Great renewable potential


Great renewable energy potential in Ukraine

Ukraine’s renewable energy market becomes ever more important, especially with the steep increase in gas price and the adoption of green-tariff price incentives for electricity from renewable energy sources in 2009.

The government set a green tariff for power produced from renewable sources which is two times higher than the wholesale price for power produced from traditional sources. It is widely expected that the introduction of the green tariff will boost activity in the sector.

Other preferences include duty-free imports and exemptions from value-added taxes. Ukraine’s mid-term energy strategy targets a level of 10% of renewables until 2030, the potential for renewables being much higher. (Renewable Energies Export Initiative, German Ministry of Economics and Technology)

Ukraine only starting to harness potential of renewable energy

Kyiv Post, Feb. 2, 2012— by Mark Rachkevych
 
Ukraine is beginning to harness what Mother Nature has endowed it in a big way. Every shade of investor, from local and foreign, to municipal and portfolio, is starting to take advantage of Ukraine’s vast natural resources to produce renewable energy.



It’s an energy boom experts say that is being fueled by a practicable green tariff policy, institutional and Russian bank lending, and a range of tax exemptions for green energy companies and projects.



“Ukraine is a dynamic emerging market for renewables,” said Yuri Kubrushko, director of IMEPOWER, a consultancy that advises banks, and local and foreign renewable energy developers. “It’s a new market with many players where there are commissioned power plants with green tariffs and many more under development.

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The nation’s energy regulator says as of February that 61 companies receive green tariffs in wind, solar, biomass and hydroelectric energy for more than 100 projects, since it introduced a more conducive green tariff policy in 2009. There are at least as many in the pipeline.