Ukrainian PV Market analysis

1. SOLAR ENERGY
MARKET IN UKRAINE
Kiev, 2011

2. The New Energy Strategy for Ukraine Up To 2030
 The New Energy Strategy for Ukraine to 2030, which was approved by
the Ukrainian Government in spring 2006, estimates that Ukraine will
nearly quadruple its use of non-conventional energy sources, which
under Ukrainian legislation include renewable and waste energy sources
- from 10.9 Mtoe in 2005 to 40.4 Mtoe (Million Tones of Oil Equivalent)
in 2030. This initiative would require investing some UAH 60.4 billion
(EUR 7.9 billion) into the energy sector.
 The highest growth is expected in the use of solar energy, wind farms
and low-potential heat, although the growth will start from a very low
base as currently the installed capacity in this sector (including small
hydro power plants) amounts to 0.18 GW. Nevertheless, the total
capacity of power plants generating electricity from alternative energy
sources (except for biofuel and small hydro plants) is supposed to grow
to 2.1 GW in 2030.
 The Strategy envisages the development of renewables in accordance
with the fundamental principles of the “Green Book: European Strategy
for Secure, Competitive and Sustainable Energy”. The Energy Strategy set
out a number of incentives to stimulate renewable energy production
and use.
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3. Green Tariffs
 In 2009 the Ukrainian parliament adopted a law
on subsidized tariffs for electricity produced from
renewable sources, i.e., green tariffs. The
Wholesale Electricity Market of Ukraine has an
explicit obligation to purchase all volumes of
electricity produced from alternative energy
sources at the green tariff.
 The green tariff is established by the National
Energy Regulation Commission for each
generating company and will be effective until 1
January 2030. The green tariff shall differ from
one type of an alternative energy source to
another.
 The green tariff, as established separately for
each generator producing electricity from
alternative energy sources is denominated in
Euros pursuant to the official EUR/UAH exchange
rate established by the National Bank of Ukraine
as of 1 January 2009 (UAH 10.86 for EUR 1).
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4. Green Tariff for Solar Energy - Calculation
 According to the Law, “the amount of the green tariff for legal entities that generate the electric power
from solar energy shall be established at the level of the retail tariff for consumers of class two voltage
as of January 2009 calculated using the tariff factor applied for peak hours (for three-zone tariff
classification), multiplied by green tariff factor for the electric power generated from solar energy”.
 Generators of electricity from solar energy can benefit from the highest green tariff indexes:
 4.4 – for electric power facilities mounted (installed) on roofs of buildings, houses and structures, with their
installed capacity under 100 kW, as well as for facilities integrated in buildings’ facades regardless of their
capacity;
 4.6 – for electric power facilities mounted (installed) on roofs of buildings, houses and structures, with their
installed capacity being over 100 kW;
 4.8 – for ground installations.
 Tariff factor for peak hours is 1.8 as stipulated by National Energy Regulation Commission (Decree #
529 dated 19/07/2005).
 However, the “green” tariff incentive is applied provided that:
 Starting from January 1st 2012 the share of materials, components, works and services of the Ukrainian origin
in the project for the construction of “green” power generating facility is not less than thirty per cent, and
starting from January 1st 2014 – not less than fifty per cent.
 Starting from January 1st 2012, the share of materials and components of Ukrainian origin in solar modules
that are used in a PV project is not less than thirty per cent.
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5. Green Tariff for Solar Energy - Rates
 Hence, according to the Law, solar green tariff rates are as follows:
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6. Sources of funding
 Ukrainian State agencies are cooperating and implementing energy
saving projects and developing new and renewable sources of energy
with foreign organizations such as NEFCO, ADEME, SIDA as well as
international organizations such as EBRD, the World Bank, IFC, USTDA,
OPIC, etc.
 International financial institutions are investing increasing amounts in
Ukraine:
• The IFC declared its intention to invest about USD 500 million in
2010 to support implementation of different projects (including
those related to the power sector).
• EBRD approved the allocation of USD 50 million to development of
the alternative power sector in Ukraine.
• The World Bank will dedicate USD 250 million in 2010 for
implementation of the power projects in Ukraine.
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7. Existing PV projects
Operating projects
Declared projects
80 MWp
80 MWp
35 kWp
150 MWp
1 MWp 20 MWp
1,8 MWp 8 MWp
140 MWp 100 MWp
100 MWp 80 MWp
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8. SolarUA Company
 Established in 2009, SolarUA aims to become a leading EPC contractor and developer in the Ukrainian
photovoltaics market, which designs, manufactures and installs bankable utility-scale and commercial
PV farms. SolarUA offers specialized solutions for the realization of PV farms throughout Ukraine,
including:
 scouting for land;
 identifying location specific factors that can affect efficiency;
 system design and engineering;
 equipment selection and procurement
 permissions and authorizations to apply for the green tariff;
 installation and testing;
 operation, monitoring and maintenance.
 In partnership with leading PV developers, we ensure our clients met the legislative requirements as
well as CAPEX and power generation expectations to build a sustainable business in Ukraine.
 In order to meet a growing demand for solar modules in Ukraine and taking into account the fact that
certain provisions of green tariff legislation for PV farms come into force from January 1, 2012, i.e. a
requirement for a 30 per cent share of materials and components of local origin in solar modules,
SolarUA plans to build and operate the solar module production facility based on c-Si technology. We
are interested in developing win-win partnerships with investors, financing institutions, technology
companies and other PV market makers to execute our plans.
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