Ukrainian-American Environmental Association (UAEA)
Washington, D.C., Wed., December 22, 2010

Contents:

I.) ENERGY EFFICIENCY
- Mykola Azarov Says Ukraine Is Interested in Establishing Domestic Production of LEDs
- Ukraine Parliamentary Committee Recommends Tax-Exemption for Energy-Saving Equipment
- China Offers a Garbage-Recycling Plant as a Gift to Lviv

II.) RENEWABLE ENERGY
- Ukrhydroenergo to Sign EUR 400 Million Loan Agreements with EBRD and EIB
- Ukraine Delays Start Date for Renewable Energy Incentives
- TGI Solar Ukraine Unit Seeks Patent for Waste-to-Energy Technology

III.) FOSSIL FUELS
- Ukraine Establishes LNG-Terminal National Project
- JKX Oil & Gas Finds New Gas Field in Ukraine

IV.) NUCLEAR POWER
- Completing Reactors at Khmelnytska Nuclear Power Plant Means Neglecting Security
- EBRD Information on 25th Anniversary of Chornobyl Accident
- Emergency Ministry Considering Possibility of Locating Thermal and Power Plants in Chornobyl Exclusion Zone
- Ukraine to Produce Nuclear Fuel for VVER-440 in Joint Venture with Russia
- United States and Ukraine Secure Thousands of Disused Radiological Sources
- Fuel Ministry to Develop Nuclear Code
- Extending the Operating Life of Rivne Nuclear Reactors Is a Dangerous Experiment

V.) ENERGY - GENERAL
- Ukraine May Double Household Electricity Prices in April
- Demand for Electricity Growing
- Ukrainian Parliament Ratifies Treaty Joining the Energy Community

VI.) CLIMATE CHANGE
- Ecological Compromise Following International Climate Change Conference
- BYUT Official Says Tymoshenko Transactions with Kyoto Protocol Money Earned Ukraine Several Million
- Auditors Find UAH 3 Billion in Kyoto Protocol Funds Misused by Tymoshenko's Government

VII.) UPCOMING EVENTS
- Second International е3 Forum on Eco-friendly and Energy Efficient Construction
- WasteECo-2011 International Exhibition and Conference - Cooperation for Waste Issues
- Second Annual Ukrainian Energy Forum
- ECOSMART-2011 - First International Forum of Clean Technologies in Ukraine
- 15th International Trade Show on Power Engineering, Electrical Engineering & Energy Efficiency
- Ukrainian Biofuel Forum
- International Conference “Twenty-Five Years after Chornobyl Accident - Safety for the Future”

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I.) ENERGY EFFICIENCY

Mykola Azarov Says Ukraine Is Interested in Establishing Domestic Production of LEDs:
UKRINFORM, December 17, 2010
http://www.ukrinform.ua/eng/order/?id=207493
During a meeting with representatives of the Korean company POSCO LED, Prime Minister of Ukraine Mykola Azarov proposed the production of LEDs in Ukraine. Azarov said that Ukraine was taking very significant steps to improve the energy efficiency of domestic production and to decrease energy spending. "Particularly, almost everywhere, we are using incandescent bulbs, which consume much more energy than, for example, LED ones." He added that in Ukraine there are several companies that produce lighting devices using LEDs, but they have to buy the LEDs abroad. Azarov noted the attractive tax conditions that would be provided to companies engaging in energy-saving technologies in Ukraine: "In particular, we have a law under which provides 50% less income tax for those enterprises implementing such technologies."

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Ukraine Parliamentary Committee Recommends Tax-Exemption for Energy-Saving Equipment:
Verkhovna Rada, December 14, 2010
http://portal.rada.gov.ua/rada/control/en/publish/article/info_left?art_id=229792&cat_id=105995
The Committee on Taxation and Customs Policy recommends the Parliament to adopt the Bill on Amendments to Part 1 Clause 19 of the Law "On Single Customs Tariff" (regarding Tax Exemption of the Import Operations with Paper for Recycling and Energy-Saving Equipment in the Customs Territory of Ukraine). The bill (Reg. No.7428) regulates the privileges during the import of paper wastes and cardboard, paper for recycling, energy-saving equipment and materials, measuring and control devices for the fuel-energy resources, equipment for energy produce from renewable energy sources, materials and equipment used for their produce in the territory of Ukraine. Implementation of the suggested amendments will support the publishing industry of Ukraine, and introduce new technologies for energy saving, use of renewable energy sources and production of energy-saving equipment in Ukraine.

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China Offers a Garbage-Recycling Plant as a Gift to Lviv:
ZIK.com, December 14, 2010
http://zik.com.ua/en/news/2010/12/14/261828
Chinese bankers have proposed to build for free a garbage-recycling plant near Lviv. There are several potential investors ready to pay for the construction but they all intend to carry on as businessmen after the plant completion – and insist on higher rates to residents for garbage collection. However, Chinese bankers want to build a plant for free and make a present to Lviv.

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II.) RENEWABLE ENERGY

Ukrhydroenergo to Sign EUR 400 Million Loan Agreements with EBRD and EIB:
Interfax, December 17, 2010
http://www.interfax.com.ua/eng/eco/56387
OJSC Ukrhydroenergo expects to sign a loan agreement in March 2011 with the European Bank for Reconstruction and Development and the European Investment Bank. The EBRD and the EIB will each provide EUR 200 million. According to Semen Potashnyk, the chairman of Ukrhydroenergo's board, the funds will be spent on the renovation of the Kaniv, Dniprodzershynsk, and Kremenchuk hydropower plants and Dniester hydropower plant No. 2. The project will increase the capacity of the company's generating facilities by 10% and improve the environmental situation in the River Dnipro area. Ukrhydroenergo operates all large hydropower plants located along the Ukrainian part of the Dnipro and the Dniester rivers. The overall installed capacity of the company's generating facilities is 3.9 GW.

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Ukraine Delays Start Date for Renewable Energy Incentives:
Verkhovna Rada, December 17, 2010
http://portal.rada.gov.ua/rada/control/en/publish/article/info_left?art_id=230440&cat_id=105995
The Verkhovna Rada of Ukraine has adopted the Law "On Amendments to Clause 17-1 of the Law of Ukraine "On Electric Power Engineering" (re Terms of Enactment of the Extra Condition concerning Promotion of Electric Power Engineering from the Alternative Sources). The legislative act amends the applicable Law "On Electric Power Engineering", postponing introduction of extra conditions to promote electric power engineering from the alternative sources (solar energy) from January 1, 2011 to January 1, 2012.

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TGI Solar Ukraine Unit Seeks Patent for Waste-to-Energy Technology:
Scottrade.com, December 14, 2010
http://research.scottrade.com/public/markets/news/news.asp?docKey=100-347u6331-1&searchtxt=TGI+Solar&section=headlines&searchtype=0&section=none&filter=
US TGI Solar Power Group, a provider of solar and other alternative energy products, says that its Ukraine-based technology group Ekoplaz would file a patent application for its waste treatment and waste-to-energy technology. Ekoplaz has developed a mobile facility to be used for the clean-up of hazardous waste or disaster areas. The system can generate energy, clean up waste and purify water. 

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III.) FOSSIL FUELS

Ukraine Establishes LNG-Terminal National Project:
Oil and Gas Eurasia, December 20, 2010
http://www.oilandgaseurasia.com/news/p/0/news/10046
According to the National Projects Committee on Economic Reforms, Ukraine has set up a "National project" for its planned LNG terminal which is meant to supply liquefied gas to the country. The newly-created "National Project LNG-Terminal" will coordinate work to build a new LNG terminal in Ukraine to regasify up to 10 billion cubic meters of gas per year. A winning bid to draft the assessments will be chosen during a tender in January 2011. A technical and economic assessment is to be submitted by September 2011. Ukraine plans to acquire liquefied gas from North Africa, the Middle East and Azerbaijan. Baku has already announced it can supply 5 billion cubic meters of gas of LNG per year.

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JKX Oil & Gas Finds New Gas Field in Ukraine:
UKRINFORM, December 16, 2010
http://www.ukrinform.ua/eng/order/?id=207459
The UK-based JKX Oil & Gas plc has announced that it has successfully completed and tested horizontal well R-103 in the Rudenkivske field in Poltava. "Well R-103 flowed at a stabilized rate of 8.1 MMcfd of gas and 18 bpd of condensate through a 85/64" choke with a flowing wellhead pressure of 930 psi over the final 8 hour period of a multi-rate test." the company said. The company currently has 21.6 MMboe of probable reserves booked in the Rudenkivske field and is planning to undertake a reserves review on completion of the 2011 Rudenkivske drilling campaign. JKX Oil & Gas through its Ukrainian daughter Poltava Petroleum Company has licenses for exploration of four fields in the Novo-Mykolaivsky Complex in Poltava region.

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IV.) NUCLEAR POWER

Completing Reactors at Khmelnytska Nuclear Power Plant Means Neglecting Security:
National Ecological Center of Ukraine, December 14, 2010
http://www.necu.org.ua/dobudova-haes-2010-12
The National Ecological Center of Ukraine considers the government's plans to resume construction of Unit-3 and Unit-4 at the Khmelnytska Nuclear Power Plant to be risky. Construction of the reactors had started in 1985 but was suspended following the Chornobyl accident. Now, reactors of different design are planned to be installed on the old structures. This can be dangerous because the new design of the VVER-1000/V-392 reactor contains design differences, which makes the project more complicated. Moreover, the VVER-1000/V-392 model has not been implemented anywhere in the world which raises the risk. Moreover, there is no economic need to complete the two reactors because Ukraine has a surplus of electrical generating capacity. Even during the peak of electricity consumption in late February 2010, five of the fifteen operating units did not transmit electric power into the grid. According to preliminary estimates, the construction of reactors would cost about UAH 30 billion - money that would be better invested in energy efficiency and energy saving measures. For more information, contact: Arthur Denisenko (NECU), phone: +380 44 3537841; This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; or see http://www.necu.org.ua/wp-content/uploads/x3_x4-201012.pdf

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EBRD Information on 25th Anniversary of Chornobyl Accident:
European Bank for Reconstruction & Development, by Axel Reiserer, December 14, 2010
http://www.ebrd.com/english/pages/news/press/2010/101214.shtml
April 26, 2011 will mark the 25th anniversary of the Chornobyl accident. In the run up to this event the EBRD has released detailed information which aims to provide the public, media and donors with an overview of the efforts to render the site of the accident safe and secure. The EBRD is managing the two funds through which the donor community is financing the construction of the New Safe Confinement for the damaged reactor 4 and the completion of an interim storage facility for spent fuels from reactors 1-3. As the anniversary approaches more information will regularly be made available. For further information, contact Anton Usov in Kyiv (tel +380 44 270 6132/email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ).

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Emergency Ministry Considering Possibility of Locating Thermal and Power Plants in Chornobyl Exclusion Zone:
Ukrainian News Agency, December 13, 2010
http://un.ua/eng/article/301976.html
The Emergency Situations Ministry is considering the construction of thermal and power generating plants in the Chornobyl exclusion zone. Emergency Situations Minister Viktor Baloha said, "Location of heat energy, electrical energy, yes, we are working on projects and we will most likely move to practical actions from the viewpoint of locating one or another sector of the economy on the territory of the zone." At the same time, he said that the issue of security would be the priority during implementation of such projects.

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Ukraine to Produce Nuclear Fuel for VVER-440 in Joint Venture with Russia:
UKRINFORM, December 13, 2010
http://www.ukrinform.ua/eng/order/?id=207102
According to Yuriy Nedashkovsky, President of Energoatom, Ukraine may participate in a joint venture with the Russian Federation for the fabrication of nuclear fuel for VVER-1000 reactors as well as fuel assemblies for VVER-440 reactors.

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United States and Ukraine Secure Thousands of Disused Radiological Sources:
National Nuclear Security Administration, December 13, 2010
http://nnsa.energy.gov/mediaroom/pressreleases/gaz121310
The National Nuclear Security Administration has announced the successful removal of more than 3,900 radiological sources, the largest single radiological source consolidation to date in Ukraine, from the Electron Gaz Plant in Zholtiy Vodi, Ukraine. The sources have now been transferred to a new, high-security facility dedicated by U.S. and Ukrainian officials earlier this year. The sources were transported in 23 separate shipments from the Electron Gaz Plant to a new storage building at the Dnipropetrovsk Radon facility. The new building, constructed with funding from NNSA and designed to securely store large numbers of radioactive sources, was officially dedicated on May 27, 2010.

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Fuel Ministry to Develop Nuclear Code:
UKRINFORM, December 10, 2010
http://www.ukrinform.ua/eng/order/?id=206868
In a December 8 decree by the Cabinet of Ministers, the government has instructed the Ministry of Fuel and Energy to develop a draft nuclear code by December 1, 2011. The purpose is to find ways to implement a harmonized draft code, which would systematize the legal rules governing social relations in the sphere of nuclear energy. A single code would replace the laws "On the Use of Nuclear Energy and Radiation Safety", "On Radioactive Waste Management", "On the Extraction and Processing of Uranium Ore," "On Human Protection from the Influence of Ionizing Radiation", "On Licensing activity in the Area of Nuclear Energy", "On the Physical Protection of Nuclear Installations, Nuclear Materials, Radioactive Waste and Other Sources of Ionizing Radiation", and others.

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Extending the Operating Life of Rivne Nuclear Reactors Is a Dangerous Experiment:
National Ecological Center of Ukraine, by Dmytro Khmara, December 10, 2010
http://www.necu.org.ua/rivnenskiy-aes-dozvolyly-podovzhennya
The State Nuclear Regulatory Committee of Ukraine has issued a license to continue operating the Rivne Nuclear Power Plant for another 20 years. In response, the National Ecological Centre of Ukraine warns that Ukrainians should expect a dramatic increase in electricity tariff, because over UAH 2.4 billion, has been spent to extend the old reactors lives. Also, old units require much higher insurance deductions to eliminate any possible accidents. Moreover, the operation of this particular unit continues Ukraine dependence on Russia for decades as the fuel for it can be produced only by Russian company TVEL. Members of the public are also upset because, while "Energoatom" obtained a license for two decades, previously it was reported that the lifetime of the reactors would be extended for no more than 15 years. Research on the problem of lifetime extension for old nuclear reactors can be found at: http://atom.org.ua/?p=1008. For more information, contact: Dmytro Khmara, NECU, 044 353 78 41, This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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V.) ENERGY - GENERAL

Ukraine May Double Household Electricity Prices in April:
Bloomberg, by Daryna Krasnolutska, December 20, 2010
http://www.bloomberg.com/news/2010-12-20/ukraine-may-double-household-electricity-prices-in-april-zerkalo-reports.html
According to the Zerkalo Nedeli newspaper, Ukraine’s government may double electricity prices for households in April. The government may raise it again by 39 percent from August. The government is also considering another option - it may raise the price by 50 percent in April and by 50 percent more in September.

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Demand for Electricity Growing:
UKRINFORM, December 16, 2010
http://www.ukrinform.ua/eng/order/?id=207414
Electricity consumption by sectors of the national economy and population for 11 months of 2010 amounted to 133.232,6 billion kWh, which is 11.976,7 billion kWh (or 9.9%) more than in 2009. This is mainly due to an increase in consumption of electrical energy by engineering (18.9%), chemical and petrochemical industry (17.8%), as well as metallurgy (15.0%). The Ministry of Energy and Mines noted that, through the adoption of organizational and technical measures to reduce technology costs in power networks of 0.38-800 kV, 208.7 million kWh of electricity was saved for 11 months in 2010.

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Ukrainian Parliament Ratifies Treaty Joining the Energy Community:
Energy Community, December 15, 2010 
http://www.energy-community.org/portal/page/portal/ENC_HOME/NEWS/News_Details?p_new_id=4001
The Verkhovna Rada of Ukraine has adopted the Law on Ratification of the Protocol on Ukraine's accession to the Treaty establishing the Energy Community (№ 0198). Of 426 votes by the deputies, 371 lawmakers voted in favor of the ratification. Only one member of the parliament was against the motion, while 54 abstained from voting. The decision will promote the expansion of the access of Ukrainian exporters to the energy markets of the European countries, enable direct access to end users, help avoid mediation, create market conditions in the energy sector of the economy that will help attract investment to expand opportunities and improve the existing energy infrastructure, as well as to promote the further development and integration of Ukrainian energy networks into the European system. As a next step, Ukraine is expected to notify to the Secretary General of the Council of the European Union as the Depository for the Treaty. This will complete the accession procedures. Thus, it is expected that in early 2011, Ukraine will become the tenth Party to the Energy Community.

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VI.) CLIMATE CHANGE

Ecological Compromise Following International Climate Change Conference:
The Day, by Inna Lykhovyd, December 21, 2010
http://www.day.kiev.ua/298431
How to stop climate change, deal with global warming, and manage the inevitable consequences — these and other important questions were discussed by delegations from 192 countries participating in the UN Framework Convention on Climate Change at the 16th United Nations Climate Change Conference. In the opinion of such countries as Japan, Russia or Canada, developing countries must also commit to reducing carbon dioxide emissions. However, not all countries are willing to do it. Ukraine tried to argue that it is still a transitional economy. Nonetheless, after the completion of the negotiations in Mexico, together with other states, Ukraine undertook obligations to revise those norms, and also to introduce projects which would reduce emissions in the atmosphere and would presuppose the introduction of low-carbonic technologies. Thus, Ukraine now must opt for a different environmental policy. The next stage of the international negotiations regarding climate change is scheduled for next year. There Ukraine will not be able to keep silent, since specific results will be expected of it.

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BYUT Official Says Tymoshenko Transactions with Kyoto Protocol Money Earned Ukraine Several Million:
ZIK.com, December 20, 2010
http://zik.com.ua/en/news/2010/12/20/262808
BYuT member, Oleksa Hudyma, says funds received by Premier Tymoshenko's cabinet as payments by Japan for carbon emission quotas were not spent and were kept in state treasury accounts. He claims that the Tymoshenko cabinet approved a decision to borrow 100 million euro of the so-called Kyoto funds, by converting it into hryvnias. In two weeks, when budget revenue accumulated, the borrowed sum was reimbursed by converting hryvnias into dollars. As the exchange rate was favorable, the cabinet earned a couple of millions for the budget. The only shortfall of Tymoshenko in this case was that the Kyoto money had to be spent on energy conservation projects, Hudyma said.

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Auditors Find UAH 3 Billion in Kyoto Protocol Funds Misused by Tymoshenko's Government:
ForUm, December 17, 2010
http://en.for-ua.com/news/2010/12/17/175300.html
According to Finance Minister Fedir Yaroshenko, the US-headquartered Trout Cacheris law firm has found embezzlement of assets worth of more than UAH 3 billion received from the sale of quotas for greenhouse gas emissions under the Kyoto Protocol. The quotas were acquired by Japanese companies who paid Ukraine EUR 320 million (USD 3.2 billion). The funds should have been sent to environmental projects, but allegedly were converted to the hryvnia and transferred to the single account of the State Treasury. After that the money was used for the needs of the Ministry of Internal Affairs, Ministry of Social Policy, and other inappropriate ways.

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VII.) UPCOMING EVENTS

Second International е3 Forum on Eco-friendly and Energy Efficient Construction:
Kyiv, February 23-26, 2011
http://www.kievbuild.com.ua/en/events/e3forum
The Forum’s goals include:
• learning about best practices in the eco-friendly and energy-efficient development of territories and buildings; energy efficient property management; creating a comfortable, eco-friendly environment; and sharing experiences;
• presenting eco-friendly and energy-saving solutions, technologies and materials; and
• analyzing the economic benefits of energy-efficient and eco-friendly construction for investors, developers, operators and consumers.
The Forum will be held in the International Exhibition Center, 15 Brovarskiy Ave., Kyiv, Ukraine. For more information, contact:  Mikhailо Minenko 0667168127, This e-mail address is being protected from spambots. You need JavaScript enabled to view it , www.uapb.eu.

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WasteECo-2011 International Exhibition and Conference - Cooperation for Waste Issues:  
Kharkiv, February 23, 2011
http://waste.com.ua/cooperation/index_en.html
WasteECo-2011 presents the full line of technologies, equipment and service in the field of solid waste, wastewater and atmospheric emissions management, including biomass to energy, biogas collection and utilization, WWTP sludge treatment and utilization. It will:
* promote advanced experience and practice as well as business development in the domain of waste management;
* present up-to-date and emerging technologies, equipment, service and enlarge their markets; and
* support to establish contacts between the interested parties, to attract attention of investors, producers, public, authorities and mass media to waste issues.

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Second Annual Ukrainian Energy Forum:
Kyiv, March 1-3, 2011
Intercontinental Hotel Kyiv; 2A Velyka Zhytomyrska Street
http://www.adamsmithconferences.com/en/energy-power-oil-gas-ukraine
Minister of Fuel & Energy of Ukraine Yuri Boyko and his leadership team at the Ministry will be using the forum as a platform to present their investment projects to the international energy community and to put forward the Ministry’s strategy to further improve the investment climate and plans to continue the reform process. Two days of the forum will focus primarily on Oil & Gas with one day dedicated to Electricity. The whole spectrum of the energy sector will be covered. For further information, contact Eugene Andrus, +44-20-7017-7427, This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

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ECOSMART-2011 - First International Forum of Clean Technologies in Ukraine:
Kyiv, March 30-31, 2011
http://www.fuelalternative.com.ua/event/view/en/id,383
The First International Forum of Clean Technologies in Ukraine ECOSMART-2011 (http://www.ecosmart-ua.com) will bring together important players in the Ukrainian market for clean technologies, representatives of relevant government departments and local authorities, international investment companies and financial institutions, consulting and engineering companies, developers of investment projects, representatives of leading foreign companies, who are already working or just planning their activities in the Ukrainian market. ECOSMART-2011 is supported by:
- National Environmental Investment Agency of Ukraine;
- State Agency of Ukraine for Investments and Innovations.

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15th International Trade Show on Power Engineering, Electrical Engineering & Energy Efficiency:
Kyiv, April 12-15, 2011
http://www.elcom.ua/index_e.php
The 15th international trade show of power engineering, electrical engineering and energy efficiency elcomUkraine 2011 will take place on April 12-15, 2011 at KyivExpoPlaza exhibition center (2-b, Salyutna St). The elcomUkraine trade show is a widely-known brand name as a power engineering and electrical engineering trade show. Companies see the elcomUkraine trade show as a tool for launching new products and services into the market, and it is the place where exhibitors present their developments and achievements for the first time in Ukraine. It is the meeting place for professionals and the starting point of the business season. For inquiries about exhibiting at the trade show, please contact the Commercial Department:
Yuriy Chenskiy (+380 44) 461-9311
Helena Liashenko (+380 44) 461-9306

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Ukrainian Biofuel Forum:
Kyiv, April 14-15, 2011
Venue: Ukrainian House (st. Kreshchatik, 2)
http://www.fuelalternative.com.ua/event/view/en/id,245
The Ukrainian Biofuel Market is on the threshold of a new stage of evolution. In addition to traditional wood, Ukrainian companies are actively pursuing agricultural waste as a resource for the production of solid biofuels, creating a radically new market niche on the European market, and Ukraine –serving as the foundation for new business models. The Forum will provide effective guidance for solid biofuels and biomass companies to obtain competitive advantages in the Ukrainian fuel market, as well as obtaining tax incentives provided by law.
For more information: +380 (44) 383 03 56; tel/fax: +380 (44) 498 90 56
* by e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it , This e-mail address is being protected from spambots. You need JavaScript enabled to view it
* on-line: www.FuelAlternative.com.ua

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International Conference “Twenty-Five Years after Chornobyl Accident - Safety for the Future”:
Kyiv, April 20-22, 2011
International Conference
http://www.un.org.ua/en/information-centre/news/1221
April 26, 2011 marks the 25th anniversary of the Chornobyl accident. In many countries, nuclear technology is regarded as one of the most effective solutions to meet the growing demand for energy, reduce greenhouse gas emissions, mitigate climate change and counterbalance fluctuations in prices for fossil energy sources. At the same time one can not forget the consequences of the Chornobyl accident. Consequently, the main purpose of the conference is to use the lessons of Chornobyl to ensure the safety of nuclear power and other dangerous technologies, and protecting people and the environment from emergencies catastrophic events.