Reducing emissions from thermoelectric stations in Ukraine by meeting the European Energy Community requirements. White and Green Paper

The purpose of this White Paper is to offer recommendations to the Government as to how to reduce harmful emissions from thermo-electric stations (TESs) by implementing Directive 2001/80/EC. This policy paper focuses on resolving the problems identified in the Green Paper.

In order to implement Directive 2001/80/EC, thermal generation of power in Ukraine must undergo a major transformation over the next decade. Ukraine’s power companies have to apply to install cleaning technologies. According to NAK Energy Company of Ukraine estimates, 30-40% of all investment spending that is needed for heat-generated power in Ukraine needs to go precisely into reducing harmful emissions.

Meanwhile, Ukraine’s revised Energy Strategy continues the earlier policy of making a priority of developing thermal generation and the country’s coal industry. The Government’s choice of the coal option for developing thermal electricity considerably narrows the list of measures that can be used to reduce emissions. At the same, should Ukraine’s energy market be successfully reformed, thermal power could become a competitive source of electricity that uses domestic coal and meets European environmental standards.

In order to carry out its commitments, Ukraine should take advantage of successful emissions reductions experiences among European countries over the last 20 years, especially Germany and Poland. Otherwise, the country will either be forced to import its electricity and fuels and reduce its own output, or it will have to reject Directive 2001/80/EC altogether. The second step will put a brake on European integration in the electricity market and lead to the further deterioration of Ukraine’s own environment.