Authorization
On December 12, 2024, at the Interfax-Ukraine media center, the Ukrainian Wind Energy Association (UWEA) held a press conference to summarize Ukraine’s wind power sector performance in 2024. During the event, UWEA Board members and representatives of Ukraine's wind energy business discussed the key trends that shaped the market's direction this year, including investment climate, regulatory changes, and innovative solutions and approaches.
At the start of the press conference, Andriy Konechenkov, Chairman of the UWEA Board, briefly outlined the current status of the wind energy market, stating that “compared to previous years, 2024 can be considered a setback, as only 20 MW of new wind power capacity was put into operation.” “This year, the market had high hopes for the launch of new market support mechanisms, such as the market premium mechanism and green auctions. Unfortunately, neither has functioned properly; the first has failed to operate as expected, and the second has not been successful. At a time of large-scale war, it's not the best time to experiment with business; on the contrary, business needs to see a partner,” he added.
Expanding on the opening remarks, invited speakers from leading wind energy companies shared their experiences in running business operations in 2024:
Ihor Retivov, Head of Regulatory Affairs at DTEK Renewables and member of the UWEA Legal Committee: "We still believe that this year will serve as a preparatory phase for future positive changes in the market, as reforms take time. Currently, DTEK Renewables is not resting on its laurels; we continue the construction of the second phase of the Tyligulska Wind Farm and the development of the wind projects in the Poltava and Vinnytsia regions. In total, our portfolio of future projects exceeds 1 GW. We have also opened a new direction of our activities - energy storage systems, with plans to build 200 MW of such systems.”
Olha Rybachuk, Managing Director of Elementum Energy and the UWEA Board member: “We also continue our operations. Currently, we are developing 200 MW of new wind power capacity in various parts of the Odesa region, which will be ready for construction next year. However, we do need a series of decisive political actions to support this segment of the energy sector, particularly regarding the unblocking of the ports of Odesa, as difficulties in delivering equipment to the site are significantly increasing the project’s budget.”
During her speech, Ms. Rybachuk also made an important announcement, informing that on December 11, Elementum Energy successfully closed the deal to acquire a 200 MW wind energy project in western Ukraine. The expected annual generation of new wind farms will be about 700 GWh, which is equivalent to the annual electricity consumption of about 600,000 people.
Oleksandr Podprugin, Country Manager at Notus Energy and Vice Chairman of the UWEA Board: “Our company entered the Ukrainian wind energy market in 2019, already having a few project ideas. One of these projects was planned for 2022, but it was delayed due to Russia's invasion. Now, we are working towards launching this construction in 2025. This will be a 120 MW wind farm in the Odesa region. However, the main investment problem in the Ukrainian market is scaling, as all the projects currently under construction or development are rather the exception. In reality, the business is facing a critical shortage of fully functional financing mechanisms for wind energy projects on the scale required by the energy system.”
Vladyslav Yaremenko, CEO of MC “Wind Parks of Ukraine”: “The relocation of our production from the east to the west was an important step for its continued stable operation. Although our company faces the same challenges as others in the market, we are striving to find unconventional solutions. For instance, we created our own logistics company, Friendly Logistics LLC, and are developing an entire industrial park in Zakarpattia. We are also building the first wind farm in this region: two wind turbines have already been put into operation, and the substation is under construction. We plan to complete the project by May 2025. In total, our future project portfolio amounts to 1.5 GW.” During the press conference, Mr. Yaremenko also shared his company’s unique experience in working with local communities in Zakarpattia, conservation efforts for valuable Carpathian ecosystems, and the development of social housing for internally displaced persons (IDPs).
The second part of the press conference focused on discussing current regulatory challenges and barriers that pose significant obstacles for both international and national investors. The discussion touched upon "green" auctions, free market trading, and the market premium mechanism. In particular, regarding the latter, Olha Rybachuk, a representative of the company that relied on this mechanism, noted that “for the past 10 months, none of the companies under this mechanism have received any payments. Furthermore, companies that have chosen this mechanism are significantly discriminated against, as they are required to unload four times more often than companies still under the ‘green’ tariff system.”
Oleksandr Podprugin, in turn, once again addressed the issue of securing financing for new wind energy projects, emphasizing that an effective solution could be the corporate PPA mechanism, with stability ensured by a special fund that guarantees a minimum electricity price on the market.
UWEA representatives concluded their discussion by considering the creation of a separate government institution dedicated to the development of “green” energy in Ukraine. “Such an entity could indeed shift the focus of business away from solving regulatory problems towards the implementation of projects and innovations,” highlighted Vladyslav Yaremenko.
UWEA expresses its gratitude to the press conference speakers for their candid discussion, to all participants in the wind energy market for their resilience and continued operations despite all difficulties and challenges, and to national media representatives for their support in highlighting urgent sector issues and promoting its achievements.
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