As outlined in the table below, the major sources of electricity in Ukraine during the first 6 months of 2020 included nuclear power, thermal power, and hydroelectric power. Total electricity production for this time period was 73 431 million kWh with electricity exports equaling 2 676,4 million kWh and imports equaling 1 756,6 million kWh.
Total energy consumed for the first 11 months of 2020 equaled 105,9 billion kWh—which is 3.1% less than for the same period in the previous year. The trend for energy consumption in the country over the last 28 years is provided below:
This year Ukraine paused their energy transition towards renewable energy in part due to the termination of the green tariff, a special tax for energy from renewable sources. Ukraine’s Green tariff is regulated by the 2003 Law on “Alternative Sources of Energy” and 2017 Law on “The Energy Market” which both reinforce the government’s obligation to maintain the green tariff until the end of 2029. The quantity of green energy produced in Ukraine is constantly growing as evidenced by an increase in total energy produced from a mere 2% in 2018 to 4% in 2019. Unfortunately, in 2020, the authorities decided to reduce the rate on the green tariff without extending the term for their payment after 2030. This negatively affected public confidence towards investments in Ukraine.
The coal industry is still being subsidized and there are plans for increasing its share of subsidies for the next year. The importance of renewable sources of energy is being downplayed along with non-existent energy strategies. There haven’t even been any energy storing facilities built as of late. Ukraine’s proposed renewable energy green auctions were not launched either. According to Ukrainian NGOs, these actions signal behaviors of climate change skepticism and contribute to the loss of governmental climate ambitions, which are announced at international summits and in signed agreements.
COVID-19 did not change government priorities because of the need to strengthen the economy, but the authorities are missing the risk of climate change that the country is facing. This is why climate change mitigation and adaptation through the energy sector is not sufficiently addressed.
Fossil fuel energy sources should be not subsidized because doing so would hinder Ukraine’s energy transition. Fossil fuel energy pricing should consider environmental impacts as well as people’s health. Moreover, there is a need to develop energy plans and strategies for the development of the energy sector to reach 100% renewable energy by 2050 and achieve a just transition.
Boyko Yuriy, Minister of Energy
Ambramovskiy Roman, Minister of Environment and Natural Resources
Herus Andriy, Chairman of the committee for energy and housing and communal services questions
Bondarenko Oleg, Chairman of the committee for environmental policy and natural resources management questions
This post was submitted by Ukraine County Manager Anastaisa Bushoska.