Demand for energy saving equipment is growing in Ukraine

According to top executive of Frunze Plant (Kharkiv), there is an energy saving boom now in Ukraine, high demand for energy efficient equipment and strong competition among manufacturers. "Aquatherm 2015" exhibition,  recently held in Kyiv, just confirmed this.  Frunze Plant presented a new product at the exhibition – pellet boilers, and they faced intense competitive fight  in this  market segment.  Demand on pellet boilers is stimulated by the government program on partial compensation of expenses to buy energy saving equipment for the public – up to 30% of the cost of the credit to buy boilers. Read more at http://en.interfax.com.ua/

EIB to provide EUR 400 mln loan to develop urban infrastructure in Ukraine

The European Investment Bank (EIB) Group's Board of Directors approved on May 19 a framework loan of EUR 400 million to restore and develop municipal infrastructure in Ukraine , the bank said in a press release posted on its website. The project will extend the lifespan of critical urban infrastructure in the energy, water and sanitation sectors, will reduce losses, improve energy efficiency, reduce the intensity of greenhouse gas  emissions, and will contribute towards improving energy and water supply security. Ukrainian Ministry for Regional Development, Construction, Housing and Communal Services will be EIB's partner in the project implementation.

Ukraine as part of European natural gas market

While Europe traditionally perceived Ukraine as natural gas transit country, now it is right time to take a fresh look.  At 42.6 billion cubic meters (BCM) in 2014, the country's gas market ranks  4th in Europe, after Germany's (86.2), UK's (78.7) and Italy's (68.7). It should attract greater interest among Europe's gas traders because it is the last  large market in Europe that is truly open to them to conquer.

 At a conference with European gas traders held last month in Kyiv , Ukraine's gas system operator Naftogaz called for greater competition on the domestic market and diversity of supply. The Ukrainian government has taken steps to show its commitment to reforms. In the gas sector, new Law on the Gas Market was passed, which calls for Ukraine's gas transportation system  to be operated in a way consistent with Europe's 3rd Energy Package. This entails removing the subsidies on domestic gas consumers, giving third parties regulated access to the gas market, moving towards an entry/exit tariff structure for transportation and storage. 
Europe's gas traders began  supplying natural gas to Ukraine  in February 2013, when  RWE  started pumping gas to Ukraine from Poland and Hungary. It was followed by GDF Suez, E.ON Energy Sales, Trailstone, and Advance Trading, and in 2015 - by Royal Dutch Shell and Statoil. In Q1 2015, Ukraine was able to import  5.8 BCM from Europe. Read more at http://www.naturalgaseurope.com

Ukrainian scientists and businesses may apply now for funding from the biggest EU Research and Innovation programme

According to agreement, signed in Kyiv on 20 March with the European Commission, Ukraine becomes an “associated country” to Horizon 2020, the European Union's €80 billion, 7-year research program and will now be able to host European Research Council (ERC) grants, apply for financial support to innovative SMEs, benefit from support for scientific excellence and other research policies and participate in the governance structures of the programme. The commission has given Ukraine a sweet deal: It receives a 95% rebate on its association fee and a 1-year deferment to pay the first year's installment.

In Horizon 2020 predecessor, FP7, Ukraine was one of the top ten most performing third countries, with a total number of 274 successful projects in a total of 207 retained proposals. Ukraine-based researchers did  receive about €24 million of E.U. research money under the previous program, between 2007 and 2013. The top five priority areas with retained participation from Ukraine have been environment (including Climate Change); transport (including aeronautics); nano-sciences, nanotechnologies, materials and new production technologies; food, agriculture and fisheries, bio-technologies; and space.

Ukrainian government is creating energy efficiency fund in partnership with Germany and other donors

According to   Deputy Prime Minister Hennadiy Zubko, the German government is ready to contribute about EUR 200 million to energy efficiency fund, which is being created by Ukraine to raise assets from international financial organizations for projects to boost energy efficiency in Ukraine. The International Financial Corporation, the European Investment Bank and the World Bank are among other potential fund's donors. Ukrainian side considers its financial participation by capitalization of fund at the expense of money left after the payment of subsidies allocated for the compensation of households' housing and utilities costs due to the implementation of energy efficiency and energy saving technologies. Ukrainian government is also in talks on raising money from banks which participate in national program for partial reimbursement of interest rates on loans allocated to support energy efficiency. Read more at http://en.interfax.com.ua

75 countries, including Ukraine, signed a new International Energy Charter at a High-Level Ministerial Conference held in The Hague, the Netherlands.

The new Charter modernizes the existing European Energy Charter of 1991 and widens its scope to a global level. The purpose of the new Charter is to engage as many new countries as possible who are willing to cooperate in the field of energy and who recognize the importance of energy security for energy producing, transit and consuming countries. Document promotes such important principles as efficient functioning of energy markets, investment protection, free transit of energy resources, facilitating trade in energy and energy-related goods, and cooperation in energy policy development, including energy efficiency and environmental protection. Key new points are the recognition of the importance of access to modern energy for all and the growing share of low-carbon and renewable energy. Read more at http://international.energycharter.org/

More about Ministerial Conference on the International Energy Charter, May 20-21

Price of natural gas imported by Ukraine from EU in 2015 was lower by $60 than imported from Russia

Average price of natural gas imported in the first quarter of 2015 from EU countries (3.615 billion cubic meters in total) was $295 per thousand cubic meters, while price of import from Russia (0.925 billion cubic meters)  was $355. Germany, Norway and Hungary were main natural gas supplier for Ukraine. According to new contract, price of natural gas import from Russia in second quarter of 2015 is $248 per thousand cubic meters. Read more at http://www.epravda.com.ua/

What lessons can Ukraine learn from Polish reforms?

In 1991 Ukraine and Poland weren’t all that different in their economic performance.A quarter century later, the gap between both countries has become enormous -Ukraine’s per capita GDP now is only a third of what it is in neighboring Poland.The reason is that  Poland, after 1990, managed to implement fundamental legal and constitutional reforms which created the conditions for a competitive and dynamic market economy. In contrast, under the control of the oligarchs, all Ukrainian governments failed to institute a reform of the economy as well as of the state at large. Besides "de-oligarchisation", energy saving is another crucial area of reform in Ukraine. If Ukraine could achieve a level of energy efficiency comparable to the EU average, the country would be self-sufficient in gas.  Read more at http://www.theglobalist.com/ 

New laws open doors to ESCOs and energy performance contracting in Ukraine

According to the recently adopted laws, the energy efficiency measures will be implemented at the expense of private Energy Service Companies (ESCOs), while their expenses will be compensated solely from the customers' financial savings due to reduced amounts and costs of consumed energy resources. New laws were developed in close cooperation with international financial institutions, EBRD and World Bank, which are going to provide financial support. Read more at http://www.nrcu.gov.ua/.  The approved mechanism will allow to attract private sector investments in the energy efficiency improvement of 100 thousand public institutions, including thermal retrofitting of their buildings. This will lead to creation of energy service market and thousands of new jobs. Necessary Investments in energy efficiency of the budgetary institutions are estimated in the amount of EUR 4.4 billion. Read more at http://www.kmu.gov.ua/

Does Ukraine need LNG-terminal?

Construction of the Liquefied Natural Gas (LNG) terminal near Odessa with planned capacity of 10 billion cubic meters per year was initiated at the end of 2010 and then it was stopped and frozen. Terminal would significantly increase a security of natural gas supply in Ukraine, providing around quarter of its annual consumption. Lithuania, who began building its LNG-terminal in 2010, already completed the project and the terminal was opened in December 2014.  Read more at http://ua-energy.org

Europe’s " Marshall Plan" for Ukraine?

European Leadership Network's publication makes parallels between economic situation in Europe after World War II and current Ukrainian economy. 70 years ago Europe stood wrecked and prospects were bleak for its economic recovery. Three years later the United States, understanding that a prosperous Europe was needed for a peaceful world, launched the US$17bn Marshall Plan (worth $120bn today). Today, Europe’s leaders need to act out of the same enlightened self-interest to save Ukraine. Read more at http://www.europeanleadershipnetwork.org

EC urges Ukraine to adopt energy regulator law

Draft law, which was developed by the Ukrainian regulatory authority  and the Cabinet of Ministers in line with the Energy Community’s Third Energy Package, was reviewed and endorsed by the Energy Community Secretariat and the World Bank. The new law is  a precondition for the disbursement of a loan of $500 million by the World Bank. Read more at http://en.interfax.com.ua

French company AREVA will supply enriched uranium to Ukrainian “Energoatom”

The contract was signed by Mr. Yuriy Nedashkovsky, President of SE NNEGC “Energoatom”, and Mr. Olivier Wantz, Senior Executive Vice President,   AREVA Mining & Front End. AREVA won competition not only because of  most attractive price proposal, but also due to minimum risks for Energoatom foreseen by the contract. “Energoatom” consider cooperation with French partners as an important step towards energy independence of Ukraine.  Read more at http://www.energoatom.kiev.ua

Switzerland to provide technical and financial assistance for energy efficiency projects in Zhytomyr

 Memorandum of understanding was signed between Swiss officials, Zhytomyr City Council, and municipal enterprise Zhytomyrteplokomunenergo. Stable energy use and urban development, as well as local self-governance, construction, health care, and  humanitarian aid are among other priorities of bilateral cooperation. Ambassador of Switzerland to Ukraine Christian Schoenenberger said that Switzerland decided to double its technical aid in 2015-2018, the budget will be about $100 million. Read more at http://en.interfax.com.ua

EC's Vice-President: Ukraine to Remain Key Transit Country for Russian Gas to Europe

Maroš Šefčovič, Vice-President of the European Commission (EC) in charge of Energy Union, said during  his recent visit to Kiev, he saw how Ukrainian authorities are committed to fulfill their obligations and the necessary reforms to modernize the country, pushing it closer to European standards. He wants to replicate last winter’s unproblematic flows of Russian gas to Europe and adding that he wants to conclude a deal with Ukraine and Russia valid till the arbitration in Stockholm by the end of the summer. Read more at http://www.naturalgaseurope.com

Chernobyl's New Safe Confinement (NSC): 43 countries confirmed their intentions to finance its completion

International donors already confirmed commitments to provide €540 million of necessary €615 million. EBRD will coordinate the negotiations with countries-donors to arrange the remaining €75 million.This information is from the  briefing of Ukrainian Minister of Environment and Natural Resources Igor Shevchenko, who took part last week in international conference in London for raising funding to  build NSC structure above destroyed nuclear reactor,   Read more at http://www.menr.gov.ua

The New Safe Confinement will eventually rise to a height of 110 metres, will be 165 metres long, have a span of 260 meters and a lifetime of a minimum of 100 years. The arch-shaped structure will weigh more than 30,000 tons. Its frame is a huge lattice construction of tubular steel members built on two longitudinal concrete beams. Work on the NSC at the site started in late 2010 and, according to the current schedule, is expected to be completed by 2017. Read more at http://www.ebrd.com/

Impressive VIDEO from the construction site of Chernobyl NSC, and...  Forbes' esse about current state of Chernobyl exclusion zone, the area where humanity will not be able to return to during next 20 000 years!!

Climate change alert: Global carbon dioxide tops 400 ppm for first time

The first time an atmospheric carbon dioxide concentration of above 400 parts per million was measured was in the Arctic in 2012. That same threshold was reached at the National Oceanic and Atmospheric Administration’s Mauna Loa Observatory in Hawaii in 2013. And now, NOAA reports the monthly global average concentration of the greenhouse gas has surpassed 400 parts per million for the first time. This isn’t good. In fact, the last time it happened was up to 5 million years ago.  Read more at http://www.washingtonpost.com

Review of the top 100 state-owned enterprises in Ukraine

The Ministry of Economic Development and Trade releases the first review of top 100 Ukrainian state-owned enterprises (SOEs), which comprise 80% of all the SOE sector revenues and 90% of SOE sector assets. As of the end of September 2014, there were over 3 thousand SOEs, only 1833 of which were operational. The state-owned sector accounts for a significant share of the Ukrainian economy and remains the largest employer in the country, employing about 1 million workers. Read more at http://www.me.gov.ua

Average cost of coal production at state owned coal mines is 1513 Hryvnia per ton

According to Ministry of Economic Development, lowest production cost is 709 Hryvnia, and highest - 4360 Hryvnia per ton.  Average cost of coal  production at all coal mines (state owned and private) is 1220 Hryvnia per ton, what proves that privately owned mines are more efficient. In total, coal production at 160 coal mines, worked in Ukraine in 2014, dropped to 65 million ton, what is 22% lower than year earlier. Read more at http://delo.ua

Ukrainian national natural gas exploration company have increased its semiannual profit in more than 150 times

UKRGASVYDOBUVANNIA's profit in second half of 2014 reached 1.4 billion Hryvnia, what is 158 times more than year earlier. New company's  management eliminated corrupted schemes in financial management, remaining from previous government, and  paid off all company's debts. Read more at http://ua-energy.org

European carbon market reform set for 2019

European parliament vote to strengthen emissions trading scheme by taking 1.6bn surplus credits off the market to boost carbon prices, but critics call for steps to be taken earlier. Reforms to strengthen the EU’s flagship policy for cutting carbon, the emissions trading scheme (ETS), will start at the end of 2018. The carbon market is supposed to drive Europe’s transition to cleaner sources of energy, but a cocktail of recession, free allocations to polluters and over-achievement on green energy targets have created a flood of 2bn allowances. That has led to a carbon price of around €7 (£5) per tonne, too low to encourage power companies to switch from polluting fuels such as as coal. A new report by analysts Reuters Thomson Point Carbon estimates that by 2020, the reforms could nudge carbon prices up to €20 per tonne. Read more at http://www.theguardian.com

Ukraine's economy may grow 2 pct in 2016 - World Bank

Ukraine's economy could return to growth next year and expand by 2 percent provided the separatist insurgency does not worsen and a banking crisis stabilises, the World Bank said on Wednesday. The World Bank expects Ukraine's economy to shrink 7.5 percent in 2015 - in line with central bank forecasts - following a 6.8 percent contraction last year, when the conflict with pro-Russian rebels destroyed infrastructure and transport networks in Ukraine's industrial heartland. Ukrainian inflation could reach around 40 percent in 2015. Read more at http://www.dailymail.co.uk