The retention of VAT and import duties on wind energy equipment imports to Ukraine is significantly slowing the development of this sector, at a time when the country desperately needs new energy capacity. The Ukrainian Wind Energy Association (UWEA) reported this to the international industry media Windpower Monthly.
The association highlights that if the government does not include key components of wind turbines in new tax incentives, it could severely impede project implementation in war-affected Ukraine and "unintentionally support Russia."
"Such actions inadvertently assist Russia, the only country that officially views the development of wind and renewable energy as a threat to its national security," said UWEA.
Due to their large size, wind turbines are imported in disassembled form, with each component subject to different regulations. Ukraine has very limited domestic wind turbine manufacturing capabilities. Investors are concerned that the development of wind power plants could slow down significantly and become more expensive without the necessary tax incentives.
According to Windpower Intelligence, the analytical division of Windpower Monthly, Ukraine is currently developing projects with a total capacity of 3 GW, expected to be operational between 2024 and 2031.