Will alternative energy sector develop in Ukraine?

Author : Tymur Chmeruk

The total amount of renewable energy in Ukraine has doubled from 2,300 MW at the end of 2018 to 5,000 MW at October 2019
22:27, 27 November 2019

For nine months of 2019, 2 billion euros have already been invested in renewable energy sources in Ukraine. In particular, during this time, we installed solar power plants that generate 2000 MW, wind power plants at 400 MW. 24 MW biogas plants; 13 MW small hydropower facilities and 4 MW biomass facilities.

Thanks to them, the total amount of renewable energy in Ukraine has doubled from 2,300 MW at the end of 2018 to 5,000 MW at October 2019.

To optimize green energy spending, Ukraine must move from green tariffs to green auctions. Even the previous composition of the parliament passed a law, which should allow green auctions. Although it was planned that this would happen six months earlier - on July 1, 2019.

If from 2020 Ukraine does not move from the practice of the highest green tariffs in Europe to a green auction, then the country will not receive good consequences in the future. Clean energy will cost the state too much.

Renewable energy currently accounts for about 1.9% of total production, but we pay about 9% of total costs for it.

If authorities do not change the situation in the near future, everyone may suffer: the state will not be able to provide a full redemption of electricity and will announce default on its obligations, investors will lose the money they invested in the construction of plants, and banks will lose the money they gave as credit to investors.

In general, the industry potential in Ukraine is very large. Over the past 4 years, $ 1.7 billion of foreign investment has been attracted to the green energy sector of Ukraine.

For example, Ukraine attracts about $ 1.2 billion of investments a year. For 4 years, this is approximately 4.8 billion dollars, that is, alternative energy accounts for about 35%. These are significant figures that say a lot.

Related: Expensive pleasure: Are there any prospects for green energy in Ukraine?

Related: Would green tax increase help Ukraine overcome environmenal challenges



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