Bloomberg: Ukraine Expects USD 5 Billion Investment in Renewable Energy

Kyiv, February 23, 2012. In five years investment in Ukrainian market of renewables, including wind, biomass and biofuel energy, may reach USD 5 billion, stated Vitaly Daviy, the head of the Association of Alternative Fuel and Energy Market Participants of Ukraine in his interview with Bloomberg.“There’s a lot of interest from local and international companies right now in the Ukrainian solar market,” said Daviy.

As of today, investment in renewable energy in Ukraine is estimated at USD 2 billion according to Daviy. The Ukrainian government expects higher investment inflow to help increase solar capacity up to one gigawatt by 2015. Austrian Activ Solar GmbH is one of the major investors in renewable energy production in Ukraine. The Ukrainian solar energy sector also attracts such companies as world photovoltaic leader Sharp Corporation, energy management company Schneider Electric SA, and Norwegian solar power company Renewable Energy Corporation.

Photovoltaic electricity potential of the southern regions of Ukraine exceeds that of most European countries. Solar radiation in the country reaches 800-1450 W/m² per year.

Last year Ukraine installed solar panels with the total capacity of 200 megawatts, and in 2012 Ukraine may add 300 megawatts more, reckoned Daviy. Earlier, state enterprise NPC “Ukrenergo” informed that the total installed capacity at the renewable energy sites increased by 4 percent over 2011, while installed capacity for traditional energy somewhat decreased. Currently, Ukraine has two solar power plants – Okhotnykovo and Perovo – in south Ukrainian Crimea with installed capacity of 80 and 100 megawatts respectively.

As far as other energy sources, Ukraine possessed 117 megawatts of wind power capacity, 104 megawatts of hyndroenergy capacity, and 68 megawatts of bioenergy capacity as of December 2011.

In November of 2011, Ukraine appeared on the latest Ernst & Young Renewable Energy Country Attractiveness Indices. The respectable index listed solar, wind, and hydropower industries as top renewable energy sectors in Ukraine. The Ernst & Young report described Ukrainian renewable resource potential as “impressive”. The documents pointed out that Ukraine offered green energy companies significant tax incentives: corporate tax exemption on sales for 10 years starting January 1, 2011, VAT exemptions on certain imports, and a 75% reduction of land tax on the purchase of land for green energy projects.