The importance of production and use of alternative energy sources in Ukraine. Lecture №1

1.

Lecture №1
The importance of production and use of
alternative energy sources in Ukraine
1.
The importance of energy for human life and society.
2.
World reserves of traditional energy sources.
3.
Dynamics of the cost of traditional fuels.
4.
The structure of Ukraine's energy consumption and its energy
dependence.
5.
Socio-economic necessity and socio-economic significance of
the development of the biofuels market in Ukraine.
6.
Environmental aspects of biofuel production and consumption.

2.

1. The importance of energy for human life and
society.
In physics, energy is the quantitative property that must be transferred
to a body or physical system to perform work on the body, or to heat
it.
Energy is a conserved quantity.
The law of conservation of energy states that energy can be converted
in form, but not created or destroyed.
2

3.

Generalization of existing approaches to the definition of the
term “energy security”
United Nations – “energy security” is the continuous availability of
energy in various forms, in sufficient quantities and at affordable prices.
The International Energy Agency – “energy security” is the
uninterrupted availability of energy sources at an affordable price.
Ukraine’s Energy Strategy for the period up to 2035 – “energy
security” is an integral part of economic and national security, a
necessary condition for the existence and development of the state.
Guaranteeing energy security is achieving a state of technically reliable,
stable, cost-effective and environmentally friendly provision of energy
resources of the economy and social sphere of the country, as well as
creating conditions for the formation and implementation of policies to
protect national interests in energy.
3

4.

Generalization of existing approaches to the definition of
the term “energy security”
The methodology for calculating the level of economic security of
Ukraine – “energy security” is the state of the economy, which ensures the
protection of national interests in the energy sector from existing and potential
threats of an internal and external nature, allows you to meet the real needs
for fuel and energy resources to ensure the livelihoods of the population and
reliable functioning national economy in the regimes of ordinary, emergency
and martial law.
Kovalko M.P. – “energy security” is one of the most important components of
economic security, which is manifested, firstly, as a state of providing the state
with fuel and energy resources that guarantee its full life, and secondly, as a
state of security of energy complex and energy capacity to ensure the proper
functioning of the economy, energy independence of the country.
4
Shidlovsky A.K., Vipanasenko S.I., Vorokhov L.P. – “energy security” is a
state of providing the state with fuel and energy resources that guarantee its
full life; the state of security of the energy complex and the ability of energy
to ensure the proper functioning of the economy, energy independence of
countries.

5.

5
Diversification of energy
production capacities
Strengthening energy independence from countries
importing fuel and energy resources, stability of energy
prices;
Price regulation
Energy resources must be available to consumers;
The level of investment in the
energy sector
Significant investment is needed to meet projected
growth in energy demand, and the availability of this
investment can be problematic for developing countries;
Concentration of suppliers
Dependence on imported fuel from a small number of
suppliers increases the risk of adverse effects on the
market;
Availability of infrastructure
examinations
Countries need to have access to different energy sources
to achieve different energy mixes;
Possibility to change fuel
Diversification of fuel use can be important for energy
security;
Political threats
The energy supply system can be vulnerable to
disruptions caused by political interests and terrorist
attacks.
Components of energy security systems

6.

Factors threatening Ukraine’s energy
security
6
1.
insufficient level of diversification of energy supply sources and
technologies;
2.
limited use of own energy potential and new technologies;
3.
excessive dependence on energy imports;
4.
ignorance of market mechanisms in the energy sector;
5.
low fuel and energy efficiency;
6.
criminalization and corruption of the energy sector;
7.
ineffective energy efficiency and energy supply policy.

7.

Generalization of approaches to the definition of the term “energy efficiency”
in the works of foreign and Ukrainian scientists
Official document
Definition
1
2
Law of Ukraine “On Energy Energy efficiency is an activity (organizational, scientific, practical,
Conservation” (№ 74/94-VR of July informational) aimed at the rational use and economical use of primary and
1, 1994)
converted energy and natural energy resources in the national economy and
implemented using technical, economic and legal methods.
Law of Ukraine “On Energy Energy-efficient products, technology, equipment – products or methods,
Conservation” (№ 74/94-VR of July means of its production that ensure the rational use of fuel and energy
1, 1994)
resources compared to other options for the use or production of products
of the same consumer level or with similar technical and economic
indicators.
Law of Ukraine “On Energy Energy saving (energy efficient) measures – measures aimed at the
Conservation” (№ 74/94-VR of July introduction and production of energy efficient products, technologies and
1, 1994)
equipment.
European
Commission Energy efficiency – reduction of energy consumption without reducing the
(“Communication on the Energy use of energy by production and equipment, ie it means the rational use of
Efficiency Action Plan”)
energy resources and alternative energy sources and reducing the overall
demand for energy resources in certain areas.
7

8.

Generalization of approaches to the definition of the term “energy efficiency”
in the works of foreign and Ukrainian scientists
Official document
Definition
United States (Department Energy efficiency cannot be expressed by a single indicator, so there are many
of Energy)
approaches to its definition or interpretation as a concept: energy efficiency is
the necessary level of energy resource consumption to achieve a certain level
of well-being (for example, economic, social, human life standards, the state of
the natural environment and etc.). Energy efficiency is an indicator that refers
to energy intensity, it is a complex system of indicators, the interpretation of
which depends on the system for which it is calculated, it is important to
monitor the dynamics of these indicators, as well as ensure their dynamic
improvement through cost-effective mechanisms (technological renewal and
the use of resource-saving technologies).
Institute of Environmental Energy efficiency means using less energy to perform the same task - that is,
and Energy Research
eliminating excess energy use.
Federal Ministry of the
Environment,
Nature
Conservation,
Construction and Safety of
Nuclear
Reactors
of
Germany
Pryshliak N.
8
Energy efficiency is a measure of the amount of energy required to achieve a
particular benefit. The lower the energy loss to achieve a specific goal, the
higher the degree of energy efficiency.
Energy efficiency is the rational use of energy resources (traditional and
alternative), which is the basis for the formation of energy independence.

9.

Energy intensity of Ukraine's GDP
№
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
504,4
521,5
538,4
516,7
51458
49359
47821
0,092
0,093
89072
86402
0,165
0,167
GDP, billion international dollars
1
540,3
569,8
571,2
571
533,6
481,5
492,2
Final energy consumption, thousand tons of oil equivalent
2
74004
75852
73107
69557
61460
50831
51649
49911
Energy intensity, t of oil equivalent / thousand international dollars
3
0,137
0,133
0,128
0,122
0,115
0,106
0,105
0,099
0,099
Total supply of primary energy, thousand tons of oil equivalent
4
132308
126438
122488
115940
105683
90090
94383
89462
93492
Energy intensity, t of oil equivalent / thousand international dollars
5
9
0,245
0,222
0,214
0,203
0,198
0,187
0,192
0,177
0,179

10.

Classification of barriers to energy efficiency
10
Market
Market organization and price imbalances make it difficult for consumers to fully
appreciate energy efficiency; problems associated with the emerging conflict of
interest, if the investor cannot take advantage of the benefits of increased
efficiency; transaction costs (project development cost exceeds energy savings).
Financial
Advance costs incurred and benefits spread over time reflect the will of investors;
perception of energy efficiency investments as complex and risky, with high
transaction costs; lack of awareness of financial benefits from financial
institutions.
Information
Lack of sufficient information and understanding from consumers to decide on
the rationality of use and investment.
Regulatory and
institutional
Energy tariffs do not stimulate investment in energy saving and energy efficiency;
the incentive structure encourages energy companies to sell electricity rather than
invest in cost-effective energy efficiency; institutional bias towards supply-side
investments.
Technical
Lack of available energy efficiency technologies that are acceptable to local
requirements; insufficient capacity to identify, develop, implement and support
investments in energy efficiency.

11.

The main trends in the energy sector of the XXI century.
Preference will be given to high-quality fuels and efficient use of extensive
infrastructure (oil and gas pipelines, powerful and local power systems);
Developed infrastructure will remain the basis of the energy system, and the need for its
expansion will increase;
Preference will be given to complexes equipped with mechanisms of flexible
development;
The use of oil and gas will be reduced by increasing the share of renewable energy;
The use of renewable energy sources and the use of biofuels from biomass will be the
most important in the market of new technologies;
The role of decentralized technologies for local energy production will grow, especially
in urbanized regions with agricultural development.
11

12.

Possible threats to the energy security of Ukraine
1.
2.
3.
4.
5.
Internal threats
Insufficient availability of fossil energy
resources;
Low efficiency of energy use, which causes
their shortage;
Depreciation of fixed assets, obsolete
equipment, threat of accidents;
Increasing social tensions caused by rising
energy prices, industrial accidents;
Imperfection of state policy in the field of
energy efficiency and energy saving.
1.
2.
3.
4.
5.
12
External threats
Variability of prices and conditions of
supply of energy resources of the market;
Man-made disasters, greenhouse gas
emissions;
Contradictions in the geopolitical interests
of countries, political instability and
military conflicts in areas of concentration
of energy resources;
Lack of effective diversification among
energy importers;
Climate change, natural disasters.

13.

Structure of world energy consumption (a) and energy
consumption in Ukraine (b) by types,% in 2019
120
100
80
Other renewables; 2,1
Biofuels and waste; 9,3
Nuclear energy; 4,9
Hydropower; 2,5
Other renewables;
Biofuels
and waste; 0,5
3,8
Natural gas; 22,8
Hydropower; 0,6
60
40
Nuclear energy; 24,8
Natural gas; 26,3
Coal; 26,9
Coal; 28,9
20
0
Other renewables
Biofuels and waste
Nuclear energy
Hydropower
Natural gas
Coal
Oil and derivatives
13
Oil and derivatives;
31,5
World, %
2,1
9,3
4,9
2,5
22,8
26,9
31,5
Oil and derivatives;
15,2
Ukraine, %
0,5
3,8
24,8
0,6
26,3
28,9
15,2

14.

The main directions of improving the energy efficiency
of Ukraine's economy should be:
educating citizens about energy saving awareness, encouraging the use of household
appliances and lighting with high energy efficiency;
reduction of energy consumption of households, commercial and communal sectors
for heating needs by increasing the energy efficiency of residential and public
buildings, as well as improving the energy efficiency of heating appliances;
completeness and transparency of accounting for all forms of energy and energy
resources;
improving energy efficiency in the energy production and transformation sector,
primarily in the heat and power sector and district heating by optimizing capacity
utilization, technical and technological modernization;
14

15.

reduction of energy consumption in the systems of transportation
and distribution of electricity and heat through technical,
technological modernization and conceptual revision of energy
supply schemes taking into account the achievements in the field
of decentralized energy supply, in particular through the use of
RES and energy management;
assessment of the potential for optimizing the central heating
system by switching to individual heating in the regions and
facilities where it is economically feasible;
introduction of the energy management system at the level of the
state, cities, budget and administrative buildings and enterprises.
15

16.

2. World reserves of traditional energy sources.
16

17.

nuclear fuel
(uranium,
thorium, etc.)
oil; coal, peat; natural
gas
MAIN
TRADITIONAL
TYPES OF
ENERGY
muscular
strength of
animals and
humans
17
hydropower of
large
watercourses

18.

CRUDE OIL IS A FOSSIL SOURCE OF ENERGY, THEREFORE ITS RESERVES ARE
LIMITED AND NOT RENEWABLE. UNIVERSITY RESEARCHERS, GLOBAL
ORGANIZATIONS AND OIL COMPANIES CLEAR DIFFERENT OIL RESERVES IN THE
WORLD AND FORECAST DIFFERENT ON WHEN THEY WILL BE EXHAUSTED.
• Currently, there are optimistic and
pessimistic forecasts about the possible
timing of oil depletion. Yes, pessimists
believe that this will happen in 20-25
years, optimists point to a period of 50-70
years.
According to OPEC (The Organization of the Petroleum Exporting
Countries), the world's oil reserves are 1.5 trillion barrels.
18
18

19.

World oil consumption, thousand
bar / day. (1 barrel = 159 liters)
120000
100000
80000
60000
40000
20000
0
19
Source: based on the Biofuels Platform Statistical Review of World Energy.

20.

Proven oil reserves in the world
№
Country
Oil reserves, barrels
%
1
Venezuela
299,953,000,000
18.2%
2
Saudi Arabia
266,578,000,000
16.2%
3
4
5
6
7
170,863,000,000
157,530,000,000
143,069,000,000
101,500,000,000
97,800,000,000
10.4%
9.5%
8.7%
6.1%
5.9%
8
9
10
11
Canada
Iran
Iraq
Kuwait
United Arab
Emirates
Russia
Libya
Nigeria
United States
80,000,000,000
48,363,000,000
37,070,000,000
35,230,000,000
4.8%
2.9%
2.2%
2.1%
12
Kazakhstan
30,000,000,000
1.8%
13
14
15
51
Qatar
China
Brazil
25,244,000,000
25,132,122,000
16,184,100,000
1.5%
1.5%
1.0%
Ukraine
395,000,000
0.024%
Джерело: BP Plc, BP Statistical Review of World Energy 2020
20

21.

Factors contributing to the growth of consumption
of fuel and energy resources:
development of scientific and technological progress;
increase in population, vehicles and means of production;
improving the quality of life, accompanied by an increase in
energy consumption (heating, lighting, use of various
appliances).
Thus, according to the Organization for Economic
Cooperation and Development (OECD), over the past 10
years, the world's population has increased by 13%, the
number of cars by 50%, and transport distances have
increased by 65%.
21

22.

Major countries in world oil production,
2020, thousand barrels / day
Mexico
1910
Norway
2001
Kuwait
2686
Brazil
3026
Iran
3084
United Arab Emirates
3657
China
3901
Iraq
4114
5135
Canada
Russia
10667
Saudi Arabia
11039
16476
USA
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
22

23.

The main countries for natural gas
production, billion cubic meters (2020)
Algeria
95
Saudi Arabia
112
Norway
119
Australia
131
Canada
172
China
176
Qatar
181
Iran
248
Russia
725
USA
863
0
23
100
200
300
400
500
600
700
800
900
1000

24.

Natural gas production in Ukraine, billion cubic
meters
24

25.

3. Dynamics of the cost of traditional
fuels.
25

26.

Dynamics of world oil prices, gasoline and diesel prices in
Ukraine
35
113
120
111
106
29,6
30
31,8
86
25
18,9
79,7
29,18
23,7
75
28,3
26,12
80
71,5
66,3
23,8
58,5
52,8
14,6
16,1
45
15
10
8,4
27,5
7,1
21
4,5
2,8
3,1
3,2
3,2
3,4
3,5
5,7
9,5
9,4
9,3
10,6
10,5
64,8
60
55
48
48,5
10,3
40
10,9
8
6,4
20
5,1
0
0
2001 2003 2005 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
The average cost of Brent oil in the world, dollars / barrel
The average cost of A-95 gasoline at gas stations in Ukraine, UAH / liter
The average cost of diesel fuel at gas stations in Ukraine, UAH / liter
26
100
29,06
26,54
26,4
20
5
29,1

27.

Tariffs for natural gas for the population on average per year depending on the availability of
the meter, the amount of consumption and the accrual period
Gas price, UAH
9000,0
8000,0
7000,0
6000,0
5000,0
4000,0
7920,0
7188,0
7188,0
6957,9
6957,9
6222,6
3000,0
4495,0
2000,0
3600,0
3600,0
1000,0
725,4
0,0
2013
27
725,4
1089,0
2014 (1) 2014 (2) 2015 (1) 2015 (2) 2016 (1) 2016 (2)
2017
2018
2019
2020 (1) 2020 (2)

28.

4. The structure of Ukraine's energy
consumption and its energy dependence.
Ukraine is an energy-deficient country. According to the State Statistics Committee of Ukraine, in 2019 the total supply of
primary energy in Ukraine amounted to 89072 thousand tons, of which imports - 34768 thousand tons AD. Thus, the energy
dependence of Ukraine's economy on energy imports in 2019 amounted to 39%. The structure of imports is dominated by
energy resources such as coal and peat (13239 thousand tons AD), petroleum products (10443 thousand tons AD), crude oil
(1341 thousand tons AD) and natural gas (9506 thousand tons AD). The deficit of coal reserves is covered by imports from
Kazakhstan and the United States, crude oil and light oil products - from Kazakhstan, Kyrgyzstan, Turkmenistan, Belarus and
partly from the Baltic countries, natural gas - from the EU.
•Such a structure of energy consumption is economically impractical, creates dependence of Ukraine's economy on oil and
gas exporting countries and is a threat to its energy and national security.
28

29.

Total supply of primary energy in Ukraine and
own production in 2019, thousand tons of oil
equivalent
тис. т н.е.
50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
21771
25718
23383
3786
9747
560
Production
29
3362
426
Total supply of primary energy
348
667

30.

Structure of final energy consumption of
Ukraine in 2019, thousand tons of oil equivalent
Non-energy use ;
Agriculture, forestry 2796; 6%
and fishing; 1890; 4%
Commercial and public
services; 4475; 9%
Industry; 16126; 33%
Residential; 14004;
28%
Transport; 10064; 20%
30
Industry
Transport
Residential
Commercial and public services
Agriculture, forestry and fishing
Non-energy use

31.

5. Socio-economic necessity and socio-economic
significance of the development of the biofuels market
in Ukraine.
The main factors that determine the need for production and consumption of
biofuels in Ukraine:
•Dependence on energy imports (energy dependence)
•Exhaustion of fossil fuels
•Rising prices for fuel and energy resources
•Deterioration of the ecological situation
•Availability of natural resource potential
•Excessive exports of agricultural products
•Low level of employment in rural areas
3
1

32.

BIOFUELS
The need for production
Advantages
Exhaustion of natural sources of
energy resources
Formation of energy independence
of the state
Large amount of CO2 emissions
Rising prices for energy resources
Destabilization of the agro-industrial
complex
Dependence on energy-importing
countries
New jobs
Stimulation of agricultural
production
Loading of processing capacities of
sugar beet and alcohol industry
Reduction of harmful emissions into
the atmosphere
Weak energy security
Stabilization of work in the agroindustrial complex
Availability of free fertile lands
Increase in budget revenues

33.

Logical scheme of effects from the production and
consumption of biofuels from bioenergy raw materials
and waste
Socio-economic, energy and environmental consequences of
biofuel production and consumption
Economic:
- increasing the level of
profitability of
production;
additional revenues
to the state budget;
saving money on the
purchase of imported
energy;
reduction of costs for
the fight against
environmental
pollution.
33
Ecological:
- reduction of harmful
emissions into the
atmosphere;
improving people's
health, especially in cities;
- - avoidance of pollution
of soils and reservoirs
with organic waste of
agriculture.
Energy
- production of biofuels with
high energy balance;
independence from
imports of traditional fuels.
Social
- creation of new
jobs, mainly in
rural areas;
reducing
the
number
of
people
registered
at
employment
centers
and
receiving social
assistance;
infrastructure
development.

34.

6. Environmental aspects of biofuel production and
consumption.
Uncontrolled and ever-increasing oil production and the use of petroleum fuels lead to many
negative environmental phenomena that threaten our health, economy and the
environment, namely:
climate change;
formation of acid rain;
oil spills;
explosions and fires on oil rigs.
34
3
4

35.

ENVIRONMENTAL BENEFITS OF BIOFUELS:
- During the combustion of biofuels based on plant biomass, 20-30
times less sulfur oxide and 3-4 times less ash is formed compared
to coal.
- A by-product in the production of liquid and gaseous biofuels is
organic matter.
- Reducing the risk of greenhouse effects and, as a consequence,
climate change.
Greenhouse gas - a gas that traps infrared radiation from the earth’s surface,
leading to global warming on the planet. The main greenhouse gases are: carbon
dioxide (CO2), methane (CH4), nitric oxide (N2O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) and sulfur hexafluoride (SF6).
35
3
5

36.

Basic principles of reducing anthropogenic emissions and increasing greenhouse gas emissions
minimization of adverse social, environmental and economic consequences of anthropogenic greenhouse gas
emissions;
scientific validity, consistency and competence of the approach to reducing anthropogenic emissions and
increasing greenhouse gas emissions;
creation of stimulating conditions for doing business in the field of introduction of environmentally efficient
technologies and achievements aimed at reducing anthropogenic emissions and increasing the absorption of
greenhouse gases;
ensuring state regulation of the activities of economic entities in terms of reducing anthropogenic emissions and
increasing the absorption of greenhouse gases;
formation and implementation of state policy and measures in accordance with the national conditions set out in
Article 2 of the Kyoto Protocol;
regulation of greenhouse gas emissions, level of technological processes, technical condition of equipment and
facilities in combination with market mechanisms to reduce greenhouse gas emissions and increase their
absorption, aimed at economic growth and stimulation of new technologies and innovations;
ensuring the economic attractiveness of investments aimed at improving environmental efficiency and reducing
greenhouse gas emissions;
use of market relations and competition as one of the main tools to increase environmental efficiency;
stimulating the development of the energy complex on the basis of bioenergy, transport, utilities, resourcesaving production, housing and related services, improving the environmental situation in Ukraine and
improving the quality of life.
36

37.

In the worst case scenario, if greenhouse gas emissions are not reduced, temperatures
could rise by more than two degrees by about 2055. And by 2100 it will rise by four
degrees.
At the same time, according to research, over the past 45 years, the volume of Arctic ice
has fallen by 13%, and sea levels in 100 years have risen by 20 centimeters. In addition,
many regions are more likely to suffer from extreme heat, heavy rains and severe
natural disasters. Due to climate change, yields are falling and the population of some
species is shrinking, both in the ocean and on land.

38.

Recommended Books
38
Калетнік Г.М. Виробництво та використання біопалив: підручник. В.:
Консоль, 2015. 408 с.
Калетнік Г.М., Пришляк В.М. Біопаливо: ефективність його
виробництва та споживання в АПК України: навч. посіб. К.: Хай-Тек
Прес. 2011. 310 c.
Калетнік Г. М.Біопаливо. Продовольча, енергетична та екологічна
безпека України: монографія. К.: Хай-Тек Прес, 2010. 515 c.
Блюм Я. Б. , Гелетуха Г. Г., Григорюк І. П., Калетнік Г.М. та ін. Біологічні
ресурси і технології виробництва біопалива : монографія. К.: Аграр.
Медіа Груп, 2010. 403 c.
Калетнік Г.М. Розвиток ринку біопалив в Україні: монографія.
К.: Аграрна наука, 2008. 464 с.
Блюм Я.Б., Григорюк І.П., Калетнік Г.М. та ін. Система використання
біоресурсів у новітніх біотехнологіях отримання альтернативних
палив: моногр. К.: «Аграр Медіа Груп», 2014. 360 с.

39.

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