Presentation of Ukrenergo CEO Vsevolod Kovalchuk regarding involvement of solar and wind power plants in the capacity coverage of the Integrated Power System of Ukraine. Kyiv, April 03, 2018.

1. INVOLVEMENT OF SOLAR AND WIND POWER
PLANTS IN THE CAPACITY COVERAGE OF THE
INTEGRATED POWER SYSTEM OF UKRAINE

2. KEY CONDITIONS FOR CALCULATIONS
An increase in electricity consumption was taken at
the level of 1% annually1
2
The capacity charts for indicative seasons (winter,
summer, flooding) were used
3 The average water capacity indicators for the Dnipro
and Dnister Rivers were used
4
The capacity of NPP was taken in accordance with the
4-year repairs schedule of NNEGC “Energoatom”
5
Calculations were made taking into account a possible
30% deviation of the indicators of renewable sources
electricity generation from the target figures
“
All calculations are made taking into account the
conditions as close to the today’s realities as possible.

3. 0
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300
320
340
360
380
400
420
440
460
480
500
520
540
560
580
600
620
640
1 2 3 4 5 6 7 8 9 101112131415161718192021222324 1 2 3 4 5 6 7 8 9 101112131415161718192021222324
MW
year
Фактичне навантаження Планове навантаження
ACCURACY OF FORECASTING OF ELECTRICITY GENERATION BY WPP AND SPP
deviation
440 MW
The inaccuracy of the existing system of forecasting makes Ukrenergo attract
additional balancing reserves.
Actual capacity Target capacity

4. VOLATILITY OF “GREEN” GENERATION: KEY CHALLENGES
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
'00-00 '01-00 '02-00 '03-00 '04-00 '05-00 '06-00 '07-00 '08-00 '09-00 '10-00 '11-00 '12-00 '13-00 '14-00 '15-00 '16-00 '17-00 '18-00 '19-00 '20-00 '21-00 '22-00 '23-00
MW
year
WPP SPP Total
deviation
450 MW
SPP – 754 MW
WPP – 463 MW
The normative amount of reserves in the IPS of Ukraine must be equal to 650 MW. The target fluctuations of RES
generation in the amount of up to 450 MW must be taken into account when drafting a daily chart.
The system is balanced. RES substitute the generation of thermal
power stations in the amount of up to 2 billion kWh annually
May 2017

5. GREEN GENERATION: BREAKING POINT
3000 MW
WPP – 1500 MW SPP – 1500 MW
“
The maximum level of the capacity of SPP and WPP, possibly managed by the
Integrated Power System of Ukraine without serious deviations in the operation
The system is balanced. RES with the annual generation by WPP – 4.8 billion kWh and
SPP – 1.9 billion kWh respectively. RES substitute the generation of thermal power
stations in the amount of 6 billion kWh annually.
Until December 2019 the structure of generation must be replaced to
ensure the increase in the share of RES in the energy balance

6. Basic capacity of hydropower plants 3.4 mln kWh
Basic capacity of generating companies of
thermal power stations 81.3 mln kWh
Combined heat and power plants and Industrial
stations 55.2 mln kWh
NPP 259.2 mln kWh
Basic capacity of hydropower plants 5.8 mln kWh
Basic capacity of generating companies of
thermal power stations 44.9 mln kWh
Combined heat and power plants and
Industrial stations 19.2 mln kWh
NPP 220.8 mln kWh
Chart of coverage of a working day in summer 2019
(SPP-1500 MW, WPP-1500 MW)
Chart of coverage of a working day in winter 2019
(SPP-1500 MW, WPP-1500 MW)
The balancing of the IPS of Ukraine is ensured by hydropower plants/pumped storage
hydropower plants and the generating companies of thermal power stations. The
further balancing without the unloading of NPP is impossible
BREAKING POINT: CHARTS OF CAPACITIES ON WORKING DAYS (RES < 3000 MW)

7. Installed capacity (MW), target generation (mln kWh) and limitation of the
electricity production by WPP, SPP (mln kWh) with 30% of deviation from the
target indicators
RES > 3 000 MW SCENARIO 1: CONSTRAINED LIMITATION OF “GREEN” GENERATION
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1 390
1 694
2 450
6 700 7 200 7 800
8 500
9 300
10 100
10 800
3 000
3 600
4 500
5 300
6 300
7 200
458 758 1 100
1500
2300
2500
2700
2900
3100
3300
300 328 500
1500
2200
2500
2900
3300
3800
4200
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
11 000
12 000
13 000
14 000
15 000
16 000
17 000
18 000
виробництво
обмеження
встановлена потуж. СЕС
встановлена потуж. ВЕС
MW,
mln, kWh
Generation
Limitation
WPP installed capacity
SPP installed capacity

8. RES > 3 000 MW SCENARIOS 2-3: LIMITATIONS OF NUCLEAR OR COAL GENERATION
“Green-coal paradox: if you
do not restrict the RES
without introducing new
maneuvering capacities,
you will have to reduce the
basic capacity of NPP and
increase it for the
generating companies of
thermal power stations
At the same time, new
high-maneuvering
balancing capacities will
allow us not to restrict the
generation of RES and
reduce the base capacity
of coal generation.

9. KEY ISSUES OF DEVELOPMENT WITH RES AT THE LEVEL OF 7,500 MW
Green-coal
paradox
Maneuvering capacities
and the development of RES
The cost of electricity
Providing the limitation of nuclear
generation, the absence of
restrictions for RES and a significant
increase in the basic generation of
the generating companies of
thermal power stations, it will
increase the cost of electricity by
UAH 630.25 per 1 MWh compared
to the current price
If there are restrictions for RES, the
cost of electricity will increase by
UAH 1,084.31 per 1 MWh
(or by 99.2%) compared to the
current price
In the absence of restrictions for RES,
the reduction of the basic generation of
the generating companies of thermal
power stations and the introduction of
new maneuvering capacities by 2,500
MW, it will increase the cost of
electricity by UAH 532 per 1 MWh
compared to the current price
Limitations of RES
by 57.7% by 48.7% by 99.2%

10. HIGH-MANEUVERING BALANCING CAPACITIES: POSSIBLE COMBINATIONS
Maneuvering reserves of TPS, HPP
Rapid reserve of TPS, HPP
400
2000
500
2000
600
1900
600
1800
600 600 500 500
700 700
500 800
100
1200
200
1500
1800
2000
300 400 500
500
1000
1500
2000
2500
3000
3500
4000
4500
MW
Reserves of capacities in the IPS of Ukraine for the
regulation of WPP and SPP at the expense of new
maneuvering capacities and rechargeable batteries
New maneuvering capacities
Rechargeable batteries
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
1600
1400
1200 1100
1100 1100
The main task of the IPS of
Ukraine is to ensure the
reliable operation of the
system, taking into account
the introduction of the
required share of RES
Decision – the introduction
of new capacities:
• 2000 MW of gas-piston
power plants
• 500 MW of batteries

11. Target generation of electricity by the generating companies
of thermal power stations in 2025 given various options
for ensuring reserves
(WPP-4200 MW, SPP-3300 MW)
POSSIBILITIES OF HIGH-MANEUVERING BALANCING CAPACITIES
Target generation of electricity by WPP and SPP
in 2025 given various options for ensuring reserves
(WPP-4200 MW, SPP-3300 MW)
42 040
38 680
36 680
34 880
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
30%
відхилення
30%
відхилення
30%
відхилення
2 ГВт-ман.,
1ГВт-акум.
MW
Mln kWh
10 800 14 400 16 200 18 000
7 200 3 600 1 800
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
виробництво НДЕ
обмеження виробництва
40 % 20 %
60 % 80 % 100 %
10 %
90 %
MW
Mln kWh
1 GW Man. Gp. 2 GW Gp.
deviation deviation deviation
2 GW man.
+0.5 GW accum.
Only the introduction of new high-maneuvering balancing capacities in the IPS will allow
increasing the volume of “green” generation, preserving the basic capacity of NPP and
reducing the CO2 emissions by 7 million tons annually
“
2 GW-man.,
1 GW-accum.
RES generation
Limitation of generation

12. CONCLUSIONS: DEVELOPMENT OF HIGH-MANEUVERING CAPACITIES
• Ukrenergo unconditionally supports the development of alternative generation.
• The European experience and the experience of ENTSO-E demonstrate that RES
is currently a key energy development trend.
• Ukrenergo considers it inappropriate to restrict the generation of RES in the
course of balancing.
• The only option available today for balancing the IPS without
the limitation of RES generation is the establishment of
modern high-maneuvering capacities (gas-piston plants,
pumped storage hydropower plants, energy storages, etc.).
• By 2025, it is necessary to build up to 2.5 thousand MW of
such balancing capacities. This will allow us to avoid the
limitation of RES and minimize the growth of electricity
tariffs for consumers of all categories.
• The estimated cost of construction of these high-
maneuvering capacities amounts to 55 billion UAH.
65
Billion UAH
will be saved by consumers with the help
of 2.5 thousand MW of high-maneuvering
capacities with the RES capacity of 7,500
MW

13. CONCLUSIONS: DEVELOPMENT OF FORECASTING
The value of the project amounts to UAH 800 mln.
The system must be implemented by the
end of 2019.
This will allow us to reduce the forecasting
deviation from 30%, taken for these calculations
(with the normative rate of 50%), to 3-10%.
Ukrenergo initiates the development of
requirements for the system of determining the
non-delivery of electricity by each of the RE objects
for fair compensation of the cost of unproduced
electricity (in the case of restrictions).
The introduction of a system of accurate forecasting, with a deviation of 5-10% in
the market one day in advance and 3-5% in the domestic one day market, is the
primary measure aimed to ensure the integration of RES.
The lack of a reliable forecasting system will cost
the consumer at least UAH 300 mln annually
providing the commissioning of 7.5 thousand
MW of RES capacities.
Project Value
UAH 800 mln

14. CONCLUSIONS: SUPPORT FOR CRUCIAL STAKEHOLDERS
The Government must approve a
specific mechanism for the
introduction of a competition
for the construction of high-
maneuvering capacities, as
provided by the Law of Ukraine
“On the Electricity Market.”
On the basis of the Report on
the assessment of the adequacy
of generation updated by
Ukrenergo, the National
Commission for Utilities and
Energy State Regulation must
determine the specific
mechanism for financing the
construction of high-
maneuvering capacities for the
full development of the market
of auxiliary services
By the end of 2018, the Ministry of
Energy and Coal Industry must hold
a competition for the construction
of high-maneuvering capacities in
the amount specified in the Report
on the assessment of the adequacy
of generation
(up to 500 MW of installed
capacity)

15. Дякую за увагу!
Thank you for your attention!