Author: vseo_admin

On 19 February 2025, UWEA, together with Green Deal Ukraïna, the EUEA and IMEPOWER, held a closed online discussion dedicated to attracting private investment into Ukraine’s renewable energy sector. The event brought together key market players, government representatives and financial institutions to discuss ways to overcome the critical challenges facing investors in Ukraine. Private investment is the foundation for the development of “green” energy, but the pilot auctions of 2024 revealed serious problems in the market: limited access to financing, high war risks and an unstable regulatory environment, which hold back the attraction of capital. In response to this, UWEA and the EUEA initiated the creation of a Minimum Price Guarantee Fund – a strategic financial instrument intended to create a predictable and competitive environment for investors in Ukraine’s renewable energy.

The participants of the event, who included, in particular, representatives of the EBRD and the European Commission, discussed concrete mechanisms for solving the problem of attracting investment into the industry. Among the key topics of the discussion:

• The main obstacles for private investors in Ukraine’s renewables sector;
• The possibilities for introducing a minimum electricity price guarantee mechanism in Ukraine;
• The role of Ukraine and the EU in creating a stable renewables market;
• The interaction between risk-reduction instruments and future renewables auctions.

Oleksandr Podpruhin, Deputy Chairman of the UWEA Board: “The proposed mechanism is not a subsidy; on the contrary, it should stimulate the most market-based mechanisms possible for the creation of new generating capacity. At the same time, it is important that the fund be sustainable and not lead to systemic financial risks. For this, several safeguards are envisaged: the guaranteed price will be set 20–30% below the forecast, which minimises the use of money from the fund; the risk-sharing mechanism and competition among participants will make it possible to optimise the cost of insurance; and the participants’ contributions will create a basis for scaling and long-term financial stability”.

A separate principle to which Mr Podpruhin drew attention is the independence of the fund from the Ukrainian state, which, due to the current situation, remains vulnerable. “State guarantees today are not truly bankable, and therefore, for the successful launch of the mechanism, an international leader is needed, for example, the EBRD. Without such a fund and corresponding support from international partners, the implementation of new projects in the renewables sector will be an extremely difficult task, and Ukraine’s energy system will not be able to achieve the necessary level of resilience and modernisation”, added the Deputy Chairman of UWEA.

Olha Yeromina, Senior Banker, EBRD: “Investors need predictability, because the expected investments are large and long-term. It is wonderful that many donors are ready to support this initiative and continue to work side by side with the relevant state bodies to develop a competitive and resilient renewable energy market”.

Aron Kerepl-Fronius, energy advisor, Delegation of the EU to Ukraine: “Strengthening Ukraine’s energy resilience is one of the EU’s important policy goals. So, we understand the importance and priority of this initiative, and we also see the interest of donors. Now we are awaiting a meeting with renewables producers so that international donors can study in more detail the projects that may qualify for support from the Fund”.

Charles-Antoine de Crombrugghe, policy advisor of the Directorate-General for Enlargement and Eastern Neighbourhood of the European Commission, emphasised the following: “The Minimum Price Guarantee Fund can play a key role in reducing volatility and ensuring the implementation of projects. By focusing on a single targeted instrument, we can effectively contribute to the realisation of existing initiatives. Such a fund should be regarded solely as a temporary solution that complements broader efforts to expand markets and carry out reforms. The ultimate goal remains the creation of a self-sufficient market in Ukraine that will not require such financial instruments. At the same time, until this is achieved, it is important to implement strategic temporary mechanisms, such as the one presented today.”

Ukraine’s energy transition cannot wait! Despite the war, we must act today to create a stable environment for investors. The Minimum Price Guarantee Fund is a real tool for attracting international capital and accelerating the deployment of renewables capacity in Ukraine.

UWEA thanks all the partners and participants of the discussion for their valuable contributions and support. The Association will continue to advocate for solutions that will make Ukraine’s renewable energy market more predictable, stable and attractive for investors.

The Ukrainian Wind Energy Association (UWEA) and the Swedish Wind Energy Association (SWEA) signed a Memorandum of Understanding to strengthen cooperation in the development of the national wind energy sectors. This agreement is aimed at using Sweden’s experience and its investment potential to support Ukraine’s energy transition and its post-war recovery.

Recognising the key role of wind energy in ensuring energy security and achieving sustainable development goals, the Memorandum defines the main areas of cooperation, including the exchange of knowledge, joint research, support for regulatory policy and the facilitation of attracting investment. The partnership will focus on the development of both onshore and offshore wind energy – important components for ensuring Ukraine’s long-term energy independence.

Andriy Konechenkov, Chairman of the UWEA Board: “The signing of this Memorandum is an important milestone in strengthening Ukrainian-Swedish cooperation in the field of wind energy. Sweden has long been a leader in the field of renewable energy, and its experience, technological expertise and investment support are of critical importance for Ukraine’s post-war recovery and its energy transition. Despite the challenges of the war, wind energy has proven its resilience, ensuring Ukraine’s energy security and laying the foundation for a sustainable future. Expanding cooperation with Sweden will make it possible to accelerate the development of both onshore and offshore wind energy, strengthening Ukraine’s energy independence.

Swedish investors played an important role in Ukraine’s renewable energy sector even before the war, bringing not only capital, but also high standards of project implementation. We highly value our previous experience of cooperation with Swedish partners and are confident that this cooperation will continue to grow, contributing to innovation and strengthening Ukraine’s position on the European energy market”.

Daniel Badman, CEO of the Swedish Wind Energy Association: “Energy security today is a key issue on Europe’s agenda and a common interest for all of us. Breaking free from dependence on Russian energy resources is both a driving force behind and a consequence of the expansion of European renewable energy. We are already observing a number of initiatives from member companies that are transferring equipment to the Ukrainian market, and we hope that this initiative will strengthen the ties between us, contributing to further cooperation in the future”.

The Memorandum will contribute to the implementation of joint initiatives, in particular the organisation of working visits, industry events and research projects focused on the development of Ukraine’s wind energy sector.

Both associations will cooperate closely to align policies and strategies that promote the attraction of investment and the implementation of innovations. This agreement is another confirmation of the growing support for Ukraine from the European wind energy community. In the process of restoring the country’s energy infrastructure, such partnerships will play a decisive role in accelerating the transition to a sustainable and energy-independent future.

We are sincerely grateful to our Swedish partners for their unwavering support, trust and commitment to Ukraine’s energy transformation in this difficult time. Their dedication to the development of clean energy and their faith in Ukraine’s potential are invaluable. We deeply appreciate their steadfast cooperation, which plays a key role in accelerating Ukraine’s “green” transition.

On 7 February 2025, UWEA Board Chairman Andriy Konechenkov and UWEA analyst Yevhenii Kontorshchykov visited Myrhorod for the opening of an off-grid solar station that was installed at the local preschool educational institution No. 12 “Svitliachok”. On the roof of the facility, which educates 185 children, a photovoltaic system with a capacity of 10.4 kW and a battery with a capacity of 12 kWh were installed.

The solar system was installed within the framework of the #Renewables4Ukraine initiative, launched by the World Wind Energy Association and the Global100RE platform in cooperation with UWEA. The project, worth €18,000, was implemented through charitable donations from the Finnish non-profit organisation “EKOenergy” to support Ukraine’s social infrastructure in times of war. All the equipment installation work was carried out by specialists of LLC “Zelena Systema”.

According to the mayor, Serhii Solomakha, the installation of the solar station will not only contribute to ensuring the energy stability of the facility, but will also allow children to receive an education in an environmentally clean environment, in accordance with modern standards of sustainable development. Thanks to the installation of the solar power plant, backup power is provided, which helps to avoid interruptions in heat and water supply.

Stefan Gsanger, Secretary General of the WWEA: “We feel enormous satisfaction and joy at being able to once again provide the children of this kindergarten with a stable electricity supply. The significance of this event goes far beyond a single project. It makes clear the principles on which a better, more peaceful and prosperous world can be built. We are extremely grateful to everyone who made this solar installation possible”.

“Our goal is to popularise “green” energy, including among children. We help communities to become energy-independent, because every installed kilowatt of renewable energy is not only a saving on utility costs, but also a contribution to their future. This is already the fourteenth project to install a solar power plant and the fourth project specifically for a preschool educational institution. We want children to grow up and continue to build our country using clean and local energy sources”, – commented Andriy Konechenkov.

The implementation of the solar station project at “Svitliachok” became another proof that renewable energy is not only a modern trend, but also a real opportunity to ensure a stable and safe future for the youngest Ukrainians. UWEA extends its sincere gratitude to the World Wind Energy Association (WWEA), EKOenergy and the Myrhorod City Council, who supported this important project. Special thanks to the team of LLC “Zelena Systema” for the high-quality and prompt installation of the equipment.

On 7 February 2025, the President of Ukraine Volodymyr Zelenskyy signed the Law of Ukraine No. 4213-IX “On Amendments to Certain Laws of Ukraine in the Field of Energy and in the Field of Heat Supply Regarding the Clarification of Provisions Related to the Operation of Martial Law in Ukraine” (registration number No. 9381), which defined some long-awaited provisions for the market.

In general, the Law introduces changes to such issues as abuse on the wholesale electricity market, the disclosure of insider information, fines for violations, the import of electricity, the status of cogeneration installations, licensing, active consumers, “green” auctions, etc. However, one of the important provisions for the market in this Law was the definition of the capacity reservation service.

All the key provisions for the market:

• The reservation service. A service provided by the transmission system operator (NPC Ukrenergo or the TSO) for reserving technical solutions regarding the connection scheme of the customer’s generating capacity for a period of up to 2 years, which is available for wind energy installations with a capacity of 20 MW and above.
• The reservation fee. €5 per 1 kW of reserved capacity, paid within 20 days to an escrow account. Non-payment leads to the termination of the reservation agreement. If a connection agreement is signed, the reservation fee is credited as part of the connection fee.
• Technical connection conditions. The validity period may be extended to 6 years by an additional agreement. An extension after 3 years is possible subject to the approval of the design documentation, payment for connection and receipt of the construction documentation, with some particularities.
• Prepayment for connection. A mandatory prepayment of €10 per 1 kW of ordered capacity. Payment is made in two parts: 50% within 30 days, 50% within 12 months.
• Installed capacity. The total installed capacity of a facility may exceed the capacity agreed with the TSO or DSO at the connection point, provided that the instantaneous output of capacity into the grid does not exceed the limit set under the agreement with the TSO or DSO.
• Construction of the linear part. Customers may design and build the linear part of the connection for capacities over 1 MW. The costs are included in the total fee for non-standard connection.
• “Green” auctions. The share of the quota that a business entity may claim to participate in an auction, either independently or with a common ultimate beneficial owner, has been increased to 50%.
• Monetary obligations. During martial law, the enforcement of monetary obligations is suspended. This applies to electricity market participants listed on the website of the NEURC.
• Debt repayment. Surplus income from dispatching activity in 2023 and 2024 is directed to repaying the debts of the TSO and covering costs. According to the estimate of NPC Ukrenergo, this is approximately UAH 12–13 billion for debt repayment.

UWEA extends its gratitude to the Verkhovna Rada Committee on Energy and Housing and Communal Services for considering and supporting the adoption of these provisions, and to the President of Ukraine for signing this Law. The definition of the capacity reservation service, as well as the direction of funds to repay debt on the electricity market, is an important step towards improving market conditions and increasing the investment attractiveness of the market during martial law.

On 4 February 2025, Oschadbank reported that it had concluded a number of agreements with the Eco-Optima group of companies for the implementation of the project to build the “Sokal” wind farm with a capacity of 39.9 MW in the Lviv region.

The “Sokal wind farm” project envisages the installation of 7 modern wind turbines, manufactured by the German company NORDEX, a member of UWEA. It is expected that the station’s total generation of “green” electricity will amount to about 122 million kWh per year.

Zinovii Kozytskyi, owner of the ECO-OPTIMA group of companies and a member of the UWEA Board: “The construction of a wind farm is an important project for the state, because after russia’s deliberate destruction of part of Ukraine’s energy sector, the construction of new power plants is an indispensable stage of recovery, especially when it comes to the construction of environmentally clean power plants. I want to emphasise that we managed to implement the signing of the loan agreement with Oschadbank in extremely short terms, in fact within 2.5 months, which is a record result for project financing. I consider this a very successful start to active cooperation between the ECO-OPTIMA group of companies and Oschadbank. We still have a lot of work ahead of us, but the first main step has been taken”.

The total amount of financing provided by Oschadbank is €40 million and includes, in addition to lending, also the provision of an irrevocable confirmed “green” letter of credit in the amount of over €23 million, with the participation in the deal of the partner bank, the EBRD.

Yurii Katsion, Deputy Chairman of the Board of Oschadbank, responsible for corporate business: “The construction of the Sokal wind park will be of great significance both for the community and for the entire country. The project, the implementation period of which will be a little over a year, will have a positive impact on the country’s energy balance in terms of restoring the generation capacities destroyed by russia, and is also an important step for “greening” the energy mix. And for the Sokal community, the operation of the wind farm will provide additional jobs, revenues from land-use payments and an alternative source of electricity; in addition, the construction will contribute to the development of road infrastructure. Thus, the comprehensive impact of the investments made becomes much broader than just the implementation of a business plan, and this is truly inspiring”, – he commented on the signing of the agreement.

UWEA sincerely congratulates the companies Eco-Optima and NORDEX, as well as Oschadbank, on this important step on the path to the development of wind energy in Ukraine! This project is another proof that the restoration of Ukraine’s energy independence is impossible without renewables and without wind. We wish a successful implementation of the project and new ambitious achievements on the path to Ukraine’s “green” future!

Andriy Konechenkov, Chairman of the UWEA Board: “The development of wind energy is not only an economic solution, but also a strategic contribution to strengthening Ukraine’s energy security. The Sokal wind farm is a symbol of resilience and recovery, demonstrating how international partnership, a professional approach and the support of financial institutions can accelerate the transformation of Ukraine’s energy sector. We welcome this significant step and hope that it will become an example for further successful investments in the wind energy of our country”.

DTEK, the parent company of DTEK Renewables, a member of UWEA, announced the attraction of the largest volume of investment in the country’s energy sector – €450 million – for the completion of the Tyligulska wind farm. According to the terms of the deal, the banks will provide €370 million in loan funds, secured by guarantees of the state Export and Investment Fund of Denmark (EIFO), the larger part of which will be used to purchase 64 Vestas EnVentus V162-6.0 MW turbines. The remainder of the project’s cost will be financed from DTEK’s own funds.

This deal will make it possible to accelerate the construction of the station already this year, as the company has previously already laid the cable networks and the foundation. “The number of turbines of the expanded wind park will grow from 19 to 83, and the capacity will increase fourfold – from 114 to 500 MW. At full capacity, the Tyligulska wind farm will produce 1.7 TWh· of electricity per year – this is enough to provide electricity to 900,000 Ukrainian homes, which is equivalent to the energy needed to charge every smartphone in the EU for a year”, the company’s official press release states.

President and CEO of Vestas Henrik Andersen: “We are proud to expand our cooperation with DTEK and provide our technological solutions for the Tyligulska wind farm project, which will support Ukraine’s power system. I want to thank DTEK for its far-sighted leadership, as well as the authorities of Denmark, Ukraine and the EU for their strong support of this ambitious project, which will help to strengthen Ukraine’s energy security”.

After the construction of the second phase of the Tyligulska wind farm, this wind station will become the largest in Ukraine, for the implementation of which a total of €650 million has been attracted. The start of the installation of the wind turbines of the second phase of the Tyligulska wind farm is planned for the first half of 2025, and the 100% commissioning of the entire wind farm – for the end of 2026.

First Deputy Prime Minister – Minister of Economy of Ukraine Yulia Svyrydenko at the World Economic Forum in Davos noted: “The implementation of the project to build the Tyligulska wind power plant, which is to become the largest in Eastern Europe, is a significant step on Ukraine’s path towards implementing the National Energy and Climate Plan, strengthening the state’s energy security and decarbonising the economy. This project is also supported by the Danish Export Credit Agency and the Government of Denmark. This is a powerful signal to all our partners and investors that investing in Ukraine’s recovery projects can and must be done today”.

Andriy Konechenkov, Chairman of the UWEA Board: “The attraction of the largest volume of investment in the history of Ukrainian energy for the completion of the Tyligulska wind farm is vivid evidence that world investors believe in the potential of Ukraine’s renewable energy, even in the most difficult times. This project will not only ensure the energy security of our state, but will also become a model for future initiatives to recover and decarbonise the economy. We are proud that the members of our association, such as DTEK Renewables and Vestas, are demonstrating leadership, proving that Ukraine can be a key player on the map of “green” energy of Europe”.

Elementum Energy, a member of UWEA, has concluded Ukraine’s first pilot price stabilisation agreement between the 100 MW Dnistrovska wind farm, which it manages, and an industrial enterprise. The contract, designed for one year, is based on the CfD mechanism (Contract for Difference), which allows businesses to forecast electricity costs and protects them from price fluctuations. Read about the terms of the test agreement at the link:

Under the terms of the agreement, the parties agree on a “price corridor” — a range within which market fluctuations do not trigger additional settlements between the producer and the consumer. If the price on the market exceeds the upper limit or falls below the lower one, the difference is compensated by the relevant party. In the event of the upper limit being exceeded, the producer compensates the consumer for the difference, and if the price falls below the corridor, the consumer compensates the producer. Settlements are based on the indicative price benchmark defined in the agreement (for example, the base index of the day-ahead market) and an agreed volume of electricity. At the same time, no physical delivery of electricity takes place, and all transactions are carried out on the open market.

This approach makes it possible to minimise volatility risks for both parties and creates the possibility of effective cost planning on the energy market.

This pilot project will make it possible to test the viability of the CfD mechanism under the conditions of the current regulation of Ukraine’s energy market. Olha Rybachuk, Managing Director of Elementum Energy, notes: “We are introducing in practice an innovative instrument on the complex energy market of Ukraine, where instability has become the norm. Our pilot project will help to assess how the CfD mechanism works in real conditions and will prepare the basis for its application in new large-scale projects that we are already developing”.

An important aspect of the agreement is its term of validity. Under wartime conditions, businesses are not ready to conclude long-term contracts for 10–20 years because of market uncertainty. At the same time, price stabilisation instruments for 1–3 years arouse considerable interest, as they provide the opportunity to forecast costs and reduce risks.

This is not the first time that Elementum Energy has tested such instruments on the market. The pilot agreement will be another step in the development of this mechanism, which may further become an important tool for the stable reconstruction of Ukraine’s energy infrastructure.

UWEA sincerely welcomes the initiative of Elementum Energy and its significant contribution to the introduction of innovative support mechanisms on the Ukrainian energy market. The first pilot CfD agreement is a landmark step towards stability and predictability under the conditions of an unstable market. Thus, Elementum Energy confirms that Ukraine’s energy sector is ready for new solutions that are being successfully applied around the world. We are confident that this pilot will become the basis for a larger-scale implementation of the CfD mechanism, which will be important for the effective reconstruction of Ukraine’s energy infrastructure and will contribute to integration into the European energy markets.

On 12 December 2024, at the “Interfax-Ukraine” media center, UWEA’s final press conference took place, based on the results of the development of the Ukrainian wind energy market in 2024. During the press conference, UWEA Board members and representatives of the Ukrainian wind energy business discussed the key trends that shaped the direction of the market’s development this year, including the investment climate, regulatory changes, innovative solutions and approaches.

At the beginning of the press conference, Andriy Konechenkov, Chairman of the UWEA Board, briefly outlined the current state of the wind energy market, noting that “compared to previous years, 2024 can be called a failure, as only 20 MW of new wind energy capacity was commissioned”. “Also, this year the market placed great hopes on the launch of new market support mechanisms, such as, for example, the market premium mechanism and “green” auctions. However, the first does not work properly, and the second was not crowned with success. Now, in a time of full-scale war, is not the best time to conduct experiments on business; on the contrary, business should be seen as a partner”, added Mr Konechenkov.

Complementing the introductory remarks of the UWEA Board Chairman, the invited speakers – representatives of leading wind energy companies – shared their own experience of doing business in 2024:

Ihor Retivov, Head of Regulatory Affairs at DTEK Renewables and a member of the UWEA Committee on Legal Affairs: “We still believe that this year became a preparatory one for future positive changes on the market, because reforms require time. At present, DTEK Renewables does not intend to stop at what has been achieved; we are continuing the construction of the second phase of the Tyligulska wind farm and are developing new wind farm projects in the Poltava and Vinnytsia regions. In total, our portfolio of future projects amounts to over 1 GW. However, we have also opened another direction, namely the construction of energy storage systems. The plans include the construction of 200 MW of such systems.”

Olha Rybachuk, Managing Director of Elementum Energy and a member of the UWEA Board: “We also continue to conduct our activity. At present, in particular, we have 200 MW of new wind energy capacity in development in various parts of the Odesa region, which will be ready for construction next year. However, we still need a number of decisive political decisions to support this energy segment, in particular regarding the unblocking of the Odesa seaports, namely Pivdennyi and Chornomorsk, since, due to difficulties with delivering equipment to the site, the project’s budget grows significantly”.

During her speech, Ms Rybachuk also made an important announcement, informing that on 11 December the company Elementum Energy successfully closed a deal to acquire a 200 MW wind energy project in the western part of Ukraine. The expected annual generation of the new wind farms will amount to about 700 GWh, which is equivalent to the annual electricity consumption of about 600,000 people.

Oleksandr Podpruhin, regional manager of Notus Energy and Deputy Chairman of the UWEA Board: “Our company entered Ukraine’s wind energy market in 2019, already having the idea for several projects. The construction of one of them was planned for 2022, but did not take place because of russia’s invasion. Now, we are working to launch this construction in 2025 after all. This will be a wind station with a capacity of 120 MW in the Odesa region. However, the main investment problem of the Ukrainian market is scaling, because all the projects that are being built or developed today are an exception. Business, in fact, feels a critical lack of full-fledged mechanisms for financing wind energy projects on the scale that the power system requires”.

Vladyslav Yeremenko, CEO of the MC “Wind Parks of Ukraine”: “The relocation of our production from the east to the west became an important step for its further sustainable operation. Although our company also faces the same problems as other market participants, we try to find unconventional solutions. So, for example, we created our own logistics company, LLC “Friendly Logistic”, and are developing an entire industrial park in Zakarpattia. Also, in this same region, we are building the first wind power plant: two wind turbines have already been commissioned, and a substation is being completed. We plan to fully finish the construction in May 2025. In total, our portfolio of future projects amounts to 1.5 GW”. During the press conference, Mr Yeremenko also shared the company’s unique experience of cooperation with the local communities of Zakarpattia, measures to preserve the valuable ecosystems of the Carpathians and the development of a network of social housing for IDPs.

The second part of the press conference concerned the discussion of the current regulatory challenges and barriers that are a significant obstacle for international and national investors. The discussion touched on “green” auctions, trading on the free market, and the market premium mechanism. In particular, regarding the latter, Olha Rybachuk, a representative of the company that bet on this mechanism, noted that “for 10 months now, across all the Elementum companies that are within this mechanism, not a single payment has been received. In addition, the companies that chose this mechanism for themselves are significantly discriminated against, because they receive 3–4 times more curtailment commands than those companies that are still in the “green” tariff system”.

Oleksandr Podpruhin, in turn, once again returning to the problem of attracting financing into new wind energy projects, emphasised that an effective solution to this could be the mechanism of corporate PPAs, the stability of which would be ensured by a special Fund for guaranteeing the minimum electricity price on the market.

The UWEA representatives ended their discussion with reflections on the creation at the state level of a separate institution that would deal with the issues of the development of “green” energy in Ukraine. “Such a body could really switch the focus of business from solving some regulatory problems to implementing projects and innovations”, emphasised Vladyslav Yeremenko.

UWEA extends its gratitude to the speakers of the press conference for the frank conversation, to all the participants of the wind energy market for their resilience and the continuation of their activity despite all the difficulties and challenges, and to the representatives of the national media for their support in covering the pressing issues of the sector and popularising all its achievements.

On 4–5 December 2024, the EoLIS seminar, organised by WindEurope, took place in the city of Gothenburg, Sweden. The event focused on the current challenges and strategies for the end of the operational life of wind turbines. One of the key sessions was a discussion on the topic of investment decisions and the motivation for purchasing second-hand wind turbines through the eyes of the buyer.

The invited speaker of this session was Kateryna Knysh, head of the analytical department of UWEA and business development director of MCL. She presented the prospects for the use of second-hand wind turbines in Ukraine, outlining the attractiveness of this segment for Ukrainian buyers. In her presentation, Kateryna shared the history of the development of the second-hand wind turbine market in Ukraine, defined the profile of the modern Ukrainian buyer and named the key advantages of choosing second-hand turbines instead of new ones. In particular, the example of one of MCL’s latest projects, developed specifically for the implementation of second-hand turbines, was given, and some potential locations for future such projects were presented.

“According to UWEA data, the total installed capacity of second-hand wind turbines in Ukraine amounts to 32 MW, and their average unit capacity is 1.24 MW. However, since 2024, Ukrainian buyers have been demonstrating an interest in turbines with a unit capacity of 2 MW and above, primarily because of the generation deficit in the power system”, noted Kateryna. She also emphasised that the use of second-hand turbines is a critical need for Ukraine dictated by wartime realities: “This is a fast and economically advantageous investment solution for small and medium-sized businesses, as well as for local critical infrastructure facilities, in particular water utilities”.

Answering a question from the audience about the challenges that Ukrainian buyers face, Kateryna singled out two main problems:

1. Operation and maintenance. The market lacks qualified personnel and service centers. “We are also interested in developing training programmes for Ukrainian personnel”, noted the speaker.
2. Equipment quality. Buyers are oriented towards refurbished turbines with a guarantee of 10 years of operation. “We now take a very serious approach to the quality of the equipment that is purchased. Our buyers are interested only in refurbished wind turbines that have a manufacturer’s guarantee for at least 10 years of further operation”, she added.

The moderator of the session was the CEO of Business in Wind, a company that recently joined UWEA. He emphasised the company’s potential to carry out high-quality repairs and guarantee the stable operation of turbines, which is especially valuable for Ukrainian buyers.

UWEA extends its gratitude to WindEurope for providing another platform to present the Ukrainian wind energy market and for supporting Ukraine.

On 5 December 2024, Andriy Konechenkov, Chairman of the UWEA Board, as well as two members of the UWEA Committee on Legal Affairs – Ihor Retivov, DTEK Renewables, and Olha Savchenko, Altelaw – shared their thoughts on the results of the first pilot “green” auctions in Ukraine, becoming speakers at a thematic online event organised by the UN Global Compact in Ukraine together with ExPro within the framework of the Ukraine Energy Initiative.

The event was organised with the aim of presenting the position of renewables business regarding the state’s approach to implementing “green” auctions in Ukraine and the effectiveness of interaction with market players during this process. “Investors have no trust in the state because of the accumulated and still unresolved problem of debt on the electricity market”, emphasised Andriy Konechenkov. “We will be able to talk about investors’ interest in participating in state “green” auctions if the state, for its part, fully settles with renewables producers for the consumed “green” electricity, approves draft law No. 11392, which will give one auction participant the opportunity to receive not 25%, but 50% of the total quota, and, in general, revises the proposed quotas, bringing them into line with the renewables development indicators announced and enshrined in the National Action Plan up to 2030. If we aspire to become part of the EU, then it would be fair to be guided by its auction policy, rather than spending time testing a model and correcting the mistakes made”, added the head of UWEA.

“I think that the problem with “green” auctions is ideological. “Green” auctions came to replace the “green” tariff, so the state’s attitude to this model is immediately biased”, suggested Ihor Retivov. “No one conducted a dialogue with business representatives regarding the opportunities and problems of the existing projects ready for construction in Ukraine, so the proposed quotas within the framework of the 2024 auction and the already announced auction for 2025, taking into account the current model of the auctions themselves, are unrealistic and unlikely to be of interest to large players”, he added.

In addition, the UWEA representatives suggested that, apart from resolving all the existing challenges on the market, a decision to involve low-capacity distributed generation in this process could also have a positive impact on the demand to participate in the auctions.

A separate issue that caused discussion and reflection among the invited speakers was the division of the 250 MW quota for wind energy, announced for 2025, into two separate iterations, of 100 and 150 MW respectively. “In my opinion, there is no critical need for such a division, because the larger the quota, the more participants and the higher the competition. In my view, the best solution would be to hold an auction for 250 MW at once, and then raise this quota in 2026 to at least 800 MW”, commented Andriy Konechenkov.

In turn, Olha Savchenko structured the issues behind the refusal to participate in the auctions according to the following criteria: military risks and the insufficient development of their insurance; the uncertainty of the situation with the procedure for financing the PSO, which consists in the underdevelopment of guarantees when separating the cost of the service of increasing electricity production from alternative sources from the transmission tariff; the non-implementation of any payment since February 2024 under the market premium mechanism, under which support will be provided after an investor wins an auction; and the total distrust of the state, which consists in the conviction that the state may retrospectively apply the extremely negative auction conditions that are set out in secondary legislation. Additionally, Olha noted that the timeframes for checking the land plot or real estate object that will in the future be offered for investment and development in the auctions should be increased.

Based on the results of the discussion, the organisers will prepare a White Paper with recommendations on improving the auction model in Ukraine and increasing investors’ interest in participating in subsequent auctions.