The development of alternative energy in Ukraine

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icon, alternative energy in Ukraine

Alternative energy

Alternative energy for Ukraine is a method to reduce the costs of expensive fuel rods purchased in Russia for nuclear power plants. Also it reduces the cost of their disposal and replacement and can further substitute worn out TPS (70%) which are vastly polluting the environment.

Although renewable energy sources in Ukraine has great potential, it is still hardly used. Experts note a number of negative factors that hinder the development of alternative energy in Ukraine. Chief among them are: outdated energy distribution networks; bureaucratic difficulties in processing permits and registration of land property rights; economic backwardness of the regions where building of alternative energy capacities is the most preferred.

In order to attract entrepreneurs to participate in the implementation of projects for sustainable energy development, the European Bank for Reconstruction and Development (EBRD) has launched a program of funding of alternative energy in Ukraine (USELF). In order to support projects, funding and implementation is often a difficult task, the Program provides not only the necessary financial resources but also technical assistance to members of the local market (uself.com.ua). The Bank has already allocated $50 million for the development of alternative energy. Plans in 2015 to increase the share of renewable alternative energy sources in the energy mix to 20% in Ukraine.

A number of wind and solar power has already constructed on the territory of Ukraine.

DTEK Wind Power Company (Donetsk) is considering investments of about 2 billion euros in the construction of several wind parks with a total capacity of up to 2 GW.

Ukrainian alternative projects are implemented with the active participation of foreign companies. Construction of the Crimean solar power station with capacity of 2.5 MW was carried out with the active participation of the German company Activ Solar. Also German company "Fuhrlander" is cooperating with Ukraine in construction of the wind park in Novoazovsk. With the active participation of GEONET Umwelt consulting GmbH Sivashinsky wind power station with capacity of 350 MW placed into operation. It is noteworthy that the payback period of investment in alternative energy projects in Ukraine is 7 – 8 years.

Also as part of the EBRD in the middle of 2014 is expected to put into operation the largest thermal power plant in Ukraine which would run on biomass. Its capacity will be more than 120,000 MW / year. For its financing EBRD allocated 15.5 million euros. TPP is located in the village Ivankov in Kiev region.

Payment for electricity generated by stations on alternative energy sources will be calculated under the "green" tariff, which is quite high compared with other countries, including the European Union. This is one of the key arguments for investment into Ukrainian alternative energy because is reducing the payback period of the project.

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