Latest Ukraine Renewable Energy Newsletter (#23) published

The latest issue of Ukraine Renewable Energy Newsletter was published. You can download full version here. Please see below introduction and the list of content.

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There has been major step taken by the Regulator to close existing gap related to calculation of the local content requirement – respective procedure was approved last week, while it still needs to be registered by the Ministry of Justice and published before it comes into force. Unfortunately, it is our understanding that the NERC has not taken into account comments provided by the stakeholders to the Draft Procedure published in March 2012. Thus, if approved in that previous version (or with minor changes), the Procedure will not be able to provide all answers required and serve as clear guidelines for developers and equipment suppliers. Before making final conclusions, we suggest to wait for the official version that should be published in the nearest weeks.

We are happy to observe that the EBRD has provided debt financing to the first renewable project in Ukraine in the framework of USELF program (EUR 13.3M loan to Eco-Optima wind project). It is an important milestone as it shows that quality renewable projects in Ukraine can receive international bank financing. We believe that more renewable projects will be financed by the EBRD this year, both under USELF program (where the number of applications for financing exceeds 60 projects) and directly as the EBRD has been in talks with Wind Parks of Ukraine to provide them with the loan of EUR 48.8 (jointly with the Clean Technology Fund) for the expansion of already operational Novoazovskiy Wind Park.

In general, we have observed during recent months a shift of focus from investors and developers towards solar projects as EPC prices for PV solar power plants are going down with more and more international EPC contractors looking at the Ukrainian market to enter due to overall negative situation in this industry around globe. So far the local content requirement has been the major deal breaker as it did not allow all project stakeholders to plan their steps. Hopefully, this area will be clarified soon by the NERC that will boost number of solar and other renewable projects getting from development to construction stages in Ukraine.

In this Issue

I. Legal and Regulatory Developments

1.1. The Parliament approved in the first reading the Draft Law regulating certain renewable issues

1.2. The NERC approved the procedure for local content calculation for renewable energy facilities

1.3. Crimean Council of Ministers allocated land for solar and wind projects

1.4. The Court of Appeal confirmed technical conditions for grid connection of the Western-Crimean WPP

1.5. The NERC refused to establish the green tariff for new power generating capacity of Wind Park Ochakivsky

1.6. The NERC adjusted the green tariff for renewable energy producers for June 2012

II. Investment News

2.1. EBRD finances the first wind project in Ukraine

2.2. DTEK orders 30 V112-3.0 MW wind turbines from Vestas for their Botievo project

2.3. Fuhrlander launched manufacturing of wind turbines in Ukraine

2.4. Wind Parks of Ukraine started wind measurements at WPP construction site in Lugansk oblast

2.5. Danish wind turbines to be installed in Kherson oblast

2.6. Tokmak Solar Energy to launch the first stage of solar power plant before 2013

2.7. Ukraine to increase the capacity of renewable energy sources in 2012

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