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UWEA RELEASES UKRAINE’S WIND POWER MARKET OVERVIEW 2024

As Ukraine enters the third year of full-scale war with russia, the country's wind energy sector, though progressing slowly, continues to evolve. While 2024 has seen relatively modest new wind capacity additions compared to 2023, companies remain committed to advancing projects in Central and Western Ukraine, attracting international investment, and contributing to a more resilient and energy-independent future. These developments are detailed in “Ukraine’s Wind Power Market” Overview 2024, a comprehensive annual report, recently released by the UWEA.

Far more than just a statistical report, the UWEA Overview offers an in-depth analysis of the sector’s performance over the past year, key challenges, and strategic directions for future growth.

The 2024 Wind Power Market Overview was prepared in collaboration with legal firms Asters and Altelaw, both UWEA members. The report provides a structured analysis of:

• Major wind energy trends in Europe and globally
• Ukraine’s energy balance structure
• Key achievements and challenges in Ukraine’s wind energy sector
• Legislative changes adopted in 2024 and expected developments in the coming years
• UWEA activities throughout the year.

A significant portion of the Overview focuses on the market-based mechanisms for promoting renewables in Ukraine, the latest legal frameworks guiding developer-investor relations, and an in-depth examination of the Electricity Price Guarantee Fund, an initiative launched by the UWEA.

For the first time, the UWEA Overview includes a dedicated analysis of an emerging segment in Ukraine’s wind energy market – projects utilising used wind turbines. This development marks a shift in investment approaches and diversification strategies for the sector.

The Overview also features exclusive thematic articles contributed by Ukraine’s Ministry of Energy, the SE Guaranteed Buyer, the General Energy Institute of the NAS of Ukraine, and leading industry players such as MC Wind Parks of Ukraine, Friendly Wind Technology LLC, DTEK Renewables, Notus Energy, and Elementum Energy.

Key Findings:

1. The Shift Toward Decentralisation. Ukraine is actively transforming its energy system, placing a strong emphasis on distributed generation. This strategy aims to reduce regional dependence on centralised power sources and enhance energy security. Key policy documents guiding this transition include: The National Energy and Climate Plan, The National Renewable Energy Action Plan until 2030, The Distributed Generation Development Strategy until 2035. Ukraine’s national renewable energy target aims for 27% of final energy consumption to come from renewables by 2030, requiring an additional 4 GW of installed wind power capacity.
2. The Current Status of Onshore Wind Energy. In 2024, Ukraine added 20.6 MW of new wind capacity, bringing the total to 1,921.4 MW (including capacities on temporarily occupied territories, used wind turbine market, which has already reached 32 MW of installed capacity. Despite modest growth, 2024 has been a year of preparation for major new wind projects expected to commence construction in 2025-2026.

3. Key Market Challenges. The wind energy sector continues to face several critical barriers:

• Outstanding debt to renewable energy producers
• Inefficiencies in existing market support mechanisms, including auctions,   FiP, CfD, and corporate PPAs
• Lack of international recognition of Ukrainian guarantees of origin
• Difficulties in securing international financing
• Urgency for regulatory simplifications for wind project development     during wartime.

4. Unlocking Ukraine’s Offshore Wind Potential. Ukraine is actively assessing the technical potential of offshore wind energy in the Black Sea and Azov Sea. According to updated assessments from the Danish Technical University, this potential reaches 50 GW: 20 GW for floating offshore wind and 30 GW for fixed-bottom offshore wind. However, the realization of offshore wind projects in Ukraine remains contingent on the end of martial law and the liberation of occupied maritime territories.

 Even amid ongoing conflict, Ukraine remains committed to building a resilient, renewables-driven energy system. Government initiatives, international support, and private investment make the goal of adding 4 GW of wind power by 2030 an achievable reality. The sector is adapting to new challenges, and the strategic decisions made in 2024 will lay the foundation for long-term deployment.

The UWEA expresses its gratitude to all member companies and partners who contributed valuable insights to this Overview and continue to drive the growth of Ukraine’s wind energy.