Maris Kunickis, CEO of DTEK Renewables: The future of Ukraine's energy sector depends on the development of renewable energy sources

The trajectory of the Ukrainian energy sector was discussed during the second day of the All-Ukrainian Forum "Ukraine 30" held in Kyiv. The discussions namely focused on the current state and prospects for development of the Ukrainian energy sector, in addition to the path towards energy independence. Among the participants in the forum, organized by the President's Office, were representatives of the government, Ukrainian parliamentarians, international organizations, reputable experts and producers of electricity from renewable sources in Ukraine.

Maris Kunickis, CEO of DTEK Renewables, during the third session “Green Energy: the industry of the future ", outlined to the guests and forum participants the current state of RES projects in the EU and Ukraine, prospects for their development and the necessary actions to overcome the current crisis in the RES market.

• The adoption of a "green" tariff in Ukraine has become a guarantee for external investors. In fact, foreign investments made up a substantial part of the attracted financing and served as the basis for the green energy sector's development in Ukraine. At the same time, investors have credit obligations under loans for the construction of stations, which cost 2-3 times more than similar obligations in the EU. As the level of risk in Ukraine is higher, financing new projects using credit funds is more expensive.
• Today, green energy technologies have already surpassed other technologies in terms of cost for installed capacity. Renewable energy sources (RES) already occupy a significant part of the national energy system and will keep growing. But for this, RES producers expect special attention from the state and the creation of favorable conditions for the development of RES. irregular payments, frequent changes in the state's position and other destabilizing factors have led to the suspension of interest in Ukraine by external investors.
• Ukraine needs to develop a long-term solution for the future development of the energy sector, namely green energy. As the economy continues to demonstrate, green energy can be the backbone for economic development. In 2020, the share of RES in the EU’s power generation mix surpassed all other energy sources first time in history. In Ukraine, the market share of green electricity generation, including hydro, amounts to 14%. However, the country has a significant potential to increase this figure.
• Since 2008, DTEK has been developing renewable energy sources. In 2012, the Botievskaya WPP came online. Since then, the company has invested more than 1.2 billion euros into the development of RES. In November 2019, DTEK Renewables was the first in Ukraine to issue green Eurobonds to the amount of EUR 325 million in order to increase the share of renewable sources in Ukraine.

What next steps do investors and RES producers expect from the state?

• First, it is necessary to stabilize the current situation and to resolve the issues related to obligations established in the Memorandum and Law No. 810.
• Second, develop a clear strategy for the comprehensive development of the energy sector, including green energy.
• Third, Ukraine needs to determine our position on issues such as the Green Deal, level of CO2 emissions, and  the share of green generation in Ukraine's energy balance. On our part, we, as a socially responsible business, are ready to make our contribution, provide expertise and start a constructive dialogue with the state to achieve our common goals, to support European integration and to promote our alignment with the Green Deal's goals.
• In our 2030 sustainable development strategy, DTEK has adopted the main elements of the EU’s "green" course. For our business, decarbonization is not a political slogan or a mere trend, but an essential condition for business development. That is why in our corporate strategy we are setting an ambitious goal for ourselves, which is to decarbonize our electricity production by 2040.