FINANCING RENEWABLE ENERGY PROJECTS IN UKRAINE

Authors

  • H. Pudycheva Odesa National Economic University

DOI:

https://doi.org/10.18371/fcaptp.v4i35.222480

Keywords:

renewables, energy intensity, energy efficiency, “feed-in tariff”, tendering systems

Abstract

Current state of Ukrainian energy industry development is characterized by a number of negative trends: the share of fossil fuels in total energy consumption is the largest; the share of renewables is rather low and remaining almost unchanged for many years; Ukraine is dependent on imported energy sources; the indicator of energy intensity of GDP is one of the highest in Europe and in the world. The Ukrainian Energy Strategy provides to reach the share of primary energy supply from renewables to increase to 25% by 2035. Accordingly, enterprises need to increase energy efficiency and implement renewable energy projects. However, most of the business entities are limited in their own sources of financing, and therefore it is necessary for them to have state financial support and additional loan funds. In order to stimulate the development of renewable energy projects in the world, a wide range of strategies are used, including regulatory and voluntary ones. Currently, only three of them are used to promote renewable energy projects in Ukraine «feed-in tariffs», tax incentives and privileged mode of connection to the electricity grid. In addition, there are several opportunities for grant and credit financing. However, at the current stage of development of renewables in Ukraine, these mechanisms of financial support are not enough, since investing in this area remains rather risky. Therefore, in order to boost investment in renewable energy projects, it is proposed to apply additional instruments of state promotion of the latest technologies in this area, improve the regulatory framework, increase awareness of enterprises about the possibility of preferential crediting and increase public activity in relation to decarbonization and environmentalization of production processes.

Author Biography

H. Pudycheva, Odesa National Economic University

Ph. D. in Economics, Doctoral Student of Department of Enterprise Economics and Organization of Entrepreneurship

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Published

2020-12-24

Issue

Section

The social-humanitarian context of transformational finance-economical processes