About past, present and future of Ukraine

Search mobile

Main Business Ukraine faces challenges in rapid wind energy development due to lack of tax incentives

Business

Ukraine faces challenges in rapid wind energy development due to lack of tax incentives

233
Ukraine faces challenges in rapid wind energy development due to lack of tax incentives

Share this article

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.

The Odessa Journal
more articles

Top article

The Ministry of Defense has signed a contract for the construction of a service center for repairing drones in Ukraine
War

The Ministry of Defense has signed a contract ...

Dmytro Kuleba: Ukraine and Croatia have agreed to use Croatian ports for exporting Ukrainian grain
Business

Dmytro Kuleba: Ukraine and Croatia have agree ...

New sanctions: Defence industry, political parties and individuals linked to oligarchs
Business

New sanctions: Defence industry, political pa ...

Volodymyr Zelensky: We are preparing for the next Ramstein meeting, we expect solidly grounded decisions to meet the prospects on the battlefield
War

Volodymyr Zelensky: We are preparing for the ...