Valeriy Borovyk, Chairman of the Board, Alliance “New Energy of Ukraine”, Ukraine

In my report I’d like to focus on an alternative approach to the presentation. I think, at the conference you have listened to quite a few theoretical calculations, thoughts, rather positive information necessary for your further work, for your business. So, I’d like to make more practical presentation based on the projects of Ukraine’s New Energy Alliance, which I am heading. We’d like to give you a look on real things that can be done in Ukraine and what is being done to transfer at least 10-12% of the Ukrainian economy to use of alternative energy sources.

Ukraine’s New Energy Alliance was founded three years ago as non-profitable organization which carries out projects in the field of energy conservation, energy efficiency as well as advancement of energy efficiency policy, lobbying of bills, regulatory and legal framework at the legislative and executive levels. We’d like to present several serious projects which are very promising. Some of them are at the initial stage and others are at the final stage of realization.

Every year we hold a competition on energy conservation and energy efficiency projects named “The Fair of Ideas”. And I’m not afraid to say that we are the only ones in Ukraine who do it in a systematic way with further implementation of projects. In Ukraine many project competitions are organized annually. The inventors are granted a diploma, rewarded with medals and handshakes, but afterwards they just don’t know what to do with their projects. Later on foreign investors pay them a visit, buy the promising ideas for a trifle and then implement them at the Western key enterprises; as a result, the products invented by our intellect, by our scientists and inventors, return to Ukraine at a tenfold higher price. Within the framework of “The Fair of Ideas” project competition is held annually, where 50-60 projects are submitted, 15 of them reach the semifinal stage and only 3 reach the final. The final of the competition includes three nominations. The first nomination covers theoretical projects, promising ideas that demand further elaboration; these are the new perspectives on approaches to power use. The second nomination covers implementation projects, that require little investment or certification, some help in production start or putting the product on the market. In other words these are the projects that require a little impulse. The third nomination covers implemented projects. These are the real energy projects on energy efficiency and energy conservation implemented either in the cities or villages, or at the enterprises.

The first project to start with is rather extraordinary and a unique one. It’s a geo-energetic power-plant generating energy from the Earth rotation potential. It may seem to be quite fantastic at first sight, when we saw it first we gave it a skeptical smile, however when we saw the author of the projects, we got down to its implementation. Currently we have created a construction department in Dnepropetrovsk city with a staff of six engineers working there. Previously they have been working at the construction department “Pivdenne”. This newly created construction office works under the direction of our Ukraine’s New Energy Alliance in the person of ex-deputy chief of spacecraft launch engineering department from construction office “Pivdenne”. The main point of the project for the time being is work on creation of the mathematical model of the Earth rotation energy generation. We have submitted this project for a patent in the USA. At present we are outpacing our competitors – Chicago University and NASA and I believe this project will be very successful. The Academy of Sciences of Great Britain proposed to finance the project. Nevertheless we rejected their proposal because of the agreement terms – they proposed patent rights to be transferred to the possession of Great Britain and the Academy of Sciences of Great Britain. We made a decision and declined the offer of 2 000 000 EUROs and now we are in the search of the investor. However, three months later Academy of Sciences of Great Britain approached us again with an offer of their financing but on more favorable terms with our patent ownership.

The second project – we are looking for the partner who is ready to join this project at the stage of the test piece, i.e. roughly in several months we'll have a mathematical model at hand and subsequently we'll proceed to the test piece construction. The second project is the wave station. Here we have advanced greatly with the same team. We have already submitted application to the European Commission for grant financing this project. The main point of the project is generating energy from wave power. We have been cooperating with Polska Innovation and soon a consortium is going to be founded with Gdansk Shipyard having great interest in it. To get hold of the test piece they are ready to buy it for their needs – for the dock power supply. As we were already informed, most likely the project will be granted financing, so we’re working persistently upon it. For implementation of further models we are in search of a partner as well.

The next issue is wind power-plants building. We are waiting for signed agreements with several Crimean local state administrations concerning allotment of prospective plots in the Crimea for wind power-plant measurement equipment installation. We have already been working with a couple of companies but still are at the stage of partner selection for wind power-plants construction. If there are serious companies that are interested in wind potential realization in Ukraine, please, we are open to cooperation. We are ready to become a serious partner, though a junior one, because a 100 MW wind power-plant cost will exceed 200 000 000 EUROs.

We intend to develop geothermal power engineering in Ukraine. The projects are already at the stage of development. We have all the data concerning the geothermal potential of Crimea and Transcarpathians. Together with our partners we made some progress in the implementation of such project in Ivano-Frankivsk. This process progresses in fits and starts however, because geothermal power engineering is quite specific: the geothermal source shouldn't lie at a great depth, and it shouldn't be located far from the consumer. That's why if we talk about the urban heating we must change the views of the officials of these cities and towns, district centres, settlements etc. in order to cut off the traditional energy source, e.g. an old boiler house etc. We are working in this direction and that's why if there are such companies which are interested in coming to Ukraine with their technology, with their capital investments and which need a partner which would solve local issues, and there are many of them - those who work in Ukraine already know about it - you are welcome, we are willing to cooperate.

There is one more project, I believe, it will be very important for Ukraine. It concerns the creation of the technological centre of the future energy. We have signed a protocol with the Cabinet of Ministers of Ukraine and with the Cabinet of Ministers of the Autonomous Republic of Crimea concerning the creation of the technological centre and energy-saving technologies where 50% of the capital will be attracted from the state and the other 50% will be a private capital. We have high hopes that the construction of this technological centre which is a part of the European Commission energy saving programme, will be financed by the European Commission. We work with the partners who have by this time built the first technological centre in Europe, located in Germany. Recently I was present at the opening ceremony of the second technological future energy centre in Europe in Normandy, France. All of them are financed by the European Commission and the European Commissioner for these matters had verbally affirmed our partners in Germany, that EC is interested in financing similar technological centre construction in Ukraine. This will be a unique technological centre: it will be energy-supplied with its own resources as much as possible; it will host companies selling energy-saving equipment, project bureaus, engineering companies developing energy-saving technologies, insurance companies, investment funds, as well as managers who will implement business-plans and prepare the basis for the implementation of these projects. Nowadays Ukraine is lacking this ability – the ability to prepare the project correctly, to stand up for it in the negotiations with investor and to report to the inspector on the capital assets application.

We also intend to create in Ukraine an investment fund on energy-saving and energy projects implementation. The problem is that the investment funds coming to Ukraine are spending tremendous amount of time to make decisions concerning the financing of the even profitable projects. This is due to the fact, that their developed procedures are not adapted to Ukraine. That's why those who worked with International Bank for Reconstruction and Development, who worked with other organizations which credit energy-related projects, know that the decision-making takes up to at least a year or two. However, some currently implemented projects have a pay-off period of two years at most. Therefore, we offer interested parties the idea of creation of the investment fund here, where the Western partner will be able to exercise management and coordination independently, or with our consultation. We plan to create it on the basis of the "The Fair of Ideas", on the basis of the technological centre which I already mentioned. To be more precise, we already have a team which will select the projects and develop the project specifically for the investor: one development plan - for German investor, another development plan - for American investor, still another development plan - for Japanese investors. Moreover, we will make offers, develop business-plan, will stand up for it, and this investment fund will finance the project. Therefore, it is important to create this investment fund in Ukraine, even rather small one – from one to ten million euro, but which will make decisions quickly.

In conclusion, I would like to stress that Ukraine has a huge potential, which is not exploited, however, because there is no consistency in the state decision-making system. As of today our political leaders - the Prime Minister, the President, even the Speaker of the Parliament of Ukraine are focused on the extension of their powers, and not on the implementation of the strategic projects. We are firmly convinced that this time will come. Moreover, by means of our actions, by means of actions of our colleagues, who are even present in this hall, we urge fundamental decision-making. E.g., we struggled for the ''Green Tariff'' law for two years, we made several motions, and even though only 20-30% of them were included in this law, yet, they were included. The problem is that the executives are not occupying their offices permanently, - the minister fills his post and he knows that he will leave in a year or two, that's why there is no consistency in and control over the decision-implementation. We are convinced that the way out of this situation currently lies in creation of such conglomerate which suggest to create within the technological centre: 50 per cent of the state funds, the state gives its guarantee by its presence, but the management must be independent, it must consist of the private structures, which will carry on its private business also profitable for the state. This is our conviction, and we do the best we can and I believe that together we'll succeed to achieve more. Thank you for your attention.

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