By Swann Bigot, legal expert and consultant in international affairs, for Eurasia Network – September 24, 2019

Wind turbines in fields, May 2017 - Photo credit S. BIGOT

Wind turbines in fields, May 2017 – Photo credit : Swann Bigot

The Ukrainian company Wind farm LLC launched in August the construction of the first phase of a large wind farm project with a total capacity amounting to 800 MW in the Nikolskyi and Manhush districts of the Donetsk oblast.

A power distribution line of 330 kV with a length of 32 km must be built to send the generated electricity to the regional power grid.

Registered in Kyiv last July, Wind Farm LLC is mainly engaged in the construction of wind farms, generation, distribution and trade of electricity. Legal documentation revealed that the main shareholder is Zhanna Nuzhnenko (94%) while the minority shareholder (6%) and Director is Yury Zhabsky, a former Director at DTEK Renewables and current member of the Board of the Ukrainian Wind Energy Association.

In the frame of this project, the Ukrainian state-owned companies Yuzhmash and Electrotyazhmash signed with Wind Farm LLC a Memorandum of Understanding for cooperation on July 18 in Kyiv, reported the Ukrainian Wind Energy Association.

Read also : German NOTUS Energy to build 270 MW of wind power in Ukraine

Wind Farm LLC wants to build a wind power plant in the Nikolskyi and Manhush districts of the Donetsk oblast with a total installed capacity of 800 MW. The company will support the domestic production of wind energy equipment and has begun to cooperate with all parties who will be involved in organizing the local production of wind turbines needed for this large project. The state-owned plant Yuzhmash will manufacture towers, blades and gondolas while Electrotyazhmash will produce generators.

The Director Yuri Zhabsky said when signing the Memorandum that :

The capacity of the new project is sufficient to form a portfolio of orders for organizing local production of components of wind energy equipment in Ukraine. This approach opens up new opportunities for the development of the wind power industry within the framework of a new political course in our country”.

Wind power is playing a key role in the Ukrainian energy transformation. Foreign and Ukrainian companies are actively engaged in wind farm projects in the country, driving investments, new skills, new generating facilities and manufacture capacities. Massive investments in wind power projects allowed the development of Ukrainian manufacture capacities supplying the wind energy industry.

The wind power industry is growing fast in Ukraine because the country offers a good wind exposure, available lands, strong energy needs due to aging infrastructure and a growing economy by 3% a year as well as financial incentives attracting investors. Local machine-building plants and a skilled workforce also help in the implementation in complex wind farm projects. Lastly, the European location of the country surely attracts Western investors and engineering companies that face more mature markets in Western Europe, with less available lands for big projects.

Read also : Why investors choose Ukraine for renewable energy ?

The country joined the European Energy Community in February 2011 and set in October 2014 the goal to increase renewable energy share in the national power mix to 11% by 2020. The Energy Strategy until 2035, adopted in 2017, set the target of 25% of renewable energy share by 2035. Local legislation offers financial incentives to investors. A bill voted last April introduced auctions procedure and reformed the feed-in-tariff. The new regime will start in January 2020 while a pilot auction must be held before December 31, 2019.

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© Copyright 2019 – Swann Bigot, legal expert and consultant in international affairs.

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