Together for the future: how Ukrainian “green” energy will help Europe get off the Russian energy needle
February 24 changed the life of Ukraine, changed the life of Europe, changed the life of the energy market and the life of our company. From the very beginning of the full-scale invasion of Russian troops, our company has been supporting Ukraine and Ukrainians in all possible ways. Our customers, the owners of industrial solar power plants, have been supplying clean electricity to Ukrainians’ homes since the beginning of the invasion.
Since then, Ukraine’s electricity sector has come a long way – working in isolation mode from all other countries, experiencing a sharp drop in supply and demand and preventing a full blackout in Ukraine. The Ukrainian energy system was synchronized with the European system, and now Ukraine became a full member of ENTSO-e.
Ukraine’s integration with the European grid gave rise to commercial electricity exports from Ukraine. This integration will allow exporting surplus “green” electricity from Ukraine to Europe, which together with future certificates of origin will allow not to pay for CO2 emissions when launching CBAM (it is worth mentioning that now the average CO2 cost is more than 80 euros per ton of emissions).
Currently, the Ukrainian installed cross-border capacity is 900 MW, which can allow earning up to 600 million euros a year. And with the increase of cross-border capacity, this figure will grow.
The integration of the Ukrainian power system with ENTSO-e will allow Ukraine to increase the generation capacity of renewable sources (RES) by 5 GW by 2030 (taking into account the gradual decommissioning of inefficient thermal power plant units).
Currently, installed RES capacity in Ukraine is 8.5 GW, of which 6.2 GW is solar generation. Taking into account households` PV stations, it is about 10 GW. In the long run, given the course of decarbonisation, this potential will increase many times over. This means that integration with ENTSO-e will allow the installation of approximately 15 GW (and with the development of cross-border networks this figure will increase even more) of renewable capacity in Ukraine, part of the production of which can be exported.
Currently, more than 3.97 GW of RES are located in areas of imminent threat of complete or partial destruction, and more than 2.4 GW – are in areas adjacent to active hostilities. It is also known that approximately 100 MW of solar, wind and bioenergy plants have been damaged throughout Ukraine. Part of the capacity is not working due to damage to substations and power lines, but both stations and power lines can be rebuilt in a short time, as well as upgrading of damaged substations and power lines after the situation stabilizes can be made.
Increasing the installed capacity of RES in Ukraine will increase the need for energy storage systems and peak power plants. Without energy storage systems, it will be difficult for Ukraine to integrate new RES capacities and safely manage the energy system, so the importance of this technology will grow not only in Ukraine but throughout Europe.
The abandonment of Russian gas and the search for “green” substitutes for natural gas combined with high gas prices (which in 2022 reached more than $2,000) will make biomethane and “green” hydrogen more competitive and enable Ukraine to play a leading role in “green” transition of Europe.
Ukraine has great potential for biomethane production, which can be used both to replace natural gas and to generate electricity to balance the Ukrainian and European energy systems. The total potential of biomethane production in Ukraine is at least 7.8 billion m3 or 25% of current natural gas consumption (estimates as of 2018).
At the presentation of its REPowerEU plan, the European Commission announced that the biomethane sector would provide 20% of current EU imports of Russian gas by 2030, and Ukrainian biomethane could become part of it. According to experts, biomethane production may even triple by 2050, growing to more than 100 billion cubic meters and covering 30 to 50% of future EU gas demand.
Together with reliable partners, M81 Newenergy has successful experience in the design, construction and maintenance of renewable energy projects. Even in such difficult times for Ukraine, our team is ready to become your partner in the development and implementation of projects of any complexity in the “green” energy sector. With their heroic resistance, Ukrainians have already proved the steadfastness of their own statehood, which inspires them to plan investments in the RES sector in Ukraine now.
We understand the importance of renewable energy and its reliable supply to end-users. In the days when thousands of consumers are left without electricity, RES is becoming an opportunity to quickly restore supply. Therefore, our team is ready to implement such projects, as well as with grant funds.
Together for victory!
Together for the clean future!
M81 Newenergy Team