy-nine bids for 3233 MW were received in March 2012,
and19 bids were ultimately selected.
• May 2013: 93 bids were received totaling 6023 MW. Seventeen preferred bidders
were notified in October 2013 totaling 1456 MW.
• 64 successful projects involving over a 100 different shareholder entities, 46 of these in
more than one project. Banks, insurers, DFI’s and even international utilities have all
participated in the program.
• Decreasing prices in each round: The rolling series of bidding with substantial capacity
allocations also helped build confidence in the program.

South Africa: RE auction program
206
• The requirement that bids be fully underwritten with debt, as well as equity, effectively
eliminated the tendency of competitive tenders to incentivize under-bidding (or “low-
balling”) to win contracts.
• Government Design and Management of the REIPPPP Tender Process: The REIPPPP
team was led by a senior manager from the National Treasury PPP Unit, supported by
professional external advisors.
• Caps were set on the total capacity to be procured for individual technologies – the largest
allocations were for wind and photovoltaics, with smaller amounts for concentrated solar,
biomass, biogas, landfill gas, and hydro.
• Caps were also set on the price for each technology (at levels not dissimilar to NERSA’s
2009 REFITs). Bids were due within three months of the release of the RFP, and financial
close was to take place within six months after the announcement of preferred bidders.
• The developers were expected to identify the sites and pay for early development costs at
their own risk.
• Bid bonds or guarantees had to be posted, equivalent to US$12,500 / MW of capacity, and
the amount was doubled once preferred bidder status was announced.

Argentina: RE auction program
208
• March 2016. (Four months into the Macri administration) policy objectives:
• Reinvigorating a lagging renewable energy sector, cultivating Argentina’s
rich renewable resources of wind in the Patagonia south and solar in the
remote northwest.
• Reverse recent trends of increased imported power and natural gas to fuel
thermal plants.
• Bid process:
• Capacity limits:
• IFC advised the GoA to announce clearly defined limits on capacity installed for each
transmission node being auctioned to avoid future curtailment issues.
• Credit enhancement through a master trust account setup and joinder agreement to
backstop the offtaker’s ongoing payments; and World Bank Guarantee for the
termination payment.
• Clear capacity caps.
• Price cap not disclosed in round 1.
• International arbitration.
• Currency risk mitigation: program is US dollar-based (i.e. bids quoted in US$/MWh
and payment made in Argentine Pesos based on Peso/US$ exchange rate from the
previous day).
• IFC’s E&S standards (Equator Principles), to help with debt mobilization.

Argentina: RE auction program results
209
• Results of Round 1
• Launched on September 5, 2016, it was 6x oversubscribed.
• Average awarded prices of US$59.4/MWh for wind and US$59.7/MWh for solar.
• 1,142 MW awarded (707.5MW to wind projects, 400MW to solar PV, and 34.5MW to
biogas, biomass and small hydro).
• Results of Round 1.5
• Launched on November 2016, lowering the ceiling prices to the average price
awarded for each technology in Round 1.
• The average tariff reduced by about 10% (US$53.3/MWh for wind and US$54.9/MWh
for solar).
• 1,281 MW awarded.
• Results of Round 2
• 1,185 MW awarded (550MW to wind projects, 450MW to solar PV, 100MW biomass,
35MW biogas, and 50MW small hydro).
• The average tariff lower than Round 1 (US$56.3/MWh for wind and US$57.0/MWh
for solar).
• Total RenovAr:
• 3,600+ MW
• ~US 7bn investment

WBG Scaling Solar: low priced and fast (1/2)
210

WBG Scaling Solar: low priced and fast (2/2)
211

THEMATIC SESSION IV
Innovative Renewable Energy Future

MODERATOR
Mr Roman ZINCHENKO
Greencubator

Mr Bart BIEBUYCK
Executive Director, Fuel Cells and
Hydrogen Joint Undertaking

Potential of
hydrogen for
renewable energy
future.
Bart Biebuyck
18th December 2018
Kyiv, Ukraine

Similar leverage of other sources of funding: 886 m€
401 million euros
128 projects
353 million euros
59 projects
47 million euros
37 projects
47.5%
5.5%
42%
227
projects
supported
for
844 m€
42 million euros
3 projects
5%
Strong public-private partnership with a focused objective
FUEL CELLS AND HYDROGEN JOINT
UNDERTAKING
Energy
H2 production
and distribution
H2 storage
F/C for CHP
Transport
Road vehicles
Non-road vehicles
Refueling infra
Maritime, rail and
aviation applications
Cross-cutting
standards, safety,
education,
consumer
awareness, …
A combined private-public of 1.73 billion Euro has been invested to bring products to market readiness by 2020

218
The role of hydrogen in our society & economy
Hydrogen allows more renewables in the energy system through storage and enables sectoral integration
N
G
(2) SECTORAL INTEGRATION
Heating & Cooling
Transport
(1) STORAGE (seasonal)
Industry
Feedstock

219
Overview of Fuel Cells & Hydrogen Activities in Ukraine
Ukraine
1 Beneficiary:
NATIONAL TECHNICAL UNIVERSITY OF
UKRAINE IGOR SIKORSKY KYIV
POLYTECHNIC INSTITUTE
1 Project (Teachy, 2108)
265
223
186
1451
163
UA Applicants in FCH JU Calls
(k€)
– TOTAL 2 M€ Requested
2011 HWDC 2014 H-FUTURE
2014 MWtoH2 2017 HiPE
2017 TeacHy
More than 43 research projects
on Fuel Cells an Hydrogen
technologies in 17 Research
Laboratories across the country
Source: Ukrainian Association for Hydrogen Energy
Image credit: extremetech.com
Source: Ukrainian Association for Hydrogen Energy
Target complex Programme for
Research of NAS UKRAINE:
Fundamental problems of
hydrogen and renewable
energy and fuel all
technologies
Kyiv

220
SECTOR
Green H2 production
and industry

221
Electrolysis for energy storage and greening of Industry
Steel industry
HRS
Refineries
Food
industry
0
2
4
6
8
10
12
14
16
18
20
0
2
4
6
8
10
12
14
16
18
20
2011 2014 2016 2017 2018
FCH
JU
Support
(M€
/
MW)
Capacity
(MW)
Axis Title
Electrolyser Demo Projects
Support to developing electrolyser; Increasing demonstrations with falling support; move from kW -> MW -> GW
31
Projects
98
M€
To boost research, investments and create the supply
chain the industry announced a
40GW electrolyser initiative by 2030

222
6 MW electrolyser at VOESTALPINE (steel plant) in Linz
• The green H2 is produced from hydro-electricity (from Alps)
• It is used to produce steel in this way the industry can make
a first step towards CLEAN STEEL
Big industries are discovering the potential of Hydrogen (1/2)
Thanks to FCH-JU research projects the costs of electrolysers decreased and became interesting for big industries to invest
3.4 MW electrolyser at MPREIS (bakery plant) in Völs
• The green H2 is produced from hydro-electricity (from Alps)
• 1st phase: it is used to heat the ovens to bake the bread
• 2nd phase: distribution by using H2 trucks
AUSTRIA

223
Big industries are discovering the potential of Hydrogen (2/2)
Thanks to FCH-JU research projects the costs of electrolysers decreased and became interesting for big industries
to invest
10 MW electrolyser at SHELL in Köln
• The green H2 is produced from curtailed wind energy due to a
full electricity grid.
• The produced H2 will be injected in the natural gas grid
(part of it can be used for Shell internal processes)
150/30kW Reversible electrolyser, Salzgitter
• To operate a high-temperature Electrolyser as reversible
generator (rSOC, reversible Solid Oxide Cell) in the industrial
environment of an integrated iron and steel work.
• The system is flexible to produce either H2 or electricity.
GERMANY

224
1st guarantees of origin for green hydrogen about to hit the market
Main objectives:
- To define a widely acceptable definition of green H2
- Design a robust GoO scheme for green hydrogen
- Propose roadmap to implement the initiative in EU
- Establish a stakeholder platform
- Real trial in 4 pilot operations for a guarantee of
origin scheme for green and low carbon H2
NEXT: IMPLEMENT IN NATIONAL LEGISLATION
Important for member states to implement these Guarantees of Origin in their national legislation
http://www.certifhy.eu/

226
All FCH-JU projects together will put 1600 vehicles on the EU market to gain experience with the technology
* According to the action plan of Alternative Fuel Directive
** McKinsey study Hydrogen: Europe roadmap to be released Oct
2018 (Today) 2025
MARKET IN FAST
EXPANSION…
• AUDI model
• BMW Small series
• New Toyota Mirai
• Lexus model
• New Honda Clarity
• About 1200 FCEV’s on EU roads
• EU OEM’s: small demo’s ~2025,
mass production 2025~
(EU OEM’s part of FCH-JU)
PSA: start FCV development
• FIA: In 2024 a H2 class @ Le
Mans
• California & Japan sales are
going fast due to strong policy
support
EU mobility package is good
chance to catch up
0
200
400
600
800
1000
1200
1400
1600
1800
Number
Jaar
FCEV's on EU roads
HyKangoo ZE maxi Toyota Mirai Honda Clarity FCX Daimler-Mercedes Series6
De…
Pla…
In H2ME projects
1439
333
Roll out of cars by FCH-JU Hydrogen Mobility Europe (H2ME)
0
1000
2000
3000
4000
5000
6000
2012 2013 2014 2015 2016 2017 2018
Hydrogen fuel cell cars & vans in Europe
EU
JP
US
2018 2020 2022 2025 2030
Europe 1200 - - (0.9 -1 mill)* Tbc **
China 150 5000 - 50.000 1 million
Japan 2500 40.000 - 200.000 800.000
USA 5000 - - - -
S-Korea 0 - 16.000 - -
’13 Hyundai IX35
’15 Renault Hykangoo
’15 Toyota Mirai
’16 Honda Clarity
’18 Mercedes GLC
’18 Hyundai NEXO

227
0
10
20
30
40
50
60
70
80
90
100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 to
date Sept
Public hydrogen refueling stations
Japan Europe USA
Source: FCH JU KM data collection file, 20/09/2017, public stations
USA-DoE & CaFCP, Japan-HySUT
To date ca. S1 2017
Depl…
Plan…
In H2ME
projects
10
49
https://h2-
map.eu/
* According to the action plan of Alternative Fuel Directive
** McKinsey study H2: Europe roadmap to be released Oct ‘18.
2018 2020 2022 2025 2030
Europe 100 - - (820~842)* Tbc **
China 12 100 - 350 1000
Japan 100 160 - 320 (900)
USA 35 100 - 200~225 -
S-Korea 0 - 310 - -
Roll-out of the required infrastructure in Europe
Europe installs Hydrogen Refuelling Stations thanks to European programs (FCH-JU & CEF) & national
programs.
Development of a system for HRS availability in the EU
Possible end users
“H2 live” App
H2 mobility
Deutschland

228
The roll-out of hydrogen buses, created an appetite of >1600 units
Europe is supporting totally 360 Hydrogen buses deployment that lead to a price reduction of 66% vs 2010.
No
.
Parameter Unit
State of the art, SoA FCH 2 JU target
SoA 2012
International
SoA 2017*
Target
2020
Target
2024
Target
2030
1
Fuel cell system
durability
h 10,000 16,000 20,000 24,000 28,000
2 Hydrogen consumption
kg/100
km
9 8.5 8.0 7.5 7.1
3 Availability % 85 90 90 93 93
4
Yearly operation cost
(including labour)
EUR/year -
-
16,000 14,000 11,000
5 Fuel cell system cost EUR/kW 3,500 1,500
900
(250 units)
750
(500
units)
600
(900
units)
6 Bus cost kEUR 1,300 650
625
(150 units)
600
(250
units)
500
(300
units)
10 European OEM’s are developing Hydrogen buses: “http://www.fuelcellbuses.eu”
From order to operation,
a delivery time ~ 18 months
50 of
360
FCB on
the
road Achieved
- > 6,000,000 km driven since projects
started
- > 92 t of H2 consumed only in 2017
- > 25,000 h lifetime reached
- 625,000 €/bus offered
Reduction of downtime by:
- Easier access to spare
parts
- Integration of FC
maintenance in bus
preventative schedule
- Dedicated pits at bus
depots
- Presence of OEM staff on-
site
88
%
green
hydrogen

229
In 2017 first trucks appeared on the EU roads and more are to come
Worldwide there is a clear traction towards Hydrogen for trucks due to the limited range of batteries.
ESORO COOP ASKO-SCANIA VDL – COLRUYT
Nicola Truck Toyota Truck @LA
port
Partners planning
2,000
commercial trucks on the road
by 2020
FCH-JU started with Fuel Cells in trucks for APU’s
but was found to expensive, therefor focus
shifted to developing and testing trucks with
range-extenders or fuel cell only e.g.: garbage
trucks in mayor cities.
Toyota and
7-eleven
collaboratio
n
FCH-JU H2ME project
Batt+RE
REVIVE: H2 Garbage
Trucks in 8 EU cities
2018: Heavy Duty
truck
call for proposal
Call 2018: 1 successful
proposal under signature
Hyundai
truck

230
Rail, Aviation and Maritime are discovering Hydrogen and Fuel Cells
The first business models are appearing in hard to abate sectors
• 42% of EU railway not
electrified
• H2 train requires half the
investment vs full electric train
(catenary 1 million € / km)
• Sept. ’18 commercial operation
starts in Germany. Other EU
countries are on the way
• In 2016 first 4-seater plane
propelled by H2 took off from
Bonn airport
• Development of H2 powered small
business jets ongoing ~2030
• Auxiliary power (infotainment /
kitchenette) produced by H2 for
big airplanes (maiden flight Jan.
’19)
• First demo projects appear
• H2 needed to reach IMO target
of
50% C02 reduction by 2050
• URGENT need for regulation to
homologate a H2 powered ship
• R&D needed e.g. L H2 storage,
MW scale Fuel Cells
Alstom H2 train
Lower Saxony

231
SECTOR
Heating and
Cooling

1046 units deployed in various European
countries
• >1 MWe capacity installed; >5 million
operating hrs.
• Cost reduced drastically through various
projects
• National authorities start own subsidy
scheme
(e.g. >1,000 units deployed by a German
scheme)
DURATION: 2016-2021 with FCH JU Funding:
~34M€
Over 1000 fuel cell µCHP systems installed across EU
232
Track record of domestic heat and power systems created
2MW plant at Ynnovate, Yingkou (province Liaoning),
China
Design, build and operate a 2 MW power generator, with
full integration of heat and power with an existing
chlorine production plant. Fully automated way of
operation + remote control
DURATION: 2015-2018 with FCH JU Funding: ~5.5M€
175kW SOFC in waste water treatment plant,
Turin Italy
Area will guarantee the supply of around 30% of
the site electrical consumption, and almost 100%
of the thermal requirement.
DURATION: 2015-2020 with FCH JU Funding:
~4.5M€
50~20
0 kW
1 ~ 2
MW
0.5~1.
5 kW

233
Coordinating of cross cutting activities
STANDARDS,
AWARENESS…

234
in person training, e-learning, blended
learning…virtual reality, serious games…
…mock-up installations…
Training for
first responders
Courses for
professionals/
general public
# of TRAINEES
None
200
Country Total
BE 33
DE 8
ES 170
FR 71
IT 188
NL 35
PT 80
UK 21
2016
Preparing the European workforce
Projects running include training packs in different languages, formats, means, etc.
>600 trainees
8 countries
7 languages
undergraduate
& graduate
education PhD
BEng/BSc
MEng/MSc

235
Pre-normative projects address the entire hydrogen chain
Providing science-based information to create and further develop standards
H2
Production
H2
storage
H2
Distributio
n
H2
Consumpti
on
Targeting standards at European and International level
International Standardization Organization
European Committee for Standardization
European Committee for Electrotechnical Standardization
International Electrotechnical Commission
46% 46%
14%
2017(*)
* 5 projects on-going over 2017

Croatia
>Split
>Split-Dalmatia County
Slovenia
>Velenje
237
FCH-JU initiative: 89 Regions/Cities from 22 countries (about 25% of EU) study to:
(1) assess FCH applications,
(2) identifying financing/funding options
http://www.fch.europa.eu/overview-regions
Iceland
>Reykjavik
Belgium
>Flanders
>Pom West-
Vlaanderen
Portugal
>Torres Vedras
>Médio Tejo
France
>Auvergne Rhone-Alpes
>Bourgogne-Franche-Comté
>Centre-Val de Loire
>Grenoble
>Grand Dole
>La Roche sur Yon
>Normandie
>Occitanie-Phyrenees
>Orléans
>Pays de la Loire
>Pays de St Gilles
>London (Greater
London Authority)
>Newcastle
>Orkney Islands
>Oxfordshire
>Perth and Kinross
>Manchester
>Tees Valley
United Kingdom
>Swindon and
Wiltshire
>Aberdeen
>Birmingham
>Cornwall
>Dundee
>Fife
>Leeds
>Murcia
>Port of
Valencia
>Puertollano
>Valladolid
Spain
>Aragon
>Barcelona
>Cantabria
>Castilla – La
Mancha
Norway
>Akershus
>Møre og Romsdal
>Oppland County
Municipal
>Sogn og Fjordane
Netherlands
>Assen
>Drenthe
>Emmen
>Groningen
>Helmond
Italy
>Lazio
>South
Tyrol
>Favignana
>Torino
>Venice
>Toscana
Austria
>Tirol
Latvia
>Riga
Denmark
>Guldborgsund
>Lolland
Bulgaria
>Bulgarian Ports
>Sofia
Finland
>Kokkola
Romania
>Constanta
Sweden
>Gavleborg
>Mariestad
Czech Republic
>Trutnov
Greece
>Kalymnos
>Heraklion
>Western
Macedonia
>Papagoou-Halargos
>Region of Crete
>Alimos
>Agia Paraskevi
>Ierapetra
>Kozani
>Milos
>Vrilissia
Estonia
>Tallinn
>North Rhine-
Westphalia
>Heide region
>HYPOS (East
Germany)
>Recklinghausen
>Saxony-Anhalt
Germany
>Baden-
Württemberg
>Bremerhaven
>Hamburg
>HyCologne-
Hydrogen
Region
Rhineland
>Kreis Steinfurt
(3) develop roadmaps,
(4) engage their stakeholders

238
Looking to the future
Energy ministers of 28 European countries signed the “Hydrogen initiative” launched by the Austrian
presidency in Linz.
https://www.eu2018.at/latest-news/news/09-18-Informal-meeting-of-energy-ministers.html
H2 Ministerial in Tokyo, 23 Oct.
‘18
EU new gas directive is in
preparation
• Horizon Europe mentions
H2 and Fuel Cells.
• Oct. ’18: EC proposes
partnership for Fuel
Cells and H2 ,
negotiations on-going
EU Mid-century (2050) strategy is
released and Hydrogen plays an
important role
UK and Sweden did not yet sign.

For further information
www.fch.europa.eu
www.hydrogeneurope.eu
www.nerghy.eu
Bart Biebuyck
Executive Director
Bart.Biebuyck@fch.europa.eu
@fch_ju
Fch-ju@fch.europa.eu
FCH JU

Mr Hans-Josef FELL
President, Energy Watch Group

Pre-requisites for
Ukraine’s transition to
renewable energy by 2050
18th December 2018
Hans-Josef Fell
President of the Energy Watch Group
Member of the German Parliament 1998-2013

Hans-Josef Fell
Member of German Parliament (1998-2013)
President of Energy Watch Group
Hans-Josef Fell
The better choice is:
Global Cooling
COP21 target:
Stop climate warming at 1,5°C
But today’s warming of +1,1°C is already
unacceptable: aridity and wild fires, floods and
storms, sea level rising

Hans-Josef Fell
Hans-Josef Fell
Crises of climate warming and energy
dependencies can only be solved with two
parallel strategies:
1. Stop greenhouse gas
emissions (best by 2030)
(Not only reduction of emissions)
• Switch to 100% renewables
• Completely stop the use of
fossil and nuclear energies in
energy, chemistry, transport,
agriculture
2. Take out carbon from
the atmosphere
• Convert plants to humus
soil (biocoal)
• Reforest big areas,
green the deserts
• Organic agriculture
The target must be 330 ppm CO₂
This leads to global cooling instead of global warming
and to energy independency

Hans-Josef Fell
Germany
Nov 2016, COP22, Marrakesh:
48 countries (Climate Vulnerable Forum)
decided for 100% RE target
More Countries e.g.: Denmark; Sweden;
Costa Rica; Iceland; Cape Verde
Cities with 100% RE target e.g.:
Barcelona; Masdar City; Munich; Msheireb;
Downtown Doha; Vancouver; San
Francisco; Copenhagen; Sydney; Lemberg
Companies with 100% RE target e.g.:
Google, Coca-Cola, Ikea, Walmart
Source: 100% Renewables, 2018: Available from: http://www.go100re.net/

Hans-Josef Fell
Hans-Josef Fell
100% Renewables for Ukraine with
decentralised investment will bring:
 More political independence through
energy independence
 Contribution to peace
 Economic growth and new jobs
 Contribution to democratic development
 Major contribution to Paris Agreement
climate goals

Hans-Josef Fell
Hans-Josef Fell
EU lost the leading role in Renewables.
Due to the switch to auctioning, the EU yearly
investment was cut by more than a half

Hans-Josef Fell
Hans-Josef Fell
Study Release:
LUT University & Energy Watch Group
100% Renewable Energy across
Europe is More Cost Effective
than Current Energy System
with zero GHG emissions across power, heat, transport
and desalination sectors before 2050
Funded by:

Hans-Josef Fell
Hans-Josef Fell
100% Renewables in Ukraine:
Electrification across all sectors is inevitable
• Electricity in
2050:
7 times that of
2015
• Nuclear and
fossil fuels are
phased out
completely

Hans-Josef Fell
Hans-Josef Fell
Most energy generation based on wind & solar

Hans-Josef Fell
Hans-Josef Fell
Energy cost decline from 62€/MWh to 58€/MWh

Hans-Josef Fell
Hans-Josef Fell
A 100% renewable energy system in
Europe will support millions of local jobs
in the power sector
• Approximately 3.5
million total
cleantech jobs
• Phaseout of
800.000 fossil fuel
jobs
• 1.5 million new EU
jobs created by
2050

Hans-Josef Fell
Hans-Josef Fell
Policies necessary for renewable
growth & climate protection
Laws to stimulate investment
 Feed-in-tariffs (FiT) (GET FiT for developing countries)
 Auctions only for RE capacities above 40 MW
 Premium options, net metering and other
 Abolish subsidies for fossil fuel & nuclear energy, fossil
chemistry and intensive agriculture
 Tax relief for renewables
 Carbon, methane, radioactivity tax
 Research and education on renewables and organic
farming
 Reducing obstacles for approval of RE projects
 Reforesting and regreening of degraded lands
Not successful:
• Auctions under 40 MW or certificate systems
• Emission trading

Hans-Josef Fell
Hans-Josef Fell
Current Legislation Proposal for New
Green Tariff
Current legislation proposal will worsen today‘s situation:
 Auctioning is more prone to corruption
 REN increase will be too low:
• Further dependence on foreign energy imports
• No significant contribution to Paris climate goals
• Missing out on huge global REN economic growth
Current Proposal:
• Switch to Auctioning
From 2020 >10 MW solar and >20 MW wind
From 2023 solar >1 MW and Wind >3 M
• Solar Green tariffs cut by 25% by 2020, plus 2,5% per year
Today’s situation in Ukraine:
• No significant investment in REN Ukraine
• Even the lowest REN targets cannot be fulfilled
• Investment comes mainly from big companies (oligarchs)
• Cooperatives, SMEs, farmers can hardly take part

Hans-Josef Fell
Hans-Josef Fell
Historic breakthrough in 2000:
Enactment of Renewable Energy
Act (EEG) in German Parliament
Key points for an effective feed-in law:
 Privileged grid access/priority dispatch
 Feed-in tariff has to be appropriate for
economic operation, with variations dep. on
technology and size
 Funding of feed-in tariff via electricity rate
 No cap for feed-in of renewable energies
 Guaranteed period of remuneration
*Source: Hans-Josef Fell, „The shift from feed-in-tariffs to tenders is hindering the
transformation of the global energy supply to renewable energies“, Policy paper for IRENA,
July 2017. Available from: http://energywatchgroup.org/wp-content/uploads/2018/01/FIT-
Tender_Fell_PolicyPaper_EN_final.pdf

Hans-Josef Fell – MdB (1998-2013)
Präsident der Energy Watch Group
Hans-Josef Fell – MdB (1998-2013)
Präsident der Energy Watch Group
Feed-in tariff for combined renewable
power producer
For more information: https://www.hans-josef-fell.de/content/index.php/dokumente/documents-
in-foreign-languages/english/921-09-2016-english-incentive-scheme-for-100-renewable-combined-
power-solutions
Tariff paid for per law if:
• Power generation
meets demand each
hour of the year
• Mix of 100%
renewable power
generation
• Frequency and
voltage stability,
reactive power is
guaranteed
Effects:
• Grid stability is
growing, decentralised
bottom-up approach
• Integration of heating/
cooling and electro-
mobility
• Development of
storage technology
• Emergence of smart
cities

Hans-Josef Fell
Hans-Josef Fell
100% Electric bus fleet
Source: https://qz.com/1169690/shenzhen-in-china-has-16359-electric-buses-more-than-
americas-biggest-citiess-conventional-bus-fleet/
https://tec.ieee.org/newsletter/november-2013/ev-development-flourishing-in-southern-china
Nearly all of
Shenzhen's taxis
have gone electric
as well!
(All 12,500 to be electric
until end of 2018)
CO2 reduction: 135 mio to/a
All 16,000 public buses in Shenzhen
(pop: 12 mio.) drive on electric power
But: Electricity should
be based on 100%
renewables!

Hans-Josef Fell
Hans-Josef Fell
From horse-drawn carriage to cars:
Disruptive change in 13 years
Source : Jose Cordeiro, Singularity University, California

Thank you very much for
your attention!
www.hans-josef-fell.de
www.energywatchgroup.org

Dr Oleksandr DIACHUK
Leading Research Officer, Institute for
Economics and Forecasting, National
Academy of Sciences of Ukraine

Conditions for Ukraine’s transition to
renewable energy by 2050
Dr. Oleksandr Diachuk
Ph.D. Engineering,
Leading Research Officer
Department of Energy Sector
Development and Forecasting

Five Key Dimensions of the Energy Union
The EU's energy union strategy is made up of five dimensions:
 Security, solidarity and trust
Working closely with Member States to diversify Europe's sources of
energy and ensure energy security.
 A fully integrated internal energy market
Energy should flow freely across the EU - without technical or
regulatory barriers. This would enable energy providers to compete
freely and promote renewable energy while providing the best
energy prices.
 Energy efficiency
Improving energy efficiency to reduce the EU's dependence on
energy imports, cut emissions and drive jobs and growth.
 Climate action - decarbonising the economy
Putting in place policies and legislation to cut emissions, moving
towards a low-carbon economy and fulfilling the EU’s commitments
to the Paris Agreement on climate change.
 Research, innovation and competitiveness
Supporting research and innovation in low-carbon and clean energy
technologies which can boost the EU's competitiveness.
Oleksandr Diachuk, EU-Ukraine Renewable Energy Investment Forum, Kyiv, 18 December 2018

Scenario of Ukraine’s transition to renewable energy by 2050
 The study “Transition of Ukraine to the
Renewable Energy by 2050” was carried
out in 2016-2017 by the Institute for
Economics and Forecasting of the
National Academy of Sciences of Ukraine
with the support of the Heinrich Boell
Foundation Regional Office in Ukraine and
in cooperation with civil society
organizations, public authorities,
specialized in renewables business
associations and independent experts.
 This study presents results of modeling of
the reference and alternative scenarios
for the development of Ukraine’s energy
sector by 2050 and demonstrates how the
transition from fossil fuels to renewable
energy can be achieved and what
economic impacts it will have.
Source: https://ua.boell.org/sites/default/files/transition_of_ukraine_to_the_renewable_energy_by_2050_1.pdf

Share of Renewables in Final Energy Consumption
Ukraine’s transition to renewable energy by 2050 requires rapidly
electrification of the whole economy (Electrification 2.0!).

Renewable Energy Targets
 Draft Final Report “Study on 2030 overall targets (energy efficiency, renewable
energies, GHG emissions reduction) for the Energy Community”
16.6% in Gross Final Energy Consumption in 2030 (+5.6% to RE Target in 2020 of Ukraine)
 Studies of Institute for Economics and Forecasting of the National Academy of Science
of Ukraine (based on the TIMES-Ukraine model)
19% - share of renewables in Gross Final Energy Consumption in 2030
30% - share of renewables in Final Energy Consumption in the Revolutionary Scenario
 The Energy Strategy of Ukraine until 2035: "Safety, Energy Efficiency, Competitiveness”
27-32% in Gross Final Energy Consumption in 2030 (own calculations*) based on the
Energy Strategy data.
Source: Information-analytical materials of IEF NASU to the Ministry of Ecology and Natural Resources of Ukraine and the Ministry
of Energy and Coal Industry
Source: Draft Final Report “Study on 2030 overall targets (energy efficiency, renewable energies, GHG emissions reduction) for the
Energy Community” // Energy Community Secretariat / TU Wien, EEG, Joanneum Research, REKK. – 2018.
Source: Assessment of the achievement of some key indicators of the effectiveness of the Energy Strategy of Ukraine till 2035 using
the TIMES-Ukraine model / O.Diachuk, R. Podolets, // Ukrainian-Danish Energy Center, 2017
Source: “Transition of Ukraine to the Renewable Energy by 2050” / О. Diachuk, М. Chepeliev, R. Podolets, G. Trypolska and oth. ;
edited by Y. Oharenko and O. Aliieva // Heinrich Boell Foundation Regional Office in Ukriane. – Kyiv : Publishing house “Art Book”
Ltd., 2017. – 88 p. - https://ua.boell.org/sites/default/files/transition_of_ukraine_to_the_renewable_energy_by_2050_1.pdf

Energy Efficiency Targets
-32.5% reduction of PEC or FEC in 2030 compared to the baseline trend.
 Final Report of the EU4Energy Governance project on calculation of the national
energy efficiency target until 2020 and 2030 for Ukraine and preparation of
the 1st report to the Energy Community according to Directive 2012/27/EU
-31-39% in 2030 comparing to the baseline scenario developed for the first NEEAP for
Total Primary Energy Supply and -31-34% for Final Energy Consumption
-48% in 2030 comparing to the baseline scenario (own calculations*) for Total Primary
Energy Supply and -46% for Final Energy Consumption
* Based on energy intensity indicators and Total Primary Energy Supply
Source: Resolution of the Cabinet of Ministers of 18 August 2017 No. 605-p On the Approval of the Energy Strategy of Ukraine until
2035: "Safety, Energy Efficiency, Competitiveness” – 2017.
https://www.kmu.gov.ua/ua/npas/250250456
Source: FINAL DRAFT of the energy efficiency target till 2020 calculation (including perspective until 2030). -
https://library.euneighbours.eu/content/final-draft-energy-efficiency-target-till-2020-calculation

The EU4Energy Governance project on calculation of the national energy efficiency target until 2020 and 2030 for Ukraine
and preparation of the 1st report to the Energy Community according to Directive 2012/27/EU
45000
50000
55000
60000
65000
70000
75000
80000
85000
2012 2015 2020 2025 2030
Final Energy Consumption
ktoe
Old BAU
New BAU
S1
S2A
S2B
S3
-8-11%
-23-25%
-20-23%
-32-34%
Final Energy Consumption

The EU4Energy Governance project on calculation of the national energy efficiency target until 2020 and 2030 for Ukraine
and preparation of the 1st report to the Energy Community according to Directive 2012/27/EU
Final Energy Savings by Sector
comparing to New BAU Scenario
-6
-11
-14
-16
-14
-12
-10
-8
-6
-4
-2
0
2020 2025 2030
Scenario "S2A"
mtoe
Agriculture
Commercial
Transport
Residential
Industry
Total

Targets of GHG emission reductions
by 20% of the 2005 level GHG emissions in Ukraine may increase by 2030, which is
approximately 55-56% of the 1990 level.
 Ukraine 2050: Low Emission Development Strategy
29-41% of the 1991 level in 2030
 National Determined Contribution (NDC) of Ukraine
60% of the 1991 level in 2030
60% of the 1991 level in 2030
>15% reductions of GHG emission in Final Energy Consumption in 2030 compare to 2010
 The report “Transition of Ukraine to the Renewable Energy by 2050”
28-36% від рівня 1990 р. in 2030
Source: Ukraine 2050: Low Emission Development Strategy / UNFCCC, 2018. -
https://unfccc.int/sites/default/files/resource/Ukraine_LEDS_en.pdf
Source: Resolution of the Cabinet of Ministers of 18 August 2017 No. 605-p On the Approval of the Energy Strategy of Ukraine until
2035: "Safety, Energy Efficiency, Competitiveness” – 2017. - https://www.kmu.gov.ua/ua/npas/250250456
Source: “Transition of Ukraine to the Renewable Energy by 2050” / О. Diachuk, М. Chepeliev, R. Podolets, G. Trypolska and oth. ;
edited by Y. Oharenko and O. Aliieva // Heinrich Boell Foundation Regional Office in Ukriane. – Kyiv : Publishing house “Art Book”
Ltd., 2017. – 88 p. - https://ua.boell.org/sites/default/files/transition_of_ukraine_to_the_renewable_energy_by_2050_1.pdf
Source: Ukraine First NDC, 2015. -
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Ukraine%20First/Ukraine%20First%20NDC.pdf

Low Emission Development Strategy of Ukraine
«The LEDS goal is to determine strategic
directions for Ukraine's economy
sustainable development based on
national priorities accordant transition to
low emission growth trajectory».
«Being committed to achieving Paris
Agreement goals and being guided by
national priorities, Ukraine will ensure
doing its best to achieve the indicative
GHG emissions target of 31-34% by 2050
compare to 1990 level. This target is
ambitious and fair in the context of
Ukraine’s participation in the global
response to the climate change threat.
Long term strategic planning is an
iterative process; hence, this document
should not be treated as final. Ukraine is
planning to review its strategy at least
every five years in order to measure its
progress, and to increase the level of its
ambitions in accordance to national
circumstances.

Long-term climate policy scenarios of Ukraine

The draft Transmission System Development Plan for 2019-2028
According to Article 37. Development of the
transmission system of the Law of Ukraine "On
the electricity market" No. 2019 VIII:
Every year by May 1, the TSO develops and
submits to the Regulator for approval a 10-year
Transmission System Development Plan (TSDP).
The TSDP ensures that transmission system (TS)
meets the requirements of the electricity market
as well as the electricity supply security interests.
The TSDP consist:
1) measures of the security of electricity supply;
2) key objects of the TS that should be
constructed/ reconstructed within next 10 years;
3) information about the objects of the TS to be
built or reconstructed within next 10 years,
period and funding sources of the
construction/reconstruction;
4) information on investments into the approved
objects of the TS that are already at the stage
of implementation, with the indication of
projected investments to be made within the
next 3 years.
Source [in Ukrainian]: https://ua.energy/wp-content/uploads/2018/05/Plan-rozvytku-systemy-peredachi-na-2019-2028-roky.pdf

The gas transportation system development plan for 2018 – 2027
The gas transportation system
development plan for 2018 –
2027 adopted by National
Commission for the State
Regulation Energy and Utilities
(Decree #956 on 04.09.2018).
The Plan provides UAH 60
billion for investments (UAH 6
billion in 2018, UAH 19.5 billion
in 2019-2020 and UAH 34.5
billion during the period 2021-
2027):
•UAH 22.8 billion for gas
pipelines,
•UAH 14.7 billion for
compressor stations,
•UAH 14 billion for gas
distribution stations,
•UAH 5.8 billion for equipment
purchases,
•UAH 2.7 billion for other
production facilities.
Source [in Ukrainian]: http://utg.ua/img/menu/gts/TYNDP-TSO.pdf

Opportunities and Priorities
The Key Opportunities and Priorities of Ukraine’s transition to renewable
energy by 2050:
 Ensuring synergy in energy and economic development
 Providing markets transformation and institutions
 Fully integration with EU energy markets
 Ensuring clean and green policies and measures in energy sector:
o Increasing energy efficiency and energy saving
o Supporting and stimulate renewable energy
o Modernizing the fixed assets used in traditional energy and
implementation of innovation technologies
 Ensuring the effective implementation of the MRV system and
introduce the Emissions Trading Scheme
 Reducing industrial emissions and pollutions
 Ensuring reliable supply of clean and affordable energy
 Extending research, education and awareness in whole economy
 …

Thank You!
Dr. Oleksandr Diachuk
Leading Research Officer, Ph.D. Engineering,
Department of Energy Sector Development and Forecasting,
Institute for Economics and Forecasting
National Academy of Sciences of Ukraine
26, Panasa Myrnoho St., Kyiv, 01011. Ukraine
Office: +380 44 280 89 27
Mobile: +380 67 425 92 58
E-mail: oadyachuk@ukr.net, diachuk@ief.org.ua
Skype: oadyachuk
Facebook: oleksandr.diachuk.7

Mr Christian ZINGLERSEN
Head of Secretariat, Clean Energy
Ministerial

Innovation trends in renewable energy
- Globally and what this means for us
CEMSecretariat
EU-Ukraine Renewable Energy Investment Forum - 18 December 2018 - Kyiv, Ukraine
Christian Zinglersen, Head of the Clean Energy Ministerial Secretariat

Many countries are grappling with
similar issues

What recent energy outlook
included these
recommendations?
Increase Efforts to Reduce Coal
Consumption
Power Sector Reform
ETS System
RE Subsidy Reform and RE
Incentive
Increase Efforts to Reduce Coal Consumption
- Stop approval of new coal power plants.
- Establish requirements for coal power plant flexibility and gradually remove
planned full-load hours.
Power Sector Reform
- Expand and accelerate the whole-sale market pilots and regional coordination of
market pilots.
- Include dispatch of interconnectors in the market pilots by removal of
interprovincial trade barriers.
ETS System
- Strongly focus on the viability of the national emissions market – avoid pitfalls from
grandfathering and new policy impediments.
- Set a floor price for CO2 that will impact investment decisions.
RE Subsidy Reform and RE Incentive
- Increase the use of competitive auctions to lower the subsidy price for large-scale
wind and solar projects.
Tackling what, specifically?

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