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  • Ukrenergo told investors about innovations in the connection of new “green” generation facilities

    Deputy CEOs of Ukrenergo met with the companies – members of the European Business Association to answer questions about the Transmission System Development Plan for 2019-2028 years. The representatives of Eurocape, CMS Cameron McKenna LLC, Baker Tilly, Dentons, GOlaw, DTEK Wind Power, SPF “Antika,” NJSC “Naftogaz of Ukraine,” PwC, Redcliffe Partners, AIM Ltd., Asters and others took part in the meeting.

    Deputy CEO – Chief Operational Officer of Ukrenergo Oleksii Brekht and Deputy CEO for Investments Volodymyr Kudrytskyi informed the participants about the influence of the rules of new Codes on distribution and transmission systems on the procedure for connecting alternative generation facilities to the trunk power grid.

    Volodymyr Kudrytskyi mentioned that Ukrenergo chose a systemic approach to solving problems regarding the connection of new facilities to trunk grids. “After its restructuring, Ukrenergo established a separate Group for connection procedures administration (“single window”), aimed at ensuring the consistency of preparation of connection agreements and issue of technical conditions for each new facility. If previously we did have some difficulties with the implementation of technical conditions, etc., now a responsible person promptly resolves all these issues. This person is obliged to manage each separate facility, transfer the package of its documents among responsible parties and ensure that all approvals are received on time,” said Mr. Kudrytskyi. “Moreover, we are working on solutions to ensure that soon the time period for approval of all documents does not exceed 10 days. We want this practice to become a positive case to demonstrate our openness and willingness to cooperate. It is worth noting that in other countries, these terms for approval are much longer: about two months in France or 30 days in Singapore, for example.”

    One of the most important questions related to the fact that the ten-year Transmission System Development Plan had no mention of many “green” generation facilities already included in the executed agreements for connection to the transmission system and those under construction. The participants had fears that due to that fact the said power plants would not be able to connect to power grids in the future.

    As Oleksii Brekht explained, the inclusion of future RES facilities in the Transmission System Development Plan was important before the adoption of a new law on the electricity market because in accordance with that law only in that case such facilities were entitled to support for the provision of power delivery schemes. “The new effective legislation does not provide for this support. Now all alternative generation facilities are connected to the grid under general conditions, as well as the facilities of non-standard connection. Therefore, the absence of any mention of a facility in the Plan entails no consequences,” explained Oleksii Brekht. “Now we display only those objects that need to be connected to trunk grids (and not to distribution grids), and for the connection of which Ukrenergo will have to perform certain works at its own objects in the nearest future.”

    At the same time, Ukrenergo annually amends its Transmission System Development Plan with respect to new RES facilities in order to ensure the timely power delivery schemes, that is within the period specified in connection agreements.

    Another question of a particular interest for investors related to the necessity of making amendments to technical conditions for the connection of RES facilities, issued before the entry into force of the new Law of Ukraine “On the Electricity Market” and the Codes on distribution and transmission systems.

    “If these conditions were approved before the introduction of new legislation, there is no need to re-approve them once again. After all, in 2011-2012, we already had an experience of approaching European rules…,” said Mr. Brekht.

    In addition, the representatives of business asked questions about the implementation of the plan of measures for the synchronisation of the IPS of Ukraine with ENTSO-E. “According to our estimates, presented to ENTSO-E members, Ukrenergo is moving ahead of the schedule for implementing these measures,” noted Mr. Kudrytskyi.

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