Alternative energy sources. Opportunities and prospects for Ukrainian companies

The last few years in the world there has been a boom in alternative energy. According to the International Energy Agency, the annual increase in energy production from renewable sources is 7%, and their share in the total volume approaches 25%.

Ukraine is also joining the general development trend of this energy sector. 2019 was an extremely successful year for renewable energy sources in our country. According to Bloomberg, Ukraine took 8th place in the world in the number of investments in the industry, more than 2.5 billion euros. The capacity increase was 2.5 GW, which is also a record compared to previous years. In addition, last year, the second largest solar power station in Europe, Pokrovskaya, was launched, with a capacity of 240 MW. In total, domestic alternative energy accounts for 3-4% of the total output and amounts to 5.74 GW.

It is worth noting that the main investors in Ukrainian renewable energy are foreign companies, in particular Chinese and European enterprises. Consider the main advantages of investing in this sector of the domestic economy:

• Until mid-2019, Ukraine could boast one of the highest “green” tariffs in Europe, at which the state guaranteed to buy alternative kilowatts. Tariffs have been revised to date, but it still remains a profitable investment.
• Our country is one of the largest in Europe with large areas, and the relatively low cost of renting and selling land. Therefore, the installation of wind and solar power plants will be somewhat cheaper. In addition, the government opened the Chernobyl zone for the construction of power plants from renewable energy sources, and this is no less than 2600 sq. Km.
• The low cost of labor and the availability of qualified technical personnel make the Ukrainian market attractive. There is no need to attract expensive personnel from other countries.
• Favorable climatic conditions. Almost the entire territory of Ukraine, there are a sufficient number of sunny days for sufficient solar energy, and the southern regions are attractive for the installation of wind stations.

Based on the government’s announced plans to achieve a 25% share of alternative energy in the overall energy balance by 2030, and replace other energy sources by 70% by 2050, Ukraine will continue to take steps towards investors in this sector of the economy and protect their interests at the highest level.