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  • UKRENERGO STRENGTHENS CONTROL OVER INVESTORS’ COMPLIANCE WITH THE CONNECTION AGREEMENT

    The proper implementation of contracts for the connection to the networks of UKRENERGO NPC SE will be carefully controlled by the company because the improper performance of the terms of connection does not allow new investors having an opportunity for connecting through booking the appropriate capacities of Ukrenergo.

    At present, Ukrenergo considers the status of individual agreements on connection to the backbone power grids of new generation, under which customers do not fulfill their assumed obligations or there is a significant risk of their non-fulfillment, namely:

    1. Tylihulska WPS LLC (500 MW, Mykolaiv oblast, Berezanka district);
    2. EuroCape Ukraine I LLC (WPS, 500 MW, Zaporizhzhia oblast, Pryazovske, Melitopol districts);
    3. Azovinvestprom LLC (WPS, 42.5 MW, Zaporizhzhia oblast, Yakymivka district);
    4. Energopark Yavoriv LLC (SPS yavoriv-1, 63 MW, Lviv Oblast, Yavoriv district);
    5. Kharkiv Tile Plant CJSC PJSC (non-standard connection of the consumer to electric grids, city of Kharkiv).

    Each of these problematic agreements was analyzed in details from a technical and legal point of view. As a result, it was decided to terminate the agreements with Tylihulska WPS LLC and Azovinvestprom LLC as well as on warning the other counterparties of the end of the deadline for submitting the necessary documentation to adjust the terms and prolong the agreements. A possibility of cancelling the contracts is explicitly stipulated in the texts of agreements provided that the investors do not fulfill their specific obligations (for details, see the text of the minutes of the production meeting on the implementation of provisions of the connection agreements here).

    “A current situation makes artificial restrictions for the construction of such facilities (wind and solar power stations) by other market players, creating a problem of uncompleted construction and “booking” the capacities. In addition, it does not provide an opportunity to adequately assess the perspectives of increasing the use of renewable energy sources and Ukraine’s compliance with its international obligations in this regard. At the same time, those who could not demonstrate any positive dynamics of fulfilling the agreement and technical conditions, in case of additional opportunities, would always be able to use our online service “single window”, said the chairman of Ukrenergo Vsevolod Kovalchuk while commenting on the decision.

    As it is known, Ukrenergo is implementing a set of measures to involve potential investors in the development of renewable energy.

    On 23 January, during the event “Towards Green Energy”, which took place at Ukrenergo, Vsevolod Kovalchuk presented a package of initiatives for “green” energy producers. In particular, it was about granting free access to the information on a possibility of connection and approximate cost of such connection, implementation of the single window principle, unifying and simplifying the procedure for issuing and approving technical conditions for connection.

    As a result, on 1 April, a procedure for connection to Ukrenergo’s networks was simplified; a number of contacts between the applicants and the company’s representatives was minimized; an online map of the whole backbone power grid with free capacities at substations was developed and put into operation and an online connection cost calculator for potential investors was offered.

    During this time, a number of applications to Ukrenergo increased by 70% and the period for consideration of applications decreased in three times.

    While presenting the package of initiatives for the “green”, Vsevolod Kovalchuk noted the problem of non-fulfillment of agreements, openly discussed this issue with all participants of the event, and also warned about strengthening Ukrenergo’s control in this aspect.

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