Ukraine to tap into its extensive alternative energy potential
2 December 2011; Kyiv, Ukraine – Ukraine is diversifying its energy sources and turning to harnessing its considerable renewable energy potential. The ‘Energy of Nature’ project offers solutions to much of Ukraine’s short term energy need whilst ensuring supply for the increase in industrial energy consumption predicted over the next 5 to 10 years. Ukraine is enhancing its energy autonomy by reducing dependency on imports of oil and gas and reducing the environmental impact of its existing carbon and nuclear based generation systems by encouraging the use of solar, wind, small scale hydro and biomass technology for the generation of clean electricity.
Recognising the economic and environmental importance of the ‘Energy of Nature’ project, the state is offering unique guarantees to secure the viability of the project, including: the commissioning of all feasibility studies, aiding with the allocation of lands for power stations and securing administrative permits and licences. The state also offers guarantees to purchase electricity generated as well as ensures stability within the regulatory environment and tariff policy pertaining to the profitability of project.
One specific incentive is the ‘green’ tariffs legislation which went into effect in 2009 and guarantees some of the highest tariffs in Europe for electricity generated from renewable sources. The tariff is based on a series of multipliers of the retail rate depending on the source of renewable energy. The tariff encourages domestic production, as well as the use of local materials and services, by stipulating a domestic production requirement of 30% as of 2012 to be increased to 50% by 2014. The law offers additional safeguards against exchange rate fluctuations by stipulating a minimum tariff denominated in Euros that will stay in effect until 2030.
The state has also established a number of additional customs and tax exemptions to encourage the generation of energy from renewable sources. These include income tax exemption for energy companies utilising renewable sources and tax exemptions on the import of equipment used in the production of alternative energy.
“Ukraine has abundant potential in the area of renewable energy and ‘Energy of Nature’ has been designed to maximise both the use of renewable energy resources and investor profitability.” stressed Vladyslav Kaskiv, Head of the State Agency for Investment and National Projects of Ukraine.
The ‘Energy of Nature’ project is just one element of a wider programme of 10 projects, five of which are currently being promoted in a road show in the world’s largest financial centres, aimed at securing increased foreign direct investment into the Ukrainian economic sphere. Each of the featured projects has been designed to provide long-term social benefits whilst offering investors secure and viable opportunities to enter the largest market in Eastern Europe.
The project has already generated high interest among international investors at various stops of the road show, namely during presentations in London, Frankfurt, Vienna, Madrid and Chicago earlier this month. Expertise of countries like Austria and Germany which have a high share of energy generated from renewable sources will be invaluable during the implementation of the ‘Energy of Nature’ project in Ukraine.
Andre Kuusvek, Director of the European Bank for Reconstruction and Development
in Ukraine, noted at the start of the road show in London that the EBRD is ready to invest primarily in projects related to energy: "Energy is very important for Ukraine. Given the dependence on Russian gas, it should develop its own energy sources, in particular, the renewable ones.” Mr. Kuusvek went on to mention that the EBRD has already invested in excess of 200 million Euros in renovation of a hydroelectric station in Ukraine.
- Ends -
Notes to Editors
About State Agency for Investment and National Projects of Ukraine
The principal objective of the Agency is to actively attract foreign direct investment into the Ukrainian economy through a number of strategic national projects.
The National Projects are currently 10 strategic projects focused on main priority areas essential to Ukraine’s economic development. National Projects are guaranteed by the State and form an essential element of the broader strategy to encourage long-term cooperation with investors on projects of national importance. Designated areas of immediate priority include the diversification of energy supply, including emphasis on renewable sources and critical infrastructural updates.
In 2011 the Agency established the strategic programme for investment allocation, which consists of the following elements:
• Creation of a project marketplace – a comprehensive database of investment opportunities in Ukraine
• Active promotion of the most significant projects, both at local and industrial levels
• Creation of a one-stop shop mechanism through which investors can find direct access to the Ukrainian market
InvestUkraine is a designated Investment Promotion Unit within the State Agency for Investment and National Projects of Ukraine. Its principal goal is to provide high quality investor services utilising the one-stop shop mechanism to provide investors with direct personal assistance and guidance throughout the investment process.
InvestUkraine has been formed to provide the maximum level of comfort to investors through the provision of all-round support and custom services. In order to provide these services InvestUkraine is equipped with an exceptionally well-qualified staff and extensive network of regional branches across Ukraine.
InvestUkraine is a:
• Simplified system of cooperation between the Investor, the Ukrainian authorities and the investment opportunity through the one-stop shop mechanism
• Governmental vehicle for direct investor support, information access and legal advice, high quality consultancy and project integration for strategic investors interested in investing in Ukraine
• Easiest and shortest route from business plan to operational business available to international investors
For more information, please visit:
For an updated scheduled of the road show, please visit:
For more information, please contact:
Head of National Project ‘Energy of Nature’
Tel.: +38 044 254 40 15 / +38 044 254 40 11
Fax: +38 044 501 11 44
1 Skovorody St 04070
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