How does “green” energy stay during war

Renewable energy sources (RES) is the trend of the last decade. In Ukraine, in recent years, such stations have been actively built, thanks to investments and the availability of a special “green tariff”. How do the “greens” live in difficult times of war on the country?

The European Union has taken a path away from Russian oil and gas toward clean energy. Experts say Ukraine, which has just been linked to European energy systems, can help by providing electricity.

to focus I found out how renewable energy survives in conditions of war, how much plants suffer, and what solutions can support the “greens”.

Good sign: Green electricity auctions have begun

Buyer State Enterprise (GarPok) announced March 25 that it will once again hold auctions to sell renewable energy. A few days later, HarPok published a report on how the first two auctions took place during the war.

In the first auction, 28,800 MWh of electricity was offered and 95% of it sold about 27,360 MWh. The average selling price is 1,922.73 UAH / MWh (without VAT). The most expensive was the energy of the sun, and the cheapest – the energy of small hydroelectric plants.

The second auction was held on the same day in the afternoon, and 270,000 megawatt-hours were offered for sale, including 84,000 megawatts. The average price was UAH 2156.4 / MWh.

“Holding the first auctions since the start of the war means that the Ukrainian energy industry is transitioning to normal operation, and GarPok is back to performing its functions in accordance with the law,” he says. to focus Former Energy Minister Ivan Plachkov, President of the All-Ukrainian Energy Association.

Acting Director of Guaranteed Buyer State Andrey Pilipenko focuses on the fact that against the background of a significant decrease in energy payments “Green Auctions” allow you to continue paying for electricity, It is delivered by solar, wind, hydroelectric and bioenergy plants. According to him, the money received as a result of the auction is to be sent to producers of “green energy”.

Under voltage: how to pay for “green” electricity

In the regions of Ukraine, where there are active hostilities, the level of electricity payments decreased to 25-30%. As a result, they said, Ukraine has a deficit in electricity transmission revenue. to focus In the Ukrainian Renewable Energy Association. They say that for settlements with producers of clean electricity, GarPok, among other things, collects money from Ukrenergo, but receives money mainly from the sale of electricity.

“Therefore, a successful auction is extremely important. Since the beginning of hostilities, HarPok has not held a single auction for the sale of “green” electricity. The first auction was held on March 28. RES sold electricity in April 2022 for 233.74 hryvnia. Million ”, – noted in the association .

The Chairman of the Board of Directors of the Ukrainian Wind Energy Association, Andrei Konnichenkov, emphasizes how important the topic of payments is: “I think that, first of all, it is necessary to pay not only for nuclear, but also for renewable electricity. Stop this trend, as it has for the past two months It’s a wrong approach.”

For 20 days in February, 100% of renewable energy producers were paid, GarPok reports, and this was confirmed by the Ukrainian Renewable Energy Association.

On March 28, German Energy Minister Galushenko signed a decree on “Settlements in the Electricity Market” on limiting payments for generation from renewable energy sources. The Minister approved the following amounts of payments to producers of renewable energy: 15% of the weighted average “green” tariff for 2021 – for solar power plants, 16% – for wind, 35% – for hydroelectric power plants, 40% – for biogas. 60% plants – for biomass plants.

The rest of the funds after settlements according to this principle will be distributed by GarPok between Energoatom (60%) and Ukrenergo (40%).

The day after the decree was signed, GarPok paid green electricity producers for 20 days in March, already under the new rules.

“However, the funds available to repay 100% of the advances were not even sufficient to cover the percentage of the tariff stipulated in the order,” they said. to focus In the Ukrainian Renewable Energy Association.

No war, no debt. What is the problem with green energy?

Electricity consumption has decreased significantly in Ukraine: some stations were destroyed, some in the occupied territories; Millions of people have left the cities, says Igor Teni, founder and co-owner of Hydroenergoinvest-Akvanova Holding.

And Igor Teny notes that “accordingly, the volume of electricity produced is decreasing, because no one consumes it within the state.”

According to the Restriction Management System, many “green energy” production plants are now unable to operate and supply electricity.

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“I have solar plants in Transcarpathia, which have not worked a single day for the past three weeks. Every morning they impose production restrictions and cancel at 16:00, when the sun has already set. In such circumstances, it does not matter, HarPok will pay 15% or 30% – The station is still limited and cannot produce anything,” says Igor Tynny.

Tinny sure of it Exporting electricity to Europe will be a lifesaver for Ukraine’s electricity producers. According to him, Ukraine produces a lot of electricity and it is cheaper than Europe. But export opportunities still need to be worked on.

“Ukraine’s technical synchronization has taken place with the European ENTSO-E energy system. But there are still some technical problems to be resolved. Because the volume of what we can export depends on the quality of electricity and the construction of additional convoys,” says Tine.

According to him, Ukraine can now sell to Slovakia and Hungary through the same lines as before, but not to Poland.

“But nevertheless, we have the opportunity to export up to 2 gigawatts of electricity, and this will be a salvation for the industry at such a difficult time,” assures Tenny.

War and business. How have military operations affected renewable energy plants

The renewable energy industry can now be described by the word “survival”, as they say in the Ukrainian Renewable Energy Association.

“The renewable energy sector in Ukraine is at great risk of complete or partial destruction. In regions where active hostilities continue, 47% of the installed capacity of power plants based on renewable energy sources is located,” says the association.

The association is concerned with the issues of destroying “green energy” plants. At the same time, they note that the full scale of losses can be assessed only after the regions are liberated from invaders.

“About a third of the wind farms are now operating in Ukraine. The installed capacity at the end of 2021 amounted to 1673 MW – minus 138 MW of capacity in the occupied territories of the Donetsk and Luhansk regions. Now wind farms operate only in Odessa, Mykolaiv, Lviv and one in the Zaporizhia region, ” – Andrei Koneshnikov explained.

According to him, the rest of the wind farms have been stopped due to land occupation and damage to the electricity networks.

The Ukrainian Renewable Energy Association estimates that capital investment in Ukrainian renewable energy is worth more than $12 billion, and more than $5.6 billion of capital investment assets are now in the war zone. In addition, there is more than $3.6 billion in capital investments in the vicinity of the regions where hostilities are taking place to protect Ukraine from Russian occupation.

Recall, on February 24, Ukraine broke off from the energy systems of Russia and Belarus in order to work in an isolated mode for three days. On the same day, a large-scale Russian invasion of Ukraine began.

On March 1, Brussels announced its readiness to urgently synchronize the Ukrainian power grid with the European grid. ENTSO-E representatives supported this decision.

On March 16, Ukraine joined the European Union’s ENTSO-E energy system.

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