Ukraine’s generous green tariffs have helped allure global investors
While renewable energy is still a relatively small industry in Ukraine, the sector has witnessed phenomenal growth in recent years. In 2019 alone, renewable energy capacity doubled and now makes up around 4% of the energy mix. With the goal to have 25% of the grid fed by renewables by 2030, investment in wind, solar, hydro and biomass is set to continue growing as the industry becomes increasingly attractive to foreign investors.
Investors are coming from Europe, Canada, and the US, and are attracted by Ukraine’s vast renewable potential, generous green tariff (one of the highest in the world) and favorable business and legislative climate. “Now we have a lot of FDI coming in, so the market is really growing,” says Maksym Kozytskyy, CEO of Eco-Optima, the largest renewable energy company in Western Ukraine.
As one of the chief drivers of renewable energy development in Ukraine with its wind, solar, hydro and biomass projects, Eco-Optima has also acted as a consultant to the government in the drafting of the progressive legislation that has made the sector so enticing for foreign investors today.
“Our next step for the renewable industry will be to create a transparent and competitive approach to providing access to the market,” explains Minister of Energy and Environmental Protection Oleksiy Orzhel. According to the government, $4.8 billion has been pumped into renewables in the past five years, while several projects with a total capacity of 2.5GW are currently being implemented.