Prospects of development of publicly-owned roof solar power

Prospects of development of publicly-owned roof solar power plants in Ukraine

Maksym BabaevNECU

Why is it possible?

• Ukraine has legislative framework required for development of PRSP’s

Green tariff availability Clarified local component calculation methodology Regulated issues with construction on the roofs

• Perspectives for development of local market of appliance and materials

Potential of growth at internal solar market Presence of local producers Favorable conditions for local producers

Social interest

Increasing bills for electricity = looking for alternatives

Your own plant = independence from the common grid

Your own plant = controlling the process

Solar energy = “clean” energy

Construction

• No need to buy/rent the land for PV station

• More space is left free for other purposes

• The station itself is considered as a part of the building, has to pass the same, defined regulations.

What are the obstacles?Low level of awareness in society

Recent study of association “Alternative”:20% of Ukrainians are interested20% are not going to shift to alternativesOther 60% have no clear understanding

No trust in projects with significant initial financial input

Widespread ignorance

Legislation • Complicated and unclear procedures• Have to receive/apply for up to 40 documents

• Impossible to know whether you get GT before finishing the construction = high risks

• National committee on energy regulation looks at each case separately to approve it

• Regulatory acts for connection to common grid are very complicated and unclear. This part is dealt individually with local energy supplier (Oblenergo)

• Limited list of Ukrainian companies which are considered as good for local component

• Procedures depend heavily on type of ownership of future PV station

Local contentThe share of all materials, appliances, labor of Ukrainian origin,

used for construction of a power plant.

Current rate of raising the local content requirement is very high:•Till 01.07.2013 – 15%•01.07.2013 – 01.07.2014 – 30%•Later – 50%

Dangers:•Local market is not yet developed to provide enough technologies•Can confront Ukraine’s international obligations (WTO) and internal laws

Type of plantTariff before

31.03.2013 01.04.2013 - 31.12.2014

01.01.2015 - 31.12.2019

01.01.2020 - 31.12.2024

01.01.2025 - 31.12.2029

Solar on roofs more than 100 KW 0,44588 0,34895 0,314053 0,27916 0,24426

Solar on roofs less than 100 KW 0,42649 0,35864 0,322777 0,28691 0,25105Solar on roofs less than 10 KW - 0,35864 0,322777 0,28691 0,25105

Green Tariff values go down

Conclusions1. Ukraine has a potential and legal framework for development

of private solar power plants

2. Gov’t should support such development:• Local market growth• New jobs• Environment• Energy safety

3. Much more has to be done:• Improve (simplify) GT approve procedure• Measures for market development• Local content requirement reduction• Information campaign and awareness raising for support of

renewables

Thank you for your attention!