IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-01-17.html

Experience and Prospects of Financing Renewable Energy Projects in Ukraine

Author

Listed:
  • Galyna Trypolska

    (Department of Sectoral Forecasts and Market Conditions, SO Institute for Economics and Forecasting, UNAS, Ukraine,)

  • Oleksiy Riabchyn

    (Energy and EU Green Deal Advisor to Deputy-Prime Minister for European and Euro-Atlantic Integration of Ukraine, Cabinet of Ministers of Ukraine, Ukraine.)

Abstract

The study examined the experience of financing renewable energy projects in Ukraine. Renewable energy is one of the tools to enhance decarbonization and meet the obligations taken within the Association Agreement between Ukraine and the EU, and under the Paris Agreement. Ukraine has factors impeding the investments, resulting in a high cost of capital. Overall, there are five main options of financing theoretically available: lending, primarily with the aid of international financial institutions; funding of renewable energy projects by municipalities; voluntary associations of citizens; securities; irrevocable financial assistance. The future instruments include securities and a recently announced mechanism to finance renewable energy projects in the frame of the Green Deal. The most expansive spread option for funding renewable energy projects was lending with the help of international financial institutions. Due to the bilateral electricity market transition of Ukraine in 2019, Ukraine failed to found a model for sustainable financing of electricity from renewables, resulted in the accumulation of significant debt with the feed-in tariff payment. This fact hinders the planned and potential future investments until a sustainable model of financing is found.

Suggested Citation

  • Galyna Trypolska & Oleksiy Riabchyn, 2022. "Experience and Prospects of Financing Renewable Energy Projects in Ukraine," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 12(1), pages 134-143.
    • Handle: RePEc:eco:journ2:2022-01-17
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijeep/article/download/11999/6198/29458
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijeep/article/view/11999/6198
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sokolova, Tetiana & Sushchenko, Oleksandr & Schwarze, Reimund, 2019. "Roadmap for a Green Financial Policy in Ukraine under the EU Association Agreement," UFZ Discussion Papers 6/2019, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    2. repec:wbk:wbpubs:32436 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Viktoriia Myronchuk & Oleksandr Yatsenko & Dmytro Riznyk & Olena Hurina & Andrii Frolov, 2024. "Financing Sustainable Development: Analysis of Modern Approaches and Practices in the Context of Financial and Credit Activities," International Journal of Economics and Financial Issues, International Journal of Economics and Financial Issues, vol. 14(5), pages 317-329, September.
    2. Man Zhou & Uliana Pysmenna & Oleksandra Kubatko & Volodymyr Voloshchuk & Iryna Sotnyk & Galyna Trypolska, 2023. "Support for Household Prosumers in the Early Stages of Power Market Decentralization in Ukraine," Energies, MDPI, vol. 16(17), pages 1-15, September.
    3. Viktor Koval & Piotr Olczak & Mira Hakova & Mykhailo Bilyi & Dmitry Kretov & Olga Laktionova, 2023. "Analysis of Financial Outsourcing Management in Regional Environmental Systems," Sustainability, MDPI, vol. 15(15), pages 1-24, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Uwalomwa Uwuigbe & Damilola Felix Eluyela & Bankole Olajide Martins & Olubukola Ranti Uwuigbe & Saidu Musa, 2024. "A Bibliometric Analysis of Green Financing and Renewable Energy Research for 2000-2023," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 14(5), pages 26-34, September.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-01-17. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijeep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.