Improving the Feed-in Tariff Policy for Renewable Energy Promotion in Ukraine’s Households

Tetiana Kurbatova, Iryna Sotnyk, Olha Prokopenko (), Iryna Bashynska and Uliana Pysmenna
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Tetiana Kurbatova: International Economic Relations Department, Sumy State University, 40007 Sumy, Ukraine
Iryna Sotnyk: Department of Economics, Entrepreneurship and Business Administration, Sumy State University, 40007 Sumy, Ukraine
Olha Prokopenko: Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, Estonia
Iryna Bashynska: Department of Enterprise Management, AGH University of Krakow, 30-059 Krakow, Poland
Uliana Pysmenna: Department of Economics and Entrepreneurship, National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”, 03056 Kyiv, Ukraine

Energies, 2023, vol. 16, issue 19, 1-18

Abstract: This paper deals with improving the feed-in tariff policy for green energy advancement in Ukraine’s households based on assessing the economic efficiency of investment project implementation under the current state support mechanisms. This study was conducted for solar and wind power plants with different installed capacities. The Levelized Cost of Electricity and the payback period for such power plants were calculated considering the ongoing feed-in tariffs and discount rates determined by various equity and debt capital ratios. The results showed that the state support provides attractive payback periods for solar and wind power plants with an installed capacity of ≥30 kW. In comparison, 5 kW solar power plants and wind power plants with a capacity of up to 10 kW are not paid off during the power plants’ lifecycle. It confirmed that the ongoing energy policy in Ukraine’s residential sector is still designed to obtain profits by the owners of generating facilities by selling the excess electricity. In the meantime, its main goal—providing households energy independence—has been levelled. To resolve the issues caused by such a state support model, a methodical approach to improve the feed-in tariff calculation is proposed. In addition, recommendations for reconsidering other policy measures to ensure effective renewable energy development in the residential sector have been made.

Keywords: renewable energy; the feed-in tariff; investment; solar power plant; wind power plant; energy policy; households; Ukraine (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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