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ENERGY SECTOR OF UKRAINE: FUTURE OUTLOOK
Presentation by Maxim Timchenko, CEO of DTEK at Adam Smith Ukrainian Energy Forum in Kyiv (see attachment)
Published by U.S.-Ukraine Business Council (USUBC),
Wash, D.C., Thu, March 3,
KYIV, Ukraine - Ukraine needs an updated energy strategy to send clear signals to investors, government institutions and consumers of energy resources, said DTEK CEO Maxim Timchenko at the annual Ukrainian Energy Forum in Kyiv (sponsored by Adam Smith Conferences) (for Maxim Timchenko's complete presentation see attachment to this e-mail).
“The years of 2014-2015 have brought some tectonic changes to the energy sector: a 20% drop in electricity consumption, systemic challenges with anthracite coal supplies, a lack of power generating capacities, which turned into a surplus at the year end. All that happened in the energy sector needs serious rethinking of how and where we are going,” said DTEK CEO Maxim Timchenko.
“Today I’m talking not about reforms alone. I’m talking about national energy policy and energy strategy with their three key stakeholders – the government, business and society,” stated Timchenko.
If Ukraine creates an enabling investment climate, it can fully provide itself with gas and increase domestic production by 70% to 33.5 billion cubic meters within a decade, he added.
The energy sector also requires large-scale investments, otherwise Ukraine will not be able to meet its energy needs by 2026 without launching new power units, despite the current surplus in the capacity. DTEK estimates that their construction should begin not later than 2018. It is important to review the national air emissions reduction plan to invest in facilities that meet the latest environmental standards.
Maxim Timchenko believes that it is necessary to promote the electricity export within the next few years to sustain the country’s energy potential and keep tens of thousands of jobs in the coal mining and energy sector.
“The systemic reforms, clear rules and a level playing field are not only a requirement of our European partners and market actors. It is also an indispensable and fundamental condition for the development of the energy sector. More importantly, these reforms should be good for consumers.
"All Ukrainian consumers will be able to see the impact of lower global prices for energy resources in their utility bills only after the market mechanisms are introduced,” underscored Maxim Timchenko.
During the forum, Maxim Timchenko also had a meeting with Maroš Šefčovič, European Commission Vice President for Energy Union, and shared the views of private business on the long-term prospects of the energy sector development and the current situation with reforms. (Maxim Timchenko's complete presentation is found in the attachment to this e-mail).
USUBC NOTE: DTEK is a member of the U.S.-Ukraine Business Council (USUBC), Washington, D.C., www.USUBC.org
NEWS: For the latest news about Ukraine go to the KYIV POST website: www.KyivPost.com.
The Kyiv Post of the ISTIL Group is a member of the U.S.-Ukraine Business Council (USUBC).
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