/15th July 2014, RENEWABLE MARKET WATCHTM/
Cumulative installed PV capacity in Ukraine was only 3 MWp in 2010, but grew up to 140 MWp in 2011, to 320 MWp in 2012, and exceeded 620 MW in 2013, making the country one of the fastest-growing photovoltaic markets in the region according to Ukraine Photovoltaic Market: Outlook 2013 - 2018
The primary RES objective of Ukraine is to ensure compliance with the mandatory renewable energy target of Energy Strategy of Ukraine to 2030. In Ukraine, this target was set at the level of 10 % of the total energy generation capacity. Ukraine is one of the most energy inefficient countries in the region according to Ukraine Photovoltaic Market: Outlook 2013 - 2018 and restructuring and upgrading its energy sector continues to be one of the key development challenges for the Government.
In the last few years, Ukraine has attracted investors’ interest. External investors have been attracted by rapidly developing national industry, highly skilled workforce and significant new market. Now, in the present situation, with the world financial and economic crises, the macroeconomic framework of Ukraine remains relatively stable for entry of investments. The Ukrainian government is taking steps and trying to elaborate good measures to meet the global economic crises' challenges, maintain Ukrainian financial and macroeconomic stability, and improve the business climate.
The Ukrainian revolution of February 2014 took place after a series of violent events in Kiev's capital, which finally have resulted with the forced resignation of the then-President of Ukraine, Viktor Yanukovych, who escaped and found political protection in Russia. This was immediately followed by a series of changes in quick succession in Ukraine's sociopolitical system, including the installation of a new interim government, the restoration of an older version of the constitution, and the call to immediate presidential elections, which were held on 25 May 2014 and won by Petro Poroshenko.
After that political turmoil in Ukraine was further resulted in the annexation of Crimea by Russia with support of Russian military forces in March and April 2014. This was a heavy strike for the Ukrainian photovoltaic industry because approximately 50 % of all installed solar capacity in Ukraine is located in Crimea. All local and foreign investors immediately stopped their activities at Ukrainian PV market in such an insecure environment. On 2 April 2014 Energorynok has officially stopped purchasing electricity from photovoltaic power plants located in Crimea because they have been treated as part of the Russian territory.
The Ukrainian photovoltaic market's future will become vulnerable and difficult for forecasting in 2014 and 2015 because the political crisis is combined with the social and financial crisis, which should be resolved by the Ukrainian government.
More information about this market you may read here: Ukraine Photovoltaic Market: Outlook 2013 - 2018