EXPRO Electricity Weekly

Electricity №14 JUNE 25 - JULY 01.2018

GENERATION

Two companies of DTEK change tom” is conducting an UAH 147.1 mn bid form. The bid proposals were accepted their JSC types for procurement of supercompactor for by March 18, 2018, and the competition PJSC “DTEK Dniproenergo” and PJSC SE "Khmelnitsky NPP" to process nuclear was held the next day. It was allocated “DTEK Zakhidenergo” changed their JSC wastes, as stated by the Prozorro electronic UAH 178 mn for all lots. The wires and types from public to private, as reported by sales platform. interruptors should be procured by No- the National Securities And Stock Market The company is accepting bid proposals vember 30, 2018. The Holduct Sp. z Commission. from prospect suppliers until June 9, 2018, o.o also competed in the bid, however This change to private joint stock own- and will open competitive bidding on Au- their UAH 124,5 mn offer was reject- ership was approved by the companies’ gust 1, 2018 with a bid security of UAH 1.47 ed. Other two competitors , the relay- shareholders on June 21, 2018 to comply mn. According to the bid requirements, the export Ltd(UAH 177,3 mn offer) and with the Ukrainian legislation on securities winner should accomplish the procure- the TOSHELECTROAPPARAT LLC (UAH market. ment by December 31, 2019. 177,6 mn) were not successful in the bid as well. PJSC "Centrenergo" buys 50 thd The Consortium “Scientific ton of gas coal at the commodity Production Association Skhidniy Uranium Ore Dressing exchange “Ukrhydroenerhobud” spends UAH Plant (VostGOK) increases On June 25, 2018 PJSC "Centrenergo" 172.6 mn for high-voltage current production by 19.3 % to 528.7 ton bought 50 thousand ton of gas coal at leads and disconnectors to build over the last five months the Dniester Pumped Storage the commodity exchange for the start- The State Enterprise Skhidniy Uranium Power Station ing price of 2,350 UAH/t and totally Ore Dressing Plant increased production worth UAH 126,5 mn, as reported by The Consortium “ Scientific Produc- by 19.3% , as compared to January-May of the Ukrainian Energy Exchange. The tion Association “Ukrhydroenerhobud”, 2017, and produced 528.7 ton of of uranium seller to the deal is not disclosed. while bulding the Dniester Pumped oxide concentrate over the first five months Storage Power Station (located in Chr- of FY2018, according to press service of the “Energoatom” announces nivtsi Oblast and operated by the PrJSC plant. UAH 147.1 mn bid for supply ”Ukrhydroenerho”), buys from ALIT Ltd The plant manufactured products worth of supercompactor for SE (founded and run by Ms. Yulia Stern) UAH 1.622 billion over the first five months "Khmelnitsky NPP" 15,75kWt current leads and disconnec- of 2018. Alone in May 2018, the production The State Enterprise “National Nuclear tors worth UAH 172,6 mn, according to increase was 13,9%, or 67 ton worth UAH Energy Generating Company “Energoa- the the Prozorro electronic sales plat- 199.7 mn.

Power generation, GW

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Energoatom purchases services for pretend for the state support only after the The Centrenergo company expects the valuation of capital assets state audits as justifying the need for mod- government to decrease their divident The SE NNEGC Energoatom announces ernization to enhance competitiveness in claims, thus enabling the company to have tender for independent valuation of their the newly-shaped electricity market. If the extra means for enhancing its competitive- capital assets. The expected cost of valu- audits do not justifify such a need, then the ness. Currently, the Centrenergo company ation is set at UAH 50,38 mn, as publishe CHPPs’ facilities must consider hosting is investing to transfer their generator’s in the nationwide Prozorro electronic sales highly-maneuverable generators. consumption feed of costly imported an- platform. “The sources of finance will be determined thracite coal to local and less expensive The Energoatom expects to have the prop- by the NCSREU- these could be company’s gas coal being widely mined in Ukraine. erty valuation report to determine real own finances, or credits from banks (as market value of assets as of January 1, being negotiated with the stae-owned Os- The Khmelnitskiy NPP spends 2018, the peer review and data base of the chadbank and Ukrgazbank), fractions from UAH 125,6 mn to buy Turboatom’s company’s main assets. the custom-tailored tariffs”, as explaine by turbine blades The company’s capital assets number 145 Ms. Buslavets. Formerly the government On June 23, 2018, the Khmelnitskiy NPP, thd of units, and should valuated within 7 supported CHPPs by setting high prices on apart of Energoatom, entered into the UAH months from the date of signing of the electricity, but this practice in unacceptable 125,6 mn contract with the Turboatom Pub- contract. The deadline for bid submission is for shaping totally new and competitive lic Joint Stock Company for supply of Tur- July 23, 2018, and competition will start on electricity market. The government sup- boatom’s blades for the К-1000-60/3000 August 28, 2018. It was reported earlier, the port is justified by the high social impor- turbines, as reported by the Prozorro Energoatom is undergoing corporatisation, tance of CHPPs- they generate heat for electronic sales platform. According to the and independent valuation of capital assets warming numerous towns and villages contract, the Turboatom company, as the is needed to accomplish this process and during cold seasons. Ukrhydroenerho paid manufacturer, shall supply 276 turbine create the Supervisory Board. in 2017 the UAH 439,7 mn as dividents to blades during July-August 2018. The man- the State Budget ufacturer shall ensure 100K hour warranty Modernization of subsidized CHPPs The Ukrhydroenerho Private Joint Stock for their turbine blades. will last until June 1, 2024 Company paid the UAH 439,7 mn as div- There were no bid for the purchase, since The central heating and power plants idents to the State Budget over 2017, as the Turboatom company is the sole man- (CHPPs) with favorable technical audits will stated by the company’s press service. ufacturer of this type of blades. The justifi- enjoy state support to adjust to competition According to the Cabinet of Minister’s De- cation notice stated that К-1000-60/3000 conditions of the newly shaped electricity cree № 139 from February 28, 2018, 30 % turbines are produced by the Russia-based market and to modernize their facilities by of Ukrhydroenerho’s annual profits shall be Silovie Mashiny OJSC, and the blades are July 1, 2024. this was announced by Ms. directed for payments of dividents. manufacturer is the Leningrad Mechan- Olga Buslavets, General Director of the ical Plant, which is also located in Russia. Directorate for Energy Markets under the Centrenergo paid UAH 1.1 bln In 2013-2014, the Energoatom company Ministry of Energy and Coal of Ukraine. as FY2017 dividents to the State negotiated with the Leningrad Mechanical “Those provided with the state support Budget Plant for the supply of turbine blades, but based on individually-tailored tariffs set by The Centrenergo Public Joint Stock Compa- the price and supply terms were not ac- the NCSREU state energy regulator, should ny paid FY2017 due to allof their sharehold- ceptable. Since that time, the Turboatom have their modernization projects been ers, including the UAH 1.1 bln as dividents company managed to engineer an original accomplished by July 1, 2024” said Ms. to the State as major shareholder, the UAH construction of the turbine blades, thus be- Buslavets. 269.7 mn to other minor shareholders, as coming the sole manufacturer in Ukraine Ms. Buslavets also noted that CHPPs can stated by the company’s press service. for this type of blades.

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ALTERNATIVE GENERATION

The Uriadoviy Kurier newspaper cases of unauthorized waste dumping. pacity to 5,755.3 MW. On June 26, 2018, the informs about 0.75% increase in The power generated from wastes is sold NCSREU did the corespondent adjustment “green” tariffs for power surplus at the “green” tariff rate of 12.4 euro cents to their National Power Output Register to sales by household generators per kWh, while the heat is bought at fluctu- record this increase. The current produc- On June 23, 2018 the official media of the ating incentive rates. tion output of the Kaniv HPS now reaches Cabinet of Minister of Ukraine, the Uri- 493 MW. adoviy Kurier newspaper, published Res- Estimated 12.5 bln kWh can olution №359 which was passed by the annually be produced by small Ukrainian renewable power National Committee on State Regulation hydrogenerators generators commissioned new in Energy and Utilities (NCSREU) on March The prospects of using small rivers for hy- 109.6 MW facilities in the 23, 2018. The Resolution №359 increases drogeneration is estimated at 12.5 bln kWh 2nd Q of 2018 “green” tariffs for power surplus sales by per year, as stated by the State Agency of In April- June 2018, additional new 109.6 household generators by 0.75% to be in Water Resources of Ukraine. “Small rivers MW renewable energy generating facilities effect starting June 24, 2018. can yield 12.5 bln kWh annually, or 28 % of were commissioned in Ukraine. As report- According to the Resolution №359, the av- the nation’s hydrogeneration capacity’ , as ed the NCSREU’s press service, this is the erage tariff for surplus sale of solar power reported by the Agency. 1.7 times increase, if compared with the is UAH 5,91 per 1kWh for all solar power At the begging of the 50s of the past century, corresponding period of 2017. The NCS- household generation facilities which were Ukraine had 956 small river hydrogenera- REU’s press service also noted, that this commissioned within the period of Janu- tion stations, that had a collective produc- increase happened mostly due to commis- ary 1, 2017 – December 31, 2019, and UAH tion capacity of 30 MW, however new build- sioning of new solar and wind energy gen- 11,72 per kWh for the ones commissioned ups of small hydro power stations were put eration facilities. within the period of April 1, 201 – Decem- on hold with their onward conservation or The outputs of the newly commissioned ber 31, 2014. The wind power household full decommissioning. Today Ukraine num- renewable energy generation facilities generation sale tariff is set at UAH 3.8 per bers 50 small hydro stations, which were were 106.1 MW in solar, 3.2 MW in wind, 1kWh. This increase was forced due to in- decommissioned in the 50s-60s of the and 0.3 MW in bio-gas. As of June 27, 2018, crease of UAH/EURO exchange rate. past century. The most prospective plac- Ukraine’s total green energy output capaci- es for small capacity hydrogeneration are ty is 947.5 MW in solar, 515,4 MW in wind, Ukraine can generate annually located in the Cerpathian region. However, 43.8 MW in bio gas( 41 generatorsin total), 1.2 billion kWh from household buld-up of small hydro stations shoud be and 95.6 MW in small river hydrogenera- wastes agreed with flood prevention measures”, as tion. Annually, 10 million solid wastes from reported by the Agency, while adding that In total for the nation’s renewable energy household are being piled in Ukraine. Only a small hydrogeneration does not entail the power generation, it is 1,643.4 MW ( not fraction of this piles goes to waste burning construction of large hydrotechnical facili- counting the annexed Crimea’s 494.9 MW power plants to generate 1.2 billion kWh ties normally needed for big hydro power renewable energy generating facilities) and 3.5 million Gcal annually. This data was stations. Nowadays, the small hydro sta- Nowadays, the Ukrainian renewable en- announced by the State Agency on Ener- tions have the share of 0.2 % in the na- ergy power generation has 1.9% share in gy Efficiency and Energy Saving of Ukraine tion’s energy balance. total production of power, or 8.5 % share in (SAEE). the nation’s annual money revenues from “Having evaluated all finance options for Ukrhydroenergo increases its power generation. building various types of waste-to- en- pruduction capacity by 10.5 MW ergy plants, we came to conclusion that due to reconstruction of three Americans and Lithuanian most efficient are the projects in bio-waste hydroturbines at the Kaniv HPS companies plan to invest €270 mn sorting for bio-gas production with onward The Urkhydroenergo Private Joint Stock into Odesa Region’s wind farms. co-generation of electricity and heat. Only Company increases its production capacity On June 27, 2018, the Odesa Region Ad- such project model could be remunerable by 10.5 MW due to due to reconstruction of ministration signed a memorandum on for investors”, as stated by the SAEE. three hydroturbines (№9, №11 and №12) cooperation with the Ukraine Power Re- However, risks include uncertain volumes at the Kaniv Hydro Power Station, thus sources (USA) and Yuzhne Energy (Lithua- of supply of wastes because of numerous reaching its total aggregate production ca- nia). These two companies plant to invest

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€270 mn into wind farms in Limanskiy dis- The Turkish company Guris Holding Co. two substations (35 kV and 10 kV) to trict of Odesa region. Inc. is building a 81 MW wind farm in handle the power coming from Pry- “The American company plans to build a Odesa Region. This is reported on the morske Wind Farm in Zaporizhia Re- 120 MW wind power station, and the Lithu- company’s website. The first 30 MW wind gion. This is reported by the DTEK anian will build 72 MW wind power facility. farm is called Ovid Wind. The second ad- press service. We will use all of our available means to ditional wind farm will have a capacity of “The wind farm will use the innovative facilitate business activities of these com- 51 MW. Currently, the company is build- digital substation technology. This will en- panies” said the Head of Odesa Region Ad- ing is also building two wind farms (200 able to monitor the work of equipment ministration Maksym Stepanov. MW and 80 MW facilities) in Turkey. The in real-time mode, and to automatically The Lithuanian company will install 19 Guris Holding has already implement- handle all possible disruptions. This will wind generator to supply power to 150 ed several projects that together have considerably simplify the maintenance of thd inhabitants of the region. The Ukraine 370 MW capacity. the substations” as reported by DTEK press Power Resources plan installation of 26 service. wind power turbines in fields between Vy- General Electric digitalizes the It was reported earlier, that by the end of sirka and Liubopol villages. Prymoske Wind Farm 2018 the GE Renewable Energy will supply The General Electric has signed with to Primoske Wind Farm the 26 wind tur- The Turkish company Guris Holding DTEK Energoholding a contract for bines with 100 MW total capacity. The first builds 81 MW wind farm in Odesa supply of high voltage equipment for part of Primoske Wind Farm will be com- Region the 150 kV central distribution and its missioned in 2019.

Green tariffs for households in Ukraine, which came into force since June 24, 2018 Type of generation Period of putting plant into operation Tariff, hryvnya per kWh Solar generation April 1, 2013 - December 31, 2014 11.7236 January 1, 2015 - June 30, 2015 10.5442 July 1, 2015 - December 31, 2015 6.5483 January 1, 2016 - December 31, 2016 6.2139 January 1, 2017 - December 31, 2019 5.9146 January 1, 2020 - December 31, 2024 5.3161 January 1, 2025 - December 31, 2029 4.7352 Wind generation July 1, 2015 - December 31, 2019 3.8023 January 1, 2020 - December 31, 2024 3.415 January 1, 2025 - December 31, 2029 3.0453

EXPORT

Ukrenergo modernizes its Zakhidnoukrainska 750 KV “The new equipment will significantly in- The construction of devices enables signif- substation crease the reliability and efficiency of sub- icant reduction in electricity consumption station’s operation, will allow us to move to for the substation’s own needs. The Ukrenergo, the Ukrainian operator the establishment of automated systems The Investment Program also includes the of the national united power grid system, for control of technological processes replacement of three lines of autotrans- has commissioned there new lines of and curtail maintenance expenditures for formers AT-1 within the following two R-14 reactors at its Zakhidnoukrainska servicing our power equipment”, said months at SS 750 kV Zakhidnoukrainska. 750 KV substation. This will ensure stabil- Mr. Oleksandr Vovchok, Head of Zakhid- As of today, one line of reactor P-5 is un- ity of current for power being exported via noukrainska 750 kV substation. der replacement, and one line of reactor Zakhidnoukrainska (Ukraine) – Albertirsha New reactors will ensure stable quality P-1 and reactor P-6 are planned for re- (Hungary) overhead lines, as stated by the indicators of electricity supply to the con- placement replaced at the substation. The company’s press service. The new equip- sumers of “Burshtyn TPP Island” and to Ukrenergo continues works for the re- ment was installed within two months. EU consumers of Ukrainian power exports. placement of disconnecting devices, volt-

JUNE 25 - JULY 01.2018 age transformers and bar supports at the this based or real planning” said Mr. Maroš the hub in Hungary, were done by ERU connection to OHL 750 kV Zakhidnoukrain- Šefčovič. Trading (244 thd kWh for $9.72 thd), Don- ska – Khmelnytska NPP and complex The later also noted, that the newly enacte basenergo (105 thd kWh for $4,12 thd), modernization of relay protection. Law of Ukraine On Electricity Market is a who sold to EU through their partner The Zakhidnoukrainska 750 kV substation good basis for liberalization of the market trader GEN-I. is the largest power station in Europe (a 70 in line with requirements of the EU’s Third The second in the Ukrainian power exports hectares facility) with the installed capacity Energy Package. He also added, that EU was the Polish hub, as having accepted of 3000 MVA. The substation has direct 750 helps Ukraine in drafting and introduction 115.5 kWh. All supplies to Poland were kV connection with Rivne NPP and Khmel- of second-tier legislation. The key issue, done by DTEK Pavlogradvuhillia through nytska NPP; under the 330 kV connection according to Mr. Šefčovič, is the unbundle DTEK Trading SA, which brought $6,4 mn with Burshtynska TPP and Lviv power the power generation, from its transmis- while selling at prices of $54,4- $61 per 1 hub. The modernization of 750 kV OHL sion and distribution, as well as introducing Mwh. The third channel of the May 2018 Zakhidnoukrainska Substation (Ukraine) – price competition in the market. exports in power was Moldova, who also Albertirsha (Hungary) is within the the im- bought from DTEK Pavlogradvuhillia - En- plementation of Ukraine-EU Energy Bridge Ukraine earned ergocom S. A. the 83,7 mn kWh for $4,85 $27.8 mn in power exports plan to enable NAEC ENERGOATOM to mn. And the Slovakia power hub was the export the power generated by the Khmel- In May 2018, Ukraine exported to EU and fourth while accepting 4.47 mn kWh. The nytskyi Nuclear Power Plant. Moldova 464.5 mn kWh for $27.8 mn. DTEK Pavlogradvuhillia and their partner This was by 23,5 % more as compared trader Axpo Trading channeled through The Eropean Commission will help Ukraine’s power exports in May of 2017. Slovakia 1.59 mn kWh for $46.1 thd (av- Ukraine and Moldova to integrate The Hungarian energy hub took most erage price $28,9 pee 1 Mwh). The other into EU market of this May 2018 exports, or 260.8 mLn trader buying from DTEK Pavlogradvuhil- The Eropean Commission will help Ukraine kWh. The key Ukrainian supplier of this lia was the GEN-I, who bought 2.46 Mwh and Moldova to integrate into the EU pow- power exports was the DTEK Pavlograd- for $101.5 thd (average price of $41,2 per er system and the ENTSO-E Transparen- vuhillia, who supplied 260. 4 mn kWh to 1MWh). The ERU Trading exported to the cy Platform, says European Commission their traders, DTEK Hungary Power Trade GEN-I their 419 thd Mwh for $17,9 thd (av- Vice-President for Energy Union Maroš LLC and GEN-I, and earned $12 mn. The erage price $42,7 per 1MWh). The fifth -ex Šefčovič price of power from DTEK was within the port route was the Romanian power hub, “The Commission will help Ukraine with range of $36.9-$ 53.5 per 1 Mwh. Other which accepted from DTEK and ERU Trad- implementation of this task, and we will do Ukrainian power exports to EU through ing 84 thd MWh for $ 3.66 thd.

Spot prices for electricity on Hungarian exchange HUPX, €/МWh

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Electricity export by countries, January-May 2018, million kWh

Electricity export by countries in May 2018, % Maximum prices for exporting electricity in May, $/MWh

Company-exporters of electricity in May, % Average prices for exporting electricity by countries, $/MWh

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SUPPLYING AND DISTRIBUTION

Minregionvuhillia selects a tor in totally the new market environment, Voldymyr Derzhavin. consultant to estimate Ukrenergo’s one should transfer the property assets of “The Law definitely demands unbundling statutory capital of the national and inter-state HVOHLs to of Oblenergo regional power distribution the company’s balance. This is within the companies. As of now, five Oblenergos The Ministry of Energy and Coal of Ukraine competence of the Ukrainian parliament. have accomplished this process. These are selected the Kharkiv-based Northeast Thus, to change the ownership structure the Khmelnitskoblenergo, the Zaporizho- Consulting Group Ltd to conduct inde- of the transmission lines, the Ministry has blenergo, the Kharkivoblenergo, and the pendent valuation of intangible asserts and drafted the corresponding legislation acts Mykolaivoblenergo”, said Mr. Derzhavin. determination of statutory capital of the and submitted them to the Parliament. Ukrenergo company. This was outlined in Ukrenergo plan $40 for software Minregionvuhillia’s Order №340 of June 22, 52% of OHLs for power distribution purchase from IT consortium of 2018. need complete replacement or companies. Determination of the asserts value is need- overhaul The Ukrenergo National Energy Compa- ed for the upcoming corporatisation of The 52% of the nation’s power distribution ny plans to strike a software deal with IT Ukrenergo. The cost of the valuation study overhead transmission lines badly need consortium uniting P Systems, Siemens is set at UAH 400 thd, and the deadline for overhaul or complete replacement. This and Smart Tech. The software will ena- issue of final report is 50 days . The valua- was announced by Ms. Olga Buslavets, ble Ukrenergo fulfill its operational duties tion takes June 30, 2018 a start date. General Director of the Directorate for En- in market balancing and administering of ergy Markets of the Ministry. payments in the newly modeled electricity Minregionvuhillia will corporatize The lack of investments into the power market. This was announced by the team Ukrenergo in September 2018 distribution and transmission lines led to head for administering payments to Ukren- The Ministry of Energy and Coal of Ukraine( their deteriorated state. The power distribu- ergo Mr. Dmhytro Kondrashov. MECU) plans Ukrenergo for corporatisation network is highly deteriorated, physi- “They will procure a system to us, which tion in September 2018 and creation of su- cally worn-out and obsolete. At the end of will enable administration of the whole pervisory board to govern this process. This 2017, 52 % of all overhead transmission process, starting with registration of mar- was announce on June 26, 2018 by . 2018 lines were subject to replacement, com- ket participants and finishing with billing Ms. Olga Buslavets, General Director of the plete overhaul, or capital repair”, said Ms. them”, said Mr. Kondrashov, and added Directorate for Energy Markets under the Buslavets, and then added that regional that Ukrenergo is currently agreeing all MECU. substations for power distribution are de- details of the contract to be signed shortly. “Implementation of the reform on Ukren- preciated by 48% as to their projected op- Mr. Kondrashov declined to divulge the total ergo’s corporate governance is the key erational lifespan. cost of the contract, yet said that expected issue for meeting requirements set by of By Ms. Buslavets, this high rate of depreci- cost of the software was $40 mn the Ukrainian legislation to enhance op- ation of the power distribution lines cause erational transparency in transmission of transmission losses and poor service in Ukrenergo’s dispatchers simulated power. In line with the plan of actions for power supply. Accoding to her , only UAH contingency actions for possible corporatisation and certification, the pro- 2.8 bln are invested annually into power disruptions at Kiev’s TPP-5 and cess should l be accomplished at the end distribution network, despite the operation- TPP-6 September of 2018”, as stated by Ms. Olga al needs total UAH 13.6 bl per year. Ukrenergo held a contingency training for Buslavets. its dispatchers in case of transmission con- According to Ukrenergo’s Director for The SPFU completed legalities gestion and accidental cut-offs at Kiev’s Market Development and IT, Mr. Andiy for unbundling of five regional TPP-5 and TPP-6, as stated by the compa- Nemirovskiy, they have approved four distribution companies ny’s press service. members to the Supervisory Board, and In line with the requirements of the Law «The iaim of the training was to simulate the other there independent members to of Ukraine on Electricity Market, the The contingency actions of personnel in case of the Board should be proposed by the gov- State Property Fund of Ukraine(SPFU) have blackouts and teach how to prevent trans- ernment. completed legal formalities for unbundling mission congestion that may be caused by Ms. Buslavets also added, that in order to of the five regional distribution companies, outside hot temperatures. Additionally, the certify Ukrenergo as energy system opera- as announced by the SPFU’s Deputy Head personnel was trained to handle cases of

JUNE 25 - JULY 01.2018 low pressure in gas pipelines or lack of fos- of power to Mariupol, as stated by the com- Bad weather caused blackouts in sil oil at Kiev’s TPP-5 and TPP-6, as well as pany’s press service. 144 towns and villages of Ukraine contingencies for total cutoffs of stations”, “Days and nights, our repair teams worked The bad weather (wind storms and as stated by the company officials. All of the hard to resume power supply to Mariupol. lightnings) activated the power line dispatcher teams successfully resolved the We did our best to quickly relief the after- protection systems and cut-off power suggested training tasks. math of the June 26 storms. Regretfully, at supply to 144 towns and villages in five night of June 27 there were repeated tear- regions of Ukraine, as reported by the DTEK Donetsk Grids repaired offs of power lines at 25 substations. How- Emergency State Service of Ukraine. the weather-damaged Mariupol ever, by 10:00 we had resumed operations The blackouts were in 58 settlement substations. at 18 out of the 25 substations damaged by of Poltava Region, in 52 towns and vil- On June26-27, 2018, DTEK Donetsk Grids the storms. The remaining 7 substations lages of Dnipropetrovsk Region, in 28 repaired damages at the 160 substations will shortly resume their power supply”, settlements of Kyiv Region, and per 3 that were severely damaged by storms. reported the DTEK Donetsk Grids’ General settlements in Kirovograd and Zapor- The company shortly resumed the supply Director Mr. Oleksiy Degtiarov. izhya Regions.

STATE REGULATION

The Uriadoviy Kurier newspaper state allocations of UAH 290 mn to the The section contest will have two tiers in clarifies the NCSREU’s resolution Ministry of Energy and Coal of Ukraine, the time span of July 26-July 31, 2018, for on TOU tariffs for OCMB which the later plans for rescue works at every divested enterprise being divested. June 23 ,2018, the Uriadiviy Kurier, the of- coal mines in Lviv-Volyn coal fields, should The terms of reference for each adviser ficial media of the Cabinet of Ministers of not be considered as not a state aid. The will include a comprehensive` analysis of Ukraine, published the Resolution №347 corresponding AMCU’s Decision of June 14, economy, technical capacity, and financial dated March 22, 2018, which clarifies 2018 was published in the newspaper on performance of subject enterprises, as payment of Time-of-Use (TOU) tariffs for June 23, 2018. The AMCU also noted that well as recommendations for adjusting ac- Organization of Co-Owners of Multi-Flat the state support of the nation’s coal min- countancy in compliance with international Buildings (OCMB) and Housing Building ing affects competition in the coal market, standards, conducting audits, work-out of Cooperatives(HBC) for electricity con- hence it should not be classified as a “state fiscal models and investment prospects. sumption. aid” that is defined in the Law on State Sup- The Resolution №347 compliments the port for Business Entities. The Decision Energy companies must account in Resolution №1241 of December 20, 2011, determines that the allocated UAH 290 mn AMCU on the receipt of state aids which is often referred to by power retail- should be used for maintaining 24-hour The energy companies, who expect ers while refusing to apply coefficients of readiness of rescue teams of the State non-repayable state aid should submit ap- TOU tariffs when dealing with OCMB and Rescue Service for Coal Mines and other plications for endorsement by the Anti-Mo- HBC. Starting July 24, 2018, the Ukrainian urgent need to ensure prevention of emer- nopoly Committee of Ukraine (AMCU).This TOU electricity tariffs should apply 1.0 day- gencies in coal mines. was announced by Ms. Tetiana Kulishova, time coefficient and 0.5 night coefficient for Director of the Department for Reserch and households. The State Property Fund of Ukraine Verification in Energy Sector and Housing It was reported, that some Ukrainian elec- will select investment advisers for under the AMCU. tricity vendors misinterpreted Resolution privatization of Krasnolimanska “Within the month, all administrators and №1241 and applied commercial entity 1.35 State Coal Company and distributors of allocations from the state daytime coefficient and 0.35 night coeffi- Electriotyazhmash Plant budget , should submit all approved aid cient for charging OCMBs and HBCs. On June 25, 2018, the State Property Fund programs and plans to the AMCU for re- of Ukraine (SPFU) announced a contest to view and endorsement. Those, who fail to State allocation of UAH 290 mn for select investment advisers for the upcom- timely submit their documents to the the rescue works at coal mines is not a ing sale of public entities, including Krasno- AMCU will be stripped of the aid and be en- state aid according to AMCU limanska State Coal Company and Electri- forced to return the aid back to the state”, The Anti-Monopoly Committee of otyazhmash Plant. This was annouced by said Ms. Tetiana Kulishova, She also add- Ukraine(AMCU) admitted that the FY2018 Acting Head of SPFU. ed, that starting this year, all petitions for

JUNE 25 - JULY 01.2018 non-repayable state aid must undergo en- “The repayment terms, as suggested by The MECU determined that 2.6 mn dorsement by the AMCU. Cherkasy Azot to span the debt restructur- ton of coal be needed for the 2018- 2019 heating season ing until 2025, are not economically justi- The NCSREU is lagging in schedule fied, and are conflicting the corresponding The energy coal reserves for heating pur- for approvals needed to reform the repayment schedule between the Ener- poses at the Ukrainian TPPs and THPPs power market horynok State Enterprise and Cherkasyo- during the 2018-2019 heating season The NCSREU, the Ukraine’s state reg- blenerho Joint Stock Company”, said Mr. should amount 2.6 mn ton. This was stated ulator for energy and housing tariffs, Volodymyr Derzhavin . on June 26, 2018 by Mr. Anatoliy Korzun, has approve only half of the legis- Further Mr. Volodymyr Derzhavin ex- Deputy Minister of the Ministry of Energy lation acts, needed for launching a plained, that Cherkasy Azot owes UAH and Coal of Ukraine(MECU). new model of the power market in 1.7 bn to the Cherkasyoblenerho, and the “We have elaborated a plan of measures Ukraine. Cherkasyoblenerho owes to the Ener- for sustaining the 2018-2019 heating sea- This was announced by Mr. Angton Gu- horynok State Enterprise UAH 0.7 bn. The son, as well as schedules on accumulating dachenko, Head of Department for Power later debt of Cherkasyoblenerho to the supplies of energy coal to reach 2.6 mn ton Regulation. Enerhorynok State Enterprise is restruc- inventory. The inventury will include 1 mn “Only 50 % out of needed new the legis- tured until July 1, 2019 (the date when ton of antracite coal, 1.6 mn ton of gas coal, lation acts for electricity market have been new electricity market terms come into 130 thd ton of fossil oils and 17 bln cm of reviewd and approved … The total number force). This arguments were ignored by natural gas in the nations underground gas of 120 different kinds of documents should the Cherkasy Azot, who at the trial court storage facilities”, said Mr. Anatoliy Korzun. be reviewed and enacted. As on today, 16 suggest a debt restructuring schedule documents have been approved and other spanning over to 2025. The SPFU was the The NCSREU sets power tariffs for 50 documents are being endorsed”, said third claimant at the trial court hearings the 3rdQ 2018 for electricity sold to Mr. Gudachenko. between the Cherkasyoblenerho and the industry The later added, that the NCSREU has Cherkasy Azot. The NCSREU, the state regulator of power alreade approve the licensing require- and housing tariffs, on June 25, 2018 ap- ments, codes for power networks, rules The CMU suggests to the proved new electricity tariffs for industrial for wholesale and retail of power. Short- Parliament to postpone the consumers for the 3rdQ of 2018. ly, the NCSREU will approve the meth- enactment of the State Inspection The majority of the industrial consumers odology for connection to power grids, for Energy Supervision (23 out of total 32 energy companies) will instructions for plan developments of The Cabinet of Ministers of Ukraine have 1 % increase as compared to 2ndQ of power grids, methodology for review (CMU) suggested to the Parliament to 2018 tariffs. and introduction of tariffs for electricity. postpone the enactment of the State In- The largest increase in tariffs was granted to By the end of the year, they will approve spection for Energy Supervision (SIES) Ternipiloblenerho (+2.3 % for the first class a rule for supply of electricity to state until March 31, 2019. The draft law power voltage and + 2.1 % for the second protected customers, rules for electron- №8527 on creation of the State Inspec- class power voltage), while consumers of ic auctions in electricity, and other reg- tion for Energy Supervision was submit- the Enerhia Noviy Rozdil Energy Company ulations. ted to the Parliament on June 25, 2018. will enjoy decrease in power tariffs ( - 1.9 % The CMU reasoned their position by for the first class power voltage, and – 1.6% The SPFU is against restructuring stating that there are delays in the se- for the second class power voltage). of Cherkasy Azot’s debts to lection process for appointing the head Cherkasyoblenerho until 2025 of the Inspection, and lack of finance to The NCSREU licensed the DTEK The State Property Fund of Ukraine (SPFU), ensure the operations of this newly cre- Kyiv Grids who is still the 46% shareholder of Cher- ated inspection agency. On June 26, 2018, the NCSREU (the state kasyoblenergo, considers the Cherkasy The SIES is planned as legal successor regulator of power and housing tariffs) Azot’s suggested debts restructuring of the two relating agencies- the State issued a license to the DTEK Kyiv Grids schedule span till 2025 as unjustified and Inspection on Power Stations and Trans- to distribute and retail of electricity by he abusive. The Uah 1.7 bln debt stems from mission Networks and the State Energy In- DTEK Kyiv Grids. Formerly the later com- nonpayments of power supplies from spection on Consumption of Electricity and pany was a part within the DTEK Power Cherkasyoblenerho to Cherkasy Azot. This Heat. The merge of the later two agencies Grids of the DTEK Energy Holding, and was was announced by Mr. Volodymyr Der- was formerly agreed to happen by July 11, in charge for power distribution and retail to zhavin, Deputy Head of SPFU. 2018. Kyiv City customers.

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At the same time the NCSREU canceled lage ( Yavoriv District of Lviv Rgeion), who The NCSREU agrees to UAH 1.6 bn the formerly issued to Kyivenergo OJSC, as plan to sell 6,569 kWh per year. in credit to Energorynok to pay in advance for heat from TPPs legal predecessor of the DTEK Kyiv Grids. The Pavlivka Solar Power Plant ( 5.912 MW capacity located inTysmenytsia District in On June 26, 2018, the NCSREU agrees The NCSREU issued licenses for Ivano-Frankivsk Region), as well as Solar to the June 21 decision from Council of solar power and small river hydro Chernobyl 0.997 MW solar station (Town of Wholesale Electricity Market to authorize generating companies Prypiat in Chernihiv Region) will also sell 1 the Enerhorynok State Enterprise for tak- The NCSREU (the state regulator of pow- kWh per 15.3 euro cents. The tariff of 16.37 ing an UAH 1.601 bn bank credit prepay er and housing tariffs) on June 26, 2018, euro cents per 1kWh is authorized for Solnt- electricity to be generated by the by the issued licenses for power generation to sedar Energy’s 0.523 MW solar station Ukrfainian TPPs in Sempember -Novem- the Alfa-Energia (operator of Chernelit- (Radkivtsi vilage, Novoselkivskiy District of ber of 2018. sa 5.566MW solar power station in Iva- Chernihiv Region). The Kyiv Bio Centr’s bio- According to this Council of Wholesale no-Frankivsk Region), to the Viden LL- gas power generation station received the Electricity Market’s decision , the Ener- C(operator of the 24.3 MW Dakhovska tariff rate of 12.39 euro cents per 1kWh. horynok State Enterprise will then prepay solar power station in Chernihiv Region), This bio gas generating facility( with annual to Tsentrenergo- UAH 46.8 mn; Donbasen- to the Zas Energoservis LLC( operator of output of 2.6mn kWh) was commissioned ergo- UAH 67.9 mn; DTEK Dniproenerho the 12.367 MW Vilshanka power station on April 17, 2018 in Bzivska village of Bary- - UAH 90 mn; DTEK Zakhidenerho - UAH in Kirovograd Region), to the Transen- shivskiy District in Kyiv Region. 435.7 mn; DTEK Skhidenerho - UAH 160 ergoresurs LLC ( operator of the 300.15 mn; Technova Firm LLC- UAH 137.5 mn; kW Dakhivska solar power station in The NCSREU approves investment Cherkassy Khimvolokno PrJSC- UAH 97.4 Kirovograd Region), to the Shevchuk & Co. programs for several oblenergos mn; Euro Reconstruktsia LLC- UAH 165.9 LLC( operator of 110 kW small river hydro- On june 26, 2018, the NCSREU endorsed mn Sumyteploenerho LLC- UAH 27.9 mn; power station in Lipovets town of Vinitsa the 2018 investment program of the Vy- Kramatorskteploenerho LLC - UAH 57.1 Region). nitsaoblenerho (UAH 225.9 mn ivestment), mn; Teploenergetik Comunal Enterprise- the DTEK Kyiv Grids (UAH 501.2 mn invest- UAH 1 mn; Kherson TPP - UAH 14.7 mn; The NCSREU issued licenses for ment), the Lvivoblenerho(UAH 205. 1 mn Kharkiv TPP-5 - UAH 300 mn. power sales investment), the Prykarpattiaoblenerho( On June 26, 2018, the NCSREU issued li- UAH 164.6 mn investment), Tenopiloblen- MPs tried in court the NCSREU’s censes for power sales to the following erho( UAH 65.2 mn investment), and Centr decision on - market wholesale companies: Anternativenergo (Berdiansk, Energy Company (UAH 22.9 mn invest- prices for 2018 Zaporizhia Region) Energyservis (City of ment). Several Ukrainian deputies to the Verkhov- Kyiv) , Interenergoinvest LLC (City of Iva- According to the application submitted to na Rada (Parliament) filed suit with the no-Frankivsk), Poltavaenergozbut (City of the NCSREU, the the NCSREU will spend Kyiv District Administrative Court against Poltava), Rise Invest (City of Kharkiv), Solar UAH 169.4 mn for modernization and re- the NCSREU and to claim cancellation of Green Light (Dnipropetrovsk Region). pair of their power networks, and UAH 33.9 the NCSREU’s decision of December 28, mn for prevention of non-technical losses 2017 “On Approval of Projected Wholesale The NCSREU set “green” tariffs for of power. Prices in 2018”, as reported by the court’s solar and wind power companies The DTEK Kyiv Grids plans UAH 282,7 mn press service. On June 26, 2018, the NCSREU set new for modernization of power distribution net- The plaintiff bench included MP Andriy “green tariff” at 15.3 euro cents per 1kWh works and installation of new equipment. Vadaturskiy, MP Victoria Voitsitska, MP for a number of Ukrainian renewable ener- The Lvivoblenerho will allocate for similar Vladislav Golub, MP Igor Gudz, MP Serhiy gy power generting companies. Thus, the installations of new equipment and main- Leschenko, MP Yaroslav Markevich, MP Myrotske Industrial Parkwill sell at this rate tenance of power grids their UAH 205.1 Oleksiy Mushak, MP Mustafa Naiem , MP the power being geterated at their 2,039 mn, the Prykarpattiaoblenerho - UAH Taras Pastukh, MP Egor Sobolev, MP Olena MW solar power station (located in Myrot- 100.4, the Tenopiloblenerho – 49.9 mn, and Sotnik, MP Viktor Chumak. ske village, Kyiv-Sviatoshyn District, Kyiv the Centr Energy Company- UAH 16.8 mn. Region). This facility plans to deliver 2.4 mn These power distribution companies will The MECU creates Directorate for kWh annually. also buy new IT devices, automated control Nuclear Power Energy The same 15.3 euro cents per 1kWh tariff systems for dispatchers, new communi- The Ministry of Energy and Coal of Ukraine is authorized to Lightful LLC and their 5.94 cation devices, and replenishment of their (MECU) will create within their organiza- MW solar station located in Tenovytsia vil- service vehicle fleets. tional structure a Directorate for Nuclear

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Power Energy. The Directorate will be re- “The Ministry decided to add a new unit to Directorate will be responsible for draft of sponsible for draft of the national policy for its organizational structure- the Directorate the national policy for development nucle- development nuclear power industry and of Nuclear Power Energy”, said Maksym ar power industry, while the policy imple- NPPs of Ukraine, as reported by the MECU Nemchynov. He also noted , that the MECU mentation will be vested on the MECU’s State Secretary Mr. Maksym Nemchynov, wil shortly announce a selection contest Department for Nuclear Power Energy and on June 28, 2018. for 10 positions within the Directorate. The Nuclear Industrial Complex.

COURT DECISIONS

Myrnohradvuhillia will pay back terprise, they took a credit to prepay the Holding as a Ukrainian daughter-company UAH 80 mn due to short supply of power supply to be done by LLC”Energia I affiliation of MANEKO, the Russian IT con- coal Gaz Ukraina”. The prepayment should have sulting company) in order to terminate the On June 14, 2018, the Commercial Court been used for purchase of coal for gener- contract and to return the contract’s pre- of Donetsk Region examined a UAH 80,3 ation of the contracted volumes of power, payment. mn claim of the Derzhvuhlepostach State however, the LLC”Energia I Gaz Ukraina”, End January 2012 ,the plantiff (as the cus- Enterprise to Myrnohradvuhillia State En- as defendant, did not generate any pow- tomer) and the defendant (as the supplier) terprise. er from November 2016 till October 2017. concluded a contract for technical services At the beginning of February 2017 the The Energorynok State Enterprise claimed for business operation information man- plaintiff (as a buyer) and the deffendant (as back its prepayment in court. agement and training of Ukrhydroenerho’s a supplier) signed a contract for supply of The representatives of the plaintiff stat- managers in charge. The total cost of the coal. According to the contract, the buyer ed, that LLC”Energia I Gaz Ukraina” was contract was US$ 3.6 mn. According to should make the 90 % prepayment once not able to generate any power due to the plaintiff, the NVISION — UKRAINE Pr- the coal batch was delivered to the dis- the unfavorable decision of the Prymor- JSC failed to meet in full their contractual patch railways station. On May 31, 2018 the skiy District Court stripping the plaintiff obligations, and must to return $129.2 thd Derzhvuhlepostach State Enterprise wired of several generating facilities, namely because of short supply of the contracted UAH 80.3 mnas agreed, however the the heat and power cogenerators using services. Myrnohradvuhillia State Enterprise failed to visbreaking from Odesa Oil Refinery. The Additionally, Ukrhydroenerho claimed to deliver the bespoke batch of coal. This short LLC”Energia I Gaz Ukraina” stated in their terminate the contract due to the April 28, supply became a case at law. cross-claim that the Energorynok State 2018 Edict of the National Council for Secu- The Commercial Court of Donetsk Region Enterprise owed UAH 18.7 mn for power rity and Defense of Ukraine, that imposed satisfied the plaintiff“s claims, and ordered having been supplied in January-Febru- sanctions against all Russian companies Derzhvuhlepostach State Enterprise to ary of 2014. and their daughter affiliations. According payback the prepayment of UAH 80.3 m to On June 22, 2018, the Commecial Court of Annex to the Edict, all assets of NVISION — the plaintiff, as well the UAH 616.7 thd in Odesa Region satisfied the claim of the En- UKRAINE PrJSC were subject to freeze, court fees. ergorynok State Enterprise and adjudicated and all trade operations to be stopped, LLC”Energia I Gaz Ukraina” to payback the including repatriation of earning, to com- The Energorynok State Enterprise UAH 6.1 mn that were prepaid by the Ener- plement other restrictive measures to be abjudged UAH 6.1 mn of its gorynok State Enterprise, and the UAH 92 imposed. prepayment to LLC”Energia i Gaz thd as court fees. The court rejected in full On June 25, 2018, the Commercial Court Ukraina” the cross-claim of the LLC”Energia I Gaz of Kiev Region satisfied in full all claims by On June 14, 2018 the Commercial Court of Ukraina”. Ukrhydroenerho, including the demand to Odessa Region tried the claim of the Ener- terminate the contract with the NVISION — gorynok State Enterprise to LLC”Energia I Ukrhydroenerho terminated its UKRAINE PrJSC , and adjudicated the later Gaz Ukraina” for the UAH 6.1 mn prepay- contract with a sanated company to return $129,2 thd to the defendant, and ment and the the UAH 18.7 mn cross- On June 19, 2018, the Commecial Court to pay UAH 52,7 in court fees. claim by LLC”Energia I Gaz Ukraina” for of Kiev Region reviewed the case filled by power supply to the Energorynok State Ukrhydroenerho PrJSC against NVISION Energoatom fails to abjudge UAH Enterprise. — UKRAINE PrJSC (the later is headed 6.1 mn as penalty for delays in According to the Energorynok State En- by Inna Ziuban and founded by NVISION supply of uranium concentrate

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On June 20, 2018, the Ukrainian Supreme Appeal back in March 2018 rejected the of State Ecological Inspection of the Dni- Court ‘s panel of judges of Commercial Energoatom’s appeal, and left in force its propetrovsk Region filed a case with the Cassation&Appelate Court heared the cas- former decision. trial court of original jurisdiction to sue the sation appeal of the State Enterprise “Na- The Energoatom’s representatives filed DTEK Dniproenerho JSC to redress the tional Nuclear Energy Generating Company a cassation, stating that the court did not UAH 433,9 thd as remedies for emissions “Energoatom” against the judgment issued reviewed all particulars of the case. The of pollutants from the Pridneprovska TPP. on March 26, 2018 by the Dnipropetrovsk claimant demanded UAH 6.1 mn as penal- The trial court refused to satisfy claims of Commercial Court of Appeals. ties to the VostGOK. However, the Ukrainian the Dnipropetrovsk Prosecutor Office, and In 2017 Energoatom filed a case at the Supreme Court did not satisfied the Ener- the case was repeatedly reviewed by oth- Commercial Court of Dnipropetrovsk Re- goatom’s appeal, thus leaving the awards er courts. The latest decision was passed gion claiming UAH 13.5 mn ( UAH 6.1 from the original jurisdiction trial courts in in February 2018 ordering the company pennalty , UAH 6.0 mn losses caused by force. to redress to the state budget the environ- inflation, plus UAH 1.3 mn should have mental damage caused by emissions of been accrued at 3% of annual interest, DTEK successfully adjudged pollutants. and court fees). The plaintiff reasoned its UAH 434 thd imposed as redress The representatives of DTEK appealed claims as stating that Skhidniy Uranium of emissions by the Pridneprovska this decision, stating that ecology inspec- Dressing Plant (VostGOK) breached their TPP tors took air samples at the Pridneprovs- contract’s obligations for timely supply of On June 18, 2018, the Commercial Court ka TPP and nearby vicinity inaccurately, uranium oxide concentrate in December of Donetsk Region considered the appeal and did not strictly follow the enacted ver- 2016. The trial court of original jurisdiction from the DTEK Dniproenerho JSC against ification methodology. On June 23, 2018, partially satisfied the Energoatom’s claim, the judgement passed on February 21, the Commercial Court of Appeal satisfied and ordered VostGOK to pay back the UAH 2018 by the Commercial Cour of Zaporizhia the appeal of the DTEK Dniproenerho 7.5 million. The Energoatom appealed this Region. Starting July 2015, the Prosecutor JSC , and freed the later from the redress decision, but the Dnipropetrovsk Court of Office of Dnipropetrovsk Region on behalf payments.

INTERNATIONAL NEWS AND NEW TECHNOLOGIES

DTEK plans to set-up a “Strum“ The state-controlled Romanian ther- several power plants and the National network of EV fast charging mal power producer Complexul En- Coal Company. stations at highways connecting ergetic Hunedoara expects to get €62 Kyiv with Odesa, Kharkiv and Lviv million losses this year. The expected The EU plans to increase the share Starting this year, the DTEK Energy loss is 62% lower compared to last of renewables to 32% by 2030 Holding has been developing its own year. The company projects €96 mil- The European Union finalized the new cli- “Strum“network of EV fast charging lion revenues and €158 million ex- mate rules, according to them the share of stations on highways connecting Kyiv penses. It is reported by website Ener- renewable energy is to reach 32% by 2030. with Odesa, Kharkiv, and Lviv as told gy World Magazine. According to website World Energy News, by the Head of “Strum“ network of EV According to the company, the nega- the decision was made on July 27. It is re- fast charging stations Mr. Igor Koval- tive result is mainly grounded on the ported by Worldenergynews. ov. unfavorable economic conditions, af- National governments must now draft “We plan our EV fast charging stations ter the government deregulated the their own plans for implementing the over- on Kyiv-Odesa, Kyiv-Lviv, and Ky- local energy market. CE Hunedoara all climate goal of lowering greenhouse iv-Kharkiv highways. We plan to start uses the most expensive fuel to gen- gas emissions by at least 40% below our work this year, and by the end of erate electricity but the company un- 1990 levels by 2030 in line with the Paris the next year to fully cover at least one dergoes reorganization, which should Agreement. The talks have dragged on for of the highways”, said Mr. Igor Kov- have some visible effects in the fol- months to reach a compromise between alov. lowing years. The company occupies the European Parliament and EU member about 5% market share in Romanian states on the new targets. Romanian TPP operator CE electricity market and employs about “Deal! New 32% renewables target for Hunedoara expect to get €62 4400 people. It was set up in 2012, is 2030. Renewables are good for Europe, million losses controlled by the state and operates and today, Europe is good at renewables.

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This deal is a hard-won victory in our efforts mission Jean-Claude Juncker on July 28 nia), Maris Kucinskis (Latvia) and Mateusz to unlock the true potential of Europe's signed a political agreement (a roadmap) Morawiecki (Poland). Latvian Prime Minis- clean energy transition”, - said the EU cli- for deliberating the synchronization of the ter Kucinskis believes that it is essential to mate action and energy commissioner Baltic power grid with the continental Eu- find a model for the Baltic power grids’ syn- Miguel Arias Canete. ropean network. According to website The chronization that would promote the Latvi- Baltic Course, the Baltic system will be an and Baltic energy sector’s independence Baltic countries are on the road to connected with Europe through an under- and would not be too costly for the con- synchronization with the EU sea cable and power transmission lines on sumers. The deadline set for concluding Government leaders of Estonia, Latvia Poland territory. the synchronization is 2025. The partners and Poland and the Lithuanian president The agreement was signed by Dalia Gry- agreed to synchronize both systems trough along with President of the European Com- bauskaite (Lithuania), Juri Ratas (Esto- Second Lithuanian-Polish Link.

STATISTICS

General consumption of electricity in Ukrainian energysystem, mln kWh

Power consumption, January-May 2018, million kWh January-May 2018 January-May 2017 % Whole consumption with losses in networks 65563.1 63789.4 102.8 Whole consumption without losses in networks 52487.8 50728.2 103.5 Industry 21878.4 22936.8 95.4 Fuel production 1521.4 1563.5 97.3 Metallurgy 12416.1 11875.7 104.6 Chemical industry 1369 1024.9 133.6 Engeneering 1843.3 1741.2 105.9 Production of building matireals 838.2 870 96.3 Food industry 1798.5 1761.8 102.1 Others 2091.9 1982.9 105.5 Agriculture 1407.8 1371.9 102.6 Transport 3051.9 3042.4 100.3 Building sector 468 409.3 114.3 Municipal consumers 6791.3 6530 104.0 Other nonindustrail consumers 3094.8 2787.4 111.0 People 15795.6 15767.1 100.2

Power generation form renewable sources, MW

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Power consumption by sectors, Increase/decrease of power consumption by sectors, January-May 2018, % January-May 2018, %

Stocks of coal in thermal power plants and combined power and heat plants during 1-27 June 2018, thousand tons Required stocks of coal Coal according to the schedule Expected term Name of station Grade* Suply Consumption of Ministry of Energy and Stocks of coal till empty ware- Coal Industry house from beginning of per day from begin- per day 27 June 27 June days month ning of month Thermal power plant Anthracite Prudniprovska TPP А 0.0 0.0 0.0 0.0 12.8 12.8 5.1 Starobeshivska TPP А Slovyanska TPP А 45.5 1.6 83.4 3.6 215.5 160.7 50.1 Trupilska TPP А 52.5 6.3 24.0 0.8 110.1 101.2 109.6 Zmiivska TPP А 0.0 0.0 0.0 0.0 19.0 10.3 4.9 Luganska TPP А 89.7 0.0 73.3 3.1 80.6 85.0 30.1 Kruvorizska TPP L 50.4 3.5 15.9 0.0 40.4 41.3 16.5 Total А+L 238.1 11.3 196.6 7.6 478.4 411.2 Gas coal Zaporizhska TPP G 169.2 6.8 201.6 8.8 191.6 138.5 17.9 Burshtynska TPP G 309.9 9.9 337.9 11.3 147.8 121.3 9.3 Dobrotvirska TPP G 69.0 3.5 72.5 3.5 56.9 48.5 17.4 Ladyzhynska TPP G 129.2 3.6 129.6 3.6 163.1 161.3 32.4 Vuglegirska TPP G 107.1 2.2 148.9 3.8 122.9 118.0 20.6 Prudniprovska TPP G 53.7 0.0 48.1 1.8 86.2 98.5 53.3 Trupilska TPP G 46.6 0.0 66.0 2.7 36.0 12.0 4.7 Zmiivska TPP G 82.3 6.8 71.9 1.6 62.6 57.5 20.8 Kruvorizska TPP G 19.1 2.1 6.7 0.0 0.0 13.7 5.5 Kurahivska TPP G 243.0 8.4 238.4 10.6 338.9 313.6 34.2 Total G 1,229.2 43.4 1,321.5 47.6 1,206.0 1,082.9 Total all marks А+L+G 1,467.2 54.7 1,518.1 55.2 1,684.4 1,494.1 Combined heat and power plant Anthracite Chernigivska CHP А 56.9 1.0 22.9 0.2 125.1 147.4 167.6 Darnutska CHP А 34.6 0.1 3.6 0.0 114.2 136.1 90.8 Sumska CHP А 0.0 0.0 4.1 0.2 14.9 13.7 87.3 Muronivska CHP А 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Kramatorska CHP А 0.0 0.0 0.0 0.0 2.7 2.7 2.3 CHP-2 (Kharkivska region) А 11.3 0.0 13.3 0.6 30.4 30.5 59.5 Total А 102.7 1.1 43.9 1.0 287.3 330.5 Разом Cherkaska CHP G 30.9 3.2 28.2 0.4 78.7 71.5 65.8 Muronivska CHP G 0.0 0.0 0.0 0.0 11.8 11.8 9.8 Kalushska CHP G 25.4 1.2 23.9 1.3 10.7 15.2 16.6 Total G 56.2 4.4 52.1 1.7 101.2 98.5 Total all marks А+G 159.0 5.5 96.0 2.7 388.5 429.0 * Coal Grade: A (Anthracite), G (Gas coal), L (lean coal)

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Futures prices for base electricity on exchanges of Futures prices for peak electricity on exchanges Central Europe, €/МWh of Central Europe, €/МWh

Tariffs for industrial consumers, kopecks per kWh (without VAT) The third quarter 2018 The second quarter 2018 % The first The second The first class The second The first The second class of class of of voltage class of class of class of voltage voltage voltage voltage voltage JSC Vinnytsyaoblenergo 183.424 236.634 182.861 235.995 100.3 100.3 PJSC Volynoblenergo 179.862 226.232 179.796 226.159 100.0 100.0 JSC DTEK Dnipro Grids 163.067 190.66 162.912 190.494 100.1 100.1 JSC DTEK Donetsk Grids 181.941 234.598 180.981 233.501 100.5 100.5 JSC Zhytomyroblenergo 182.143 240.393 181.527 239.696 100.3 100.3 PJSC Zakarpattyaoblenergo 184.855 239.386 184.56 239.047 100.2 100.1 JSC Zaporizhzhyaoblenergo 170.489 211.055 167.184 207.368 102.0 101.8 JSC DTEK Kyiv Grids 172.371 190.628 172.545 190.812 99.9 99.9 PJSC Kyivoblenergo 177.878 213.113 177.83 213.059 100.0 100.0 PJSC Kirovogradoblenergo 184.555 237.585 183.3 236.209 100.7 100.6 LLC Lugansk Energy Association 198.401 251.567 198.793 252.006 99.8 99.8 PJSC Lvivoblenergo 181.716 223.465 181.724 223.473 100.0 100.0 PJSC Mykolaivoblenergo 177.147 216.136 177.38 216.396 99.9 99.9 JSC Odesaoblenergo 179.422 220.214 179.157 219.918 100.1 100.1 JSC Poltavaoblenergo 178.742 221.097 178.117 220.398 100.4 100.3 JSC Prykarpattyaoblenergo 179.753 240.647 178.299 238.988 100.8 100.7 PJSC Rivneoblenergo 181.389 232.551 180.736 231.796 100.4 100.3 JSC Sumyoblenergo 181.573 238.433 180.295 236.984 100.7 100.6 Ternopiloblenergo 189.751 243.023 185.458 238.124 102.3 102.1 JSC Harkivoblenergo 180.065 213.605 180.21 213.763 99.9 99.9 PJSC EC Hersonoblenergo 181.292 223.065 182.281 224.16 99.5 99.5 JSC Hmelnutskoblenergo 186.446 236.65 185.726 235.827 100.4 100.3 JSC Cherkasyoblenergo 178.027 215.159 177.542 214.611 100.3 100.3 PJSC EC Chernivtsioblenergo 182.214 232.57 179.316 229.205 101.6 101.5 PJSC Chernigivoblenergo 186.67 238.64 186.988 238.99 99.8 99.9 PJSC Atomservise 166.291 198.13 165.961 197.783 100.2 100.2 SC Regional Energy Grids 159.334 176.197 159.102 175.959 100.1 100.1 PJSC DTEK PEM Energovuhillya 157.011 191.575 159.421 194.022 98.5 98.7 LLC Energy-Novoyavorivsk 172.073 210.937 171.897 210.741 100.1 100.1 LLC Energy-Novy Rozdil 167.594 213.799 170.825 217.336 98.1 98.4 LLC DTEK High-Voltage Networks 156.774 165.882 156.334 165.431 100.3 100.3 LSC Ukrzaliznytsya 167.21 199.5 167.417 199.724 99.9 99.9

JUNE 25 - JULY 01.2018

Anthracite stocks in warehouses Gas coal stocks in warehouses of TPP and CHPP, thd tons of TPP, thd tons

Overal stocks of coal in warehouses Gas coal stocks in warehouses of TPP and CHPP, thd tons of CHPP, thd tons

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