Carl Olof Richard Sturen,

Managing Director Vindkraft Ukraine LLC,

UWEA Expert Council member

RENEWABLE ENERGY BUSINESS OPPORTUNITIES IN UKRAINE

Investment and Business Development in Ukraine

30 March 2016, Netherlands

Benefits in addition to sustainability and being

environmentally friendly

Reduced dependency on imported gas and coal bought in hard

currency;

Improving supply reliability and reducing network electricity

transit losses due regional generation;

Domestic generation and sales in local currency subject to VAT,

payroll and profit taxes;

Conforming with set EU targets and association agreement;

Creating alternative modern generation capacity in parallel to

aging nuclear plants;

MACRO CONSEQUENCES FROM RENEWABLE ENERGY

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RENEWABLE ENERGY TARGETS

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On 1 October 2014 the Cabinet of Ministers of Ukraine adopted the Decree On National Action

Plan on Renewable Energy for the period up to 2020. This decree of the government of Ukraine was adopted to execute the Decision of the Ministerial Council of

the Energy Community D/2012/04 / MC-EnC On the implementation of Directive 2009/28/EC and

amending Article 20 of the Energy Community Treaty.

2015 Actual mainland Ukraine

2020 National Action Plan for Renewable

Energy for the period up to 2020

MW MW

Hydro power stations > 10 МW 4 800 5 200

Small Hydro 98 150

Geothermal energy 8 20

Solar power plants 420 2 300

Wind power plants (on-land) 426 2 280

Bio-mass/bio-gas 51 950

5 803 10 900

Renewable Energy Production is foreseen to reach 11% of the total

Ukrainian energy production by 2020

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1300

1200

1100

1000

900

800

700

600

500

400

300

200

100

Wind Energy

Solar Energy

Small Hydro

Biomass Biogas

Installed capacity as of 2015, MW

Electricity Generation in 2015, mln kWh

INSTALLED CAPACITY AND ELECTRICITY GENERATION FROM RES 2015

GT rate varies by types of renewable energy and size

of installed capacity

GT rates remains fixed in EUR and the UAH equivalent is

re-calculated quarterly

No EUR/UAH exchange rate link of GT for PPs commissioned

from 2025

Tariff commitment valid till January 1, 2030

Law on Introduction of Changes to Certain Laws of Ukraine with respect to

Securing Competitive Conditions for Production of Electricity from

Alternative Energy Sources, No 514-VIII dd 4.06. 2015

GREEN (FEED-IN) TARIFF SYSTEM

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FEED-IN-TARIFF RATES, IN EURO PER kWh

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RES Power Plant Capacity

Jan.1, 2015 -

Dec. 31, 2019

Jan. 1, 2020 –

Dec. 31, 2024

Jan. 1, 2025 –

Dec. 31, 2029

WIND Wind turbines 2000 and more kW 0,1018 0,0905 0,0792

SOLAR

Power plants on a ground surface 0,1599 -0,1502 0,1352 0,1201

Power plants on the roofs and/or

facades of buildings 0,1723 -0,1637 0,1475 0,1309

BIOMASS &

BIOGAS

Biomass power installations 0,1239 0,1115 0,0991

Biogas power installations 0,1239 0,1115 0,0991

HYDRO

Mini hydro power plants from 200

kW to 1 MW 0,1745 0,1572 0,1395

Small hydro power plants

from 1 MW to 10 MW 0,1395 0,1255 0,1115

GEOTHERMAL Geothermal PP 0,1045 0,0942 0,0835

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No Local Content Requirement

Producers could be eligible for a premium of 5%

of the eligible GT rate if the ”level of locally

produced equipment” in a project is 30%, or a

premium of 10% of the eligible GT rate if the

project contains at least a 50% “level of locally

produced equipment”.

The premium will not apply for power plants

commissioned after 2025

The Regulator will determine the level of locally

produced equipment based on certificates of

origin from the Chamber of Commerce of Ukraine

and other confirming documents

The Law contains the lists of equipment which

could qualify as locally produced equipment and

based on which one could calculate the share of

local component in a project, see table

DRAFT LAW No

2010

Wind Turbine Elements of

Equipment locally produced

in Ukraine

Share,

%

Blades 30

Tower 30

Nacelle 20

Main Frame 20

Total 100

LOCALLY PRODUCED EQUIPMENT

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Good wind potential and large

territories suitable for a wind

projects development

Attractive feed-in-tariff

Fixed EUR/UAH exchange rate

No local content requirement

Bonus for use of locally

manufactured equipment

System operators are obliged

to connect wind farms to the grid

WIND OPPORTUNITIES IN UKRAINE

WIND CAPACITY IN OPERATIONS 2015

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More than 7000 km2 of land area

is ideally suited for wind farm development

0

1000

2000

3000

4000

5000

6000

UkraineRomania

TurkeyPoland

426

3330 4192

5300

MW

Lviv

Lutsk

Rivne

Khmelnytskyi

Ternopil

Ivano-Frankivsk Uzhhorod

Chernivtsi

Vinnytsia

Zhytomyr

Chernihiv

Sumy

Kharkiv Poltava

Cherkasy

Kirovohrad

Odesa Kherson

Mykolaiv

Dnipropetrovsk

Donetsk

Simferopol

Kyiv

Zaporizhzhia

Luhansk

Sivashskaya WF (2,92 MW)

Vindkraft Ukraina WF (30,75 MW)

WPU Lutugino WF (25 MW)

WPU Krasnodon WF (25 MW)

Starosamborskaya WF (6,6 MW)

WPU Ochakov WF (47,5 MW) Botievo WF (200 MW)

WPU Novoazovsk WF (88 MW)

WF LLC Ligena (0,45 MW)

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OPERATING WIND FARMS

426 MW

Lviv

Lutsk

Rivne

Khmelnytskyi

Ivano-Frankivsk Uzhhorod

Chernivtsi

Vinnytsia

Zhytomyr

Chernihiv

Sumy

Kharkiv Poltava

Cherkasy

Kirovohrad

Odesa Kherson

Mykolaiv

Dnipropetrovsk

Donetsk

Simferopol

Kyiv

Zaporizhzhia

Luhansk

Berdyansk WF (150 MW)

Primorsk WF (200 MW)

Opaka WF (50 MW)

Tiligul WF (500 MW)

Ovidioplo Energy WF (120 MW)

Kuryany WF (5 MW)

Kalanchak WF (300 MW)

Sivashenergoprom (5 MW)

WPU Antrizit-1 WF (225 MW)

Botievo 3,4,5 WF (300 MW)

WPU Zolninskaya WF (12,5 MW)

WPU AtomWind Kramatorsk (66 MW)

WPU Ovidiopolska WF (200 MW)

WPU Kaborga WF (100 MW)

WPU Tatarbunaru WF (150 MW)

WPU Berezanskiy WF (95 MW)

WPU Illichovskaya WF (50 MW)

WPU Baltskaya WF (225 MW)

WPU Belyaevskaya WF (150 MW)

WPU Lutugino WF (225 MW)

WPU Krasnodon WF (425 MW)

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WIND PROJECTS PIPELINE

Starosamborskaya 1 WF (6,6 MW – 13,2 MW )

Starosamborskaya 2 WF (19,8 MW)

Skolivska 2 WF (46,2 MW)

Sokalska 2 WF (42,9 MW)

3 555 MW Novotroitsk WF (140 MW)

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P.O.Box 75, Kiev 01033, Ukraine

phone: +380 (44) 2232996

е-mail: uwea@i.ua

www.uwea.com.ua

The UWEA is an All-Ukrainian public organization aimed at promoting wind energy

technologies and ensuring wind energy industry’s interests at the national and

international levels. It is a proven, effective advocate for Ukrainian wind industry

and it continues to mature along with the industry.

MANUFACTURERS

SERVICE COMPANIES

CONSULTING COMPANIES

LAW FIRMS

DEVELOPERS

TRANSPORT COMPANIES

UWEA members include:

INSURANCE COMPANIES

UKRAINIAN WIND ENERGY ASSOCIATION