Energy ministry publishes Energy Strategy of Ukraine until 2035

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The Ministry of Energy and Coal Industry of Ukraine has published the text of the Energy Strategy of Ukraine until 2035 “Safety, Energy Efficiency, Competitiveness” on its website along with the publication of the Cabinet of Ministers resolution No. 605 on the approval of this strategy in the Uriadovy Kurier government’s newspaper, Interfax-Ukraine reports.

Deputy Minister Natalia Boiko said on her Facebook page that the Energy and Coal Industry Ministry has already started designing an action plan for the energy strategy. Next week it will publish information on the creation of working groups.

During the discussion of the issue at the government Deputy Prime Minister of Ukraine Volodymyr Kistion made comments on the part of RAB regulation and pricing for steam coal.

“Following the results of the final revision after the meeting of the government committee, some interesting things appeared that someone is trying to add to this concept. This is a mandatory RAB-tariff and Rotterdam + through relevant mechanisms,” he said.

The document was approved with the condition of review within three days.

The published final document only mentions the need to “work out the issue of refraining from the formation of pricing and tariff policies on a “cost plus” basis, in particular, through the switch to RAB regulation with the subsequent transition to market mechanisms.”

As for the development of the coal sector, the strategy involves the liquidation of the state-owned wholesale coal buyer and the introduction of trade in coal products on exchanges.

According to the document, nuclear power plants must provide 50% of the country’s electricity generation until 2035. The share of renewable sources is to increase to 12.8%, and that for large hydroelectric power plants – up to 6.7%. The remaining volumes will be produced by thermal power plants (TPPs).

According to the authors of the document, Ukraine needs to transform its gas transportation infrastructure for more active integration with the European one.

The energy strategy also says that Ukraine sets a goal to transfer the point of acceptation and transmission of transit gas volumes from the western to the eastern border. At the same time, the authors of the document doubt that Russian gas transit will continue after 2019.