Ukraine

Since the beginning of the COVID19 pandemic in early 2020, Ukraine has committed at least USD -2.07 billion to supporting different energy types through new or amended policies, according to official government sources and other publicly available information. These public money commitments include:

At least USD 117.22 million for unconditional fossil fuels through 10 policies (7 quantified and 3 unquantified)
No public money commitments identified for conditional fossil fuels
At least USD -2.18 billion for unconditional clean energy through 4 policies (2 quantified and 2 unquantified)
No public money commitments identified for conditional clean energy
At least USD -5.39 million for other energy through 6 policies (1 quantified and 5 unquantified)

Updated: 25 November 2020

At least

$117.22 million

Supporting fossil fuel energy

$2.64

Per capita

At least

$-2.18 billion

Supporting clean energy

$-49.18

Per capita

By energy type, some public money committed for oil and gas (1 policy with the value of public money unquantified).

In addition, Ukraine committed at least USD 117.22 million to coal (at least USD 117.22 million to unconditional coal).

Further, no public money commitments identified for hydrogen based on fossil fuels.

Finally, no public money commitments identified for multiple fossil fuels.

A considerably larger amount of public money committed to supporting the economy and people of Ukraine through monetary and fiscal policies in response to the crisis may also benefit different elements of the energy sector. However, these values are not available from official legislation and statements and therefore are not included in the database. Meanwhile, in addition to monetary and fiscal measures, the database lists other policies and regulations that can also provide benefits to producers and consumers of different energy types.

These public money commitments are additional to many other government policies that had existed to support different energy types before the COVID19 pandemic.

Public money commitments to fossil fuels, clean and other energy in recovery packages, USD billion, as of 25 November 2020

Policies

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Country	Jurisdiction	Category	Policy name	Sector	Energy Type	Mechanism	Value committed, USD	Date of announcement	Policy type	Stage	Legislation and Endorsing Agency	Arm of Government	Primary and secondary stated objective of the policy	Date of entry into force	Implemented repeal date, if any	Value as stated (specify currency)	Value committed, national currency	Value disbursed, national currency	Value disbursed, USD:	Policy background	Links to official sources	Links to additional sources
Ukraine	National	Clean unconditional	Regulator approved methodology on payments for unused but produced electricity from RES	Resources	Multiple renewable	New or extended regulation (IT...		2020111111/11/2020	Other	Electricity generation	Order of the National Commission for State Regulation of Energy and Public Utilities	Government	To fairly compensate producers for electricity from RES	11/11/2020						Tariff under which producers of electricity from RES will be compensated if their electricity is not used (does not go to grid) is set at the level of feed-in-tariff or auction price that they got.	http://www.nerc.gov.ua/?news=10762
Ukraine	National	Fossil unconditional	Changes to the 2020 state budget that increase support for restructuring of coal sector	Resources	Coal	Budget or off-budget transfer ...	53887605.850654	2020091818/09/2020	Fiscal	Exploration or production or processing or storage or transportation	Bill 4119 (was adopted in the first reading)	Government	To ensure the payment of salaries to miners	17/11/2020			1400000000			Additional funds will cover the debt to miners over the past periods as well as their salaries until the end of 2020. This will be financed from payments by Naftogaz and Ukrnafta.	http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245490210&cat_id=35109 p://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=70002
Ukraine	National	Clean unconditional	Support for renewable energy sector	Power generation	Multiple renewable	New or extended regulation (IT...		2020092828/09/2020	Other	Other energy stage	Order of the Cabinet of Ministers № 887	Government	To improve financial situation of Guaranteed Buyer	28/09/2020						The order allows the Guaranteed buyer to sell renewable energy at auctions through bilateral contracts, which should stabilize pricing at the market, reduce amount of electricity from RES that goes to balancing market, create an opportunity for responsible consumers to switch to green energy, and improve the situation with payments to RES producers.	http://mpe.kmu.gov.ua/minugol/control/publish/article?art_id=245475066 https://www.kmu.gov.ua/npas/pro-vnesennya-zmin-do-poryadku-p-a887?fbclid=IwAR2mXJ2MiEbX3RiwvP8LchLNjGTerU6w8BZH9d5uRGyrJ_gC7vv6GXWR6YY
Ukraine	National	Fossil unconditional	Support for coal miners from the 2020 state budget (amendments)	Resources	Coal	Budget or off-budget transfer ...	1809083.9107005	2020091717/09/2020	Fiscal	Exploration or production or processing or storage or transportation	Law on amendments to 2020 state budget	Government	To support miners	17/09/2020			47000000			The new law amends state budget for 2020, allocating additional funds to pay salary to miners of a coal mine Nadiya. This debt was not accrued by state, but because of some violations of the pervious management.	https://www.kmu.gov.ua/news/shahtaryam-nadiyi-viplatyat-borgi-iz-zarplati http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245472509&cat_id=35109
Ukraine	National	Fossil unconditional	The Cabinet of Ministers’ approval to create a vertically integrated company of a state power ...	Multiple sectors	Coal	Other hybrid support measures		2020100505/10/2020	Other	Several energy stages	The order № 1215-р of the Cabinet of Ministers	Government	To support Ukrainian coal mines	05/10/2020						Integration of Centrenergo (electric and thermal energy producing company) with coal mines will ensure they have a stable buyer of their production. It will help solve some of the financial problems of the Ukrainian coal sector.	https://www.kmu.gov.ua/npas/deyaki-pitannya-utvorennya-akcione-a1215r
Ukraine	National	Other energy	Prohibition of electricity import from countries that are not members of Energy Community	Power generation	Multiple energy types	New or extended regulation (IT...		2020040808/04/2020	Other	Electricity storage or transmission or distribution	The order #766 of National Energy and Utilities Regulatory Commission	Government	To solve the balancing problems; to address the restrictions of national generation							The order prohibits the use of interstate crossing capacities where countries that are not part of Energy Community are involved (Belarus and Russia). This was done to solve some problems of the energy system, such as lower demand for electricity due to warmer weather, insufficient supply of balancing services, not strong stimuli to decrease the imbalances, and the absence of the efficient balancing market.	http://www.nerc.gov.ua/?id=50747	Letter of the Ministry of Energy to Regulator: https://www.facebook.com/permalink.php?story_fbid=1798570000278560&id=100003767320921
Ukraine	National	Other energy	Weakening of PSO (public service obligation) for state enterprises Energoatom (nuclear energy) and U...	Power generation	Multiple energy types	New or extended regulation (IT...		2020080505/08/2020	Other	Electricity generation	The order of the Cabinet of Ministers № 694	Government	To improve PSO mechanisms	05/08/2020						The required part of energy produced by Energoatom (nuclear power) to the Guaranteed buyer was reduced from 80% to 50-55$, for Ukrhydroenergo (hydropower) - from 35 to 30% (as their public service obligation). They can sell the rest of their energy on other market segments at the competetive prices, which should improve their cash flow. Both companies should sell energy under the PSO mechanism to the GB at a price UAH 10/MW (around $0.33/MW).	https://www.kmu.gov.ua/news/uryad-udoskonaliv-mehanizm-pso-energoatom-ta-ukrgidroenergo-otrimali-zmogu-prodavati-bilshe-elektroenergiyi-za-vigidnimi-umovami https://www.kmu.gov.ua/npas/pro-vnesennya-zmin-do-polozhennya-694
Ukraine	National	Clean unconditional	Contribution Agreement for Eastern Europe Energy Efficiency and Environment Partnership	Buildings	Energy efficiency	Budget or off-budget transfer ...	11013215.859031	2020072323/07/2020	Fiscal	Energy efficiency	Contribution Agreement	Government	To attract more financing for energy efficiency projects and other measures aimed at improving environmental conditions	23/07/2020		EUR 10 mln	10000000			Ukraine joined the fund in 2011 and made a one-time contribution in the amount of EUR 10 million. This allowed to attract funding for the implementation of 22 projects with a total value of over EUR 516 million. The Ministry of Energy has a goal of attracting more financial support.	http://mpe.kmu.gov.ua/minugol/control/uk/publish/article;jsessionid=96D7ED6EF90B00DBAA4B37B284C0C178.app1?art_id=245459370&cat_id=35109 https://zakon.rada.gov.ua/laws/show/985_022#Text
Ukraine	National	Fossil unconditional	Liberalization of gas market	Power generation	Gas and gas products	New or extended regulation (IT...		2020070101/07/2020	Other	Other energy stage	Order of the Cabinet of Ministers № 702-р	Government	To increase competition among gas suppliers; improve pricing efficiency; meet country's obligations arising from membership in Energy Community	01/07/2020						There were public service obligations on the gas market, which included the obligation of a state-owned company Naftogaz to sell gas to companies that supplied it to population. This obligation was prolonged until July 1, 2020, but not later. A result is also a possibility for consumers to freely choose gas suppliers.	https://zakon.rada.gov.ua/laws/show/867-2018-%D0%BF#Text
Ukraine	National	Fossil unconditional	Cabinet of Ministers’ order for NEC Ukrenergo (TSO) to prioritize dispatching for thermal powe...	Power generation	Coal	New or extended regulation (IT...		2020061717/06/2020	Other	Electricity generation	Order of the Cabinet of Ministers № 702-р	Government	To prioritize dispatching of energy produced by thermal power plants and ensure stable work of coal sector; to recommend priority dispatching for those TPSs that do not use natural gas							This measure supports domestic coal mines through the priority dispatching of electricity produced from it.	https://www.kmu.gov.ua/npas/pro-zabezpechennya-palivnoyi-zbalansovanosti-elektroenergetichnoyi-galuzi-ukrayini-ta-bezpeki-postachannya-elektrichnoyi-energiyi-702-220620
Ukraine	National	Other energy	Increase of the dispatch tariff	Power generation	Multiple energy types	New or extended regulation (IT...		2020071111/07/2020	Other	Electricity storage or transmission or distribution	The decision of National Energy and Utilities Regulatory Commission, endorsing agency - NEC Ukrenergo (TSO operator).	Government	To cover the spendings of NEC Ukrenergo, incl. those on ancillary services	01/08/2020		Tariff increase: from 10.23 to 24.75 UAH/MWh				The lack of funds of NEC Ukrenergo to deliver its obligations, such as public service obligation (PSO) and purchasing ancillary services to ensure reliability of the energy system, made it necessary to raise the tariff.	http://www.nerc.gov.ua/?news=10330
Ukraine	National	Other energy	Increase of the transmission system operator tariff (TSO)	Power generation	Multiple energy types	New or extended regulation (IT...		2020071111/07/2020	Other	Electricity storage or transmission or distribution	The decision of National Energy and Utilities Regulatory Commission, endorsing agency - NEC Ukrenergo (TSO operator).	Government	To provide funds for the delivery of public service obligation (PSO), includiing the payments to RES generation	01/08/2020		Tariff increase: from 155.4 to 240.23 UAH/MWh				The tariff was increased due to the necessity to ensure full and timely payments to RES producers, as part of the tariff is spent on these payments. Ukrenergo communicated to Regulator (NEURC) the need to increase the tariff in order to cover the current deficit.	http://www.nerc.gov.ua/?news=10330
Ukraine	National	Fossil unconditional	Changes to the 2020 state budget that decrease support for unprofitable mines closure	Resources	Coal	Budget or off-budget transfer ...	-23876058.506543	2020033030/03/2020	Fiscal	Exploration or production or processing or storage or transportation	Law on changes to 2020 state budget (553-IX)	Government	Cancellation of planned state support for the closure of unprofitable coal mines	13/04/2020		UAH -620 mln	-620300000			Funds were aimed at closing unprofitable coal mines	https://zakon.rada.gov.ua/laws/show/553-20	https://ua-energy.org/uk/posts/na-restrukturyzatsiiu-vuhilnoi-haluzi-dodaly-shche-16-mlrd-hrn
Ukraine	National	Other energy	Changes to the 2020 state budget that decrease support for a state uranium mine	Resources	Nuclear	Budget or off-budget transfer ...	-5388760.5850654	2020033030/03/2020	Fiscal	Exploration or production or processing or storage or transportation	Law on changes to 2020 state budget (553-IX)	Government	Cancellation of planned state support for development of Novokostyantynivska mine capacities	13/08/2020		UAH -140 mln	-140000000			Funds were to be spent on mine development, the planned allocation was cancelled due to the establishment of COVID-19 fund. The Ministry of Energy asked to return funds back from the COVID-19 fund.	https://zakon.rada.gov.ua/laws/show/553-20	https://statewatch.org.ua/publications/minenerho-prosyt-povernuty-z-covid-fondu-140-mil-yoniv-na-rozvytok-uranovoi-shakhty/
Ukraine	National	Fossil unconditional	Changes to the 2020 state budget that increase support for restructuring of coal sector	Resources	Coal	Budget or off-budget transfer ...	61585835.257891	2020033030/03/2020	Fiscal	Exploration or production or processing or storage or transportation	Law on changes to 2020 state budget (553-IX)	Government	To ensure the payment of salaries to miners	13/04/2020		UAH 1,6 billion/year till 2029	1600000000			Additional funds will cover the debt to miners over the past periods.	https://zakon.rada.gov.ua/laws/show/553-20 https://www.kmu.gov.ua/news/uryad-shvaliv-zmini-do-derzhavnogo-byudzhetu-na-2020-rik http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=68570
Ukraine	National	Other energy	Law 810-IX: Differentiation of the transmission system operator (TSO) tariff for different types of ...	Other sector	Multiple energy types	New or extended regulation (IT...		2020072121/07/2020	Other	Energy use (all energy types, consumption in transport, household use, buildings etc)	Law 810-IX	Government	To support "green" metallurgy	01/08/2020	01/01/2030					Metallurgical plants that use arc furnace as opposed to blast furnace (that uses coal) are more environment-friendly. Hence, the TSO tariff for them will be lower.	https://zakon.rada.gov.ua/laws/show/810-IX#Text
Ukraine	National	Clean unconditional	Law 810-IX: Cut in the feed-in-tariff for renewable energy producers	Power generation	Multiple renewable	New or extended regulation (IT...	-2193995381.0624	2020072121/07/2020	Other	Electricity generation	Law 810-IX	Government	To improve the situation with the RES payments by the government	01/08/2020	01/01/2020	EUR 2000000000	-57000000000			Since 2019, the debt of a responsible state enterprise in the energy sector (Guaranteed buyer) to the RES producers has been growing and, in mid-2020 rached around UAH22,4 bln (USD850 mln). In June 2020, the government negotiated the reduction of tariffs with investors, and signed the Memorandum with them, without the prolongation of their FIT agreements. The law was approved based on the Memorandum, although it did not fully correspond to it.	" http://mpe.kmu.gov.ua/minugol/control/publish/article?art_id=245458585 https://zakon.rada.gov.ua/laws/show/810-IX#Text"	https://www.bbc.com/ukrainian/features-53487624
Ukraine	National	Fossil unconditional	The Ministry of Energy proposed to Kaluska CHP-Nova to make a payment in advance to the mine Nadiya	Resources	Coal	Government procurement (DT)	142417.24403387	2020083131/08/2020	Fiscal	Exploration or production or processing or storage or transportation	Ministry of Energy proposal, endorsing enterprise - Kaluska CHP-Nova	SOE	To save mines from idling and financial crisis	31/08/2020			3700000	370000	14241.724403387	Ukrainian coal mines had been idle since 2019 due to lack of the domestic power sector demand as electricity imports renewed from the Russian Federation. In an attempt to improve the situation for mines, the Cabinet of the Ministers has declared the priority of using domestic coal for thermal generation. The Ministry of Energy asked state-owned CHP Kaluska-Nova to transfer funds to the mine Nadiya, despite the fact that the government itself doesn't owe money to the mine.	http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245468950&cat_id=245070675
Ukraine	National	Fossil unconditional	The Ministry of Energy proposed to Centrenergo to make a payment in advance to the mine Nadiya	Resources	Coal	Government procurement (DT)	192455.73518091	2020090303/09/2020	Fiscal	Exploration or production or processing or storage or transportation	Ministry of Energy proposal, endorsing agency - Centrenergo	SOE	To save mines from idling and financial crisis	03/09/2020			5000000	5000000	192455.73518091	Ukrainian coal mines had been idle since 2019 due to lack of the domestic power sector demand as electricity imports renewed from the Russian Federation. In an attempt to improve the situation for mines, the Cabinet of the Ministers has declared the priority of using domestic coal for thermal generation. The Ministry of Energy was a mediator between the representatives of miners and Centrenergo, a state-owned company (CHP). The negotiations resulted in a contract resuming the supplies of Ukrainian coal to Centrenergo thermal power stations, although there is cheaper product of higher quality in the market.	http://mpe.kmu.gov.ua/minugol/control/uk/publish/article?art_id=245468950&cat_id=245070675 http://www.centrenergo.com/post/tsentrenergo-dopomozhe-shakhti-nadiya-viyti-iz-krizi/
Ukraine	National	Fossil unconditional	The President’s order to the Ministry of Energy to settle the issue of supplies by coal mining...	Resources	Coal	Government procurement (DT)	23481370.284834	2020071010/07/2020	Fiscal	Exploration or production or processing or storage or transportation	The order of the President on sustainable supply of energy generating enterprises with domestic coal and resumption of operation of coal mines that were idle. Endorsing agence - Centerenergo (CHP)	Government	To save mines from idling and financial crisis	10/07/2020			610046000	610046000	23481370.284834	Ukrainian coal mines had been idle since 2019 due to lack of the domestic power sector demand as electricity imports renewed from the Russian Federation. In an attempt to improve the situation for mines, the Cabinet of the Ministers has declared the priority of using domestic coal for thermal generation. The Ministry of Energy was a mediator between the representatives of miners and Centrenergo, a state-owned power company (CHP). The negotiations resulted in a contract resuming the supplies of Ukrainian coal to Centrenergo thermal power stations, although there is cheaper product of higher quality in the market. Centrenergo made an advance payment for future coal supply without any guarantees. State banks Ukrgasbank and Oschadbank were involved to help Centerenergo with the timely payments.	http://mpe.kmu.gov.ua/minugol/control/uk/publish/article;jsessionid=20E55F0D5F136C0C05C76D61C0FE5FD3.app1?art_id=245453416&cat_id=35109 http://www.centrenergo.com/post/tsentrenergo-rozrakhuvavsya-z-derzhavnimi-shakhtami-u-serpni-splacheno-ponad-600-mil-yoniv-griven/

Research

European Green Deal: Opportunities and Threats for Ukraine Energy Transparency Index 2019 Playing the long game: How civil society can lead change

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