On June 12, 2021 INTEGRITES and Wärtsilä Energy (Finland) co-hosted public discussion “Investments and technologies to replace coal generation”. The event became the first in the series of Decarbonisation Talks, public discussions related to the perspectives of the Ukraine’s energy sector until 2050.
Representatives from the state and private sectors spoke at the event:
Dr. Oleksiy Feliv, Managing Partner at INTEGRITES, and Oleh Zahnitko, LL.M, Partner at INTEGRITES, moderated the discussion.
The participants discussed the drivers for decarbonization globally and in Ukraine. Oleksiy Feliv identified the following political drivers – the return of the United States to the Paris climate agreement, the European Green Deal, Ukraine’s integration to NATO and the EU, CBAM (carbon border adjustment mechanism). Oleh Zahnitko commented on the legal grounds and financial restrictions for decarbonization, in particular related to the WTO and the EU agreements on emission reductions, state aid, public obligations, price restrictions on the market.
Maksym Nemchynov, Deputy Minister of Energy, described the situation in the industry and stated that decarbonization should not affect the energy security and independence of the country. He emphasized that coal generation cannot be replaced completely by the natural gas because that could entail energy deficit. According to Nemchynov, the best option could be to use hydrogen and energy storage technologies. Up to 2 GW of natural gas, he said, should be used during the peak load.
Igor Petryk presented 2 scenarios for carbon-free economy until 2031: eco-modernization and 100% phase-out of coal blocks. The basis for these scenarios has come up through modeling, created by Wärtsilä, with the help of PLEXOS software. Based on the modeling, IES of Ukraine will require extra energy generating capacity. At the same time, removing coal blocks showed higher efficiency. The speaker suggested to apply three types of technologies: 8-hour energy storage batteries (mainly for transmission of energy generated by PV plants), gas-turbine stations operating less than 10% of the total time during the peak system load, as well as gas generator stations operating as balancers up to 40% of the total time. More about Wärtsilä’s survey is here.
Vitaliy Zaichenko from the NPC Ukrenergo presented the recently approved Report on compliance assessment (sufficiency) of the generating facilities. He emphasized that construction of at least 1 GW of generating capacities is needed in order to ensure a balanced energy system. He also mentioned that ensuring the high maneuverable energy generation or energy storage with capacity reaching 20% from the total capacity of the future power plant should be the mandatory requirement to the investors willing to get state support during the auctions. Full presentation delivered by Vitaliy Zaichenko is available via link.
Managing Partner at INTEGRITES Dr. Oleksiy Feliv: “Over the past 6 years INTEGRITES has significantly strengthened the focus on renewables. We see growing demand from the large industrial companies on legal advice in projects that help them to reduce their carbon footprint and facilitate Ukraine’s green transition by 2050. At Decarbonisation Talks we will bring together public and private sectors to talk about the green transition and solutions to advance it. We will discuss replacing fossil fuels, “smart” grid and other pragmatic issues related to carbon-free economy”.
* With the profound industry expertise as a leading legal advisor to the largest foreign investors into renewables in Ukraine, INTEGRITES understands the challenges posed by the global decarbonisation trend. The Climate Change Task Force within the firm helps local and international businesses deal with these challenges. Our prime focus and mission are to support clients in projects improving their environmental footprint, in particular renewables, energy storage and maneuver capacities, green hydrogen and green electricity trading.