Page 75 - Azerbaijan State University of Economics

A.Rozhko, H.Wiesmeth: Framework conditions for using renewable energy sources:
Quo Vadis, Ukraine?

The share of renewable energy in gross energy consumption shall rise only to 4.1% by

2030. This is, however, little in comparison with the 20% (average) in the EU Member States.
The amendment to the Energy Strategy is currently being discussed and has therefore not

yet been approved.
2.4. The Actual Situation in the Realm of Renewable Energy in Ukraine

Despite complex and partly contradictory legal framework on the political, legal, and
socio-economic level the number of projects in the field of renewable energy in Ukraine is

steadily increasing. However, under present conditions only big investors can participate in the

further development of the energy supply from renewable energy sources (projects with a
minimum installed capacity of 1 megawatt (MW)). These include the wind energy project Eco-

Optima (Lviv Region) with 12.5 MW of installed capacity, which was built using funds of the

European Bank of Reconstruction and Development; the solar power project Perovo (Crimea)
with 105 MW installed capacity, an investment project of the Austrian company “Active Solar”.

In addition, it takes approximately 1-1.5 years in order to receive government approval for
such investment projects with the cost of the approval process amounting to approximately 65

thousand Euros.
The solar power plant Perovo (as well as the other solar power systems of the Active Solar

Group) can feed electricity into the power grid and sell it for a fee of 5.05 UAH / kWh

(approximately 0.46 eurocents / kWh). However, this tariff shall be reduced in three steps,
namely in 2015 (by 10%), in 2020 (by 20%) and in 2025 (by 30%). According to the legal

regulations, the feed-in tariff for installations completed in 2014 or later must also be reduced
stepwise. Government and investors expect that the cost of financing and prices of installation

components will decrease in a similar manner.
The total number of companies, doing business in the field of renewable energies, and

producing electricity according to the «green tariff» has grown to 66. The number of systems

installed in Ukraine is around 110 with 23 solar systems. The installed capacity of the plants
generating electricity from renewable energy sources has increased over 2.5 times in 2011,

mainly driven by the extraordinary growth of solar capacities.

When the law «On the electric power industry» was updated with «green feed-in-tariffs» in
April 2009, the coefficients were calculated on the basis of the minimum level of feed-in tariffs.

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