Ukraine Attractive For Energy Investment
Ukraine appeared on the latest Ernst & Young
Renewable Energy Country Attractiveness Indices, proving to be an attractive
emerging market for renewable energy. The November issue of the respectable
index lists solar, wind, and hydropower industries as top renewable energy
sectors in Ukraine.
The new report by Ernst & Young describes Ukrainian
renewable resource potential as "impressive" and lists tax incentives
available to green energy companies: corporate tax exemption on sales for 10
years starting January 1, 2011, VAT exemptions on certain imports, and a 75%
reduction of land tax on the purchase of land for green energy projects.
The leading source of renewable energy in Ukraine is
hydropower, reports Ernst & Young. Installed capacity is 150 MW. The
potential of the hydropower industry in Ukraine is estimated at 2.3 GW. The
country has 22,400 rivers that allow for small hydro plants to be built across
the country.
According to Ernst & Young, Ukraine also has strong
solar potential. The November report lists the country as the one that offers
favorable tax climate - the feed-in tariff in the country is over € 0.40/kWh.
Moreover, it is claimed that Ukraine hosts the largest photovoltaic power plant
in Central and Eastern Europe. The capacity of the facility is 80 MW.
Analysts at the British audit company note that
Ukraine's highest renewables potential lies within its offshore wind industry -
the country ranked 27 in the respective category. The wind powered energy
production in Ukraine has installed capacity of 87MW (as of Dec. 2010) and
projected capacity estimated at 19-24 GW.
Suffice it to say that Ukraine's biomass industry constitutes
over two-thirds of the country's potential on the market of renewables.
Currently, under 0.5 percent of energy is produced from biomass but the
estimated potential is ten times larger.
Ernst & Young concludes that there are strong signs
that Ukraine is committed to meeting the goal of generating 19% of energy from
renewable energy sources by 2030 (according to the Government's 2006 strategy).
The national project Natural Energy, launched in 2010, sets an objective to
increase the share of Ukraine's renewable energy production on the state energy
market up to 30 percent by 2015.
SOURCE Worldwide News Ukraine
