Ukraine plans to launch a competitive thermal energy market
Konstiantyn Gura and Georgii Geletukha told more about this on the air of the First Business TV channel. The purpose of the changes is to provide equal opportunities for access to district heating networks for all energy producers, in particular from RES, to introduce a transparent mechanism for connecting independent producers to heat networks without discrimination.
What is important?
The DH sector is the least reformed of all energy systems. Lack of competition and outdated approaches are key problems. Energy efficiency and the transition to RES, in particular biomass, can solve them. The renewable energy sector has attracted more than € 8 billion in private investment in recent years. It is funds that have entered our economy and contribute to its development.
What do we have today?
There are 2400 MW of heat producers from alternative sources. They work in industry, the budget sphere, and the district heating system. Approximately 25% are boiler houses in the Central District. That is, about 600 MW of capacities at alternative sources operates in the DH system.
What changes will happen?
The draft law has already been worked out by the joint efforts of the State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE), UABIO, and international partners. It provides a non-discriminatory connection to networks. That is, all those who are ready to work, to fulfill the technical conditions on the coolant (temperature, pressure) must be connected. If there are several connected heat producers, the DH system will be obliged to launch an auction and buy energy from a company that offers it cheaper.
The main question is when?
The draft law has been developed, it is now necessary to obtain comments from the stakeholders and consolidate proposals. It takes 1-2 months. Then the document will be sent for consideration to the Government and the Verkhovna Rada.
What will it give?
If the market is launched, there will be private investors in this sector. Biomass heat producers are ready to enter this market, build biomass boilers and sell heat 10-20% cheaper than available in the system. In addition, international players may appear.
Players will come to the market where there are transparent and clear rules of the game. And bioenergy is exactly the sector where both big and small players, both Ukrainian and international, will come.
