UKRAINE RENEWABLE ENERGY TRACKER
Solar energy
Solar power capacity will increase in 2024. Last year, around 800-850 MW of solar power plants (SPPs) were installed.
Wind energy
In 2024, two 5.5 MW wind turbines at Skole wind farm and two more 4.8 MW turbines at Ostrovsky wind park were launched.
Energy transition
Ukraine has established a new unit to implement better energy and climate policies that will drive economic development and EU integration — the Green Transition Office.
Investments in RES:
2,150,000,000 USD
Key sectors
In Ukraine, as of the beginning of 2024, the installed capacity of renewable generation facilities increased by 238 MW from the level of 2022 and reached 8773 MW. Currently, more than 1,000 companies operate more than 1,767 renewable energy facilities/installations in the sector.
Foreign investors already have about 1.5 GW of energy projects in development for Ukraine, but their implementation is possible only if they obtain insurance against military risks.
In 2024, MHP, an international food and agro-technology company, commissioned 18 MW of cogeneration plants and 15 MW of solar power plants for its own needs and plans to make a final decision on the construction of a 60 MW wind farm in March.
In 2023, Ukrainian businesses invested about USD 150 million in solar energy.
The Epicentr Group plans to enter into agreements to finance green energy projects to install solar power plants on about 3 million sq m of space. The amount of investment may exceed $200 million.
The total volume of green electricity production has not changed compared to 2022 and reached about 8 million MWh. The most significant drop in electricity production in 2023 was recorded at wind power facilities – by 43%, while other RES facilities increased production by 10-61%. In Ukraine, over 660 MW of new renewable energy capacities were commissioned during the 2022-2023 military years.
Key sectors
Energy storage
In December 2024, MHP, an international food and agro-technology company, connected, launched, commissioned, and tested all modes of operation, the largest industrial storage system, a 2 MW by 4 MWh energy storage system. The company plans to multiply it in 2025. This system makes it possible to have a very high level of energy security within the company.
Solar Energy
In 2024, approximately 800-850 MW of solar power plants were built in Ukraine at the expense of businesses and households. in 2024, state-owned banks of Ukraine approved loans for constructing 83 MW of solar power plants on the roofs of private households, which is an absolute record for the country for the entire implementation period of such projects. Before the full-scale invasion, 0.98 GW of on-grid SPPs up to 30 kW were built in Ukrainians' backyards to sell electricity to the grid at a feed-in tariff. Starting in 2025, businesses are expected to continue installing new SPP capacities and energy storage systems. In doing so, new mechanisms, such as active consumers and corporate PPAs (long-term contracts to sell electricity from renewable sources), will be actively used. The number of industrial projects is expected to increase in the second half of 2025.
Wind energy
In 2024, investors and developers prepared the largest number of wind energy projects in the last five years - 4 GW, which allows for the full implementation of the national RES development plan. Since the beginning of 2024, Ukraine has commissioned up to 20 MW of new wind farm capacity, including two turbines of 5.5 MW each by Eco Optima LLC and two of 4.8 MW at the Ostrovsky wind farm of Wind Parks of Ukraine LLC. In addition, 24 MW of used wind turbines have been imported into the country since the beginning of 2024. On December 20, 2024, the International Finance Corporation (IFC) of the World Bank Group signed documents to provide Concern Galnaftogaz with a $53.87 million loan to finance the construction of a 147 MW wind farm in the Volyn region and technical support. The RES sector expects stable payment for green electricity in 2025 due to the adoption of NPC Ukrenergo's transmission tariff, which considers most of the RES costs.
Innovations in green energy
In 2024, solar energy will be at the peak of its development, thanks to the introduction of the latest technologies. One of the most talked — about is the use of thin-film solar panels that can be installed on any surface, opening up many new opportunities for green energy production. Another promising technology is the use of artificial intelligence to optimise the operation of solar power plants. This can increase their productivity, reduce maintenance costs and ensure stable operation of the system.
Biomass
About 10% of buildings in Ukraine are heated with biomass, 10% with coal and 80% with gas. In 2020, biomass replaced about 5.2 billion m3 of natural gas, which is about 15% of total pre-war consumption.
Biomethane (biogas)
Ukrainian producers (two companies, VITAGRO and Gals-Agro) have already pumped the first million cubic meters of biomethane into underground gas storage facilities. In October 2024, the VITAGRO Group of companies with assets in the agricultural, energy, processing, construction and chemical industries, together with specialists from the Khmelnytsky branch of Gas Distribution Networks of Ukraine LLC, supplied biomethane to the Ukrainian gas transmission system for the first time from a plant with a capacity of almost 3 million cubic meters per year. This was to launch its export. Later, a plant of the Gals-Agro agricultural holding in the Chernihiv region with an annual capacity of 3 million cubic meters began to supply biomethane to the grid.
Green Steel
The cost of the medium-term green transition strategy until 2035 is almost $35 billion. Such investments will ensure the production of up to 15 million tonnes of green steel per year.
Energy Efficiency
Ukraine's 9.2 million residential buildings consume 28.4% of final energy and are far less efficient than EU buildings. Ukraine's energy efficiency investment needs to amount to USD 57 billion. Today, the Energy Efficiency Fund provides grant support to co-owners of multi-storey buildings in three areas. - Up to 70% of the cost of energy efficiency measures in multi-storey buildings — the Energodim Programme. - 70% of the cost of equipment and materials for the introduction of alternative energy sources (solar power plants and heat pumps) - the Greendim Programme. - 100% of the cost of restoring residential buildings damaged as a result of Russia's war against Ukraine — the RestoreHOME programme.
Title
Policies
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The declared key objective of the Energy Strategy of Ukraine is to turn Ukraine into an energy hub in Europe. Ukraine has ambitious plans to transform its energy sector through the development of renewable and carbon-neutral generation and by attracting investment in the energy sector.
Global Investments in RES
Global investment in energy-efficient technologies surged by 4% in 2024 and is on track to reach a record $660 billion. Investments in battery storage are ramping up and will exceed USD 50 billion in 2024.
The “green transition” is accelerating in Eastern Germany, with the share of wind and solar energy increasing. The Witznitz energy park consists of 1 million 100,000 photovoltaic panels covering an area of 500 hectares, which is about 700 football fields. The power plant’s capacity is 650 megawatts. For comparison, at modern nuclear power plants, the capacity of one power unit is usually between 1000 and 1200 megawatts.
Global energy investment is set to exceed USD 3 trillion for the first time in 2024, with USD 2 trillion going to clean energy technologies and infrastructure. Investment in clean energy has accelerated since 2020, and spending on renewable power, grids and storage is now higher than total spending on oil, gas, and coal.
The amount of wind and solar power being built in China is almost twice as much as in the rest of the world. Thus, the country is building 180 GW of industrial-scale solar power plants and 15 GW of wind power plants. The total capacity of all solar and wind power plants under construction in China is 339 GW. In the US, for comparison, it is 40 GW. It is worth noting that these figures take into account only SPPs with a capacity of 20 MW or more that are directly connected to the grid. However, small power plants account for about 40% of China’s solar capacity.
Grids have become a bottleneck for energy transitions, but investment is rising. After stagnating around USD 300 billion per year since 2015, spending is expected to hit USD 400 billion in 2024, driven by new policies and funding in Europe, the United States, China, and parts of Latin America. Advanced economies and China account for 80% of global grid spending. Investment in Latin America has almost doubled since 2021, notably in Colombia, Chile, and Brazil, where spending doubled in 2023 alone. However, investment remains worryingly low elsewhere.
trillions of USD
Development of local RES projects / Renewal of industry using renewable energy sources
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The development of local renewable energy projects can reduce the carbon footprint and contribute to the sustainability of Ukrainian communities.
Promoting the use of renewable energy sources, such as solar, wind and hydropower, at the local level will allow decentralization of renewable energy production, making it more affordable and beneficial for communities to generate their own electricity from clean and sustainable sources.
