During the workshop “Solar Power Plants: Efficiency, Payback and How It Works”, the Chairman of the Committee Andriy Gerus told representatives of the largest retailers of Ukraine about the incentives provided by the state for the production of electricity from renewable energy sources.
Firstly, the Law on the Restoration and Green Transformation of Ukraine's Energy System was adopted, which, among other things, introduced a self-generation mechanism.
This mechanism allows consumers to install electrical installations that generate electricity for their own needs, while consumers will be able to sell unused electricity to their supplier for further use in the energy system.
This mechanism will provide incentives to install generation at the point of consumption.
“Most often, businesses build solar power plants to generate electricity for their own consumption, but each enterprise has a period of reduced consumption, and then they can take advantage of the opportunity to sell electricity to the grid,” said Andrii Gerus in his speech.
Secondly, state-owned banks, in particular Ukrgasbank and Oschadbank, have developed loan programmes to finance all types of green power plants.
Thirdly, after the liberalisation of the wholesale electricity market, owners of solar power plants have incentives to install energy storage facilities. Energy storage facilities make it possible to sell electricity at times when prices are higher.
“I believe that 2024 will be the year of investment and launch of energy storage facilities. Due to the fact that electricity will be cheaper during some hours and more expensive during others, SPP owners will install energy storage facilities to accumulate it during surplus hours and sell it during deficit hours. For the owners of energy storage, it does not matter what the price of electricity is, the difference between prices at different hours is important to them,” said the Chairman of the Committee.
Andrii Gerus noted that each new electricity generation and/or storage facility is an element of the distributed electricity generation network. The network of hundreds of small power plants will eventually help to increase the resilience and flexibility of the Integrated Power System and provide electricity to consumers under martial law.