newsEuropean companies implementing alternative energy projects, particularly in the wind power sector, consider the rule of “local content” requirement – settled by law #5485-VI, adopted by the Verkhovna Rada of Ukraine in November 2012 – the biggest barrier to their business developments in Ukraine.

They underline, however, that the problem does not lay in the “local content” requirement itself, but rather in the principles of its calculation, which were introduced by Law № 5485-VI, and which remain obscure to most European developers.

This point was particularly stressed by Mr. Peter Justin O`Brien, European-Ukrianian Energy Agency (EUEA)Member of the Board, and Regional Manager of EuroCape Ukraine as well as by Mr. Loic Lerminiaux, Head of West-Crimean Windplant LLC during the IV Adam Smith Ukrainian Energy Forum.

Yuri Kubrushko, Member of EUEA Wind Energy Working Group and General Director of Imepower, further stated that, apart from an unclear local component calculation principle, which “caught investors by surprise”, there are two other factors which restrain the development of renewable energy in Ukraine. The first is the lack of clarity within the rules governing access to the national grid; this is especially true in development-intensive areas where a number of players are present. The second is the issue of land allocation, although, according to Mr. Kubrushko, effective regulation of green energy development is an issue not only affecting Ukraine, but most European countries as well.

In general, according to developers, the Ukrainian one is a promising market for the development of renewable energy.

Read more (Russian).