News

UKRAINE’S GOVERNMENT SETS TARGET FOR 6.1 GW OF WIND POWER BY 2030 AND ANNOUNCES PILOT RES AUCTION DATES

On 13 August 2024, the Government of Ukraine has taken two significant and long-awaited steps to develop further the national renewable energy sector, particularly wind power:

• Approved the National Renewable Energy Action Plan by 2030.
• Endorsed a document outlining the schedule and conditions for pilot auctions to allocate support quotas to renewable energy producers.

The National Renewable Energy Action Plan for 2030 is a strategic document that outlines 38 measures aimed at achieving a 27% share of renewable energy in gross final energy consumption by 2030, namely:

• 29% in the electricity sector
• 33% in the heating and cooling sector
• 17% in the transport sector

The Plan also aims to reach a total of 24 GW of installed renewable energy capacity in Ukraine by 2030, including:

• 6.1 GW of onshore wind power
• 12.2 GW of solar power (7.2 GW for industrial SPPs and 5 GW for active consumers)
• 876 MW of bioenergy (475 MW from biomass and 401 MW from biogas)
• 40 MW of geothermal energy
• 4.7 GW of hydropower (4.5 GW for large hydropower plants and 243 MW for small hydropower plants)

A groundbreaking element of the approved Plan is Ukraine's first-ever offshore wind energy target.  By 2030, the nation is poised to launch 100 MW of offshore wind capacity, marking a bold step forward in its renewable energy ambitions.

Overall, 10 GW of new "green" capacity is projected to be added by 2030 in the electricity sector alone, requiring an estimated $20 billion in investment.

The UWEA supports the above-mentioned targets for onshore and offshore wind energy, recognizing their alignment with the current pace of project development. The association expresses gratitude for incorporating the wind energy sector's proposals, submitted in 2021, into this National Plan.

However, the construction of new wind energy capacities remains directly tied to addressing existing market challenges, particularly the settlement of debts under the "green" tariff and the adoption of necessary market-stimulating initiatives and decisions. 

A significant step in this direction was taken with the launch of the long-awaited auctions to distribute support quotas for renewable energy producers. According to the Ministry of Energy of Ukraine, the first pilot auction for constructing wind energy facilities will be held on November 9, 2024, with a quota of 88 MW. The contract for providing services under the market premium mechanism, to be signed by the auction winner and the SE Guaranteed Buyer, will have a term of 12 years.

RES auctions are a globally recognized mechanism for stimulating renewable energy development on a competitive basis. Their implementation in Ukraine is in line with leading EU market practices. The UWEA hopes that with the optimization of this mechanism in Ukraine, the quota allocated for wind energy will automatically increase, and appropriate measures will be taken to prevent the emergence and accumulation of new debts in the market.