Latest Ukraine Renewable Energy Newsletter (#22) published

The latest issue of Ukraine Renewable Energy Newsletter was published. You can download full version here. Please see below introduction and the list of content.


We welcome the initiative by the Members of the Parliament to increase green tariffs for small hydro power plants (SHPP), differentiate them based on the capacity of SHPP as well as to increase eligible capacity limit for being part of the green tariff support scheme from 10 MW to 20 MW. We believe that such proposals are in line with best international practice and will fix the current unfair situation when small hydros are getting significantly lower tariffs then other RES power plants. Considering that Ukraine, especially its western regions, has significant unused hydro potential, approval of the proposed legislative amendments will support more active development of hydro power plants.

Considering that environmental organizations have recently expressed serious concerns about unsustainable development of SHPP project, we believe that increased green tariffs will allow SHPP developers to allocate sufficient budgets for designing and constructing the power plants that will be environmentally friendly and developed in line with the European standards in this area. As hundreds of SHPP are successfully operated in Europe not causing any harm to the nature or local communities, it is not so difficult to achieve the same in Ukraine if local developers involve experienced international engineering companies early enough to share respective technical know-how and prepare high quality design documentation for the projects.

We are also glad to observe new attempts by the Parliament to approve the green tariff for biogas projects as we continue to believe that biomass, biogas, land fill gas and similar projects have even bigger importance for the country than wind and solar projects.

I. Legal and Regulatory Developments

1.1. Legislative changes in corporate profit tax exemption for renewable energy producers

1.2. MEDT offers to delegate the authority to issue certificates confirming the Ukrainian origin of goods for “green” energy

1.3. Members of the Parliament propose to extend the green tariff for hydropower plants with capacity of up to 20 MW

1.4. Members of the Parliament repeatedly propose to establish the green tariff for biogas projects

1.5. The NERC has increased the installed capacity of Hydroenergoinvest 1.6. The NERC has adjusted the green tariff for renewable energy producers for April 2012

II. Investment News

2.1. EBRD is considering EUR 48.8 million loan to wind park Novoazovsky

2.2. Global Climate Partnership Fund lends USD 30 million to Ukreximbank

2.3. French-based CNR to construct a 50 MW wind power plant in Crimea

2.4. Helios Strategia to construct roof solar power plants in Ukraine in 2012

2.5. Activ Solar news

2.6. Eco-Optima news

2.7. MHP to build a large biogas plant

III. Commercial and Economic Developments

3.1. Ukrainian interest rates

3.2. Ukrainian exchange rates