Baltic Journal of Economic Studies (Nov 2015)
WHY IS IT REASONABLE TO INVEST IN RENEWABLE ENERGY IN UKRAINE?
Abstract
The purpose of the paper is to present the current status of renewable energy development in Ukraine and to highlight the main advantages of investing in renewables in Ukraine. The purpose is also to reveal the biggest renewable energy installations in Ukraine. The paper displays the main financial initiatives of several international organizations and world economic leaders that have already announced plans to aid Ukraine’s transition to renewable energy. Methology. The survey is based on an analysis of the natural potential, legislative frameworks of the industry and active financial programmes. Results of the survey provide the most attractive opportunities for investing in the emerging market of renewable energy in Ukraine. The survey also shows the amount of economically viable potential of different renewable energy sources. Besides, it is expected that renewable energy will enhance energy security and reduce the negative impact of industry on the environment. Practical implications. Since 2009 when the green tariff was first introduced in Ukraine, the renewable energy sector has been developed to a great extent. Although the sector faced some policy challenges in 2015, such as the imposition of new taxes, but technologies experienced rapid growth. Nowadays the use of renewable energy sources is a priority way of sustainable energy system building in Ukraine. There are several state and regional financial initiatives promoting renewable energy sources. As policymakers have focused on the renewable energy development, new investment centered in energy efficiency technologies. There will be a big step in the direction of renewables usage in private housing complexes. Due to the survey, the main problem of renewable energy development is lack of funding. All the efforts made by the government create an enabling environment for foreign direct investments in renewable energy in Ukraine. Value/originality. Wide renewable energy use would be a good solution for Ukraine to decrease the amount of imported energy resources. Boosting of renewable energy will also help to tackle global warming and negative changes of climate. That is why promoting of renewables use is very important for Ukraine. On the other hand, renewable energy can become a profitable business for investors.
