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According to the State Agency for Energy Efficiency and Energy Saving of Ukraine, at year-end 2013, the total installed capacity of renewable energy facilities grew by 81.7%, or by 539.1 MW, to 1.2 GW. This is up 50.6% year-on-year, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
According to energy market experts, investing in renewable energy continued to gain momentum in the last few years in Ukraine. Although the share of energy produced from renewable energy sources is not yet significant (0.7% of total generated electric power for 11 months of 2013), it will grow rapidly in the coming years.
Renewable energy sources other than large hydropower plants (wind farms, solar plants, biomass, small hydropower plants) produced 1.5 billion KWh, in 2013.
Experts associated the investors’ interest to renewable energy with the active stimulation policy of the government. They say Ukraine stimulates production of renewable electricity in the form of "green" tariff; taxation benefits; preferential mode of connection to the mains.
In accordance with the Law of Ukraine "On Electric Power Industry," the "green" tariff is a special rate to purchase electric energy generated at electric power facilities using alternative energy sources (other than blast furnace and coking gases, and among those using hydropower - just small hydro plants). The subject law defines a small hydro plant as a power plant that produces electricity by using hydropower, whose installed capacity does not exceed 10 MW.
According to Ukraine’s commitments as a member of European Energy Association, it is envisioned to bring the share of renewable energy in the general mix to 12% by 2020.
At the same time, the EC Directives establish that the share of renewable energy in the EU should rise to 20% by 2020. And the share of biofuels in transport fuels is expected to grow to 10%.
Experts note that Germany has the most revealing experience in the renewable energy sector in the EU. According to German Association of Energy and Water Industries (BDEW), the share of renewable energy sources such as wind energy, solar energy, biomass, and hydropower, in 2013 grew in Germany to 23.4% from 22.8% in 2012.