The World's #1 Renewable Energy Network for News, Information, and Companies.
Untitled Document

Renewable Energy May Help Ukraine Abandon Russian Gas

Despite political instability and economical problems, Ukraine is pursuing the development of renewable energy in order to reduce dependence on gas supplies and economic pressures from Russia.

Ukraine’s energy consumption consists of about 40 percent natural gas, which is mostly imported from Russia. Renewable energy accounts for only about 2 percent of its energy capacity, with solar at 0.3 percent (130 MW) and wind at 0.2 percent (86 MW).

However Ukraine’s renewable energy portfolio promises to grow tenfold by 2020, with total investments amounting to €15 billion. Its main emphasis will be put towards the development of solar and biomass.

Major Solar Plans

One of the largest projects in the pipeline is the €2 billion portfolio of solar assets to be constructed by Chinese developer China National Building Materials Group (CNBM) - New Energy Engineering Co., Ltd. Once completed, the combined capacity of the solar parks will amount to 1,000 MW. Several other projects are also in the works, which are expected to contribute to 1,200 MW of capacity by 2022.

"We must accept the fact that Ukraine has a huge shortage of energy which creates the dependence in this sector from Russia. Therefore, we hope that the Ukrainian government will support renewable energy, which will reduce this dependence,” said New Energy Engineering CEO Mr. Chen Youngzhi.

However, this will only be possible if the government of Ukraine maintains the “green tariff,” according to Youngzhi. Plans to reduce the tariff were announced in early April in order to compensate for serious budget shortages.

The Ukraine tariff currently stands at 34 cents/kWh, and experts believe that the renewable industry will not be sustainable if it is lowered too soon.

"Ukraine is not in position and does not have the market conditions to decrease the green tariff. If they reduce [it] to the level of Germany, Spain, Greece — about €12-13 cents/kWh — no one will invest in Ukraine,” said Youngzhi. “Most investors will go to Germany, Japan and USA. Why invest in Ukraine, if there are much more favorable conditions in other countries.”

Biomass Ambitions

Ukraine also intends develop its biomass market. According to the chairman of the Ukrainian Association of Bioenergy Mr. George Geletuha, Ukraine can replace the 3.5 billion cubic meters of gas with bioenergy by 2020.

"We would save a lot of money if we use biomass. According to the strategy of our association, we will replace 3.5 billion cubic meters by 2020 and 7.5 billion by 2030,” said Geletuha.

Ukraine has significant biomass resources, including agricultural stalks, husks and seeds, etc., said Geletuha. Experts believe the development of bioenergy infrastructure may require about €3 billion, but the return on investment will be large.

"If we count what part of biomass can be taken to produce energy without harming the environment and which part is not used by other sectors, the average figure is 25-30 million tons of fuel per year, and Ukraine as a whole consumes 90 million tons of fuel per year,” said Geletuha. “So we estimate that biomass has the potential to reach 18 percent of all energy consumption in Ukraine.”

However, government analysts say that these figures are unrealistic because creating infrastructure to extract energy from biomass will take about two to three years, delaying progress.

US Aid

U.S. authorities also announced plans to help Ukraine’s transition to renewable energy. The U.S. Agency for International Development (USAID) recently launched a program that aims to help 17 Ukrainian cities conduct energy reform and improve energy efficiency, with emphasis on developing a renewable energy sector.

USAID has promised US $13.5 million towards the program, called Municipal Energy Reform. Its goal is to help large Ukraine cities optimize their energy expenditures and educate local business and authorities about renewable energy and how they can make the transition.

Local authorities in such cities as Lvlv and Lutsk have already embraced the initiative, claiming that Ukraine has an extremely low-level understanding of renewable energy and the project will help bring it to the level of other European countries.

According to vice prime minister of regional development, construction, housing and communal services Vladimir Groisman, USAID assistance will improve the energy efficiency of the country and, consequently, reduce gas consumption.

"Today, the 17 municipalities involved in the reform process. We must do everything to ensure that we could produce energy from renewable sources, and to ensure efficient use of energy at all stages of consumption,” said Groisman, noting that such reform will seriously contribute to the reduction of Ukraine dependence on Russian gas.

Lead image: Oleg_Mit via Shutterstock

Untitled Document

Get All the Renewable Energy World News Delivered to Your Inbox - FREE!

Subscribe to Renewable Energy World Magazine and our award-winning e-Newsletter to stay up to date on current news and industry trends.

 Subscribe Now


US Senate Democrats Unveil Energy Bill That Restores PTC and Extends ITC

Brian Eckhouse, Bloomberg Senate Democrats unveiled a bill that would provide more tax credits for renewable energy while killing some tax ince...

US, China Solar PV Players Team Up, Invest $100MM in Chile, Uruguay and Japan

Andrew Burger Private equity infrastructure specialist Hudson Clean Energy Partners and Hong Kong-based independent power producer ...

CEO Gilles: Challenge in Geothermal is to 'Level Playing Field' with Wind, Solar

Jennifer Delony The current challenge for the geothermal energy industry is what U.S. Geothermal CEO Dennis Gilles calls “leveling th...

NRG Energy to Form Renewable Unit, Sell Wind Assets to Yieldco

Mark Chediak and Matthew Monks, Bloomberg NRG Energy Inc., the worst-performing member of the S&P 500 Utilities Index this year, said it will form a renewa...


CleanTX Releases New White Paper on the Future of Texas Solar in Texas

We love this new White Paper from our clean energy partners CleanTX Welcomes Jennifer Delony as Associate Editor

PennWell Corporation is pleased to announce that Jennifer Delony has joined the company...

Customized Energy Solutions Executes Agreement with the Massachusetts Clean Energy Center (“MassCEC”) and the Massachusetts Department of Energy Resources (“DOER”) for Important Energy Storage Study

Customized Energy Solutions (CES) has entered into agreements with Massachusetts Clean ...

New Officers and Board Members Announced by IREC

A new slate of officers was elected by IREC's board of directors at its recent annual m...


energy efficiency

Beyond the Trend: Maximizing the Impact of Your Energy Efficiency Solution

A revolution is happening in the energy sector. From the new regulations pushed out earlier this summer by the EPA’s ...

Northeast States Create Cap-and-Trade Program for Greenhouse Gas Emissions

Northeast states have worked together for several decades to address air quality issues and, more recently, climate c...

Why the Solar PV Industry Should Love Geothermal Heat Pumps Pt 2

It’s a marriage made in heaven: Solar PV and Geothermal Heat Pumps Part 2 of a 6-Part Series Prevailing Heati...

Community Solar Helps Utilities Transition to a New Energy Future

A disruptive innovation is one that helps create a new market by improving a product in an unforeseen manner, th...


Vladislav Vorotnikov is the Russian journalist and expert in the area of the Renewable Energy. He is working in this area since 2004, firstly with the number of Russian magazines including “Renewable Energy Sources” and than with the European maga...


Volume 18, Issue 4


To register for our free
e-Newsletters, subscribe today:


Tweet the Editors! @jennrunyon



Successfully Integrating Solar: A Proactive Approach

•      What does the increasing solar penetrati...

Canadian Solar Inverters Webinar

Canadian Solar is proud to be hosting two free webinars in October! The ...

Doing Business in Europe – in partnership with GWEC, the Global Win...

There is now 128.8 GW of installed wind energy capacity in the EU (appro...


How To Speak, How To Listen

As sales professionals, effective communication is paramount to our succ...

Get In The Habit

We all develop habits throughout our lives. Sometimes they’re bene...

Becoming An Efficiency Sales Professional

In order to become a sales professional, you must first realize that: E...


Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now