Lack of economic incentives and non-compliance with market rules significantly hinder the development of renewable energy sources (RES) in Ukraine. This was stated by the director of energy programs at the Razumkov Center, Vladimir Omelchenko, in an interview with “Hromadske Radio”.
According to Omelchenko, Ukraine has great potential for the development of RES, but the lack of proper economic incentives and the absence of a clear regulatory framework are major obstacles. He emphasized that the current system of tariffs for electricity generated from RES is not competitive enough, which discourages investors from entering the market.
One of the main problems, according to Omelchenko, is the lack of a long-term strategy for the development of RES in Ukraine. The country has set a goal to increase the share of renewable energy in its energy mix to 25% by 2035, but there is no clear plan on how to achieve this goal. This creates uncertainty for investors and makes it difficult to attract the necessary funding for the development of RES projects.
In addition, Ukraine’s energy market is still heavily regulated, which does not correspond to European standards. This creates additional barriers for the development of RES, as the rules and regulations are not adapted to the needs of renewable energy sources. Omelchenko believes that Ukraine needs to adopt a more market-oriented approach and create a level playing field for all energy sources, including RES.
Another issue that hinders the development of RES in Ukraine is the lack of political will and support from the government. Despite the potential of renewable energy, the government has not taken enough steps to promote its development. This is reflected in the low level of investment in the sector and the slow pace of implementation of RES projects.
However, there are some positive developments in the Ukrainian energy sector. In 2019, the country adopted a new law on the electricity market, which aims to liberalize the market and create a more competitive environment. This is a step in the right direction, but more needs to be done to fully unlock the potential of renewable energy in Ukraine.
In conclusion, the development of renewable energy sources in Ukraine is hindered by a combination of factors, including the lack of economic incentives, non-compliance with market rules, and the absence of a clear long-term strategy. To overcome these obstacles, the government needs to take decisive steps to create a favorable investment climate and adopt a more market-oriented approach. Only then can Ukraine fully utilize its potential for renewable energy and contribute to a more sustainable future.
