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EDS at INTERFAX-UKRAINE press conference

EDS at INTERFAX-UKRAINE press conference

23/11/2020

On November 20, Maksym Moldovan, EDS Engineering Chief Engineer, spoke at the "Ways of the development of the solar energy market" press conference. The EDS representative drew the attention of the participants to one of the key problems hindering the development of the industry – the electrical networks and electrical substations equipment wear.

Here are some quotes and figures from the speech.

From our point of view, as an EPC contractor, this challenge is a systemic one.

WHAT DOES THE NETWORK WEAR MEAN FOR INDUSTRY:

the average age of power facilities is 40 years, the general wear of the networks is 50-60%;

in 2019, there were 156,000 accidents in Ukraine caused by equipment wear.

The annual losses of the energy system are about 12,887 million kWh, which is 11% of the generated energy, or about 20 billion UAH / year.

In addition to the aging of networks and equipment, the situation is aggravated by low level of investments in reconstruction. For example, in 2019, distribution system operators invested UAH 4.9 billion in the business development, and only 14.4% of this amount was directed to the infrastructure development.

This means that Ukraine has the lowest level of investment in Europe: five times less than in Romania, six times less than in Poland and 8 times less than in Germany.

Also, the industry is sensitive to the lack of qualified personnel.

WHAT WAYS OF SOLUTION DO WE SEE?

Development of a unified concept for the reconstruction of networks and equipment for distribution systems throughout Ukraine. The program should provide for the industry development in the future and include technologies with advanced resource – "smart grids", which can meet the ever-growing needs of an increasingly energy-intensive industry.

Effective reconstruction must be coordinated with the development strategy of other sectors of economy. We must understand beforehand where the production will be built and plan in advance the connection points and network infrastructure that can provide reliable, uninterrupted power supply.

The stimulating RAB tariffs can solve the problem of low level of capital investment in the industry. The problem lies in the fact that investors, both external and internal, are not confident that the invested funds will be safe and the conditions are transparent. RAB tariffs, from our point of view, offer such a solution.

The dual education system enshrining at the legislative level in the industry-specific higher and professional educational institutions, can significantly improve the situation with qualified personnel in the power industry. Now the dual system is being implemented within the framework of a pilot project, which has already shown its effectiveness, including within the framework of our holding in partnership with the National Technical University “Dnipro Polytechnic”.