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Ukraine plans to build 2 new nuclear units and launch pilot projects of small modular reactors

On January 20, 2023, the order to commence the development of the feasibility study for the construction of two new blocks at the Khmelnytskyi Nuclear Power Plant was issued by the Cabinet of Ministers of Ukraine

According to the order, new blocks are to be equipped with AP1000 nuclear reactors produced by Westinghouse.

Construction of the small modular reactor in Ukraine was first announced in November 2022 by the Special Presidential Envoy for Climate John Kerry, and Ukraine Minister of Energy Herman Galushchenko.

The respective note has been published on the US Department of State website.

Ukraine Clean Fuels from SMRs Pilot projects will demonstrate the production of clean hydrogen and ammonia using secure and safe small modular nuclear reactor (SMR) and cutting-edge electrolysis technologies in Ukraine.

“The project aims to carry out a first-of-a-kind pilot of commercial-scale production of clean fuels from SMRs using solid oxide electrolysis. Building on existing capacity-building cooperation launched under the U.S. Foundational Infrastructure for Responsible Use of SMR Technology (FIRST) program, the project seeks to support Ukraine’s energy security goals, enable decarbonization of hard-to-abate energy sectors through clean hydrogen generation, and improve long-term food security through clean ammonia-produced fertilizers. Further, it aims to demonstrate Ukraine’s innovative clean energy leadership using advanced technologies” US Department of State.
Exiting the Guaranteed Buyer balancing group

The national energy Regulator is considering a procedure to allow producers who benefit from the feed-in tariff to temporarily exit the Guaranteed Buyer balancing group which has indirectly been a pre-requisite for receiving the feed-in tariff.

The draft regulation conveying the procedure has been published on the Regulator’s website; stakeholders and other interested parties are welcome to submit their proposals by February 13, 2023.

According to the presented draft regulation, the renewable energy producer decides when and for how long it wishes to leave the Guaranteed Buyer balancing group.

After the producer exits the balancing group of the Guaranteed Buyer, the latter becomes no longer obliged to purchase the whole volume of electricity from such a producer.

The producer may sell the clean power on the open electricity market and export it abroad.

The renewable energy producer, upon exiting the Guaranteed Buyer balancing group, shall become fully responsible for its own imbalances or for joining a balancing group of the electricity market participant offering such an opportunity for renewable energy producers.

After the producer applies to the Guaranteed Buyer for an exit from its balancing group, the Power Purchase Agreement on the purchase of energy produced from renewable sources becomes and remains suspended until the producer decides to re-enter the balancing group of the Guaranteed Buyer.
Ukraine to prolong the technical conditions for grid connections and grid connection agreements for wind power projects under development

Because of the russian invasion of Ukraine, the majority of wind power projects, that had secured the pre-PPA (power purchase agreement) with the Guaranteed Buyer by December 31, 2019, found themselves on the territories temporarily occupied by russian forces.

In such circumstances, developers could not resume their projects until Ukraine reclaims its respective locations.

Under current legislation, technical conditions for the grid connection of such wind projects expired on December 31, 2022. 

Hence, wind power projects finished after the de-occupation would not be connected to the grids due to the expiration of the technical conditions.

In response to this challenge, the Cabinet of Ministers of Ukraine delivered a bill conveying the extension of the technical conditions term.

The government proposes that the technical conditions for grid connection remain in place until December 31, 2024. The extension applies to projects where:
  • the design documentation for the construction of external electricity networks is approved by the Transmission System Operator or the distribution system operator (depending on whether the projects are to be connected to the transmission or distribution system) by December 31, 2023, and
  • the grid connection fee, or at least its portion, has been paid by the project developer.

The bill is currently being prepared for consideration in a Parliamentary session.
Ukraine will begin producing 500 MW of green energy and increase the import of electricity

In 2023, Ukraine intends to put into operation 500 MW of new power generation capacities from renewable sources, as well as to increase the import of electricity from Europe to 2,000 MW, as detailed during the EU-Ukraine summit by Minister of Energy Herman Galushchenko.

According to him, Ukraine will also become one of Europe’s largest energy hubs and will help balance the European energy system, taking into account the expected electricity shortage in Europe. At the same time, as Galushchenko explained, the country currently needs to increase the import of electricity from Europe to 2,000 MW due to its deficit resulting from the conditions of its war with russia.

Climate Change Task Force at INTEGRITES

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