5 GW of new renewables capacity could be constructed in Ukraine after synchronization with ENTSO-E

Today, February 17, DTEK Renewables CEO Maris Kunickis attended the Renpower Ukraine 2022 forum, where the process of synchronizing Ukraine's energy system with the European electricity market was discussed.

«Integration into European networks and new investments will bring the price of "green" energy closer to the market price, as well as its balance. In the future, we should not say: “the price of green energy”, “the price of nuclear energy” or “the price of coal energy”. We should talk about one thing: "the price of electricity in the market." It consists of all these factors and all of them must be summed up to this price», commented Maris Kunickis.

As early as February 24-26, the Ukrainian energy system will operate in isolation mode. This is one of the stages of the country's preparations for joining ENTSO-E. Measures aimed at synchronizing energy systems are scheduled to be completed in 2023.

The synchronization will help stabilize the Ukrainian electricity market, give a powerful boost to the economy, and also increase the country's energy security.

At the same time, this will be possible only if the authorities pay due attention to the renewable energy sector. The responsible approach of the state to the development of renewables will contribute to a greater volume of investments into the sector and will make it possible to reduce the cost of borrowed capital for the implementation of projects.

Based on the current LCOE level of traditional and renewables generation, as well as the difficult situation with energy resources (especially gas), renewables is the most promising technology for capacity building in Ukraine.

Currently, renewable capacity in Ukraine is 8.5 GW, of which 6.2 GW is solar generation. With domestic solar power plants, it is about 10 GW. When synchronized with ENTSO-E, the growth potential may be about 5 GW of new renewable capacity by 2030, taking into account the phasing out of inefficient TPP units. And in the long run, given the course of decarbonization, this potential will significantly increase.

Moreover, the issue of decarbonization will increase in the relevance of synchronization with ENTSO-E, as the tariffs on Ukrainian electricity exports to Europe will depend on part of the so-called "dirty generation" in the country's energy balance.