Infographic report "Energy of Ukraine" was presented

On October 30, 2017 “Top Lead” company, together with the American Chamber of Commerce in Ukraine, presented the first edition of the Infographic Report "Energy of Ukraine".

For the first time, the whole energy sector of Ukraine is depicted in a clear infographic, which explains in detail where the energy is taken and how it is consumed in Ukraine. This report has become possible with the support of Aequo, as well as Henry-Bleyzer, DTEK and Bosch Ukraine.

Speakers:       

  • Stanislav Shum, Director of Top Lead
  • Andriy Hunder, President of the American Chamber of Commerce in Ukraine
  • Vladislava Rutytska, vice president of the Henry-Bleyzer Foundation
  • Oleksiy Habatiuk, Deputy Head of the Energy Efficiency Department of Naftogaz of Ukraine
  • Dmytro Fedotov, Head of DTEK Corporate Finance Department
  • Myroslava Savchuk, Senior Associate at AEQUO
  • Tetyana Sytnik, Head of B2B Department of GFK

 

Why is this report important?

It will be useful both to experts and those who try to understand how energy works. This industry is transforming and sometimes it is difficult even for professionals and energy-field journalists to understand the logic of these transformations, let alone ordinary Ukrainians. They do not understand how the energy works, why the unbundling of Naftogaz is important, how industry will change after the reforms — despite the fact that it is clear to everybody that the reform is necessary.

What is in the report?

Using the infographics and clear explanations, the report tells about complex aspects of the functioning of the energy sector of Ukraine. All infographics are based on data that reflects the industry's work in 2016.

The report shows three major aspects of the industry: the current state of energy, the potential of the energy sector and the areas that need to be reformed.

The report demonstrates the importance of energy for the Ukrainian economy. The industry gives 8% of GDP, 25% of taxes paid (first among other industries), it involves 3% of the population of Ukraine.

Infographics also tells us about energy consumption and energy efficiency. Ukraine ranks 28th in the world in terms of energy consumption. With significant reserves of resources in our country, 4.8% of energy is lost during its transportation and distribution. For comparison, in Poland — 1.6%. 64% of the Ukrainian electricity grid has been exploited for more than 40 years. The energy intensity of Ukraine's GDP is 2.8 times higher than Poland’s.

The report focuses on renewable energy. The pace of its development is insignificant, although renewable sources can provide 78% of actual electricity production.

During the presentation, Stanislav Shum reminded that Ukraine remains an energy-dependent country — we produce only two thirds of the energy we consume. But the country has the opportunity to reduce its dependence by increasing its own gas production, developing green energy, investing in energy efficiency and creating a transparent market.

Individual pages are devoted to global energy markets and energy balances, which explain where energy is taken and how it is used.

Important place is given to the oil and gas industry. After 2020, Ukraine plans to abandon the import of natural gas. However, since its own oil production has been declining for many years, it is unlikely to abandon the import of "black gold".

Andy Hunder, president of the American Chamber of Commerce in Ukraine, commented: "It is important to implement the strategy of increasing the domestic gas production and attract investors to the energy sector. Ukraine should demonstrate a systemic approach to the gas market reform, and radically change the fiscal approach to taxation and implement regulatory reform."

Ukraine's coal industry is able to provide only 71% of coal needs, so in 2016 Ukraine was forced to import 17 million tons of coal.

A separate section of the report is dedicated to investments and reforms. The reform equals the rights of producers and consumers and guarantees freedom of choice for consumers. Competition always leads to an increase in the quality of services.

In 2015, every eighth dollar of world energy investments was aimed at increasing the efficiency of the industry. At the same time, in Ukraine budget expenditures on research and development in the fuel and energy sector have been decreasing since 2008.

Contact person:         
Yuliana Chyzhova         
Communications Coordinator of the American Chamber of Commerce in Ukraine 
ychyzhova@chamber.ua
063 641 93 68

Download the report: