From 2009 to 2019, electricity producers from renewable energy paid UAH 93,62 billion of taxes to the Budget of Ukraine.
According to the State Tax Service of Ukraine, renewable energy producers transferred UAH 93,62 billion to the budget for the past 10 years. Tax revenues from value added tax for 10 years amounted to UAH 57,43 billion, from tax on profit of enterprises – UAH 8,24 billion.
The structure of budget revenues from 2009 to 2019 by types of taxes:
Value Added Tax
Corporate Profit Tax
Individual Income Tax
|Land Tax||Special Water Use Fee|
|01.01.2010 – 01.01.2020|
57 437 112,90
28 235 710,53
3 591 662,14
1 438 022,55
In 2019, Renewable Energy Producers paid a record 19,77 billion UAH to the budgets of all levels. This makes the Renewable Energy sector one of the largest in terms of tax paid. For comparison, last year’s Сoal Generation provided three times less tax revenues to the State Budget than Renewable Energy. The amount of tax revenue from thermal power plants and combined heat and power plants amounted to UAH 6,55 billion in 2019. For 2019, Energoatom paid taxes to budgets of all levels of UAH 16.74 billion, and Ukrhydroenergo – UAH 3.23 billion.
In total, in 10 years, coal generation has brought almost twice less money to the state budget than the RES sector – UAH 48.24 billion.
The structure of budget revenues in 2019 by type of tax:
|As of||Value Added Tax||Corporate Profit Tax||Individual Income Tax||Land Tax||Special Water Use Fee|
|01.01.2020||11 682 494,06||6 172 104,32||863 245,25||349 004,34||17 792,12|
“Investors in RES are interested in mutual partnership with the state,” said Oleksandra Gumeniuk, director of the European-Ukrainian Energy Agency. – First of all, it presupposes strict observance of the law and the undertaken obligations. At the same time, investors in RES are interested in the stable operation of the power system and will help attract the necessary know-how, technology, financing of batteries and maneuvering capacity”.
“Billions of euros are invested in Renewable Energy every year. This is one of the few industries that help to raise funds in Ukraine, and not to withdraw them abroad. With the development of the industry, revenues to the state budget are growing, new jobs are appearing. This and the industry show the whole world that honest and modern business can exist in Ukraine”, commented Oleksandr Kozakevych, Chairman of the Ukrainian Association of Renewable Energy.
The Renewable Energy sector is one of the largest in terms of direct foreign investment. As of the summer of 2020, the share of foreign investors in the installed capacity of RES facilities will be more than 30%, and the size of the corresponding investments will reach EURO 2,5 billion. According to Bloomberg New Energy Finance, the total investment for 10 years is EURO 9 billion. The State Agency on Energy Efficiency notes that by 2019, UAH 3,7 billion was invested.
“RES has become the investment record of Ukraine because it has concentrated most of all foreign investors. The stable development of the renewable energy sector will ensure the receipt of even more foreign direct investment over the next two to three years and will go towards the modernization of the energy infrastructure, stated Alina Sviderska, Board Member of the European-Ukrainian Energy Agency, Business Development Manager at Scatec Solar. – The whole world is carefully watching the progress of the green tariff crisis in Ukraine. It depends on the solution of the crisis whether there will be a chance to confirm the best Ukrainian investment success story and in the future to attract investor funds to other sectors of the economy. ”