This document discusses energy development and the need to balance it with social expectations. It notes that cooperation between government, media, NGOs, business, and consumers is needed to meet social expectations, achieve energy reforms, and increase positive public perceptions of energy development. Case studies of Germany, Australia, and Ukraine show different approaches to and challenges with renewable energy development. The conclusion calls for governments to provide stability, transparent rules, and constructive dialogue between stakeholders.

1. Energy Development – Compatibility with Social Expectations,
Energy Reforms and Public Perceptions
BLACK SEA ECONOMIC FORUM
Yalta, 4-5 October 2012
Elena Rybak

2. About EUEA
EUEA - a non-profit
NGOs
Association founded in
Government
Kyiv in 2009
Goals to establish :
•a solid platform for
promoting EE &RE
EUEA Business
•market mechanisms
for sustainable
development

3. Priority Sectors
1. Energy efficiency
 buildings
 district heating
 heavy industry
 waste-to-energy
2. Bioenergy
 biogas
 biomass
3. Wind energy
4. Solar energy
5. Hydropower
6. Grid Sustainability
7. Energy Community
8. Project Financing

4. Members

5. Members

6. Energy Development:
Stakeholders
Government Media NGOs Business Consumers
• Market • Scandal • Sust. dev. of • Long term • Reliable
transparency • Crisis communities stability Service
• Social • problems… • Reforms • transparency • Security
dialogue But also: • Environment • attractive invest.
• Fair rules of climate
• Expertise • Prosperity of One day…
“the game”
• Information local Comfort of
• Functioning communities living!!!
legal
framework

7. Cooperation will achieve results
Government Media NGOs Business Consumers
COOPERATION
Meet Social Achieve Energy Increase Public
Expectations Reforms Perceptions

8. Lets go on a short journey…

9. Germany
“Energy Turnaround” of Germany:
• 80% RE until 2050 (10% in primary
energy consumption in 2011).
• First with Feed in tariff legislation
• Allocated budget amounts 1.3 bln. Euro
for research
• Total investments: approx. 22.9 bln.
EUR
• Employment in RE sector increase from
180 thous. in 2004 to 380 thous. In 2011.

10. Australia
• RE share in electricity 20% by 2020
• The early "romance with renewables“
vs. concerns about the costs (no more
tolerance to subsidies)
• Average household retail energy bill of
more than 1600 euro per annum
• Still, broad support of the population
• Lessons learnt: caution
towards cumulative impact of policy
interventions on retail energy prices!

11. Ukraine
• Third most energy intensive country (beaten by Turkmenistan and Russia)
• First EE talk appearing in 2006 and FiT 2009
• Country with an average salary of less than 300 EUR
• Smallest electricity tariffs in former Soviet Union of 3,69 dollar cents per
kwh (vs. Russia – 7,27 dollar cent, Moldova 12,6).
 Solar FiT – close to euro 0,50 cents.
UAH 8 bln. Already invested in solar energy
 Perovo plant 105 MW the largest PV plant in the world at the
time of commissioning.

12. Wind can bring…
Data from just 4 international developers:
• Pipeline: 2,150 MW
• Capital Requirement: EURO 3,310,000,000
• Tax Payments: EURO 3,501,480,000
• Employment:
Temporary: 1,800
Permanent: 395
• Social Infrastructure: EURO 23,420,000

13. Ukraine
Estimates:
In order to increase efficiency by 50% (up
to 2030) – USD 1 bln. Investments
needed yearly (World Bank estimate)
EE in Housing stock requires USD 15
bln. during 10-15 years. (IFC
estimate)
Heat and power network modernization
requires USD 12 bln. (experts
estimate)

14. Reality is…
• Totally “questionable” draft of New Energy Strategy until 2030
• Local content requirement – key barrier for Wind and Solar
• Biomass potential (est. 15% in the Energy Balance) - subject to “semi-
illegal” long term contracts
• Draft law on amendments to Tax Code – cancellation of tax benefits of RE
• EE projects subjects to enormous corruption and bureaucracy!
» Years to get permissions vs. months to implement
» Crucial laws take years for development
• Land, connection, changeable rules…
“Investors, please come!”

15. Risks are too big
…2006 Alchevsk winter …
• 60,000 people left without heat (for 2 – 4 weeks)
• At least 206 people dead… (- 35 C)

16. Government HAS to deliver:
•Stability
•Legal framework
•Market Transparency
•Fair rules of the game for
everyone
REQUIRED constructive
dialogue with civil society,
business and consumers!
MEDIA is a tool for
public perceptions and energy
reform.

17. Thank You!
Elena Rybak
Director, European-Ukrainian Energy Agency
elena.rybak@euea-energyagency.org
www.euea-energyagency.org