As we change, we change Ukraine

As we change, we change Ukraine

Experts about reform29 March 2018

The Ukrainian power industry has a complicated reputation. It is dilapidated and cumbersome, with outdated technologies and regulatory principles. The industry has been unable to achieve self-sufficiency and independence from external suppliers for 26 years now. As the industry leader, we have long been displeased with this state of affairs.

As we change, we change Ukraine

The Ukrainian power industry has a complicated reputation. It is dilapidated and cumbersome, with outdated technologies and regulatory principles. The industry has been unable to achieve self-sufficiency and independence from external suppliers for 26 years now. As the industry leader, we have long been displeased with this state of affairs.

The speed of change in the world today is very high. This circumstance has completely transformed approaches to business planning, management, and investment policy. New technologies are changing entire industries and sometimes cause certain industries to disappear. We need changes here and now in order to become a part of these trends.

The environment we have established  at DTEK is ready for changes and capable of developing in new directions. As an example, I can cite the development of a network of high-speed charging stations for electric vehicles. We took the first step in this direction back in 2012. In those days, just six years ago, the world looked at electric vehicles as an image solution, because replacing conventional cars completely was impossible with the available technology. But today, the analysts at Fitch predict that by 2040 the number of electric cars around the world will reach 1 billion; in other words, more than half of the cars on the planet will be using electricity. We can see interest in such cars growing in Ukraine. The state is encouraging the development of electric transport through tax incentives, and demand for the project that we have begun is becoming greater and greater. This spring, DTEK will become the operator of high-speed chargers for electric vehicles, and we will start developing the network in Kiev.

Innovation is not always easy and is always expensive at the initial stage. But we implement such projects because they shape the future and correspond to society's demands.

Energy markets in Europe were liberalized because demand for the development of competition formed among the public. Yes, this process began 15-20 years ago, and we can't say that it is fully complete. Ukraine has just begun reforming its energy market in order to achieve alignment with European principles and create a competitive electricity market. Fifteen months remain until the planned launch of the new market. Is this a lot or a little for large-scale transformations? We have before us all the experience of European countries and energy companies. Thus, we have all we need to conduct an analysis and avoid the mistakes of other countries without wasting time and resources.

"Our portfolio of renewable power projects in the stage of preparation for construction already represents more than 1 GW of installed capacity"

For DTEK, this reform is an enormous task that involves transforming and rethinking business processes. We are ready to fight for customers every day, offering the best price and quality of services. That isn't easy, but we are aware of the need for changes. Moreover, DTEK has been promoting energy reform for many years, because it creates opportunities for development in the conditions of a free market.

We are using our own resources to explain and popularize the reform. This is our contribution to the project. We understand that when the new market starts working, Ukrainians will get two bills instead of one - one from a distribution company and the other from an electricity supplier. Given the wave of general populism surrounding this issue, this will only test people's trust of the industry, which is already weak. But the biggest issue is that due to a lack of knowledge about the essence of the market, people will miss opportunities to save money, create new businesses, and influence the energy market. The main thing that the market will give is consumers' right to choose their suppliers, and the consumer is at risk of not knowing about this.

The principle of innovation in modern energy is also reflected in the ecological sustainability of new facilities. DTEK was one of the first companies to build a wind farm, which became the largest in Central and Eastern Europe, and the company has implemented a pilot project in solar power generation. Our portfolio of renewable power projects in the stage of preparation for construction already represents more than 1 GW of installed capacity.

We know that the rapid increase in the share of green generation has created many challenges for European markets. At the same time, these challenges create unique opportunities for the development of technologies: smart grids, electronic data exchange, high-capacity storage facilities, and a rethinking of the role of thermal generation.

DTEK is always at the center of reforms. We want to change Ukraine as we ourselves change.