Nova-Eco was founded in 2005 by a group of Ukrainian and international sponsors to develop the first large-scale privately owned wind power project of 300 MW installed capacity in the Autonomous Republic of Crimea. Being a pilot and thus, high-risk project in Ukraine, Nova-Eco has carefully selected and involved the best Western practices and experience in the wind farm development. Nova-Eco hired well-established international consultants for sites selection, wind measurements, technical, environmental, legal and other aspects of the project, folowing the EBRD policies and guidelines. ABB and ELTEL technical teams made a tremendous input in Ukrainian grid studies and recommendation as to the reliable and efficient interconnection of WPP-300 to the grid. Nova-Eco, Prowind, Enficon and Krim-Irey teams created know-hows, accumulated practices and experience. Up to date, the project still has all of the competitive advantage, quality and spirit.

Nova-Eco is fully aware that the project of this scope and complexity can only be successfully realized in Ukraine by the strongest team of partners and investors and, thus, must correspond to the highest levels of demand and best business practices.

UKRAINE

Power sector organization and participants

Generation

As depicted in the above scheme there are:

• 5 thermal power generation companies comprising 14 TPP; total installed capacity 36,6 GW
• 2 hydro power generation companies; total installed capacity 4,7 GW
• 4 nuclear power plants belonging to the state enterprise ”EnergoAtom“; total installed capacity of 12,8 GW.

In addition there is a number of smaller independent producers (for example: combined heat and power plants). The existing small hydro power plants and WPPs currently are not a significant line on the country's energy balance sheet: TPS under community property (557,76 MW), ТPS with an independent balance sheet (317 МW) and isolated generating plants (2304,4 МW).

Installed capacity as at January 2010 amounted to 52,957 MW including: ТPS – 33,625 МW (63,49%), NPP – 13,835 MW (26,12%), HPP – 4,552 МW (8,6%), PSPP – 861 MW (1,63%), alternative – 84 МW (0,16%).

Transmission

UkrEnergo is a state enterprise responsible for operating of the national grid with a voltage of more than 220 kV and the interstate power networks, with all relevant infrastructures, including the national dispatch centre.

Distribution and supply

There are 27 distribution companies (OblEnergos), which used to hold the licenses for electricity supply at regulated tariffs.

There are also many smaller independent suppliers, which hold the licenses for electricity supply at non-regulated tariffs and are allowed to use the OblEnergo's networks for distribution.

Energorynok (WEM)

www.er.gov.ua

The main intermediary is a state owned company Energorynok, which is a structural subdivision of the Cabinet of Ministers of Ukraine.

Energorynok performs the following main functions:

• Purchase of electricity from electricity generators and electricity importers
• Wholesale of electricity to distributors
• Administration of the WEM's settlements and funds
• Organization and maintenance of the WEM operations
• Secretariat of the WEPM Council
• Work under intrastate agreements and maintenance of the external economic relations with electric power systems of neighboring countries;
• Chief operator of the automatic system of electric power commercial accounting

Ukrenergo – National Power Company Ukrenergo

www.ukrenergo.energy.gov.ua

The main functions performed by Ukrenergo are the following:

• to ensure the integrity of the Integrated Power System of Ukraine - national grid with a voltage of more than 220 kV and the interstate power networks;
• to maintain centralized operations and process control of the national grid ensuring the reliable parallel operations of TPPs, NPPs and HPPs etc. interconnected by HV grids;
• to ensure functioning of the wholesale electricity market (WEM) in regard to dispatching and power transmission through the Backbone and International networks pursuant to contract with Energorynok and other participants of the WEM.

NERC – National Electricity Regulatory Commission.

http://www.nerc.gov.ua

Two of its main functions are to grant licenses for power generation, transmission and supply and to maintain the price and tariff policy in the electric power industry.

The National Electricity Regulatory Commission of Ukraine (“NERC”) is the independent agency regulating activities and monitoring the legal compliance of the energy market.

NERC is responsible for implementation of the government policy on:

• Regulation of the energy sector participants
• Implementation of the price and tariffs policy in electricity and oil &gas sector
• Promotion of competition in the energy sector
• Act as an arbitrator between the participants in the market place

The Ministry of Fuel & Energy (MintopEnergo)

with its four departments (oil, gas and oil processing department; nuclear power department; energy department) is the main government institution that determines the energy sector policy.

http://mpe.kmu.gov.ua