EPL has repeatedly emphasized that small hydro power plants are not the tools of ensuring energy independence of Ukraine but are the business that ruins the environment. Another proof of this fact is the information released by the State enterprise “Enerhorynok” regarding the structure and amounts of functioning of energy market in 2016. Thus, small hydro power plants in 2016 produced 0,13% of all electric power while its share in the costs is 0,56%.
This is how the information is reflected on the web-site of the state enterprise “Enerhorynok”
The overview of amounts and costs of electricity bought by the state enterprise “Enerhorynok” from producers of electricity and sold by energy suppliers, for each energy source in 2016
|Primary energy sources||Share in the amounts of electricity||Share in costs of electricity|
|Nuclear power plants||53,74%||29,32%|
|Generating companies of thermal power plants||31,78%||45,96%|
|Hydro power plants (except for small ones)||6,21%||5,23%|
|Thermal power central generator||7,01%||12,51%|
|Hydro power plants (small ones)||0,13%||0,56%|
|Wind power plants||0,66%||2,54%|
In 2015, these indicators were 0,12% and 0,48% respectively.
Therefore, the correlation of the share of small hydro power plants in costs of electrical power to their share of electricity producing for 2016 grew from 4 to 4,3. In other words, in 2016 owners of small hydro power plants increased their profit.
It looks strange and cynical in view of the processes on the market of renewable energy in the EU countries where the amount of state support for renewable energy is constantly decreasing.
For example, this year Poland switched from the system of state-guaranteed green tariffs to the system of tariff auctions with fixed amounts and prices of selling electricity produced by renewable energy sources and with competitive bidding among producers.
The basic price at the beginning of the bidding sets the Ministry of Energy. For small hydro power plants with the capacity over 1 MW the price is 0,47 zloty (3,16 UAH at the currency exchange rate of the National Bank of Ukraine) for 1 kWh, for the capacity less than 1 MW – 0,48 zloty (3,23 UAH) respectively.
As a result of the auction held at the end of December, the maximum price at which the electricity produced by small hydro power plants will be supplied is 0,468 zloty (3,15 UAH) for 1 kWh.
Totally in 2017, 50 987 MWh of electricity will be purchased from small hydro power plants totally worth 18 016 692 zloty, which is in average 0,353 zloty (2,38 UAH) for 1 kWh.
In Ukraine in 2017, according to the resolution of the State Regulatory Commission in the sphere of energy and communal services of 29.12.2016, small hydro power plants sell electricity at the price from 3,20 UAH for kWh to 5,33 for 1 kWh.
Therefore, the MINIMAL price at which Ukraine buys electricity from owners of small hydro power plants is almost by one third higher than the AVERAGE price at which analogical energy is bought by the developed and economically strong EU country.
Importantly, the EU countries also have strong environmental legislation that imposes serious limitations and requires from owners to invest into environmental protection in the course of construction and operation of power plants, which substantially decreases the profit of owners. European Small Hydro Power Association recognizes that the situation in the EU countries can be described as “survival” rather than “development”, among others due to implementation of European environmental directives.
Ukrainian owners of hydro power plants do not bear such expenses and ignore even minimal requirements of Ukrainian environmental legislation. For example, when the state environmental inspectorate in Chernivtsi region demanded that the owner of the small hydro power plant in the village of Yablunytsia on the White Cheremosh river must reconstruct the dam, build the fish wayand develop the regime of operation of the hydro power, the owner challenged these requirements in court at the location of his registration and because of absence of the defendant won.
Small hydro power plant in the village of Yablunytsia
Why do owners of small hydro power plants in Ukraine bearing smaller costs of construction and operation of power plants, get more funding from the state than analogical small hydro power plants in rich Poland?
The main reason for this are personalities of owners. Among them are former and current deputies, heads of regional state administrations and other officials. The biggest players on the market of small hydro energy are two groups:
- «Vinnytsia» group belonging to the assistants of the chair of the committee of the fuel and energy complex Oleksandr Dombrovskyi misters Zhytnyk and Nykytorovych;
- «Tynnyi-Chyzhmar» group belonging to the deputy of Liashko’s Radical party Yuriy Chyzhmar and well-known businessman Ihor Tynnyi who are related with Liovochkin and Turchynov.
It is clear that those with power are not willing to lose their profits that will be paid by all Ukrainians through higher tariffs for electricity.
Therefore, itiscrucialthattheamountofthegreentariffforsmallhydropowerplantsisreviewed and set at the level that is economically grounded.
For further information please contact:
Petro Testov, EPL environmental scientist
tel.: (032) 225 – 76 -82; (068) 934 – 95 – 74