Energy efficiency

Energy efficiency within ICC Ukraine Consulting

The direction of "Energy efficiency" in ICC Ukraine Consulting is being implemented within GREENERGY Initiative program:

GREENERGY Initiative Program was launched in 2009 under the patronage of ICC Ukraine that is aimed at implementation of renewable energy in Ukraine and achieving national goals on "green" energy generation

GREENERGY activity is organized in three main directions:

  • Creation of favorable conditions for renewable energy market development and energy efficiency implementation
  • Investment attraction
  • Support of projects’ implementation

GREENERGY  envisions cooperation with Ukrainian and foreign partners covering wide range of renewable energy projects implementation nationwide

GREENERGY serves Platform for effective Public-Private Partnership

The range of key services provided within Energy Efficiency in ICC Ukraine Consulting:

  • Due diligence support
  • Local project management coordination
  • Securing land rights
  • State administration and municipal support and contacts
  • NERC cooperation and issue of:
    • Licenses for the independent production and distribution of heat and electricity
    • Membership in SC Energorynok
  • Work with local Oblenergo, connection and distribution agreements
  • Full project implementation support
  • Business Plan and Financial Models development and writing
  • Market Research & Strategy
  • Technical concept, design works
  • Support in structuring project finance
  • Investor presentations and meetings
  • Engineering, procurement and construction (EPC)

The renewable energy market in Ukraine

During the last decades the issues related to the development of renewable energy in the world and in Ukraine are extremely relevant because of the scarcity and limitedness of energy resources and environmental deterioration.

The trends of the growing prices for natural gas shows how energy independence of Ukraine will  have no prospects  if  supply of natural gas  from Russia will take place. Taking into account the existing potential of alternative energy resources, the most affordable sources of energy are renewable resources  of energy.

Renewable sources of energy are energy sources which are present almost on the entire territory of Ukraine. The main components of renewable energy of Ukraine are wind power, solar energy, hydropower, bioenergy, geothermal energy and   energy of environment.

Technically achievable level of total summer energy potential of the main types of renewable energy sources in Ukraine is currently equivalent to 87 million tons of coal or to 76 billion of m3 of natural gas, which is about 40% of the annual energy needs in Ukraine.

At present, the share of renewable sources of energy in Ukraine is 1%, while the Government of Ukraine stipulates that by 2015 the share of renewables in the energy balance of Ukraine is expected to grow to 10%. The growth of this indicator is possible by the development of wind, solar, biomass and small hydro energy.

Among the factors promoting the development of renewable energy in Ukraine are:

  • growth of prices for traditional energy sources;
  • Increasing demands of environmental regulations and standards;
  • possibility of implementing the Kyoto mechanisms to finance the implementation of  renewable energy projects;
  • improving the opportunities of entering into the European Community;
  • need of replacing worn-out assets.

Bioenergy in the Ukraine has a wide range of raw materials which can be used by direct combustion, and for the production of biogas, biodiesel, ethanol, solid fuel briquettes and others. Also it is a waste of forestry and agriculture, domestic waste, and, finally, specially grown biomass or energy crops, , favorable growing conditions for which exist in many regions of Ukraine. In addition to raw materials in Ukraine, there are technological and industrial base for industrial production of biodiesel, bioethanol, biogas.

Wind power is currently the most developed type of alternative and renewable energy sources in Ukraine. Ukraine has its own design of wind turbines, and its own manufacturing, also there is licensing for wind turbines. There are eight wind power stations in the Crimea, Azov and in the Carpathian region.

Geothermal energy is a perspective source of energy for Ukraine. The most favorable conditions for the use of geothermal waters exist in the Carpathians and in Crimea, but even in those areas is no more than 2% of capacity. Geothermal water can be used to heating and hot water. A promising direction is also building geothermal power station that are environmentally clean and cost effective with low payback periods (less than 5 years).

Ukraine has a powerful hydro resources of small rivers - near 63 000 small rivers, which potential is up to 28% of the total hydro potential of Ukraine. The development of small hydropower will contribute to decentralization of power systems that gives the possibility to solve problems of energy supply of rural areas difficult to access, solve complex of economic, environmental and social issues. This is, primarily, the territories of Western Ukraine, where micro and mini hydropower plant could become the basis of their energy supply. The advantage of small hydro power  - low capital cost, cheap and clean energy, existence in the country of sufficient technical, scientific and industrial capacity and experience in using the equipment.

Solar energy in Ukraine today is used for hot water heating using solar collectors and electricity production from photovoltaic systems. Solar collectors are produced by Ukrainian enterprises , the domestic  photovoltaic systems are just beginning to enter the market, although there is an urgent need for raw materials at affordable prices.  Government support is needed to revive the country's existing capacity to produce solar silicon (previously 10% of world production in Ukraine).

In 2009 Ukraine has introduced favorable legal framework of renewable energy market development in Ukraine with introduction of “green” tariff and series of other state incentives. "Green" tariff is a special tariff at which electricity produced out of renewable energy sources is purchased. Green tariff applies to wind, solar, small hydro stations ( with capacity of up to 10 MW) and biomass and will be operational until 2030. “Green tariff” for biogas is expected to be approved by October 2011. 

As stated in the Law wholesale electricity market of Ukraine represented by State Enterprise "Energorynok" is obliged to buy electricity produced out of renewable energy sources according to the approved "green" tariff.

As of 01.09.2011 there are 50 companies holding 86 generating assets operating under “green” tariff.

Consequently, large-scale development of renewable energy will create new environmentally friendly energy industry that will facilitate the diversification of energy sources and improving energy and environmental security in Ukraine.