Sep 7, 2012 - Ukraine moved up by a point to the 29th position in the "all renewables" index of Ernst & Young, following the initiation of a draft law on renewables aimed at securing sustainable growth in the country's renewable energy sector.
Ukraine fell by a point to the 32nd place in the wind index and remained at the 21st position in the solar index in the August issue of the US audit and consultancy company's renewable energy attractiveness rankings.
The proposed draft law, which is expected to be passed in the current year, envisages revisions of the feed-in tariffs (FiTs) for solar, hydropower and biogas and waste power projects as well as changes to the domestic content requirements for the FiT scheme in the existing Green Tariff Law. FiT tariff reductions of 16% to 27% are planned for solar projects commissioned after 2013 along with increased FiTs for small hydropower projects to diversify the country's renewable energy mix and prevent uncertainties in the solar sector.
Domestic content requirements for solar modules will be removed, while requirements for wind and solar projects will remain unchanged at 15% in 2012, 30% in 2013 and 50% ahead. Hydropower and biogas power installations will have at least 50% domestic content requirement from 2015.
In April, the government imposed changes to the exemption from corporation tax of profits from renewable electricity sales in a bid to promote the use of only renewable sources by utilities. Companies producing power from both renewables and conventional sources can not benefit from the exemption.
Yet, despite the government's efforts to enable steady growth in the solar sector, it is challenged by the difficulties for companies to access capital, according to Austrian Active Solar, which has deployed some 90% of Ukraine's total installed solar capacity, Ernst & Young added.
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