Ukraine’s energy potential and recent economic reforms make Ukraine an attractive location for investments.
Under current regulations, SSH energy producers may sell electricity directly to customers under direct sale and purchase agreements or to the operator of the Ukrainian wholesale electricity market, state enterprise (“SE”) “Energorynok”.
The law obliges the latter to purchase such electricity at the applicable green tariff rate under sale and purchase agreements to be entered into until 1 January 2030. The green tariff (also known as the feed-in tariff) is a special tariff for the electricity produced from renewable energy sources to be bought by SE “Energorynok”.
The currently applicable green tariff rate for SSH projects is 0,1045 Eur/kWh.
Current situation in Ukraine
- 64 small scale hydro (“SSH”) power plants are in operation.
- 100 SSH plants can be restored.
- SSH share of electricity production is 0,11% (wind - 0,68%, sun - 0,33%, biomass - 0,05%).
Ukrainian National Plan for the Development of Alternative Energy Sources till 2020
- Market share by 2020 - 12% (as a consequence of Ukraine being bound by EU Directives through the Energy Community).
- Will require EUR 16 billion of investments to reach the 2020 target.
- To develop and operate SSH power plants in Ukraine, primarily in the western region of the country (Zakarpattia, Chernivtsi, Lviv), in order to benefit from national targets for renewables and market opportunities.
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