The development of renewable energy is hindered by debts – expert.

The development of gas, solar, and wind generation in Ukraine continues, but its pace is far from the potential 'boom'. According to expert Adrian Prokip, problems with debts in the market and misunderstanding of business processes are slowing down the development of new players. Prokip comments on the situation with power outages in Ukraine.

Last year, new capacities were added in gas and solar generation, but this increase cannot be called a 'boom', despite the simplification of connection conditions and the commissioning of new installations, notes Prokip.

According to the expert, there are two main reasons that are slowing down the development. The first is the misunderstanding of business processes in the electricity market by non-core businesses. The second is the distortion of the business model due to debts in the market. Prokip reminds that last year the installed capacity of solar generation increased by 800 MW.

The increase in the latter was facilitated by the abolition of VAT and duties on the import of solar panels and equipment

In the expert's opinion, problems with incentives for wind energy have limited its development.

In 2024, Ukraine installed 44.6 MW of wind power plants, while in 2023 - 238 MW

However, according to Prokip, the parliament is preparing incentives that are expected to accelerate the pace of construction of wind generation facilities.

It should be noted that the analytical firm ExPro Consulting previously stated that the debt in the electricity market of Ukraine is a critical problem that significantly affects the development of the country's energy sector.