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Ukraine investment unaffected by tariff cut

UKRAINE: The parliament's decision for a temporary reduction of the green tariff earlier this year has not affected wind power investment.

DTEK's Botievo wind farm in Ukraine
DTEK's Botievo wind farm in Ukraine

Ukraine's energy regulator announced a reduction of the wind tariff in the country by 10% in February to UAH34.06 (€1.45). The Parliament said the previous tariff, which was the highest in Europe, was exorbitant.

The reduction of the tariff, however, has so far not resulted in the suspension of earlier annnounced investment in projects.

For example, the European Bank for Reconstruction and Development has recently approved the provision of €11 million in funding for the construction of a second stage of the Stary Sambor-1 wind project, in the town of Stary Sambor in the Lviv region, west Ukraine.

Under the terms of the project, two wind turbines will be installed in the first quarter of 2016, increasing the total capacity of the wind farm to 13.2MW. The project is being developed by the local Eco-Optima company.

Part of Eco-Optima's plans includes a second project, called Stary Sambor-2, in the western part of the town. The farm will have the capacity of 19.8MW.

At the same time DTEK, the largest private energy holding company in Ukraine, also plans to continue progressing wind projects.

Despite the reduction of the green tariff, the company plans to build a new wind farm in the Zaporozhye region south east Ukraine, said DTEK head of wind German Ainbinder. The new project will be the 200MW Primorskaya.

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