German Galushchenko on why the development of renewables is a matter of national security for Ukraine

October 9, 2024

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Speaker

H.E. German Galushchenko
Minister of Energy, Ukraine

Event transcript

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GERMAN GALUSHCHENKO: Thank you for the opportunity to speak on the crucial topic: Regional cooperation. Today, it has proven to be a lifeline for Ukrainian energy system, which shows a resilience and the main part of the European energy security system.

Just a few days ago, the energy community secretariat applauded Ukraine’s significant progress in integrating the electricity integration package into national law. This draft law, registered on October 2, is an important step toward full integration in the EU electricity market. For us, the recognition of our cooperation is especially meaningful given the challenges of recent years. Despite the full-scale Russian invasion, which destroyed more than nine gigawatts of energy capacity, Ukraine has introduced groundbreaking legislative measures for renewable energy development—such as [power purchase agreements (PPA)], net billing for critical infrastructure resilience and self-consumption solutions, guarantees of origin, and more.

We have also established a Contracts for Difference model for green auctions and developed a market system for producers operating under the feed-in tariff. Corporate power purchase agreements are being refined, and investors have been granted the right to complete renewables energy projects that were halted due to the war. In 2024, the National Energy and Climate Plan and National Renewable Energy Action Plan, with the target of 27 percent of renewables sharing the total consumption by 2030, were adopted. And it means that the current, existing ten gigs of renewables has to be doubled in five years. Early in July this year, the government approved the strategy for the development of distributed generation for the period until 2035, and operational plan by 2026. First pilot renewable auction is planned for October/November 2024, with 110 megawatts of the total quota, including wind, solar, bio energy, and small hydro energy technologies.

Net billing mechanism for the self-production active consumers launched, and we’re up to one hundred first active consumers which use self-production mechanism. The electronic register of guarantee of origins was launched on August 2024, which fully complies with European rules and practices. During the first months of operation of the register, eight hundred accounts were created, and three hundred renewable [facilities] were registered. We have strong progress in biomethane sector. Before the full-scale invasion, Ukraine had zero models for biomethane production. Now four companies can produce nearly ten million cubic meters of biomethane annually. Thus, we were also advancing towards decarbonizing the gas energy mix and fulfilling the goals of the REPowerEU Plan for Europe’s energy security.

We have effectively approved a roadmap within the framework of Memorandum of Strategic Partnership on Renewable Gases with the EU. Today there are about a dozen state programs in Ukraine that support development of renewable energy, despite key measures that have been done—and to be done in the upcoming time to attract investments. First and foremost, in the restoration and further development of the Ukrainian energy system, still we face an incredible number of challenges. And the main challenge is high difficulties of implementing the targets of the development of renewables due to the lack of the financial resources and war risks.

We highly appreciate all support that has been provided to Ukraine in this challenging time, which have already brought positive result. Renewable energy is an integral part of the regional energy system’s security and economic strength. The joint efforts towards boosting the deployment of renewable energy enhance the security of electricity supply to consumers and reduces countries’ dependence on imported energy resources. The development of renewables, that is more than just about the supply of electricity. That is the issue of national security. And that is the issue of maintaining the energy system under difficult circumstances, unprecedented attacks of Russia to Ukrainian energy system.

Thank you very much for supporting us. Thank you very much for working together. And glory to Ukraine.