Solar Power Plants in Ukraine (opportunities for investments)

Solar Power Plants in Ukraine

Ukraine offers one of the most attractive investment frameworks in Europe for solar power development:

  • Favorable resources
  • Availability of land plots
  • Profitable feed-in tariff
  • Government support

Total capacity of solar power plants (SPP) has already reached 2 GW. This allowed Ukraine to move in the global solar energy rating from 34 to 23 position. 3 GW – our forecast total capacity of the SPPs until the beginning of 2020

Value of «green» tariff for SPP, which have been already installed or will be installed up to the end of 2019, is:

Period of SPP installing Up to the end
of 2016
January 2017 – December 2019 January 2020 – December 2024 January 2025 – December 2030
The cost of 1 KW/ in EUR 0,16 0,15 0,14 0,12

 

Using of «green» tariff for SPP assumes next advantages:

  • guaranteed validity of the «green» tariff up to the 2030;
  • all energy produced by SPP are guaranteed to be purchase by the Wholesale Market at the “green” tariff in euros at the exchange rate in priority order
  • there are some tax benefits for SPPs’ operating activities and import duties on major equipment.

Main financial indicators for example of 15 MW SPP for 10 years period investments:

  • Average investments costs for projects is 12 500 000,00 EUR
  • NPV (net present value) – 3 411 945 EUR
  • IRR (Internal rate of return) – 19,1 %
  • payback period – 7,5 year

We cooperate with many members of renewable energy market and we propose some projects for investments (SPP or lands for SPPs construction with capacity from 15 MW):

  • Projects with all proper legalized documentation (corresponding purpose of lands, technical conditions for accession to external power grids approved by Government represented by Regional power grid, contracts concluded with Wholesale market of electricity, license to generation of power energy). Financing of equipment purchasing and construction is required.
  • Ready working business. The price of Ready working business determined depending of estimated value and profitability of business

We are able to assist with internal bank’s loans attraction if it is necessary and support with acquisition transactions.