By Swann Bigot, legal expert and consultant in emerging markets, for Eurasia Network – October 21, 2019
A solar power station among fields – Photo credit : Pexels.com
With an economic growth forecast of 3% in 2019 and 3.2% in 2020, Ukraine offers interesting opportunities to investors in several industries. One of the most dynamic sectors is the energy industry, which is undergoing modernization and transformation.
The Ukrainian solar power industry is booming. Over the past five years, 2,169 MW of new renewable energy capacities have been built in Ukraine, for a global investment worth around EUR 2 billion. Moreover, Ukraine works on the integration of its energy system into the European energy space.
During the first quarter of 2019 a total of 862 MW of new renewable energy capacities was added in the country, which is more than whole previous year, when 848 MW were installed. Solar PV capacities amounted to 684 MW in this volume of 862 MW.
The solar PV capacities will continue growing in the coming years as Ukraine set the official target of 25% of renewable energy share by 2035 and provide attractive conditions to investors and energy companies.
The profitability of investment in a Ukrainian solar power plant is reported to be 18-20% per year.
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The energy transformation started ten years ago, when Ukraine launched the reform of its energy sector and adopted in 2009 the first legislation related to renewable energy. However, the boom of investments really happened in 2014.
Solar power plays a key role in this process. Numerous foreign and local companies are actively engaged in solar farm projects in the country, driving investments and new skills, building new generating facilities and manufacture capacities. The attractive feed-in-tariff, one of the highest in the world is a major criteria. This green tariff amounts currently EUR 0.15 per kWh for ground solar plants and EUR 0.16 for rooftop solar plants.
In order to secure this feed-in-tariff, investors must ensure that power plants are commissioned by 31 December 2019. Indeed, a new legislation voted in April this year enacted the decrease of the feed-in-tariff for projects launched from January 2020.
Dozens of solar power stations are now built with Ukrainian or foreign investments, using the incentives brought by the new legislation.
These new solar power generation capacities must help to cover the national energy needs, with a population reaching 44.2 million inhabitants in 2017. The development of related infrastructure is also expected to revive the national economy after years of recession, provided necessary equipment is produced locally. The Ukrainian solar power industry is now among the most attractive for foreign direct investments together with agriculture and IT sector.
The International Renewable Energy Agency revealed in 2017 that the solar power cost-competitive potential of Ukraine amounts to up to 70 GW by 2030 if more stable frameworks are enforced.
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The Ukrainian political climate is favourable to foreign investments. The President Zelensky wants to continue reforming the country with the help of Ukrainian and foreign businessmen, experts and companies. During the forum “Dialogue of business and Government” held in Kyiv on June 20, the head of state called to develop renewable energy capacities and energy efficiency.
The Ukrainian solar energy market is also promoted abroad, since officials met with investors and businessmen at the “The Ukrainian Renewables Forum” held in London on June 24. The new legislation introducing auctions procedures from January 2020 and reforming the feed-in-tariff has been presented.
The goal of this Market Outlook is to help investors looking for income opportunities in emerging markets by giving them an overview of the solar power industry in Ukraine for the period 2018-2022.
Indeed, when looking at the Ukrainian solar power market, investors, energy operators and EPC companies ask the following questions :
- Is it the right time to invest in solar energy in Ukraine ?
- What are the legal and the regulatory frameworks ?
- How to invest in Ukraine ?
- What is the national solar energy target ?
- What are the foreign companies already engaged in this market ?
- How much have they invested ? Are these solar farm projects successful ?
- What is the national market situation ?
This report will answer these questions with 60 pages of valuable, “difficult to obtain” information and in-depth analysis of the Ukrainian wind power market.
The current renewable energy capacities and the official target for 2035 (Chapter I) are favoured by a financially interesting support scheme, secured until January 2030 (Chapter II). Dozens of solar power stations are now built in Ukraine (Chapter III), which enables the national industry to develop manufacture capacities, giving opportunities for private equity investors in search of sustainable and significant income in emerging markets (Chapter IV).
FIVE REASONS TO BUY THIS REPORT
- Help your decision making process about a complex but promising market ;
- Presentation of the Ukrainian target for renewable energy by 2020 and by 2035 ;
- Identification of key growth and investment opportunities in the Ukrainian solar power market ;
- Presentation of the major players of the Ukrainian solar power market ;
- An analysis of the recent reforms of the feed-in-tariff and the introduction of auctions for solar power projects ;
After the payment you will receive the report and an invoice in pdf format.
The report is written in English and delivered by e-mail after the payment.
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Single User License : the report can be used by the individual purchaser only.
Several Users License : the report can be used by 2 up to 5 employees within the purchasing company.
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© Copyright 2020 – Swann Bigot, legal expert and consultant in emerging markets.